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Have you turned 18? It’s the time to celebrate as you are an adult now. You are liberal; you can vote, have a driving license and a credit card also. It does feel exciting to think of getting first credit card. But the process is bit thoughtful when it comes to apply for a credit card for first time. It seems intimidating. It is not easy to decide which company will offer you best deal. Various companies use bewitching offers to lure the customers some offer no interest for introductory period; some have got bonus points or rewards. To decide upon which company to go for, thoroughly study your needs and find a product that exactly suits your needs. Follow these steps for applying or a credit card for first time.
- Your credit card scores; check them out and make sure they are good enough to get acceptance from the company. This is a good practice because a denial puts a negative impact on your credit score. Make sure all the details furnished in credit card application form are true; else you may be penalized for being fraudulent.
- Check and compare APR of different cards. APR is Annual Percentage Rate which is applied on unpaid balance after interest free payment period. It excludes late payment penalties. If you want a card to use it for purchases whose payment will be cleared in months, you should look for a card with low APR, so that you have to pay lesser interest.
- Some credit cards have attractive fringe benefits with them, like reward points, money back offer etc. Go for such a card if you intend to use your card for purchases whose bill you will pay regularly and timely. In these situations, you need not be concerned about APR as you will be clearing the debt statement in interest free period.
- If you are a person who has to travel abroad very often and use of credit card is a rare phenomenon for you; look for a card that has acceptance world-wide or at least in most of the countries. Check if such a card is available with low credit limit and zero annual fee. Also look at the transaction charges and fee in places other than your native country.
Credit cards are very much secure when it comes to online shopping as they can save you from credit frauds because you don’t have to pay in those cases. There is one more advantage, safe purchasing. Consumer Credit Act’s section 75 states that if a purchase within range $100- $30,000 is made; person gets benefit of valuable legal protection.
When you use a credit card, you should be very careful. You should be well aware of the APR and duration of interest free period. This is because pending payments can be harmful for interest rate on credit cards is greatest of all credit types. And if you talk of withdrawing cash on credit card, you won’t even get any interest free period. Thus, it is good to control your expenses or you will find yourself in a trap of debt which will keep on growing due to high interests and pending payments.
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