Did you know that as of the 1st quarter of 2022, there were 537 million credit card accounts in the United States?
Getting a first credit card can seem exciting and easy. But there are a couple of things you have to learn first. Knowing what to do when getting your first credit card can empower you to move forward with your plans.
Here are a few things you need to know about getting your first credit card.
1. At Least 18 Years Old to Get a Credit Card
You must be at least 18 years old to get your first credit card. This is because credit cards are only for adults, and you must be responsible for your financial decisions.
If you are not yet 18, you can still get a debit card linked to your bank account. This will allow you to make purchases and withdrawals just like a credit card, but you will not be able to get into debt.
Once you turn 18, you can apply for a credit card and start building your credit history.
2. Need a Job or Some Other Source of Income
Before getting your first credit card, you will need a job or some other source of income. This is because credit card companies want to see that you have the ability to repay any debt that you may incur.
Without a steady source of income, getting approved for a credit card will be difficult. If you have a job, make sure you have a good income and credit history before applying for a credit card.
3. Need to Have a Good Credit Score
One of the most important is that you will need a good credit score. This number represents your creditworthiness and is used by lenders to determine whether or not to give you a loan.
A good credit score is typically 700 or above. If your score is lower than this, you may still be able to get a credit card, but you may have to pay a higher interest rate.
4. Need to Be a Responsible Spender
The important thing to remember is that you will need to be a responsible spender. That means only charging what you can afford to pay back and making your payments on time.
If you’re not sure you can do that, it’s best to wait to get the best first credit card. You can check the best cash back credit cards to help you be a responsible spender.
5. Need to Be Aware of the Interest Rates
If you are unaware of the interest rates associated with your credit card, you could pay significantly more than you anticipated. Read the fine print and understand the terms before signing up for a credit card.
In addition, remember that you are responsible for any charges you make on your credit card. You will be charged interest on any outstanding balance if you cannot pay your bill in full.
Getting Your First Credit Card
Make sure you understand the card’s terms and conditions and make your payments on time to avoid late fees and interest charges. Keep track of your spending, so you don’t overspend and get into debt.
With these things in mind, you can use your first credit card wisely and build your credit history.
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