First-time credit card seeker? We know, just the idea itself sounds really good, but our recommendation is to not hurry at all. Not until you are aware of a few very important aspects, that is!
Below you can find a short list with some of the essential things you should be aware of before applying for your first credit card!
Examine your credit history
Simply put, the details about your credit history are recorded by credit bureaus in a credit report, then summarized by a credit score, a three-digit number. The higher this score, the more reliable and trustworthy you will look as a borrower.
A credit card issuer will always check your score before handing you the card. And if you are reliable enough the obtain your first credit card, then you have an opportunity to improve your credit score. As long as you pay your bills on time, of course.
Learn how to read the Schumer box
A Schumer box includes vital information about your first credit card and it’s essential to read it before applying for your first credit card.
To be more specific, you can find out about the annual percentage rate, the method used to determine the interest you own, the number of days in the billing cycle, costs of flat annual fees, penalty fees, as well as transaction fees.
Understand the basics of a credit card
We know, this may sound ridiculous from a point of view, but the truth is that a lot of people don’t completely know what applying for a first credit card involves.
We strongly recommend doing some research prior to applying and learn about how such card work, how it’s different from other types of electronic payment, credit limits and the consequences involved if the trust of repayment is broken. Knowing all these and fully understanding them will help you avoid any potential problems in the future!