How to Pick Up Your First Credit Card From Many Offers
Every credit card company wants to offer attractive deals to students.
You will be showered with lots of email and tons of brochures.
It is necessary to pick up a credit card which is just right for you.
The following tips will be of help: 1.
Select an appropriate credit card company - You should never go for a small local bank.
Always go for a national level credit card company.
It will be good for all your future financial needs.
These companies will submit your details to all three major credit reporting bureaus.
2.
Always look for cards charging no application fee or any other upfront fee.
These fees will eat out much of your available balance.
3.
Look out for the interest rate charged by the card company.
Typically companies charge 14 per cent to 17 per cent interest on student credit cards.
You should prefer the offer which has the lowest introductory rate and future APR lower than 16 per cent.
With many offers, the rate steps up very high after a few months.
4.
Read the agreement carefully - When you get your card, you will receive full agreement in mail.
Make sure that this agreement reflects your expectations about the rate of interest, spending allowance and fee structure.
There may be some fine print on the rate of interest or fees.
5.
You should also look out for the grace period - it is the time you get to pay your balance every month.
Normally card companies offer grace period between 21-30 days while a few may not allow even a single day! 6.
Many card companies offer attractive rewards.
But you will need to see whether your spending pattern can generate enough reward points.
Also such rewards should not compromise other benefits available with the card.
7.
Never even think of approaching to the sub-prime card vendors.
They will attract you with some big upfront benefits and later their fees will erode majority of your credit limit.
You can also do some on-line research and get some comparative data before you take your decision.
Getting your first credit card appears to be very easy task while filling the application.
But later on you should not have any regrets.
You are taking up a financial responsibility while applying for the card and you need to understand its full implications.
You will be showered with lots of email and tons of brochures.
It is necessary to pick up a credit card which is just right for you.
The following tips will be of help: 1.
Select an appropriate credit card company - You should never go for a small local bank.
Always go for a national level credit card company.
It will be good for all your future financial needs.
These companies will submit your details to all three major credit reporting bureaus.
2.
Always look for cards charging no application fee or any other upfront fee.
These fees will eat out much of your available balance.
3.
Look out for the interest rate charged by the card company.
Typically companies charge 14 per cent to 17 per cent interest on student credit cards.
You should prefer the offer which has the lowest introductory rate and future APR lower than 16 per cent.
With many offers, the rate steps up very high after a few months.
4.
Read the agreement carefully - When you get your card, you will receive full agreement in mail.
Make sure that this agreement reflects your expectations about the rate of interest, spending allowance and fee structure.
There may be some fine print on the rate of interest or fees.
5.
You should also look out for the grace period - it is the time you get to pay your balance every month.
Normally card companies offer grace period between 21-30 days while a few may not allow even a single day! 6.
Many card companies offer attractive rewards.
But you will need to see whether your spending pattern can generate enough reward points.
Also such rewards should not compromise other benefits available with the card.
7.
Never even think of approaching to the sub-prime card vendors.
They will attract you with some big upfront benefits and later their fees will erode majority of your credit limit.
You can also do some on-line research and get some comparative data before you take your decision.
Getting your first credit card appears to be very easy task while filling the application.
But later on you should not have any regrets.
You are taking up a financial responsibility while applying for the card and you need to understand its full implications.
Source...