I am a a first time credit card holder. What are some things I need to know about this? (ie. low apr or no annual fee, spending limits, etc.)
2007-02-08 07:55:39 · 9 answers · asked by Anonymous in Business & Finance ➔ Credit
I'm assuming you're already a cardholder, which means you've picked a card without finding out about it first, which would've been your first mistake.
In general, you want to find a card that has a low APR (preferably 9% or less), no fees for holding the card (or fees that allow you benefits that you feel are worth paying for) and a credit limit that's acceptable.
Generally, as a first time credit card holder, you're going to be offered the opposite of all of these, meaning high APR, fee-laden cards with small credit limits (or overly large ones to entice spending); making you a highly profitable customer to credit card companies.
May I suggest you read more about credit cards on the web, such as Motley Fool's Credit Center: http://www.fool.com/ccc/ccc.htm?source=PFinAg
Other than that, start with something with a low credit line (around $300), pay your bills on time, and don't fall into the credit card debt track like so many before you.
2007-02-08 08:13:56 · answer #1 · answered by sciencevampire 1 · 6⤊ 0⤋
As a first time card holder, you'll most want a card that offers low apr (preferably 9% or less), lots of perks, & can be used almost anywhere. This is especially true if a college student or you travel a lot more than average. Fraud protection is nice also, esp. if you're leery of using it online.
Get the payments in on time, keep your balance low, & avoid big purchases unless you've got the money to cover it. Skip airline miles unless you travel via plane more than average as it's unneeded. Also keep track of your credit score & credit history as those will make a huge difference.
2007-02-09 03:19:44 · answer #2 · answered by boblangsux 5 · 2⤊ 0⤋
Low apr means low annual percentage rate. It is the amount of interest you are going to pay on your purchases. If this is your first card it will be difficult to get a low rate. But that's ok. Put some purchases on it. Pay it. Use it wisely! In several months, if you have done well, you can call them and ask for a lower rate, tell them another company is offering you a lower rate. Often, they will be willing to compete and lower it.
Here is my best advice...Do Not Screw This Up...Credit is so important for the rest of your life...Really, make sure you pay on time, don't go over the limit, don't buy what you can't afford. It isn't free money.
2007-02-08 08:01:43 · answer #3 · answered by mq1229 3 · 5⤊ 0⤋
Pay it off every month. People tend to use credit cards all the time then you have a hard time paying it and keeping up. Use you're credit card for emergency use only or when you need it to reserve a hotel for vacation. I am 28yr old single mother. I am building my second home and have a rental home, a nice car etc. You have keep you're credit score as high as possible. You have to have good credit to get anything. So don't over do it since you got you're first credit card and remember you may not be paying for it right now but you do have to pay for it when that bill comes. And don't just pay you're minimum payments cause they never get payed off that way it just pays the interest.
2007-02-15 02:38:26 · answer #4 · answered by Shorty 2 · 4⤊ 0⤋
Today on line approval is fast and easy. There are numerous web sites competing for your application. You can use this competition to your favor to acquire a credit card with low interest rates and bonus features for usage. If you need a credit card for quick cash, major purchases or even as a means of identification you will enjoy the credit card as long as you are the one that the card works for never fall so far in debt that you work for the credit card.
get tips about credit card use at: http://www.card-gallery.com/article
2007-02-11 19:55:16 · answer #5 · answered by grierGRIER h 3 · 0⤊ 3⤋
The best advice I have for a first time credit card holder is to cut that thing up before you are tempted to use it. I'm sure that is unlikely so the 2nd best advice I can give you is to only charge what you can afford to pay off when the statement comes.
2007-02-14 20:38:48 · answer #6 · answered by User103443 3 · 0⤊ 3⤋
The big thing thees days is fraud protection.Is it available to you ? Look also for rewards that you can actually use .Forget about air miles.
2007-02-08 08:01:48 · answer #7 · answered by rich11 2 · 4⤊ 0⤋
be careful credit cards can get you in a world of trouble... make you payments on time. They can finical make you or brake you...
2007-02-16 06:44:09 · answer #8 · answered by Amber 1 · 0⤊ 1⤋
Yes, you've named it. All that is what you need to check for on the disclosure.
2007-02-08 07:58:44 · answer #9 · answered by tabby90 5 · 0⤊ 4⤋