You should avoid spending too much if you are a first credit card user. However, you must also ensure that you have enough money to pay for your purchases. Before applying for a credit card, you need to decide what purchases should be put on it and whether they should be paid in cash. By using a credit card responsibly, you'll be able to establish a positive credit history for the future.
Secured credit cards can be easier to obtain
Secured credit is one of the easiest credit card categories to obtain. These cards require a cash deposit of at least $500 to secure a line. You don't need a high credit score to get these cards. However, it is important that you plan your spending and ensure you pay all your bills on the due date. Secured cards can be cancelled or upgraded more easily than unsecured cards. 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. A security deposit can also help the credit card company if you default on payments. If you make your monthly payments on time, the deposit is refundable
They offer rewards
Many of these credit cards for beginners offer rewards on every purchase. These cards don't have an annual fee so you can get cash back every time you purchase. They also offer a path to an unsecured card in the future. Here are some things you should know.
The starter credit card is for those with poor credit ratings. 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 charges, pay off your balance by the end of the introductory period. Many cards offer lower interest rates following the introductory period. This can result in significant savings. However, you should be careful not to overspend in order to get the rewards. 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 rate of interest
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 are often offered at low interest rates and have promotional periods. This means that you'll pay less over time. In addition, they come with perks such as rewards programs.
You need to do some research before you can choose the best beginner credit card. Compare the offers from various credit card companies such as your bank and credit union. You should also consider the requirements, variable APRs, perks, and other perks. You also need to keep an eye out for high-end variable APRs. Pre-qualified offers can be very helpful as your credit score won't be affected.
They offer trip interruption/cancellation/delay protection
Travel insurance saves you the hassle of having to rebook flights or hotels if something goes wrong. The coverage pays for non-refundable ticket costs and reimburses you for change fees. You can also claim reimbursements if your flight is delayed by up to six hours. The benefit is valid for you and your family members traveling with you. The coverage is only available for round-trip travel and can be used twice per year.
This coverage is offered by a number of credit cards. You can choose which one best suits your travel needs based on your travel requirements. Some credit cards provide greater coverage than others.
They offer a collision damage waiver for rental cars
Many credit cards include auto rental collision insurance waiver protection. This coverage will reimburse you for any damage to your rental car or theft. It usually covers up to the actual cash value of most vehicles. This benefit isn't as comprehensive as full insurance coverage. Some credit cards provide coverage for the rental company's towing and use costs.
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. Additionally, the card is only valid for rentals of 15 to 31 consecutive days within your country. Additionally, you can combine rental car benefits with Hertz.