Having a credit card can help you organize your spending and allow you to purchase things when you don't have cash. If you don't have a credit card yet, then it's time to get one! Plus, find out how to make the best out of some special credit card perks.
Using credit cards may be helpful during those times you don't have any cash or even to purchase that ticket to your vacations! But before you immediately apply for one, you should make some research and learn if you qualify for a credit card. Follow these tips and be prepared to have your first credit card!
Are you qualified for a Credit Card?
The key is in your credit history. This is your history in credit scores and credit reports, which details the information that credit card companies will analyze to approve your credit card application. This report will show the credit card company how you deal with your financial obligations and if you are fitted to commit to payments that credit cards imply.
If you have a good credit history, then it will mean that you are financially responsible with payment due dates, debts and paying back loans. On the other hand, a bad credit history will show the complete opposite.
So, being qualified for a credit card simply means that you have a good credit history. Another thing that can be determined by your credit history is the credit card interest rate. A higher score can lead to a lower interest rate, while a low score will boost it.
Analyze your credit card options
Once you start analyzing your credit card options you will find that there are thousands of them. So, it's time to get a bit more organized!
You should now weigh the features and benefits of the credit cards you are evaluating. The first thing you need to know to make a definition is why you are interested in having a credit card. This will help you to identify which one has the features that suit you best!
Then you should analyze interest rates, cash advances, balance transfers, fees and conditions. Also, remember to check the minimum credit score required! If you have some options that offer promotional deals, then check what will the cost be when the promotional deal expires.
Apply for a credit card!
Now that you have chosen a credit card company, it's time to apply for that credit card!
There are many options to apply. You can complete and submit your application online, in person or by phone.
In every case, you will have to complete an application with:
- Your personal information: The company will use it to identify you and set the contact data.
- Your income information: The credit card firm needs a proof of income.
- Housing costs & status: They will ask if you rent or own, and how much you spend on housing.
- Authorized users: Credit card issuers would like to know if you'd like to add an authorized user to your account.
MAKE THE MOST OUT OF THESE CREDIT CARD PERKS
There are a lot of credit cards available in the market that compete for your choice. Therefore, they offer lots of benefits like discounts, points to exchange for gift cards, and even no annual fee. Some of them also give away SignUp Bonus and bonus points when you're purchasing products.
As a cardholder, you can save up to 5% on quarterly rotating categories, for example, at gas petrol. Chase Freedom has a great SignUp Bonus: you can get $150 cashback once you’ve spent $500 in your first three months. This card allows you to redeem for checks, statement credits and direct deposits with no redemption minimum.
By owning this card, you’ll be able to save up to $6,000 in annual combined category. Citi Rewards+ Card gives you points for each dollar that you spent on any eligible gas station and supermarket purchases. The ThankYou points can be redeemed at their portal or can be used to pay at Amazon or Best Buy.
For the first year, you’ll get 10% points back on the first 100,000 points redeemed. Additionally, if you spent at least a $1.000 in the first trimester, you’ll earn 15,000 ThankYou points that equal $150 in gift cards.
Chase Ink Business Cash Credit Card
This card focuses on business members and has very interesting pros: you can get 2% cashback in gas purchases and up to 5% within $25,000 per year on other categories, like office supplies and electronic devices.
When you sign on for this card, you get a generous bonus. You can earn $500 cash back when spending at least $3,000 within a trimester. Additionally, the APR is 0% on purchases for the first year.