Follow Us On :
10 Things You Should Know Before Getting Your First Credit Card

10 Things You Should Know Before Getting Your First Credit Card

  • By Saral Credit
  • July 02, 2022

Are you preparing to get your first credit card? This blog will particularly focus on ten things one should know before getting or using a credit card. We will try to answer all the possible questions that come to our minds before using a credit card. So, without further delay, let’s start discussing them individually. 

1. Different Kinds of Credit Cards Available in the Market

Do you know various types of credit cards are available in the market for different purposes? Usually, first-time credit card holders don’t get enough advantages. Those using credit cards for years can have several parks if they have a decent credit score.

The more you use credit cards and repay your debts, the more points you will get on your credit rating. Some popular types of credit cards are student credit cards, secured credit cards and many more.

2. Deposit Security to Get a Credit Card Fast

Are you having trouble getting your credit card? It may be because you are just starting, and no credit rating is available in your name. You can apply for a secured credit card. No credit rating is needed for a secured credit card, but you will have to deposit some minimum securities to it. The higher the amount, the higher the credit line is.

If you don’t pay your due in time, your deposit will be there to pay your debts, but if you do pay your debts on time, you can achieve a high credit score in just a few months.  

3. Credit Cards Can Build or Destroy Your Credit Scores

For first-timers, credit cards can be an important factor. You should be careful enough while using your first credit card. Regular, timely payment of your debts can significantly improve your credit rating score. But if you delay paying your premium, the governing bank can impose some penalties in the form of credit points. Don’t just discontinue using a credit card; it can negatively impact your financial status.

4. Watch Out For All the Fees Before

Before using any credit card, make sure to know all the details. Normally there are no hidden charges attached, yet you need to be sure before getting one. There are some annual fees, late fees, annual percentage rates and foreign transaction fees. Know about them all, and if you find it difficult to understand all these, feel free to contact an experienced person and consult with him.

5. Avoid Paying Credit Card Fees

Do you know if it is possible now to avoid paying credit card fees? There are multiple cards available in the market that do not charge anything annually. If you don’t need any foreign payment, you do need not to pay foreign transaction fees. Try to stay within your credit limit to avoid any extra charges. Other than these, one thing you need to maintain vigorously is avoiding any late payment.  

6. Try to Avoid Interest

One major thing to remember while using a credit card is no matter how much you spend, you will have a certain period to repay that amount. After that time, a high-interest rate will apply to your debt. Try to pay all of your debt within those times; else, the debts will accrue to a massive amount in no time. Your credit scores will also be affected accordingly.  

7. Paying Late Is Not Wise

Paying late is not good if you are using credit cards. Late fees will be implacable on your existing debts. Apart from that, a penalty APR can be charged extra. There is a limit of sixty days, within which if you pay your debt, APR will not apply. So try to pay as soon as possible.

Paying a debt after thirty days can cause negatively on your credit score too. The best way to pay a credit card bill is to set up an automatic payment service with your bank account so that you don’t have to worry about the payment cycle every month.

8. Don’t Cross Your Credit Limit

Every credit card comes with a limit. Suppose you have a card with a credit limit of one lakh per month. Try to spend less than your credit limit. Your credit utilisation ratio will be great when you use less than your credit limit. It will up your credit score significantly.

9. Maintain Safety

Multiple scams are running in the name of credit card services. Though avoiding these frauds isn’t very difficult. No matter what happens, no credit card company will want to know details about your debit card account. Keep this in mind. If you lose your credit card, try to inform us on the toll-free customer care number as soon as possible. They will block your card, and no further transaction can happen then. 

10. Build Your Overall Credit Score

We have been continuously talking about credit scores in this blog because it is important to maintain a high credit score to avail various advantages. Your credit score will increase automatically if you pay your debts well in time and have straightforwardness during all your transactions.

Hope this blog will help you understand the workings of credit cards. If you still find it difficult, please contact a professional to know more details.