A credit card is a very useful method of payment. It’s also integral to improve your credit, which will help you secure loans, buy and rent homes, and even earn gainful employment in the future. Taking the right approach when getting your first credit card is essential to ensure the best possible results. Below, learn about the types of credit cards and which one is right for you. 

Types of Beginner Credit Cards 

Qualifying for a credit card can be challenging when you’re first starting out. Fortunately, there are cards out there made just for beginners, including:

• Student Cards: To qualify for a student card, you must be over 18, be a citizen of the U.S., attend college classes on at least a part-time basis, and have some type of income. 
• Secured Cards: Non-students can apply for secured cards, which require a security deposit. Your credit line will be equal to the security deposit you put down. 
• Pre-Qualified Cards: Pre-qualified cards have minimum requirements, such as a minimum credit score. Instead of applying on your own, providers of pre-qualified cards seek out those who meet their minimum requirements. 

Possible Fees

Any financial entity issuing a credit card must be transparent about fees and interest rates being charged. The annual percentage rate, abbreviated APR, is applied to balances carried over from month to month. Some cards also charge an annual fee, which is charged for holding the card for a year. Late fees are also common, as are foreign transaction fees when using your card outside of the United States. 

How to Use a Credit Card Wisely 

It’s best to pay off your credit card in full each month. Not only will this help improve your credit, but it will also eliminate any interest accrued and reduce the expenses associated with using the card. Additionally, don’t use your card for every single purchase you make. Instead, relegate it to certain purchases and use cash or a debit card to cover daily expenses. This will prevent you from gaining too much credit card debt, which can negatively impact your financial status. 

If you’re applying for a new credit card, the financial gurus at 1st Financial Credit Solution, LLC in Lancaster, PA, will show you how to develop money skills that improve your credit score. If you ever run into an issue with your card or credit report, they'll dispute incorrect entries and help you regain your financial footing. Call (888) 523-0808 today to schedule a free consultation and learn more about their 100% money-back guarantee. You can also learn more about their services online.