How to Choose Your First Credit Card

TORONTO, February 24, 2021 (Newswire.com) - Getting your first credit card is a big step in your financial life. Credit cards can help you establish a good payment history, build your credit, and earn rewards.

There are many great credit card options out there, from travel rewards cards to cash back cards. But before you start the application process, you should do some research so that you can choose the right card for your spending habits and goals. Here are some steps you can take to find the best credit card for you.

1. Check your credit score

Checking your credit score is the first thing you should do in the process of getting your first credit card. Credit card issuers will look at your score when deciding whether or not you qualify for a card. Your credit score can also affect what your credit limit and interest rate will be. If you have a positive credit history and score, you may get approved for credit cards with lower interest rates and higher credit limits.

Credit scores range from 350 to 800, or poor to excellent. Your score can vary based on a number of factors, including your payment history and how much money you owe. You can check your credit score for free once a year from the three major credit bureaus: Equifax, Experian, and TransUnion.

2. See what credit cards you qualify for

Now that you know your credit score, start doing research to find credit cards you'll qualify for. If you have a good credit history and a full-time job, then you'll likely get approved for a standard credit card. But if your credit score is poor or you don't have one yet, there are still ways you can get approved for a card and start building up your credit history:

• Become an authorized user: You can be added to a family member or friend's credit card account and get an additional credit card in your name.
• Get a co-signer: Consider signing up for a credit card account with a parent or someone else in your life that has a good credit history.
• Get a secured credit card: A secured credit card lets you make a security deposit for your credit limit and borrow money against your deposit. You'll get your deposit back when you close your account.

3. Compare credit card options

Once you figure out what credit cards you can qualify for, compare your options and figure out what you want out of your first card. Travel rewards credit cards, for instance, are a good fit for credit card users that travel often, while cash back cards can help you get some extra money back from everyday purchases. You should also think about other features you'd like in your credit card, like a sign-up bonus, no annual fee, or 0% into APR.

Choosing your first credit card may seem daunting since there are so many to choose from. But if you do your research, you can find a card with the right perks and rewards for you. Just remember to use your credit card responsibly so that you can build up a good credit history. This will eventually come in handy when you want to get a mortgage for your first home, finance your first car, or reach another financial goal down the line.

Source: iQuanti, Inc.