The Things you need to k now before you get a credit card

Getting your first credit card is a significant life event, but it also comes with many changes. Even if you think you understand how credit cards work and how to use one properly, there’s a lot more to it than meets the eye. You’ll save money and speed up the process of building good credit if you know the ins and outs before you start shopping around.

The most significant credit cards aren’t meant for people just starting with credit card debt for social security card issuing authority.

A newbie to credit may not be eligible for the most desirable credit cards, such as those with generous rewards and benefits, large sign-up bonuses, or long periods of 0% interest. Only applicants with excellent or exceptional credit (scores of 690+) and extended credit histories, as well as those who fulfill certain income restrictions, can apply for these top-tier goods.

With your first credit card, you’ll most likely have to go with a product designed for persons with bad credit or no credit history at all. Even yet, there’s some good news: a lot of these cards provide good rewards and don’t have annual fees. Here are a few possibilities to consider:

Credit cards for college students, sometimes known as student cards or dorm cards.

A credit card needs to be secured with a deposit of cash.

A credit card for which you have already been pre-qualified, either through your bank or through the pre-qualification page on NerdWallet or other comparable resources.

Here’s where you can find it.

See which credit cards will give you the most cash back, rewards, and other categories in 2021. All of this is supported by a ton of academic study.

Putting down a security deposit makes it simpler to obtain a credit card.

Getting approved for your first credit card can be difficult if you have a poor or no credit history. In this case, you may want to consider a secured credit card.

Those with bad or no credit can benefit from secured credit cards because they are explicitly intended. If you want to open an account, you’ll have to deposit some sort. It’s common for your credit limit to be the same as your deposit. Minimum deposits range from $200 to $500, depending on the credit card—minimum deposit requirements. A more significant deposit is usually required for a higher credit limit on secured cards.

If you are behind on your payments, you risk losing your security deposit. However, if you pay your bills on time and keep your spending within the card’s credit limit, you will quickly build solid credit. Your issuer may then upgrade your account to a regular unsecured card, or you may then apply for an unsecured card and close your secured card while you’re still in good standing. Your money will be returned to you in either situation.

 Prepaid debit cards differ from secured credit cards because they can’t be used to make purchases.

In the case of prepaid debit cards, funds are loaded into the card before being used for purchases. The use of a credit card does not have any impact on your credit score. While charges aren’t deducted from your security deposit when you use a secured credit card, the activity on the card does impact your credit score.

When it comes to credit cards, your first one might help or hurt your score.

Getting your first credit card is a great way to improve your credit score. It can, however, have the reverse effect if you’re not careful. Everything hinges on your actions.