A credit card offers many financial benefits, including the opportunity to build credit history that can then be used to secure a favorable mortgage. However, the fees, lingo, and fine print pertaining to credit cards can make you reconsider getting one. Instead of shying away from credit, use the below questions and answers to learn more about it.

Common Questions About Getting a Credit Card

1. How Do Debit & Credit Cards Differ?

A debit card is directly connected to one of your bank accounts, such as a checking account. When you use one to make a purchase, the swipe of your card pulls money straight from your account to pay for the purchase. A credit card allows you to pay for a purchase by borrowing money from the bank instead of using money from your account. Then, you pay back the bank, along with interest for borrowing the money, at the end of the month.

2. What Do I Need to Apply for a Credit Card?

To apply for a credit card, you will need to give the bank your legal name, social security number, primary address and your yearly income. Students will also need to provide their school’s name and location.

3. How Do I Get a Card Without Credit History?

If you don’t have credit history, meet with multiple credit card providers to find one that offers the lowest APR, or annual percentage rate, and fees. You can also get a secured credit card that would require you to submit a security deposit.

4. Do You Have to be a Certain Age to Get a Credit Card?

To have your own credit card in the U.S., you usually have to be 18 years old. However, you can get one at any age by becoming an authorized user on a parent’s card.

5. How Can I Avoid Surprise Fees After Obtaining a Credit Card?

The best way to prevent yourself from racking up surprise fees is by paying your bill in full and on time each month. You’ll have to pay late fees if you don’t make the correct payment by the deadline and your credit score could take a hit.

Are you interested in opening a credit card? Located in Lincoln, NE, Spirit of America Federal Credit Union is dedicated to giving you the low-cost financial services you need to feel financially sound. Whether you want to open a savings account, secure a loan, or expand your investments, their team will put your needs first. Give them a call at (402) 467-1102 or visit their website to learn more.