Why Should You Get Your First Credit Card
If you grew up in a household that avoided credit cards like the plague or used them too much you may be wary of getting your first credit card.
But credit cards offer features you cant find elsewhere like extended warranties, 0% fraud liability, travel perks, and cash back rewards and with responsible use, theyre a great way to build your credit history.
What Is An Instant
Instant-approval credit cards are cards with an expedited approval process through a streamlinedpractically instantapplication and approval process that will help to save you time and stress. Rather than applying and waiting for the final decision to come through, the issuer will let you know immediately whether youve been approved or if there needs to be a manual review.;
Canadian TiresTriangle Mastercard allows newly approved cardholders to make purchases on their card via Apple Pay or Google Pay before they receive their physical credit card in the mail.
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 100,000 pointswhich has a travel value of up to $670 $500 when you book travel purchases through ExpediaForTD.comthis is one of the best travel credit card offers available right now.
Tips For Applying For An Instant
If youre applying for an instant-approval credit card, the below tips can increase your chances of success:
- Know your credit score: Depending on the card youre applying for, where your credit score sits will help determine if you get instantly approved. If you have a fair credit score , along with other factors like payment history and relationship with the issuer, consider retail and store credit cards. For scores 650 and up, look into applying for a reward-based card, like a cash-back credit card. If your score is 700 and higher, you have options for a more premium card, like a Visa Platinum/Infinite or Mastercard World/World Elite card. However, if your score is below 600, you should consider a secured card with a deposit requirement.
- Strategize your card applications: Each time you apply for a card, the issuer may perform a hard credit pull, which can temporarily and negatively impact your score. These reviews determine your credit history and eligibility, but too many applications at once are flagged as risky. Space out your applications for a more favourable credit score and history.
- Review present credit card debts: If you already owe money on one or more credit cardseither over 30% of your total credit limit or more than 40% of your incomebanks will be less likely to approve your application. Address your debt first by paying back a significant portion.;
Read Also: How To Check Your Visa Credit Card Balance
Are Credit Report And Credit Score The Same Thing
Your credit report, or credit history, is different from your credit score. However, both are essential to your financial standing.
A credit report is a detailed account that includes a person’s credit accounts and debts, past and present. A credit score provides a way for lenders to measure your creditworthiness at a given point in time. It’s based on five criteria, with each one accounting for a certain percentage of the score:
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer’s web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the authors alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the banks website for the most current information.
Sample Ultimate Rewards Redemption: Fly The Family To Disney World
Ultimate Rewards redeemed via premium Chase credit cards are valuable because they can be transferred to airline or hotel partners or redeemed for travel on the Chase travel portal.
You could fly the whole family to Disney World for just 66,772 Ultimate Rewards points. When points are transferred to premium Chase credit cards such as the Chase Sapphire Preferred card or Chase Sapphire Reserve card, they become worth 25 to 50% more.
The example above is redeeming Ultimate Rewards Points with the Chase Sapphire Reserve card. To learn even more ways to redeem Ultimate Rewards Points using the Chase travel portal, check out our ultimate guide.
Hot Tip:;For more info on doing Disney on the cheap, check out our article How to Visit Disney World for Cheap by Using Points & Miles.
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How Can You Get A Credit Card Without A Credit History
If youre reading this, you probably havent established any credit yet. Fortunately, you should still be able to find a credit card that gets the job done, as long as you know what to look for.
Here are four ways to find a solid first credit card:
- Apply for a store card
Just be especially careful with store cards, as theyre sometimes associated with poor customer service and high interest rates.
How Old Do You Have To Be To Get A Starter Credit Card
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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First Progress Platinum Select Mastercard Secured Credit Card
- Receive Your Card More Quickly with New Expedited Processing Option
- No Credit History or Minimum Credit Score Required for Approval
- Quick and Complete Online Application; No credit inquiry required!
- Includes Free Real-Time Access to Your Credit Score and Ongoing Credit Monitoring powered by Experian
- Full-Feature Platinum Mastercard® Secured Credit Card; Try our new Mobile App for Android users!
- Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
- Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
- Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
- 24/7 Online Access to Your Account
- Nationwide Program though not yet available in NY, IA, AR, or WI ** See Card Terms.
- Get a fresh start! A discharged bankruptcy still in your credit bureau file will not cause you to be declined.
| $39 |
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?
Read Also: How To Transfer Money Off Credit Card
How To Improve Your Credit Using A Credit Card
When used correctly, a credit card can be an extremely useful tool for building a credit history. Getting into the habit of managing your money and making payments on time can do wonders.
Your credit score is made up of five factors: payment history, credit utilization, credit history, credit mix and new credit. Opening up a new credit card can impact all five, and continued responsible use will strongly influence your payment history and credit utilization, the most heavily weighted factors.
With some discipline and regular payments, you can improve your credit score using a credit card in just a few months. Be sure to set up autopay or calendar reminders so you dont miss a due date. Also, while it may require cutting down on spending, avoid carrying a balance with your credit card to keep your utilization low and send your score in the right direction. Paying down your balance should be a top priority for more reasons than one unwanted interest charges can be a major obstacle on the route to financial wellness.
Simply put, if you can use a credit card as intended , you should see improvements in your credit score. Just know that late payments and other mistakes can linger around on your credit history, so sticking to the proper habits is crucial.
Minimum Payments Are Dangerous
When you receive your first credit card bill, youll see an amount labeled minimum payment.
While it can be tempting to pay this and nothing else its a terrible idea. As noted above, the interest on credit cards is very high. When you make just the minimum payment, youll start accruing interest on any remaining balance, and your total debt can quickly spiral out of control.
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Should I Get A Credit Card
If youre wondering whether you should get a credit card, the answer depends on your financial goals and your financial situation. Here are three things to keep in mind:
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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Metrobank On Virtual Mastercard
Are you a frequent online shopper? If yes, then the Metrobank ON Virtual Mastercard is a good choice for you. Apart from the low monthly income requirement, this credit card for beginners has a low annual fee, making it ideal for those who want to spend less on their credit card bills.
Metrobank On Virtual Mastercard Features and Benefits
- Earn 1 reward point for every PHP 20 spend
- All virtual card so you can use it right away for online purchases
- Get approved and receive your virtual card in as fast as 48 hours
- 0% interest on installment purchases for up to 24 months
Metrobank On Virtual Mastercard Fees and Charges
- Annual fee: PHP 500
- Interest rate: 2%
- Late payment fee: PHP 850 or the unpaid minimum amount due, whichever is lower
- Over credit limit fee: PHP 750 per occurrence
Metrobank On Virtual Mastercard Application Requirements
- Minimum monthly income: PHP 15,000
- 18 to 70 years old
- Valid TIN/SSS/GSIS/UMID number
Best For Cash Back: Bank Of America Customized Cash Rewards For Students
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
| $0 | |
| Rewards Earning Rate | Earn 3% cash back in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases. Youll earn 3% and 2% cash back on the first $2,500 in combined categories each quarter, then 1%. |
| INTRO PURCHASE APR | 0% for 15 Statement Closing Dates |
| INTRO BALANCE TRANSFER APR | 0% for 15 Statement Closing Dates |
| Balance Transfer Fee | Either $10 or 3% of the amount of each transaction, whichever is greater. |
| Foreign transaction fee |
- Why We Chose This Card:
- Pros & Cons:
The Bank of America Customized Cash Rewards for Students is our pick for best student cash-back card because it offers a strong cash back rewards program, along with a compelling one-time bonus , and a 0% introductory APR on purchases and balance transfersall with no annual fee. Its cash-back rewards program is competitive with the best non-student cash back cards. As an added benefit free FICO scores are provided, which students can use to track how they are doing at improving their credit which will potentially allow them to qualify for a broader range of cards in the future.
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Foreign-transaction fee is less than ideal for those studying abroad
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Highest rewards earnings are capped
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Relatively high spending required for $200 introductory one-time bonus
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