My first credit card
By: CCN.com
'How to find the right credit card?' is the question which
haunts every credit card hunter. Though there is enough said and
heard on why one would need a credit card, this is exactly the
question that you should ask again when hunting for the right
credit card for yourself. To make the things easier for you,
here is the first set of questions which you need to ask even
before you start hunting for your first credit card:
Do you need the credit card just for convenience sake or is it
more out of necessity for credit? This will help you determine
what aspects/features to look for in a credit card e.g. if it's
just for convenience sake and you have plenty of cash in your
bank, then you will probably always be making monthly payments
in full (you might set up direct debit from your bank account to
make your credit card payments automatically) and hence APR
might not be on your priority list. However, if you are not
planning to make full monthly payments all the time, then APR is
one of the most important things on your list.
How much do you intend to spend every month using your credit
card? Based on how much you intend to spend, the credit limit
will become a higher priority for you. Different credit cards
offer different credit limits.
Do you frequently shop with a big department store or do you fly
a particular airlines a lot or do you have any special shopping
interest? If you do, then you might like to go for a co-branded
card. Most of the big department stores and airlines have such
tie-ups with credit card companies where-in you get discounts or
extra miles or extra credit card points when you use your card
for payments. Are you a student? There are special credit cards
for students which are offered by various credit card companies.
These are called 'Student credit cards'. So if you wanted to
start building a credit rating early in your career these are
the ones suited for you. Payment mode. This could be another
factor influencing your choice of credit card. Whereas some
companies accept almost all modes of payments, other might be
choosy.
Your income, age and other details. When going hunting for a
credit card, you need to keep these details in your mind too.
Some companies keep a minimum criteria or a qualification which
you need to fulfill before you can apply for a particular credit
card with them. So, though it's important that you like the
credit card or the credit card company, it's equally important
that the credit card or the credit card company likes you too.
Do you travel a lot? A lot of credit card companies have
specific offers for frequent travelers. Some have tie-ups with
hotels or rental agencies and can get you a discount if you use
their credit card. If most of your travel is to foreign lands
and you intend to use your credit card in other countries, you
might be interested in knowing the commission charged by the
credit card company for foreign currency transactions. Be
careful, some companies charge no commission but offer pathetic
currency conversion rates. Also, some credit cards may have some
amount of free travel insurance on them which you might want to
consider as well.
Interest free period. Also, it's a good idea to compare the
interest free periods offered by various credit cards. This,
together with the APR rate, might become handy in emergency
situations when you are not able to pay the full amount due on
your credit card.
The time invested initially in evaluating your needs, before
finalizing a credit card, will pay you rich dividends in the
long run. So invest some time on this before making the move