Credit cards are a great way to build a credit history and take advantage of certain benefits, but it can be difficult to know which one is best for beginners. With so many different credit cards available, it can be overwhelming to decide which one is right for you. Fortunately, there are a few key factors that can help you narrow down your choices.
When choosing a credit card, the first factor to consider is the interest rate. Many cards offer introductory rates that can be beneficial for those just beginning to build credit. It’s important to be aware of the terms of the introductory rate and to understand that the rate may increase after the introductory period. Additionally, you should pay attention to annual fees, as some cards may have higher fees than others.
Second, consider the benefits of the card. While some cards may offer rewards or cash back, others may offer other perks such as travel rewards, discounts, or even access to special events. It’s important to look for a card that offers benefits that fit your lifestyle and spending habits.
Third, consider the credit limit. When selecting a credit card, it’s important to make sure the limit is appropriate for your spending habits. Many cards have a minimum credit limit, and if you have never used a credit card before, it may be beneficial to start with a lower limit card. This will help ensure that you don’t get in over your head with debt and will help you build good credit habits.
Finally, be sure to read the terms and conditions of the credit card before applying. This will help you understand the fees and other costs associated with the card and will ensure that you understand the agreement you are entering into.
In conclusion, choosing a credit card for beginners can be a tricky process. By considering the interest rate, benefits, credit limit, and terms and conditions of the card, you can make an informed decision that will help you build good credit habits and take advantage of certain benefits.
• Consider the interest rate
• Consider the benefits of the card
• Consider the credit limit
• Read the terms and conditions
People Also Ask Questions and Answers:
Q: What is the best credit card for beginners?
A: The best credit card for beginners will depend on the individual’s spending habits and lifestyle. It’s important to consider the interest rate, benefits, credit limit, and terms and conditions of the card before making a decision.
Q: How can I build good credit habits?
A: Building good credit habits involves making payments on time, staying within your credit limit, and monitoring your credit report. Additionally, it’s important to use credit responsibly and only borrow what you can afford to pay back.
Q: What is the average credit limit for a beginner?
A: The average credit limit for a beginner will depend on the individual’s credit score and other factors. Generally, credit limits for beginners tend to be lower than those for more experienced cardholders.
Which credit card is good for beginners? – Review
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The Apple Card is extremely user friendly. It has a very clean user interface and is managed entirely from the wallet apple on your iPhone. The best thing about applying for the Apple Card is the fact that apple will let you submit the application to see if you’re approved without have a hard pull done on your credit report.
The Apple credit card allows the card member to earn Daily Cash Back at varying rates between 1-3%. The worst way to use the Apple Card is to literally use the Apple Card. Seriously using the physical titanium card only earns you 1% cash back on all transaction, but using Apple Pay instead earns the user 2% cash back. The Apple Card also earns 3% cash back in select categories again when using Apple Pay.
Citi Double Cash
The next card on the list is going to be there Citi Double Cash card from Citi Bank. This card earns 1% when you buy and another 1% when you pay making this a flat 2% cash back card all for no annual fee.
The double cash card isn’t offering a welcome offer but when you apply and are approved, your first 18 months of card membership you will have 0% APR on your card. This is a great benefit but remember just like with the Apple Card be careful to not carry to high of a balance in comparison to your overall utilization rate. Your goal should be to keep utilization less than 20% at all times. Less than 10% is the best however.
Discover It Cash Back
The Discover It Cash Back earns 5% cash back on everyday purchases at different places each quarter such as Amazon, grocery stores, resataurants, gas stations, and more. Each quarter there are new 5% cash back categories and you can earn the full 5% back on up to $1,500 spend in each quarter. If you maxed out the 5% cash back categories each quarter tat would equate to you earning $75 back each quarter or $300 in year 1.
But the awesome part about about getting this card is what Discover calls the Cash Back Match. After your first year of card membership, discover will match 100% of the cash back you earned. So essentially if you earned $300 in year one then after that first year discover will give you an additional $300. There is no cap on how much you can earn and how much can be matched. It is all based on how much you spend
The Cash Back match means that you’ll be effectively earning 10% cash back in the 5% categories and 2% back on everything else in your first year of card membership.
Chase Freedom Flex
The Flex is currently offering 0% APR for the first 15 months of card membership. Just like with the other cards in this list offering similar 0% APR, be cautious how you use this. And of course this card also has no annual fee.
Citi Custom Cash
The Citi Custom cash is a 5% cash back credit card like he Discover It and Freedom Flex, but instead of relying on quarterly rotating categories, YOU are in charge of deciding which category you want to earn the 5% back in. Each month, whichever category out of these listed on the screen that you spend the most in, you will earn 5% cash back on up to the first $500 in spend. All other spend will earn you 1% cash back.
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The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.