When you're initially looking for ways to build up or establish your credit, one credit card could help. You should apply for cards with a low interest rates and low monthly payments, especially if you're newly financially independent. This will give you a realistic goal to reach every month for your payments, and will get you in the habit of paying a regular bill every month and avoiding late fees.
When you apply for a credit card, no matter what your income, check to make sure that the interest rates, monthly payments, and APR (annual percentage rate) is within your budget. With most credit cards, an additional percentage is added on when you make late payments. And while emergencies do happen, if you regularly make your payments on time, you can avoid any extra charges.
Since there are many different types of credit cards, you should be aware of the choices you'll have before you apply for a credit card. There are cards for people with little or no credit, student cards, cards for people with bad credit, homeowners, those looking to repair their credit, and everyone in between. Here are some examples of credit cards—maybe one of them will be right for you.
The Chase Cash Builder from MasterCard is a credit card from Chase bank that allows you to earn up to 2% of cash rewards on all your purchases, has no annual fee, and a 0% APR on balance transfers for the first year. This credit card is ideal for people with an average income (usually between $30-50,000) with decent credit. To apply, visit www.chasecreditcard.com
Blue from American Express has no annual fee, 0% introductory APR on purchases for up to 15 months, and a free rewards program, where you can earn one point for every dollar you spend. You will also be eligible to earn cash back on some of your purchases (at participating locations). This credit card is also ideal for small business owners because of the low rates. Visit www.americanexpress.com for more information.
If you want a credit card, and you're a student, you may want to look into the Chase Universal Student Credit Card. You can earn points towards electronic equipment, movies, DVDs, and CDs. You'll also be eligible to receive gift certificates, there's no annual fee, and you'll receive a free movie ticket with your first purchase. You must be a full-time student to apply for a credit card. See www.chasecreditcard.com for more information.
If you want to rebuild your credit, visit the MasterCard site and find out more about the Centennial Gold (a card for people with bad credit), and apply there. If you're approved, your progress will be reported to major credit bureaus every 4 months, and you'll have a low fixed APR on all your purchases. You'll also have access to your account 24 hours a day. You can apply for this credit card on the MasterCard site.
Applying for a credit card is easy, but it takes much more discipline to keep your credit in good standing. Make sure you know which credit card is right for you before you apply for a credit card , and you'll have your credit in good shape in no time.
By Tamiya King