Your goal as a first-time credit card holder is to not spend too much, but also to be able to repay 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. Responsible use of a credit cards will allow you to build a positive credit score for the future.
Secured credit cards can be easier to obtain
Secured credit is one of the easiest credit card categories to obtain. You must make a cash deposit, usually $500, to secure a credit line. Although these cards do not require credit scores, you should plan your spending and pay your bills on time. Unlike unsecured cards, secured cards are often more flexible. They can be cancelled at any time or upgraded if they are not needed immediately.
Secured cards are easier to obtain than other credit cards. They also make it easier to build good credit histories. Secured credit cards often offer cash back and rewards, which allows cardholders to take advantage of their purchases and build credit. A security deposit can also help the credit card company if you default on payments. This deposit is refundable if you make your payments on time.
They offer rewards
These beginner credit cards often offer rewards for every purchase. These cards don't have an annual fee so you can get cash back every time you purchase. These cards also provide a pathway to an unsecured card. Here's the scoop.
Starter credit cards are designed for people without a great credit history. 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 also offer lower interest rates after the introductory period ends, which can mean significant savings. It is important not to spend more than you can afford to earn 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 interest rate
A beginner credit card is the best option for people who have little or no credit. They can help you build your credit and learn how to handle credit responsibly. These cards often have low interest rates and promotional periods, which mean you'll pay less in interest over time. Additionally, these cards come with perks like rewards programmes.
It takes some research to find the best beginner credit cards. Compare the offers from various credit card companies such as your bank and credit union. Take into account different perks, requirements, and variable APRs. Variable APRs with high premiums should also be considered. Pre-qualification is also a good idea, as it doesn't affect your credit score.
They offer trip interruption/cancellation/delay protection
You can avoid having to rebook hotels or flights if things go wrong with this travel insurance. This coverage covers non-refundable tickets and reimburses for change fees. You can also claim reimbursements if your flight is delayed by up to six hours. You and your family members can also claim this benefit. The coverage is not available for round trip travel. You can only use it once per calendar year.
Many credit cards provide this coverage. You can choose the card that suits your travel needs depending on what you need. Some credit cards offer more coverage than others.
They provide a waiver of collision damage for auto rentals
Many credit cards offer auto rental collision damage waiver coverage. This insurance will cover you in the event that your rental car is stolen, damaged, or involved in an accident. It typically covers up the actual cash worth of most vehicles. This benefit isn't as comprehensive as full insurance coverage. A few credit cards will even pay for towing or loss of use charges as determined by the rental company.
Capital One Venture Rewards Credit Card provides auto rental collision damage waiver coverage. This coverage pays for all damages caused by renting a car up to its actual cash value. To qualify, the rental car must have a manufacturer's suggested retail price of $75,000 or less. The card does not cover rentals for more than 15 days or 31 consecutive day in your country. Moreover, it offers stacking rental car perks with Hertz.