Wednesday, January 25, 2023

When Do You Get Your First Credit Card

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Foreign Currency Conversion Charges

Getting your first Credit Card

Financial institutions calculate foreign currency charges in different ways. Some transactions are converted directly into Canadian dollars. Others may be first converted to U.S. dollars and then to Canadian dollars. The foreign currency conversion charge is applied after the purchase is converted to Canadian dollars.

Example: Foreign currency conversion charge calculation

Suppose you made a 1,000 purchase with your credit card. The exchange rate is 1.42 to convert euros directly to Canadian dollars. Your credit card agreement shows a conversion charge of 2.5%.

After your financial institution converts your 1,000 purchase to Canadian dollars, it will cost $1,420. The 2.5% foreign currency conversion charge is applied to the $1,420 for a fee of $35.50. The total amount of your purchase is $1,455.50 in Canadian dollars.

Read the terms of your credit card agreement for the total foreign currency conversion charge. Ask your financial institution about anything you dont understand.

What A College Student Should Look For In A Credit Card

Student credit cards often have low monthly credit lines. In other words, you may only be able to carry a small credit balance, say $500 or so. Thats because these cards are designed for people who are just getting started on their credit journey. Despite the limited amount you are allowed to spend, student cards are real credit cards. Your activity is reported to the credit agencies and you begin to build your credit history.

Luckily, there are no-annual-fee college credit cards, so you shouldnt have a problem finding one that fits this criteria. Youll also want to consider a rewards or cash back program. If you already spend money, why not select a card that offers rewards on purchases? If youre planning to travel abroad, a miles reward program might be a good option, as would a card with no foreign transaction fees.

Also look for some additional perks that not every credit card issuer offers. For example, Discover offers a $20 statement credit each school year your GPA is 3.0 or higher for up to the five years after you get one of the student cards card.*

Apply For Your First Credit Card

There are a few factors that will influence how easyor difficultit may be for you to become a first time credit cardholder. For example, federal law dictates you must be 21 or provide proof of independent income to get a credit card without a cosigner.4 Credit history also plays a role in what kind of credit card you can get. But if you dont have credit history, dont fret. There are plenty of credit cards directed towards people with little to no credit history.

Another option is to become an on someone elses account.5 A parent or older sibling, for instance, could add you to their account, and the card company would send you a credit card with your name on it. However, authorized users arent legally obligated to pay the bill, so it may not have that big an impact on building your own credit history. Still, it can be a great way to get your feet wet and learn about responsible credit card use.

When you find the best first time credit card for your needs, you should be able to apply online. You might need to supply your drivers license and social security number, phone number, and other information depending on the application.

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Which Credit Card Company Is Best

  • Visa: 336 million cardholders. Visa is the largest payment network with over 40 million merchants.
  • Mastercard: 231 million cardholders. As the second largest credit card network in the United States, Mastercard offers benefits such as easy bill payment and data protection with chip technology.
  • Citibank: 95 million cardholders. Citibank is a great banking institution for customers of all credit levels. Citi Cards offers two main rewards programs: Easy and Thank You.
  • Chase: 83 million cardholders. Chase is the second largest universal credit card provider in the world.

What Banks Offer Prepaid Cards

At What Age Can You Get Your First Credit Card?

The major banks offer prepaid debit cards. Banks, including JPMorgan Chase, Wells Fargo and PNC Bank, are tapping into a circle of consumers who cannot or cannot afford a traditional bank account. They are cheaper to run and provide an easy way to recoup the billions the industry has lost due to stricter financial regulations.

How long to pay off credit cardHow long will it actually take to pay off your credit cards? The time it takes to pay off your credit cards depends on several factors, including your card balance and household income, and these factors vary from state to state. Estimates range from 17 months to 9 months .When to pay off credit card balances?Ideally, you will repay your credit card in fu

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Bottom Line: The Best Time To Get A Beginner Credit Card Is Personal

Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

Cashback Match: Well match all the cash back rewards youve earned on your credit card from the day your new account is approved through your first 12 consecutive billing periods or 365 days, whichever is longer, and add it to your rewards account within two billing periods. Youve earned cash back rewards only when theyre processed, which may be after the transaction date. We will not match: rewards that are processed after your match period ends statement credits rewards transfers from Discover checking or other deposit accounts or rewards for accounts that are closed. This promotional offer may not be available in the future and is exclusively for new cardmembers. No purchase minimums.

