Applying For Your First Credit Card? Here’s What You Need to Know First!

Hi everyone, it's Nik from The University Network Here's what you need to know if you're thinking about getting your first credit card

Tip #1: Talk to someone knowledgeable before you apply This person can be a parent, guardian, or another trusted adult You can also have bank employees walk you through the process and explain key concepts such as spending limits, payments, interest rate, and late payment fees Tip #2: Do your research Check the banks near your campus or home and see if they offer benefits to students such as cash rewards, low interest rates, and no monthly fees while you're a student

Each bank offers different options for credit cards So be sure to shop around to find the best credit card Tip #3: Don't buy what you can't afford While a credit card may make you feel you can buy everything, Don't do it Debts can lower your credit score and prevent you from getting approved for future loans or mortgages

Treat your card responsibly and buy something only if you can pay it off in full by the due date Tip #4: Pay your bills in full and on time Always pay your credit card balance in full on or before the due date every month to avoid a late payment fee and interest on outstanding amounts which could easily lead to a high balance and unmanageable amount over time Tip #5: Don't exceed the monthly spending limit Limits are calculated using your income, credit history, and other factors

Never exceed this as it may result in a suspension or penalty of your account Tip #6: Set a budget Budgets are the best way to ensure you don't overspend Budgets require you to analyze your current spending and make a plan to adjust future spendings Having a credit card may tempt you to make excessive purchases, but a budget will make you conscious of how you should be spending Tip #7: Download a mobile banking app

These apps are a great way to keep track of your bank account and credit card easily You can check your balance, due dates, and spending limits You can track your purchases to make sure there are no mysterious charges and that you are not overspending Tip #8: Don't apply for more than one credit card Make sure you can manage your first credit card responsibly before getting a second credit card

Don't be tempted by store credit cards, as they often have high interest rates Tip #9: Read your credit card agreement Make sure you read and understand all the terms and conditions of your credit card agreement Penalties, fees, rates, etc so you don't get tripped up by unexpected fees or penalties

It's important to build up credit while you're in college Remember though that a credit card is a responsibility Check out the full article on TUNcom by clicking the link below Feel free to leave a comment or ask a question and connect with us on social media

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