Thursday, February 2, 2023

What’s The Best Credit Card For First Time User

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Best No Foreign Transaction Fee Credit Cards

Best FIRST TIME User Navy Federal Credit Card

One of just two credit cards from Canadaâs big banks to waive its foreign transaction fees , the Scotiabank Passport Visa Infinite also offers impressive lounge access benefits and is issued by Visa so itâs more widely accepted when travelling outside of North America.

In terms of everyday rewards, the Scotiabank Passport Visa Infinite will earn you two Scotia Rewards points for every dollar you spend on eligible grocery stores, dining, entertainment , and daily transit purchases . For all your other purchases, youâll get one point per dollar. As a new Scotiabank cardholder, you can also earn up to 30,000 bonus points when you make at least $1,000 in everyday purchases within the first three months and another 10,000 points when you spend at least $40,000 on the card annually. 1 Scotia Rewards point is worth $0.01 when redeemed for flights on any airline.

Why we like it:

The cardâs lack of foreign transaction fees is the cherry on top of a number of perks including a $300 travel points bonus and Priority Pass membership with six free visits per year to over 1,200 lounges worldwide. As with other Visa Infinite cards, cardholders have access to the Visa Infinite Luxury Hotel Collection and Visa Infinite Dining Series.

Additional perks:

Choosing A Credit Card

If you’re a beginner to credit cards, see our step-by-step guide to choosing a credit card. It starts by helping you figure out what cards you can qualify for, then walks you through deciding what kind of card best fits your needs. The process in short:

  • Check your credit. The higher your credit score, the more likely you are to qualify for the best cards. NerdWallet offers free access to credit scores.

  • Narrow your choices. If you want a rewards card, do you prefer cash back or points, and how much effort are you willing to put into managing your rewards? If you’re looking to save money on interest, do you need a 0% introductory period, or a low ongoing rate? Do you need to do a balance transfer? Are you a student or a business owner who could benefit from a specialized card?

  • Apply for a card that gives you the best overall value.

  • » MORE:How to pick the best credit card for you

    How Your Credit Score Impacts Your Chance Of Approval

    Your credit score is a big factor in how to choose a credit card, because that affects which cards you can get. Most credit cards are aimed at consumers in a specific credit score range. To have a solid chance at getting approved for a card, your credit score will need to be in that range or a higher one.

    For example, the best credit cards are usually reserved for those with good or excellent credit. Good credit starts with a credit score of 670. So, if you want one of the top credit cards good credit, you should have a credit score of 670 or higher. If you need to raise your credit score, check our guide to improving your credit score for steps you can take.

    To know which credit cards are within reach, you need to know your credit score. There are plenty of ways to get your credit score for free online. I recommend using a credit score tool that provides your FICO® Score. That’s the most widely-used scoring model. Free options to view this type of credit score include:

    • Experian CreditWorksSM Basic
    • Discover® Credit Scorecard

    You can sign up for either of those tools free of charge to view your current FICO® Score.

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    For Flat Rate: Td First Class Travel Visa Infinite Card*

    Some people want to earn points when they travel, as well as on an ongoing basis. If this sounds like you, then the TD First Class Travel Visa Infinite Card is our top choice. You can rack up TD Rewards points throughout the year and then easily make a redemption through Expedia for TD. With this card, youll get 3 points per $1 spent on all your everyday purchases and 9 points per $1 spent when you make online purchases through Expedia for TD. That means youre earning a 1.5% and 4.5% return respectively in travel points. Expedia For TD is just like the regular Expedia platform, so youll have no problem finding ways to redeem your points.

    With the annual fee of $120 rebated for the first year and a welcome bonus of up to 80,000 pointswhich has a travel value of up to $400 when you book travel purchases through ExpediaForTD.comthis is one of the best travel credit card offers available right now.

    Details: Best Credit Cards For Young Adultsaverage/limited Credit

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    Average credit usually means that you have:

  • Had open loan and credit card accounts for three years or more
  • Had no more than one late payment in the last year
  • Not applied for credit more than twice in the last six months.
  • If you have some credit history or average credit due to a few missed payments, here are some cards to consider:

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    Cards For Those With Fair/bad Credit

    Your credit score* is one of the primary factors issuers look at when deciding whether to approve you for a credit card. So what if you have fair or bad credit?

    Related: From debt to over 20 credit cards: the story of my personal finance journey

    Unfortunately, if your credit isnt that good, you may not be able to be approved for the rewards credit cards listed above. However, that doesnt mean youre out of luck. There are plenty of credit cards for fair or bad credit you can apply for to help you improve your credit score before you apply for a rewards credit card. But note that credit limits tend to be lower and the APRs for these cards tend to be higher.

