Good First Credit Cards

You have reached the age of 18 (or any age for that matter) and want to enter the world of credit cards.  You may have already begun to receive offers in the mail or online for them. Realistically, though, you are uncertain as to what constitutes a good or poor offer. You don’t even know if you will be able to get a credit card since this will be your first crack at establishing credit.

Following are some factors to keep in mind as you attempt to obtain a good first credit card.

Age: Usually, an individual must be at least 18 years old to receive a credit card. Many credit card firms will also allow you to go on a card as an authorized user with the primary account holder. That means the primary card holder is responsible for payment but you, as an authorized user, can use the card up to the credit limits.

Secured Credit Cards: If your lack of credit history proves to be an impediment to receiving a standard card, you can apply for a secured card. With a secured card, you make a deposit (say $300). The bank holds the money in case you fail to make the payments. This can be a good way to establish credit history.

Co-Signer Cards: There are cards that are issued where a co-signer is required. The co-signor would be ultimately responsible for your debt if you fail to make payments.

Store or Gas Cards: Often, obtaining a card for a store like Best Buy, Macy’s or a gas card at Shell or Mobil can be easier than getting a bank card like a MasterCard or Visa or a membership card like American Express. A drawback of these cards is that the interest rate is higher than bank cards. However, if you can establish a good credit history with them, it can help you obtain a more favorable bank card over time.

Your Bank: If you or your family have been good customers at a bank, they may issue you a credit card.

What to Keep in Mind

Do not make several applications for credit. Each attempt shows up on your credit report. It can make you appear to be desperate to obtain credit and raise red flags to the personnel making the a credit decision on you.

Be diligent in reading and understanding the fine print that comes along with any credit card you apply for. It can prevent you from signing up for a card with onerous terms.