Your goal as a first-time credit card holder is to not spend too much, but also to be able to repay your purchases. Before applying for a card you must decide which purchases should go on that card. These purchases can be made in cash, or borrowed money. A credit card responsibly can help you establish a good credit record for the future.
Secured credit cards are more accessible
Secured credit is one of the easiest credit card categories to obtain. You will need to make a $500 cash deposit in order to secure a line credit. While these cards don't require a credit score in most cases, they do require you to plan your spending habits and pay off your bills promptly. Secured cards have a higher flexibility than unsecured ones. They can be cancelled at any time or upgraded if they are not needed immediately.
In addition to being easier to qualify for, a secured card will also help you build up a good credit history. Many secured credit cards offer rewards and cash back, allowing cardholders to benefit from their purchases and build their credit. A security deposit is also helpful to the credit card company in case you fail to make your payments. If you make timely payments, your security deposit will be refunded.
They offer rewards
These beginner credit cards often offer rewards for every purchase. These cards do not have an annual cost, which is a plus. This means you can earn cash back on every purchase. They offer the possibility of an unsecured card. Here are the facts.
The starter credit card is for those with poor credit ratings. You won't earn rewards if you spend more than your limit. However, most cards offer introductory rates of 0% for twelve to fifteen month. Avoid interest charges by paying off your balance within the introductory period. Many cards offer lower interest rates following the introductory period. This can result in significant savings. However, you should be careful not to overspend in order to get the rewards. Spending more than you can afford will result in lower rewards and a higher balance. This will increase your debt and eat away at your savings.
They have a low interest rate
These cards are great for those with little or no credit history. They can help you build your credit and learn how to handle credit responsibly. These cards often have low interest rates and promotional periods, which mean you'll pay less in interest over time. They also come with perks like rewards programs.
Choosing the best beginner credit card requires some legwork. It's important to compare the offers offered by different credit card companies (such as your bank, credit union, or other financial institutions). Consider the different perks and variable APRs as well as your requirements. Be on the lookout for high-end, variable APRs. A pre-qualified offer is also helpful, since you don't have to worry about your credit score being affected.
They offer trip interruption/cancellation/delay protection
This insurance covers you for rebooking your flights and hotels in the event of an emergency. The coverage pays non-refundable flight costs and reimburses change fees. If your flight is delayed beyond six hours, you may be eligible for reimbursements. You and your family members travelling with you are eligible for this benefit. It is limited to round-trip travel only and you can only apply it twice per year.
Many credit cards provide this coverage. You can choose the card that suits your travel needs depending on what you need. Some credit cards have greater coverage than others.
They provide a waiver of collision damage for auto rentals
Many credit cards offer auto rental collision damage waiver coverage. This coverage will reimburse you if your rental car is stolen or damaged in a collision. It typically covers up the actual cash worth of most vehicles. This benefit isn't as comprehensive as full insurance coverage. Some credit cards provide coverage for the rental company's towing and use costs.
Capital One Venture Rewards Credit Card provides auto rental collision damage waiver coverage. This coverage pays for all damages caused by renting a car up to its actual cash value. The rental car must be less than $75,000 in manufacturer's suggested retail prices to qualify. You can only rent a car for 15 or 31 days consecutively in your country. Additionally, you can combine rental car benefits with Hertz.