If you're first time credit card user, your goal will be to limit your spending but to also make sure you can repay your purchases. Before you apply for a card, decide which purchases you should put on the card and which should be paid in cash or financed through a loan. You can build a good credit history by responsibly using your credit card.
It's easier to qualify for secured credit cards
Secured credit cards can be one of the most straightforward credit card types. You must make a cash deposit, usually $500, to secure a credit line. These cards don't usually require a credit score, but you should still plan your spending and make sure you pay off your bills on time. Unlike unsecured cards, secured cards are often more flexible. They can be cancelled or upgraded if you don't need the money on the account right away.
In addition to being easier to qualify for, a secured card will also help you build up a good credit history. Secured credit cards can offer rewards and cashback, which allow cardholders the opportunity to build their credit and take advantage of their purchases. The credit card company may also be able to use a security deposit in the event of your default on payments. This deposit is refundable if you make your payments on time.
They offer rewards
Many of these beginner credit card offer rewards on every purchase. The great thing about these cards is that they don't require an annual fee, so you can earn cash back each time you make a purchase. You can also get an unsecured credit card. Here are the facts.
People with low credit scores are eligible for starter credit cards. Some cards offer introductory APR periods of 0% for twelve- to fifteen months. While spending above the limit does not earn you rewards, others offer 0% APR periods that last for twelve to 15 months. To avoid interest fees, you should pay off your balance prior to the end of the introductory period. Some cards offer lower interest rates once the introductory period is over. This can lead to significant savings. To reap the rewards, however, it is important to not overspend. You shouldn't spend more than what you can afford. The rewards won't be worthwhile and you will end with a balance. This will take away your savings as well as increase your debt.
They have a low interest rate
A beginner credit card is the best option for people who have little or no credit. These cards can help you improve your credit score and teach you how to manage credit responsibly. These cards usually have low interest rates or promotional periods. That means you'll pay lower interest over the life of your card. These cards also offer perks such rewards programs.
It is difficult to choose the best beginner card. Compare the offers from various credit card companies such as your bank and credit union. Consider the different perks and variable APRs as well as your requirements. Also, be aware of high-end variable rates. Pre-qualification is also a good idea, as it doesn't affect your credit score.
They offer trip interruption/cancellation/delay protection
Travel insurance saves you the hassle of having to rebook flights or hotels if something goes wrong. This coverage covers non-refundable tickets and reimburses for change fees. Reimbursement is also available if your flight is delayed more than 6 hours. This benefit is applicable to you and your loved ones who are travelling along with you. You can only use the benefit twice per calendar year, however, as it is only valid for round-trip travel.
Many credit cards provide this coverage. You can choose the best one for you based on your travel needs. Certain credit cards offer greater coverage than other.
They provide a waiver of collision damage for auto rentals
Many credit cards offer auto rental collision damage waiver coverage. This insurance covers you if your rental vehicle is stolen or damaged during a collision. This coverage typically covers up to the actual value of most vehicles. But, it is not as comprehensive and comprehensive as full coverage for liability. Some credit cards also cover towing charges and lost use fees if they are issued by a rental company.
Capital One Venture Rewards Credit Card includes auto rental collision insurance waiver coverage. This coverage covers any damages you sustain while renting a automobile up to the actual value of the vehicle. Rental cars must have a minimum of $75,000 as the suggested retail price by the manufacturer to qualify. In addition, the card only covers rentals for 15 or 31 consecutive days in your country of residence. Additionally, you can combine rental car benefits with Hertz.