Friday, November 25, 2022

What Is The Best First Time Credit Card

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Discover It Cash Back: Best For Cash Back Match

The best first time credit cards for UK beginners in 2022

Why we picked it: At the end of your first year of card membership, Discover will match the cash back youve earned. That can be incredibly valuable even for those who tend to spend conservatively. Reward rates are high on bonus categories and the intro APR on balance transfers is ideal for tackling existing card debt.

Pros: Considering all that this card has to offer , it does not charge an annual fee.

Cons: Enrollment is required for bonus categories. If youre not up for planning in advance, you may miss out on the potential value of the card.

Who should apply? This cards high rewards rate is sure to please anyone willing to plot out rotating categories in advance, though big spenders will certainly get the most out of this cards opportunity to have all your earnings matched at the end of your first year.

Who should skip? Yes, the rewards are great, but not everyone likes keeping track of rotating categories. If that sounds like you, a straightforward flat-rate card may be a better choice.

Read our full Discover it® Cash Back review or jump back to this cards offer details.

How Do I Buy Bitcoin With A Credit Card

It is possible to buy bitcoin or other cryptocurrencies with some types of credit cards, but the stipulations vary greatly depending on the card issuer and are subject to change at any time. Even when you are allowed to buy crypto on a credit card, it may not be a good idea because you might be charged cash advance fees from your bank in addition to being charged a fee from the crypto exchange. A better option might be a card that offers rewards in cryptocurrency such as the Crypto.com Rewards Visa.

Why Should A Student Consider Getting A Credit Card

While the idea of a student credit card may raise concerns about debt and interest payments from apprehensive parents and students alike, the fact is a credit card is an easy and straightforward way of establishing a young adultâs credit history as he or she transitions into financial independence. By paying off a credit card bill on time every month, students can develop a positive payment history, and in turn, a good credit score.

A good credit score can have a profound impact on a personâs financial future and can make it easier to get approved for everything from rental applications to loans with favourable interest rates. And when used responsibly , credit cards can also be an effective way to save on everyday purchases through the earning of rewards. With that being said, missing payments or carrying over a balance can result in costly interest charges and a lower credit score, so itâs critical that students understand that credit cards should be used to buy things that can be paid for in full at the end of each billing cycle.

Recommended Reading: Which Credit Card Companies Pull Transunion

Best Rewards Card For Everyday Spending

The American Express Cobalt retains its spot as one of the best credit cards in Canada for four years running thanks to its wide variety of bonus categories. Youâll earn five times the Membership Rewards points on groceries, restaurants, bars, cafés, and food deliveries, double the points per dollar on flights, hotel stays, public transportation, taxis and rideshares, 3 times the points on eligible streaming subscriptions in Canada, and one point per dollar on everything else.

The cardâs annual fee is $155.88, but charged at a more manageable $12.99 a month. As a new cardholder, you can also get 2,500 bonus points each month you spend at least $500 for your entire first year – up to a total of 30,000 points. Plus, you can earn a Welcome Bonus of 20,000 Membership Rewards points when you spend a total of $3,000 in purchases on your Card in your first 3 months of Cardmembership.

Why we like it:

Along with the cardâs strong everyday earn rate and welcome bonus, the American Express Cobalt stands out for its flexible travel redemption options.

Another great feature: it doesnât cost extra to add authorized users, so you wonât have to shell out an additional $30 to $50 in annual fees just to share the account with a loved one.

Travel insurance benefits:

Additional perks:

Through American Express Invites, cardholders get access to ticket presales and reserved seats for concerts, movie screenings, and culinary events, along with other special offers.

How Do You Plan To Use Your First Credit Card

1St Credit Card / First Time Credit Card Application: Useful Tools To ...

Knowing which best first-time credit card is for you starts with considering how you plan to use it. Here are some reasons you might decide to get your first credit card:

  • Building credit for a healthy financial future. Building good credit, or a credit history, is an important step to meeting some financial goals, like buying a house or starting a business. Opening a credit card account and paying off the balance each month is a great way to build your credit. If this is your plan, you can use a credit card to make everyday purchases like gas and groceries. As long as you stay within your normal monthly budget, repayment shouldnt be an issue.
  • Keeping credit cards for emergencies. Many people like to have a credit card for emergency use only, like a car repair or other unexpected expense. A solid emergency savings fund is the best way to pay for these expenses. However, having access to a credit card can provide the peace of mind that you can get out of a bind should you need more money than youve saved. If you do have to use a credit card for an emergency, make sure to pay off the balance, to avoid paying interest.
  • Taking advantage of credit card rewards. One of the great benefits of some credit cards are the rewards programs. These may include cash back, special offers and airline miles. Each rewards card has its own benefit structure, and you can choose one that works well with your spending habits or lifestyle.
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    Making The Most Of Your Starter Credit Card

    With a starter card, your goal should be to hit or exceed the 690 credit score target necessary to establish good credit. Here’s what you can do to work toward that:

    • Pay on time and in full every month to avoid interest .