    Types Of First Credit Cards

    It may seem counter-intuitive but first-timers have access to a variety of credit cards to help build credit and even earn rewards. Here are the most common options for starter credit cards:

  • This type of card is worth considering for anyone whos not a student and anyone who has no credit history but has a steady income and low or no debt. To determine your eligibility, providers of this type of card will typically check your income and bill payments, among other financial checks.
  • Secured credit cards for those wanting to safely build credit. Secured cards can be a great choice for anyone who has a bad credit score or no credit history. For this type of card, your finances arent generally an issue. Thats because you must make a secured deposit of $200 or more, which acts as your credit limit. This is basically a guarantee that youll pay off your balance.
  • Student credit cards for those still in school. This is a great option for students because theres rarely a credit score requirement to apply for the card, and you can often earn rewards on your purchases. Whats more, student cards often report to all three major credit bureaus Experian, Equifax and TransUnion which can help build credit with responsible card use.
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    How Do I Get A Credit Card For The First Time

    You can expect the following steps throughout your application process:

  • Consider the benefits, perks, interest rates and features that may come with the different types of credit cards available and narrow down which benefits, perks and features are most important to you.
  • Contact the card company to see if you pre-qualify: A soft inquiry could help you determine if your credit score is high enough to apply for a certain card. Although pre-qualifications are not guarantees that you could be approved for a specific credit card, they may help you narrow down options for credit cards that align with your current needs.
  • Apply online: Once you’re ready to apply for a credit card, review the credit issuer’s website to learn about your options for applying online.
  • Once approved, carefully read your cardmember agreement: Make sure you’re aware of information like how to verify and use your card, how to submit a payment, billing information and details about your interest charges.
  • Set up a finance or budget plan: Before using your credit card, be sure to have a plan or budget in place so that you don’t spend more than you are able to pay off before the end of each payment due date. This will allow you to avoid interest charges and helps prevent high balances or missed payments that could negatively affect your credit score.
  • How Old Do You Have To Be To Get A Starter Credit Card

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    At the end of the day, having a credit card is the equivalent of borrowing money . Because of this, there are restrictions in place to make sure you are old enough to understand and manage the consequences of having a line of credit open in your name.

    The Card Act of 2009 states that if you arent at least 21 years of age, you can be subjected to additional qualification rules, such as showing you can independently repay charges . So, if you arent old enough to buy a glass of wine at dinner and dont yet have the ability to pay off your bills on your own, you may not yet be able to open one of these rewards cards.

    However, you can apply for a credit card at 18 years old if you have a co-signer or can provide proof of your own income to your issuer. If you are under 18, the only way to start building credit is by becoming an authorized user on someone elses account.

    Related: Will authorized user status help you build credit?

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    Secured Vs Unsecured Credit Cards

    Unsecured credit cards dont require you to provide collateral such as funds in your checking or savings account in order to be approved. However, you generally need to have a good credit history to qualify for one of these cards. If you are new to credit or dont qualify for an unsecured credit card, a secured card may be an alternative that requires an upfront deposit to be used as collateral toward your account. Keep in mind, with a secured credit card if you dont pay the terms as agreed, you may be at risk of losing your collateral.

    About Our Credit Cards Comparison

    Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from lenders regulated by the Financial Conduct Authority . Here is more information about how our website works.

    We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

    You do not pay any extra and the deal you get is not affected.

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    Wells Fargo Reflect Card

    Best for promotional interest

    • This card is best for: Someone who is getting ready to make a big purchase or has existing high-interest credit card debt and needs a balance transfer.
    • This card is not a great choice for: Someone who wants to earn rewards on spending or is looking for a card with more long-term value there are some promotional interest credit cards that offer rewards, albeit with a shorter window of time to skip interest on purchases or balance transfers.
    • What makes this card unique? The promotional interest offer extends to both purchases from account opening and qualifying balance transfers from account opening and even the base offer of 18 months is lengthy for a zero-interest intro APR card .
    • Is the Wells Fargo Reflect Card worth it? Definitely. If youre looking for a long window of time to pay off a big purchase or a balance transfer, you cant do much better.

    How Do I Choose The Right Starter Card

    The Best Cards for Building Credit

    It really depends on your credit score and where you’re at in your credit journey. If you’ve never had a credit card before, it’s likely you’ll have to get started with a secured credit card that requires a cash deposit in order to shore up a small line of credit.

    If your FICO credit score is at least “fair,” or above 580, on the other hand, you may qualify for a card geared to consumers with average credit.

