How To Choose Your First Credit Card

Having a credit card brings a lot of advantages. For some, they use it to pay for huge purchases, such as car and house and lot. For some, they use it as an alternative to cash.

Getting for your first credit card can be quite confusing since there are hundreds of credit cards available in the market. So, how will you know which one is right for you?

We listed some tips on how to select your first credit card.

• Know your lifestyle
  Different credit cards offer different benefits. Know your lifestyle to be ableidentify the best card that suit your needs.Do you love to go shopping? Are you a frequent flyer? Most of the credit cards cater to these kinds of benefits. Some may combine one or two benefits, such as cashback or air miles. Determine your lifestyle so you can get the most out of your credit card.
• Compare different card providers
  Each credit card providers has different set of credit cards to choose from. Make sure to compare each provider to see which one has the best set of cards and benefits.Some of the things that you must consider: annual fees, interest rates, late payment fees, and other charges.
• Review credit card benefits
  As mentioned above, each credit card carries specific features. Here’s a list of things to look for in your first credit card:
  -No annual fee
  One of the fees associated with creditcard is the annual fee. This fee is the amount you pay in exchange for all the benefits and perks you get from your card.As with your first card, look for one without annual There are credit cards that have a lot of rewards but don’t charge annual fee. Look for these cards.

  -Variety of perks 
  Some cards have air milesperks, some have cashback and rebates benefits. To make the most out of your first card, look for a card that has a variety of benefits.

  -Interest rates and charges
  Apart from annual fees, amounts that you need to consider are the interest rates and other charges.

  Interestrate is the amount charged if the cardholder fails to pay the balance before the due date.

  Look for cards that have a low interest So, in case that you have a balance, you won’t be dealing with higher interest rates.

• Understand the billing cycle
  Since this will be your first card, understand the billing cycle of the provider you will be choosing.Familiar yourself with the terms, such as cut-off date, due date, installment, and credit limit. This will enable you to handle your card efficiently.
• Read the fine print
  Every credit card company has its own terms and conditions. Before signing in, review carefully the agreement so that you can manage your card efficiently.

  Make it a habit to review the agreement every now and then to refresh your mind from your card provider’s terms and conditions.

  A good credit card can help you build a solid credit profile. So, make sure to get the right card for your needs.