    • Aim to use less than 30% of your available credit limit at all times. The lower your balance, the better.

    • Keep the account open and active.

    • Check your statement for mistakes.

    • Monitor your credit score through your issuers app.

    • Get your free annual credit report.

    You can track your credit score for free through NerdWallet, certain banks and other third-party apps.

    All information about the American Express Cash Magnet® Card has been collected independently by NerdWallet. The American Express Cash Magnet® Card is no longer available through NerdWallet.

    Understand How Interest Is Calculated

    Each credit card has different interest rates for different types of transactions, such as regular purchases, balance transfers and cash advances.

    The interest rate youll often see in advertising is the purchase interest rate. This is the rate youll be charged on purchases if you dont pay your balance in full by the monthly payment due date .

    Many credit cards come with an interest-free period, meaning you wont be charged any interest on purchases you make during that period, as long as you pay your closing balance in full by the due date every month. Interest-free cards dont incur interest charges, but may incur monthly or annual fees.

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    What Is A Student Credit Card

    Student credit cards often feature low income requirements, no annual fees, and are geared to those who are applying for their first-ever credit card and looking to establish a credit history. While many student credit cards donât provide rewards, some of the best student credit cards in Canada do, offering students the ability to rack up savings in the form of cash back or points.

    How Does Credit Card Interest Work

    The Best Credit Cards for Beginners UK | First Time Credit Cards

    Most using the average daily balance method, which means your interest is compounded and accumulates every day, based on your daily rate of interest. In other words, every day your finance charges are based on the balance from the day before.

    The daily rate of interest is determined by dividing your cards APR by 365 to find the daily rate of interest and then multiplying that number by your balance. For example, to determine the average daily balance on a card with a $10,000 balance on the first day of the billing cycle and an APR of 17%, youd divide 17 by 365, which equals a daily rate of 0.0466%. This means the next day, your card would have a balance of $10,004.66, which is what you get when you multiply the balance of $10,000 by 0.000466.

    Since the average daily balance is compounded, every day the calculation is based on the day before.

    Also Check: Cabelas Online Credit Card Payment

    Where Can I Get A First

    If you have an existing banking relationship with a bank or a credit union, this might be a good place to look for your first credit card, as you may stand a better chance of approval. If this is not the case, its best to compare your alternatives based on your specific requirements before making a decision.

    Best Credit Card For Travel Rewards: Scotiabank Passport Visa Infinite* Card

    Earn up to 35,000 bonus Scene+ points in your first year : Earn 25,000 bonus Scene+ points by making at least $1,000 in everyday eligible purchases in your first 3 months. Plus, as a Scotiabank Passport Visa Infinite* Cardholder, you are eligible to earn an annual 10,000 Scene+ point bonus when you spend at least $40,000 in everyday net eligible purchases annually. Must apply by July 4, 2022. Terms and conditions apply.

    If youre looking for an all-in-one travel rewards credit card, then the Scotiabank Passport Visa Infinite* Card may appeal to you. First off, youll earn Scene+ points with this card. You can use those points for merchandise and gift cards, however youll get the most for your points when you redeem them for travel. The travel insurance package included is quite generous, so youll know youre protected whenever you travel. To top things off, this travel card has no foreign transaction fees, so you can save big whenever you make a purchase thats not in Canadian dollars.

    Currently, the card features a strong welcome bonus: Earn up to 35,000 bonus Scene+ points in your first year . Terms and conditions apply. It also allows you to rack up Scene+ points with solid ongoing reward rates. Earn 2 Scene+ points on every $1 you spend on eligible grocery stores, dining, entertainment purchases, and daily transit purchases , and earn 1 Scene+ point on every $1 you spend on all other eligible purchases.

    The Details

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    Details: Best Credit Cards For Young Adultsgood Credit

    The very best credit card offers look to attract new creditworthy customers with promotions like cash sign-up bonuses, 0% intro APRs and generous rewards programs.

    These cards require good or excellent credit, which means you will need to:

  • Have had open loan and credit card accounts for five years or more
  • Have had no late payments in the last two years
  • Have not applied for credit more than twice in the last year
  • If youre a young professional with established credit, here are some of our recommended credit cards:

    American Express Green Card

    Best First Time Credit Cards For Young People

    Would you like a travel rewards credit card with no annual fee? Here is an option for you: the American Express® Green Card.

