If you're first time credit card user, your goal will be to limit your spending but to also make sure you can repay your purchases. Before applying for a card you must decide which purchases should go on that card. These purchases can be made in cash, or borrowed money. You can build a good credit history by responsibly using your credit card.
Secured credit cards can be easier to obtain
Secured credit cards can be one of the most straightforward credit card types. You will need to make a $500 cash deposit in order to secure a line credit. While these cards don't require a credit score in most cases, they do require you to plan your spending habits and pay off your bills promptly. Secured cards have a higher flexibility than unsecured ones. If you don't require the money immediately, they can be cancelled and upgraded.
A secured credit card is not only easier to apply for, but it will also help build up your credit score. Secured credit cards often offer cash back and rewards, which allows cardholders to take advantage of their purchases and build credit. A security deposit is also helpful to the credit card company in case you fail to make your payments. If you pay your bills on time, the security deposit will be refunded.
They offer rewards
Many of these credit cards for beginners offer rewards on every purchase. These cards are great because they don't charge an annual fee. You can earn cash back for every purchase. There is also an option to upgrade to an unsecure card. Here's the scoop.
People with low credit scores are eligible for starter credit cards. While you don't get rewards for spending beyond the limit, many offer introductory 0% APR periods for twelve to fifteen months. To avoid interest rates, make sure you pay off your balance before the introductory period expires. There are many cards that offer lower interest rates than the introductory period. This can help you save significant money. Be careful to not overspend to receive the rewards. The rewards will not be worth what you can spend on the card. If you do, you will end up carrying a balance that will drain your savings and increase the amount of your debt.
They have a low rate of interest
These cards are great for those with little or no credit history. They can help you build your credit and learn how to handle credit responsibly. These cards usually have low interest rates or promotional periods. That means you'll pay lower interest over the life of your card. Additionally, these cards come with perks like rewards programmes.
It takes some research to find the best beginner credit cards. Compare offers from different credit cards companies, such your bank or credit Union. You should also consider the requirements, variable APRs, perks, and other perks. High-end variable APRs are also worth your attention. Pre-qualified offers can be very helpful as your credit score won't be affected.
They offer trip interruption/cancellation/delay protection
This insurance covers you for rebooking your flights and hotels in the event of an emergency. The coverage pays for non-refundable airfare costs and reimburses you in the event of change fees. In the event of a delay up to six hours, reimbursements can be claimed. You and your family members travelling with you are eligible for this benefit. It is limited to round-trip travel only and you can only apply it twice per year.
This type of coverage is offered by several credit cards. You can choose which one best suits your travel needs based on your travel requirements. Some credit cards have greater coverage than others.
They offer a waiver from collision damage on auto rental vehicles
Auto rental collision damage waiver protection is available through many credit cards. If your car is damaged or stolen, this coverage will pay you. Most vehicles are covered up to their actual cash value. The benefit isn't quite as comprehensive, however, as it does not include full liability coverage. Some credit cards also cover towing charges and lost use fees if they are issued by a rental company.
The Capital One Venture Rewards Credit Card offers auto rental collision damage waiver coverage. This coverage pays for all damages caused by renting a car up to its actual cash value. A rental car must have a suggested retail price of $75,000 and less to be eligible. Additionally, the card is only valid for rentals of 15 to 31 consecutive days within your country. Moreover, it offers stacking rental car perks with Hertz.