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    Best Air Miles Credit Card

    If youâre an avid Air Miles collector, you can rack up significantly more rewards with the BMO Air Miles World Elite in your wallet and get some premium travel perks to boot. The card offers a lucrative 0.083 Miles per dollar, triple the miles when shopping at Air Miles partner stores , and over a dozen types of insurance.

    The Air Miles World Elite also includes a sign-up bonus for new cardholders that includes a first year annual fee waiver and up to 3,000 bonus miles: 1,000 Miles after making your first purchase on the card and another potential 2,000 Miles if you hit a minimum spend of $3,000 within your first three months of activating your account.

    Why we like it:

    When shopping at Air Miles Partners , you can rack up triple the Miles by paying with this credit card and showing your Air Miles Collector Card at the same time. The Air Miles World Elite also offers arguably the best insurance of any other Air Miles credit card period, with up to $2 million in out of province medical insurance along with personal effects coverage . Last but not least, the sign-up bonus is enough to let you book up to two short-haul flights within North America.

    Additional perks:

    Cardholders get a 15% discount on flights booked using Miles within North America.

    Best Store/retail Credit Card

    If you regularly cross off your shopping list at Shoppers Drug Mart and Loblaws banner grocery stores , then the PC Financial World Elite Mastercard is a no brainer.

    The premium, no-fee retail credit card earns between 45 to 30 PC Optimum points per dollar spent at affiliate retailers , and 10 PC points per dollar everywhere else you swipe the card . With over 4,500 retail and gas locations affiliated with the PC Optimum program, thereâs no shortage of opportunities to rack up bonus points.

    PC Optimum points can be redeemed for purchases from Shoppers Drug Mart and Loblaws banner grocery stores in increments of 10,000 points for $10.

    To qualify for the PC Financial World Elite, youâll need to earn an annual income of $80,000 . If you donât hit those minimum income requirements, the good news is you can still qualify for PC Financialâs other great no fee retail credit cards.

    Why we like it:

    Thanks to its impressive earn rates of between 4.5% to 3% and its partnership with some of Canadaâs largest grocery, pharmacy, and gas station brands, the PC Financial World Elite stands out for being one of the best no fee credit cards for purchasing household essentials.

    It also doesnât hurt that the PC Optimum Points program is extremely easy-to-understand and flexible .

    Additional perks:

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    Pay Off Purchases Over Time Without Interest

    If you have one or more expenses that will take you some time to pay back, 0% intro APR credit cards are just what you need. These cards offer a 0% intro APR on purchases.

    If you’re wondering how to choose a credit card with a 0% intro APR, look at the length of the introductory APR period. It can last for a year or longer, depending on the card you get. Once it ends, the APR will increase, so you should aim to pay off your full balance by then.

    What To Know Before Applying For Your First Credit Card

    First Time/How to use HDFC credit/David Card mobile banking,How to Register on HDFC Mobile Banking

    You may want to learn the basics about how credit cards work before applying for your first card. While credit cards can be helpful tools, some people end up carrying a high-interest balance after opening their first card and overspending. Ideally, you should use the card similar to a debit card and only make purchases that you can afford to pay off in full when the bill arrives each month.

    If you’ve taken out a loan beforeincluding student loansor previously opened a credit card, you might already have a credit report. You can try to check your Experian credit report and a FICO® Score based on the report for free.

    If you have good credit, you may qualify for cards that offer more benefits or don’t require a security deposit. But if this credit card is your first credit account, you likely won’t be scoreable, and you may want to start with one of the credit cards for beginners. In either case, review the card’s fees and benefits before applying.

    It generally takes about 30 to 60 days for your new credit card to appear in your credit reports. And, it may take up to six months before your account makes you eligible for a FICO® Score. The credit card can continue to affect your credit scores for years to comeeven if you close the account.

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    What To Watch Out For After You’ve Been Accepted

    If you’ve been accepted for your credit card, there are a few things to watch out for to help get a better deal in the future:

    A strong credit history will help you get accepted for a wider range of cards in the future, meaning you could get a lower interest rate, a higher credit limit or more tempting extra features like interest free periods or balance transfers.

    If you use your starter card sensibly for several months, your credit record will look better to credit card companies. Make sure you always:

    Here is everything you need to know about credit cards and their charges.

    Yes, looking at it helps lenders decide whether to accept you as well as what APR and credit limit they offer you.

    Yes, student credit cards are more likely to accept you, even if your income is low and includes your student loan.

    Paying the full amount by direct debit means you never miss a payment or pay interest. Here are all the ways to repay.

    Yes, credit card providers each offer their own protection services as well as Section 75 and the Chargeback scheme.

    The maximum you can owe on your card at any point, set by your provider after you apply. Here is how they work and how much it costs if you exceed it.

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