You have turned 18 or maybe you have just walked onto the university campus when you are hit by a barrage of credit card company reps trying to butter you up for their credit card with some seriously sweet swag. While you may have a tough time turning away the free plastic cups, nifty key chains, or just the dozens of offers that flood your mailbox, using a credit card is a decision that can impact your finances until the day you die.
Let’s choose a right credit card!
There are literally hundreds of different cards that you can choose from. Some offer airline miles, while others may offer you points towards merchandise or free gasoline. One of my first credit cards was a Star Wars card which offered points towards Star Wars memorabilia and had a photo of Yoda on the card. Yes, this definitely was a card I applied for in college, and except for one major computer purchase, it has sat unused in my wallet for years.
Here are some tips towards choosing that first credit card:
1) Choose a card with a low interest rate. Though it is difficult to get a lower interest rate until you have established some credit history, try to aim for a percentage closer to 9.99% fixed or less. Do not even sign onto any credit cards that offer above 16.99%, whatever they try to sell you. Credit card companies are desperate enough for good customers that you do not need to settle for credit card sharking.
2) Choose a card that gives you a monetary percentage back for purchases. The credit card I use gives me 5% back on all grocery and gas purchases, as well as 1% back on all purchases. That means that a few times a year, I receive a check from the credit card company. Although there are many credit cards out there with air miles, unless you plan to spend thousands of dollars in credit cards (usually not a wise decision unless you are incredibly disciplined), you will not see the returns on your purchases.
3) Choose a card accepted at most locations. Joe and Jim’s Credit Card may be acceptable at the corner grocery store, but it will not help you at all if you plan to travel outside the city limits. So you should choose Visa or MasterCard instead
