Credit Cards Articles

Your First Credit Card - The Excitement and the Risks

The average young adult experiencing independence for the first time will definitely have a lot of things to think about such as getting a job, renting a home or apartment unit, buying a car and yes, applying for that first ever credit card. Credit cards can be the most useful tool for the 20-something individual who is still at the foot of the corporate ladder and does not have adequate savings to make big cash purchases like a down payment on a home or even monthly electricity and gas bills.

When your first credit card arrives, your world will open up because you will suddenly have the power to buy whatever you need without asking anyone for money or permission first. But before this happens, you will first have to choose the kind of card you want to apply for. Different types of cards have different features so you have to consider all your options well and make your decision wisely.

A credit card can be very helpful if used in the right way. However, when combined with a lack of financial management, your first credit card may turn out to be the source of all your future monetary problems. In order to avoid this, make sure that you first have a job that will give you a regular monthly salary with which you can pay your credit card bills.

Another thing to consider is the level of responsibility you are capable of. If you have even the slightest second thoughts and are not completely sure that you can handle the duties associated with owning your first credit card, it might be a good idea to use American Express. Their credit cards do not have a minimum required balance which can be better for you. At any rate, keep in mind that there is a different type of credit card suitable for each type of person. To find out what is best for you personally, be sure to shop around and read all the fine print before affixing your signature in any credit card contract.

When you have finally decided on which type you want your first credit card to be, you must then familiarize yourself with the basic rules of credit card safety. This includes tearing up all old receipts and filing credit card statements in a safe place, as well as exercising prudence in giving out your credit card number. Identity fraud has become very common in the last few years so you should take extra care not to fall victim to this crime.

In the beginning, getting your first credit card can definitely be exciting and you can't wait to use for shopping. But when the first credit card bill arrives, you will surely be pulled back into the reality that credit cards are not magical sources of cash. You still need to pay everything you buy with your first credit card so you do have to budget your expenses carefully.