Getting your first credit card is akin to an ancient tribe’s right of passage symbolizing a child’s transition to adulthood. Rather than facing the fear of darkness and the wild, the modern adolescent will face the responsibility of learning the fundamentals of credit and debt management.
At the initial stage, it is important to first identify the type of credit card that is right for you. Bank credit cards may not be a feasible option for first time credit card applicants, especially when they do not have the credit history to show for it. However, if you have been a depositor in the bank for a few years, it may be worth your time to speak to your bank officer about their credit card offers.
Since credit history is important before a regular credit card may be issued to first time applicants, you may start establishing your own credit card history through secured credit cards. An initial deposit is required to cover the amount of your credit limit. If you fail to pay within a pre-determined period and upon notice, your outstanding balance will be applied against your security deposit. This option is recommended for your first credit card, because they are easy to acquire and they will help you learn the basics of debt management by avoiding maxing out your credit limit without the money to pay for it.
Once you have determined which type of card best suits your personal needs, the next step is to make credit card comparison of the different kinds of credit cards falling under the same category of your choice. Find out which card offers the best deals by identifying which one offers the lowest annual fees, APR’s, late payment fees and other applicable charges. A good rewards card, intended for students or young adults, is also worth checking out to make the most out of every dollar you spend using your first credit card.
Once you have your first credit card, strive to benefit from it by cultivating good credit practices rather than commencing a cycle of a debt-laden lifestyle typical of many adult cardholders nowadays. It pays to always remind yourself of the consequences of poor debt management. Put a cap on your unnecessary purchases and make sure to pay your entire balance every month. Avoid the temptation of maxing out your credit card by recalling that your purchases are not for free and you will be responsible for their payments at the end of every month.
