Tips for your first credit card Tips for your first credit card

All you need to know before getting your first credit card

There are cards specifically made for credit newcomers, and you can get them even with bad credit. Here's a guide about how credit cards work and how to make the most of them

If well managed, credit cards are a great tool to build your credit score and to help with your personal finances. Credit cards offer rewards, cash back, and other perks. But they can also charge interest or fees to your payments. When you use a credit card, be aware to pay off your balance on time, and try to avoid using it to pay something that you can't afford. You'll end paying a lot for this financing and it may affect your credit score

The first time you sign up for a credit card, you should go for a secured credit card that requires a cash deposit in order to strengthen a small line of credit. These cards are the easiest to get approved for. They require an initial cash deposit to secure a line of credit that is typically for the same amount. So, if you want to secure a $700 line of credit, you'll be asked to put down a cash deposit of $700.

On the other hand, if your FICO credit score is at least "fair," or above 580, you may qualify for a consumer's credit card with average credit. You can start with a secured card, and once you've gained some user’s experience, upgrade your status with this one. 

As your credit card management is bound with your credit score, take into account that you should avoid any debt. Credit cards accept a minimum payment, and you could take this option in an exceptional case. But it's recommended to stay clean in order to care for all your credit balance.

You could get more than one credit card, which sounds great in order to get more financing. Before taking this step, make sure that you can do all the payments on time. If not, you can end suffering a snowball effect of a mountain of debts. 

Once you've got excellent credit, and your FICO score is above 740, you can start looking for other credit cards, for example, rewards and travel credit cards. You'll find plenty of good options if you want to take advantage of its perks to travel, get rewards and interesting discounts!  

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