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 you apply for a credit card make sure you know what purchases you want to put on the card. Also, determine whether you will pay cash or with a loan. By using a credit card responsibly, you'll be able to establish a positive credit history for the future.
It is easier to get secured credit cards
Secured credit is one of the easiest credit card categories to obtain. You will need to make a $500 cash deposit in order to secure a line credit. These cards don't usually require a credit score, but you should still plan your spending and make sure you pay off your bills on time. Secured cards offer more flexibility than unsecured cards. They can be cancelled at any time or upgraded if they are not needed immediately.
A secured card is easier to get than a regular credit card. It will also build your credit history. Many secured credit cards offer rewards and cash back, allowing cardholders to benefit from their purchases and build their credit. A security deposit can also help the credit card company if you default on payments. If you make your payments in time, this deposit can 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. These cards also provide a pathway to an unsecured card. Here's the scoop.
People with low credit scores are eligible for starter credit cards. Although you won't be rewarded for spending more than the limit, some cards offer introductory 0% APR rates for 12 to 15 months. To avoid interest charges, pay off your balance by the end of the introductory period. There are many cards that offer lower interest rates than the introductory period. This can help you save significant money. To reap the rewards, however, it is important to not overspend. 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 rates
For people with little credit history, beginner credit cards are ideal. 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. You can also enjoy perks such reward programs.
It takes some research to find the best beginner credit cards. It's important to compare the offers offered by different credit card companies (such as your bank, credit union, or other financial institutions). Take into account different perks, requirements, and variable APRs. You also need to keep an eye out for high-end variable APRs. You don't need to worry about your credit rating being affected by a pre-qualified offer.
They offer trip interruption/cancellation/delay protection
This travel insurance helps you avoid the hassle of rebooking flights and hotels when things go wrong. The coverage will pay for non-refundable ticket cost and reimburse you for change fees. If your flight is delayed beyond six hours, you may be eligible for reimbursements. This benefit is available to you and any family members who are traveling with you. The coverage is not available for round trip travel. You can only use it once per calendar year.
This coverage is offered by a number of credit cards. You can choose the card that suits your travel needs depending on what you need. Certain credit cards offer greater coverage than other.
They offer a waiver on collision damage to your rental car
Many credit cards provide auto rental collision damage waiver insurance. This insurance covers you if your rental vehicle is stolen or damaged during a collision. 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 cover towing costs and any loss of use charges incurred by the rental company.
Capital One Venture Rewards Credit Card provides auto rental collision damage waiver coverage. This coverage covers you for damages you cause while renting a vehicle, up to the actual car value. The rental car must be less than $75,000 in manufacturer's suggested retail prices to qualify. In addition, the card only covers rentals for 15 or 31 consecutive days in your country of residence. You can also stack rental car perks with Hertz.