How Credit Cards Work

Travel credit cards can help you earn points and miles. In other words, these pieces of plastic are putting you one step closer to a free trip to your dream destination, wherever that might be.

There are many ways to pick up points and miles, from flying on airlines or staying at hotels to online shopping portals when making online purchases. However, the biggest and the best way is through sign-up bonuses and welcome offers. This is a fancy way of saying, if you spend a certain amount of money in a certain amount of time, youll earn a certain amount of points.

Related: 3 mistakes people make when they get their first credit card

It varies from card to card, which well break down shortly. Nothing happens if you dont hit the minimum spending requirements to earn the bonus youll just miss out on a big haul of points or miles. You will, though, get points for whatever spending you do put on it. Again, this varies from card to card.

A lot of credit cards will also offer bonus points for spending on certain categories of purchases. For example, if you get 3x on dining and your dinner costs $15, youd earn 45 points. Those 45 points wont get you anywhere by themselves, but they do add up over time.

Of course, points and miles arent the only reason why having credit cards is important for your overall financial health. They also help you build credit.

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Ways To Get Your First Credit Card

Eighteen can be a liberating age. You’re legally an adult. You can vote. You may be going to college soon if you’re not already there. And, you can get a credit card.

As eager as you may be to get your first credit card, many credit card companies aren’t so eager to give you one. Rather than putting in several credit card applications to see who’s going to approve you, target just a few companies that are known for giving credit cards to first-timers.

What Credit Card Has The Best Rewards Program

How To Get Approved For Your First Credit Card
  • Best Achievement: American Express Gold Card
  • Finalist: Capital One Venture Rewards Credit Card
  • Ideal for refund: Alliant Visa Signature credit card
  • Ideal for luxury travel: Chase Sapphire Reserve
  • Ideal for shopping: American Express Blue Cash Preferred Card
  • Ideal without annual costs: Citi Double Cash Card

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A Student Credit Card

Most student credit cards require a credit history and student status to qualify, but there are some exceptions. Note that these cards function like regular credit cards, but they tend to have lower credit limits and fewer incentives. If a student credit card offers rewards, youre likely to get a lower rewards rate or a smaller sign-up offer, for example.

Tips For Using Your First Credit Card Responsibly

A credit card can help you build a positive credit history that makes it easier to secure new loans or lines of credit in the future. But that’s only if you use that new card wisely.

The single most important thing to do to keep your credit in good shape? Pay your credit card bills on time every single month. Late payments not only come with costly late fees, but if you fall more than 30 days behind, your credit score is in for some heavy damage — especially when you only have limited credit history.

You don’t necessarily have to pay off your entire credit card balance every month to avoid credit damage — though you should. But you need to make at least the minimum required payment before your due date. A good way to make sure your account is always in good standing is to set up automatic payments, which, just as it sounds, automatically makes your minimum credit card payment every month.

But why is it better to pay your bill in full? Because any balance you carry past the end of your grace period starts to accrue interest fees. And those fees can get expensive, fast.

Carrying a balance on your credit card also raises your . As noted above, this is the ratio of how much credit card debt you have versus how much credit you have available . A utilization rate of more than 30% is considered a warning sign, and can decrease your credit score.

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Capital One Quicksilver Cash Rewards Credit Card: Best For Using Abroad

Sign-up bonus: Earn $200 after you spend $500 on purchases in the first three months of account opening.

Annual fee: $0

Rewards: Earn unlimited 1.5% cash back on every purchase.

Why its a great first credit card: If youre hoping to stay in the cash-back rewards universe, the Quicksilver is a great beginner credit card. Youre getting cash back on every purchase, which makes it a simple and straightforward card to have in your wallet. It has no annual fee and even waives foreign transaction fees, too. Once youre more comfortable with credit cards and you can always add other cards with higher bonus category earnings to your lineup. Using the Quicksilver as a card for all spending that doesnt fall into another bonus category is simple, straightforward and rewarding what more can you ask for in a first credit card?

The Amex Everyday Credit Card From American Express: Best For Getting Started With Amex

What You Should Know When Getting Your First Credit Card

Welcome offer: 10,000 Membership Rewards points when you spend $1,000 within the first three months of account opening. These points are valued at $200 based on TPG valuations. However, be sure to check CardMatch to see if youre targeted for a higher bonus offer.

