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First credit card
First Credit Card:
Choosing The Right Credit Card For You

While many of us can’t even remember the first time we ever applied for a credit card, choosing the right first credit card when you make your first ever application is very important.

Unfortunately, most people are still in their latter teenage years when they apply for their first credit card or student credit card, and taking the time to do a credit card comparison doesn’t even cross their minds. Some people even go about choosing their first credit card because it’s the one all their friends have. They don’t always think to take time to compare credit cards to find one that is right for them.

If you are thinking about getting your first credit card or student credit card, make sure you keep reading to find out how to choose the right credit card for you and your particular situation.

1. How much do you earn?

You will usually need to put this on the application form when you apply, and some cards demand a higher income than others. Part of choosing the right first credit card is matching your needs to the requirements of the various cards on offer, so make sure that when you compare credit cards, you don’t try and go for those that aren’t aimed at first timers.

If you are on a low income or you have only just started in your job, make sure your first credit card comparison exercise bears this in mind.

2. What’s your credit history like?

Even though some people reach their twenties or later before applying for their first credit card, most people are tempted into choosing the right first credit card as soon as they become old enough. It’s seen as a symbol of being trusted and responsible with our money.

It’s important to understand that having no credit history brings up almost as many warning signs as a bad credit history does. If you are still a student and you want to apply for your first student credit card, then do student credit card comparison between those cards aimed at people in your situation. You won’t get a high credit limit to begin with, but these credit cards are designed for people who have never had a credit card before, so you might be more likely to be accepted.

3. Make sure you understand how credit cards work.

While you will see many differences when you compare first credit cards, you will also notice that the basic premise is the same with each one. You get a certain length of interest free period as standard – usually around 56 days at most – and then you are expected to either pay the balance off in full or pay off at least a minimum percentage of that balance, and incur interest on the remaining sum each month until you pay it all off.

Not everyone understands this and is responsible with choosing the right credit card and keeping their account in good standing, which is why so many people run into trouble. Make sure you know exactly what is involved before you sign up for your first credit card or student credit card.

4. Understand what your credit limit means.

It’s a strange and exciting feeling when you compare credit cards, apply for the first credit card you want, and then find out you have been accepted and granted a credit limit of $1000 or more.

It’s a huge figure, and it might seem as if you have been given permission to go and spend it all in one go. But you need to remember that when the bill comes in, you will need to pay for everything, and if you don’t, that’s when you get caught in the spiral of debt that can catch so many cardholders out if they’re not careful.

When you do your student credit card or first credit card comparison exercise, don’t forget to bear in mind how much you earn and how much you could pay towards your credit card balance each month. It will help you to keep things in check.

5. Compare credit cards to find a low APR and the best benefits combined.

Finally, make sure your first credit card comparison takes into account the interest rate offered. Don’t be tempted by a low introductory rate, if it’s followed by one of the highest rates in the business.

Free interest on purchases for a limited time is always good, so long as the rate doesn’t rise too sharply afterwards. Watch out for special deals as well, such as money back and vouchers for discounts in places you visit often.

If you do a detailed first credit card or student credit card comparison before you apply for your first card, you are almost guaranteed to pick the best firs credit card or student credit card for you.

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