When it comes to building credit, one of the most pivotal steps is obtaining your very first credit card. By using a credit card responsibly and ensuring timely payments, you can establish and boost your credit score. However, choosing the right credit card for beginners is crucial. In this article, we’ll outline four key features to look for when selecting your inaugural credit card.
No Annual Fee and Credit Score Monitoring
Your financial journey towards credit-building should not start with extra expenses. Avoid annual fees on your first credit card. Numerous credit cards tailored for individuals with limited or no credit history offer this perk, making it easy to find a suitable option without incurring unnecessary costs.
Maintaining a close watch on your credit score is paramount, particularly when you’re in the process of establishing credit. Opt for a credit card that provides free credit score monitoring. This invaluable tool enables you to track your credit score’s progression month by month and gain insights into the factors impacting it. It’s an essential feature for anyone new to credit.
Cash Back or Rewards Points
While not mandatory, considering a credit card that offers rewards can be financially beneficial. Cash back cards, in particular, are user-friendly and offer a simple way to earn back a percentage of your purchases.
Even without a substantial credit history, there are an increasing number of rewards cards available to newcomers. For instance, a card that earns 1% cash back can add an extra $200 to your bank account annually if you spend $20,000.
A Quality Card Issuer
Customer service might not be the first thing on your mind when getting a credit card, but it’s not to be underestimated, especially if you’re new to the world of credit. When choosing your first credit card, consider reputable card issuers such as Discover and Bank of America.
Both consistently rank highly in customer satisfaction. Having access to quality customer service can be a lifesaver when you have questions or concerns about your credit card.
Choosing Your Credit Card with Confidence
In summary, selecting your first credit card requires careful consideration of several key features. Make sure to prioritize cards with no annual fees to avoid unnecessary costs. Keep a close eye on your credit score with cards that offer free credit monitoring.
While not obligatory, rewards like cash back can provide added value. Lastly, opt for a card issuer known for quality customer service. Fortunately, there is a wide range of credit cards that offer all these features, so a little research and shopping around should help you find the perfect card to kickstart your credit journey.