Annual fee: $0

Rewards: Earn 2x at U.S. supermarkets

Why this is a great first credit card: This is a credit card for points-and-miles beginners because it earns valuable Membership Rewards without charging an annual fee. It earns 2x at U.S. supermarkets and 1x on everything else plus you get a 20% bonus if you swipe it 20 times or more in a billing cycle.

The fact that it earns Amex Membership Rewards points is a large part of its appeal. Like Citi ThankYou Points and Chase Ultimate Rewards points, you can pool your rewards once you start earning more rewards with more premium Amex cards and Amex points are some of the most valuable out there.

For example, you can transfer your Amex points to Delta, which frequently has flash sales to destinations all over the world, so youre looking at an easy way to jump-start your free travels. You can also transfer your Amex Membership Rewards points to 19 airline and three hotel programs, including Delta and to really get a lot of value out of them.

The information for the Amex EveryDay card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

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What Happens If I Get Denied For A Credit Card

If you are denied on the basis of your creditworthiness, the credit card issuer will send you a copy of your creditworthiness and the major factors affecting your creditworthiness. They may also be rejected for reasons unrelated to their solvency, for example: B. based on their income or professional career.

Reach New Heights With Status Lift

The WestJet RBC® World Elite Mastercard is taking you higher with Status Lift.5 As a cardholder, everyday purchases on the card will bring you closer to achieving status. Experience more benefits such as lounge passes, priority boarding, advance seat selection, increased WestJet dollar earn and more.

Limited-time introductory offer

Receive a Status Lift of $500 in tier qualifying spend with just $5,000 in everyday purchases on your WestJet RBC World Elite Mastercard. You can earn three lifts between September 1 and December 31, 2021 for a total of $1,500 in tier qualifying spend.

Learn more about Status Lift

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How To Pick The Best First Credit Card

With the vast number of credit card options on the market, choosing the best card for your needs is important. Selecting a card with the right balance of fees and rewards can help ensure you use it for the right reasons and avoid going over your budget.

Whether youre a student or a young adult getting your first card, to understand how to choose the best credit card, its important to learn the different types of cards available.

What Is The Best Credit Card Out There

How To Get Approved For Your First Credit Card (2021)
  • Delta SkyMiles Reserve American Express Card – Ideal for Delta Luxury Travelers
  • Delta SkyMiles Platinum American Express Card – Best Mid-Range Card for Delta Membership
  • Citi / AAdvantage Executive World Elite Mastercard – Ideal for earning eligible American Airlines elite miles and access to Admirals Club
  • United Explorer Card: the best low-commission card for the United States

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Here Is How You Choose A Credit Card For The First Time:

  • If used responsibly, a credit card is a good way to start building credit. Good credit can set you up for future car loans or mortgages, and land you favorable interest rates.
  • Determine how the card will be used.The credit card you should get depends on what you’ll be using it for. Whether its for everyday expenses such as gas and groceries, transferring existing debt, or financing a big purchase, understand that whatever you purchase on the card, you will have to pay back. Make sure youre aware of your cards credit limit, and how affects your credit score.
  • Check your credit score and take a look at your finances.If you don’t have a , focus on cards for limited or no credit. Otherwise, narrow your search to cards that accept your level of credit. And make sure you have enough income to pay the credit card bill, preferably for the full amount. Covering just the minimum payment will end up costing you more in the long run, due to interest.
  • Consider a secured credit card.A secured card is also an option for establishing credit. They tend to be some of the easiest cards to get as youll have to put up a security deposit, which will also be your credit limit. Youll get a better rate, and fewer fees than with an unsecured card for bad credit. Plus, with responsible use, you may be eligible for a credit limit increase, or a transition to an unsecured card with much better terms.
  • How To Choose The Right Credit Card For You

    The right credit card for you will depend on your spending habits and how you intend to use it. For instance, if youre struggling to pay your bills on a monthly basis, getting a credit card may not be the best idea.

    However, if youre in the right place financially, think about how you intend to use your card and what your situation is. Do you just want to build credit? Do you want rewards for spending and can you afford annual fees? If youre a student, student credit cards may be the best option. Otherwise, think of the other types of cards available to you. This step will help determine what type of card is right for your needs.

    After determining what type of card you want to opt for, compare different card options from different issuers. Take a look at the interest rate, fees and rewards involved along with the eligibility requirements. For instance, if you want a cash back credit card, take a look at the rewards and think about how often youll benefit from them. Comparing different cards ensures you get the most ideal rates and rewards that suit your spending habits.

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