These days, having a credit card is a necessity. It is safer and more convenient than bringing cash with you, and a lot of establishments only honor cashless transactions. Credit cards are also a must if you want to purchase items online — from make-ups to plane tickets. Going cashless and shopping online has become the best way to find best deals for basically anything under the sun.
It may seem daunting to apply for and get a credit card for the first. But it’s easy. Here’s what you should know on How to get credit card deals for the first time:
How Credit Cards Work?
Of course, it’s important to understand how it works. Credit cards are plastic cards issued by banks and other financial business that allow their holders to buy items on credit. Sometimes, the card can be used to take out a small cash loan.
Essentially, when you use your credit card, it’s like taking on a short-term loan.
Requirements for getting a credit card include a social security number, a source of income, and a permanent residence. You also need to be 21 years old and older (or 18 years old, but with parental consent and/or a source of income) and a positive credit history.
Having a credit history and a credit score — your proof of responsible repayment — that you are capable of responsible repayment of credit — can be an issue for first-time credit card applicants. To get credit score, you need one account that’s been open for at least six months.
Here’s a good question: How to get credit card deals when you can’t even get a line of credit in the first place?
But there are several options for a young applicant.
First-time applicants can get a secured credit card — an account that is required to be backed by an existing cash deposit that is equal to the credit card’s limit. The deposit serves as a collateral for the credit; unlike a debit card, the deposit in a secured credit card is not depleted when you use the card for credit.
You can also establish your credit history by getting a co-signed credit card, an account that you hold with another person (ideally a family member). If you fail to pay your credit card bill, your co-signer is held liable for your credit.
Both lines of credit will report your credit activity to credit bureaus, giving you a credit history and, in turn, a credit score that will allow you to have an unsecured credit card account.
Of course, in order to deal with how to get credit card deals, you need to have good credit history. And you can attain this by using your credit line wisely.
Even with a secured credit card, you need pay on time and, as much as possible, pay for your credit card balance in full in order to avoid debt. Check the minimum amount you should pay in order to avoid accumulating interest on your account.
If you all of this, in six months, you should have good credit history, giving you more freedom to acquire the best credit card deals.
How to get credit card deals isn’t really the real game. What matters is how you manage using it to your advantage. Check out some personal finance advice at https://www.consumer.ftc.gov/articles/0205-using-credit-card.
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