Finding Starter Credit Cards
Thanks to the CARD Act, finding starter credit cards isn’t quite as dangerous as it used to be. However, the process to finding the best starter credit cards can still be difficult unless you know the right steps. Consider these:
Annual Percentage Rate (APR): Make sure you shop around when trying to find the best APR. If you are a student, or just starting to build credit, you will probably pay a higher interest rate- but check around online to compare. Credit card companies will often try to lure you in with attractive “0% APR for the first x amount of months” offer. Remember that it’s the regular APR, not the introductory APR that can hurt you, so read the fine print.
Credit Building: Check to see that your credit card reports to all major credit bureaus, and start building credit slowly. Only plan to put small, regular purchases on your card that you can pay off by the end of the month. Consider starting with a cell phone plan, or gas stops, and charge these to your card. Don’t make large purchases that can hurt your credit building potential.
Fees: Read the fine print for any annual fees associated with the account. Because starter credit cards carry higher risk for financial institutions, they often have a small fee associated with the card. If you can, find a card that does not have any annual fees.
Rewards: If it’s rewards you’re looking for, why not consider using a debit card rewards program? Perkstreet is a debit card account that pays rewards based on debit only, assuring that you will not accrue risks with credit. If you do use a credit card to earn perks, be aware that perks programs typically carry some sort of annual fee.
T obtain your first credit card, you will have two options- either use a co-signer to establish credibility for a higher line of credit, or secure the card with a small amount of cash to help defray the risk that the credit company is taking on you. Make sure that you understand all terms of the agreement, and can explain what all of the associated vocabulary (for example, APY, finance fees) mean before you create an account.
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Tagged with: best starter credit cards • good starter credit cards • starter credit cards • starter credit cards for bad credit • starter credit cards for people with no credit
Filed under: Credit Cards • Debt Recovery
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