    By signing up for the American Express® Green Card, you can earn a Welcome Bonus of 10,000 Membership Rewards points when you charge $1,000 in purchases to your Card in the first 3 months of Cardmembership. Its a $100 value, 10,000 Aeroplan points or 12,000 Marriott Bonvoy points.

    With this no-fee credit card, youll also have access to online promotional offers that earn points or rebates on your purchases.

    Like all American Express Canada Cards, there is no minimum income requirement.

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    Should You Get A Credit Card

    Opening a credit card is an exciting and crucial part of your journey toward financial health. By establishing good financial habits and paying your credit card bills on time, you’ll be on the road toward loan approvals and low interest rates. But first, you need to decide which type of credit card best fits your current needs.

    For most people, we suggest a simple cashback card that earns 1% to 2% on every purchase.

    There are a few cases where you should wait to apply for a credit card:

    • If you don’t have a stable income stream, for example, you may want to hold off on applying for credit until you can reliably pay off your purchases
    • Alternatively, if you have a history of being late with your bills or overdrawing your checking account, you may want to practice responsible financial management with your debit card and checking account first

    One of the key components of having a high credit score is the average age of your accounts, so it’s important to pick a credit card that you’ll be happy to have in your wallet for a long time. This is why it’s best that your first credit card is something with no annual fee: If you want to put your expenses on a different card in the future, you can stop using your first credit card without having to cancel it .

    Best Credit Card For Bad/rebuilding Credit

    • 19.99% interest rate on purchases
    • Not available to residents of Quebec

    Do you have a less than stellar credit score thatâs making it difficult for you to get approved for new credit or loans? Maybe itâs because you were irresponsible with credit in the past, youâre new to Canada, or you hit a financial rough patch and had to go through a bankruptcy or consumer proposal. Whatever the reason, the Home Trust Secured Visa can help rebuild your credit.

    The card has virtually no application requirements and youâre basically guaranteed to be approved. All your payment activity is reported to the credit bureaus, so when you use the card responsibly and make payments on time, you can gradually rebuild your credit score and get lenders to trust you with credit and borrowed money.

    Like all secured credit cards, you must provide a deposit as collateral that will be equal to the size of your credit limit. You can provide a deposit of as little as $500 all the way up to $10,000. Your deposit will be reimbursed in full when you close your account, provided you donât owe any balance of course. The card doesnât have an annual fee and carries a standard interest rate of 19.99% . If you donât use the card at least once for a consecutive 365 day period, you will have to pay a $10 inactivity fee.

    Why we like it:

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    Capital One Savorone Cash Rewards Credit Card: Best For Unlimited + Everyday Rewards In Popular Categories

    Why we picked it: Capital One packs a lot of value in the SavorOne card. Cardmembers earn unlimited 3% cash back rewards in four popular categories: dining, grocery stores, popular streaming services and entertainment. All other purchases earn 1%.

    Pros: On top of the rewards earning potential, the SavorOne comes with a $200 sign-up bonus after spending $500 in the first three months of account opening. People who have high-interest credit card debt or want time to pay off upcoming purchases will enjoy the 15-month 0% intro APR offer on balance transfers and purchases .

    Cons: Theres not a whole lot to complain about with the SavorOne card, though cardmembers should take note of the 3% fee that applies to balance transfers.

    Who should apply? From the on-the-go millennial to families on a budget, youll all enjoy the value this no annual fee card brings with its unlimited 3% rewards in popular spending categories. And if you have a card that gives you higher rewards but comes with spending caps, youll be glad you have the SavorOne and its unlimited earnings as backup in your wallet.

    Who should skip? If dining, streaming services and grocery stores arent your biggest spending categories, youll want to take a look at other rewards credit cards.

    Read our Capital One SavorOne Cash Rewards Credit Card review or jump back to this cards offer details.

    Check Your Credit Report Before Getting Started

    Best First Credit Card – Starter / Beginner Cards for No Credit History

    Taking a look at your credit report is an essential step to give yourself an idea of where you stand. Even if you havent begun your journey yet, errors can appear on your credit report, so its best to check ahead of time to be sure youre not wrongfully disadvantaged.

    Luckily, this step is easy. Upon request, each of the three major credit bureaus will provide a free copy of your credit report once a year. You can easily request a copy online. And if you do find anything that looks incorrect, you can dispute the errors to get them removed.

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    Age And Residency Status

    Most cash-back credit cards require you to be both a Canadian resident and the legal age of majority in the province where you live in order to apply for a card of your own.

    The age of majority is 18 in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan. Its 19 everywhere in all other provinces.

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