Credit has been a huge deal especially when it comes to trying to start a business, take out a loan, get a lease on a car, a lease on a home, and more. Just about anything related to getting some extra money out to do something big, you will need to establish credit. One of the easiest ways to do this? Doing it by simply getting a credit card and purchasing something on the credit card every once in a while. Credit cards are essential when it comes to the financial needs of this economy. Getting one early can lead to a better credit later, when the credit are needed. Yet this does not mean that getting any credit card will work, nope, credit cards have different features that make it better to obtain credit.
Tips before Choosing a Card
Here are some good tips to consider and used together with credit cards.
- Credit cards should not give an excuse to spend more money. Most of the companies here are trying to earn interest back, so overspending on the card will mean a hefty interest rate. Constantly using a high rate of the limit will actually cause a slight decline in your credit score. The average, and acceptable rate, is about 30% of the limit. As your limit goes up, more credit can be used.
- Pay on time! This is the most essential part of having a credit, being in debt and paying it off. The whole process of establishing credit is just that. Now if someone cannot use and pay off debt on such a small scale, it is harder to trust that they would be able to pay it on a much larger amount. Always pay on time, this will help boost your credit score, establish credibility, and allow a much easier time getting credit.
- Monitor your credit score. It is always good to see what establish corporations are saying about your credit. Mainly a credit score is all that is needed to make sure that it is steadily increasing. Most companies will provide this, others may even include specific instances that increased your credit, or decreased it. One of the most popular credit score checking sites is Credit Karma, be sure to check them out to get a free report now and even later.
Credit Card Offers and Reviews
Discover it® chrome for Students with $20 Cashback Bonus
The Discover it® chrome card is efficient for students and provides quality features that especially work for someone trying to establish credit. The card works for basically everyone, although students are preferred. The main features of this card is the no annual fee, no overdraft fee, and no foreign transaction fee. This means that someone can establish credit without having to care about constantly dealing with fees. Most credit cards expect some sort of annual fee, usually in the amount of $20 – $200 dollars. However, since establish credit is what we want, this is easy since there is no ongoing fee that is constantly charged. Furthermore the card offers a 2% cash back on all restaurants and gas stations.
JourneySM Student Rewards from Capital One®
Once again the JourneySM Student Rewards offers no annual fees and all you need is an average credit to apply for this card. More than likely, most people who has never had credit before starts out with an average credit. Plus there is also the option to get 1% cash back on all purchases, no matter what it is. Capital One also allows the credit card holder to look up their credit score. Something essential when it comes to establish credit. Now the last thing to say about the JourneySM Student Rewards is that it will increase the limit that can be used on the card after only 5 months. Assuming that all goes well and the payments are all going to be paid on time.
Citi ThankYou® Preferred Card
Unlike the other two cards that have been discussed above, the Citi ThankYou® Preferred Card offers reward points. These points can be redeemed for cash, gift cards, and even electronics after a certain point. For more information about rewards and credit card deals, click here. Citi offers a large bonus of 2500 thank you points after spending $500 the first three months of being a member. 1 points is earned on any purchase, while up to 2 points can be earned for each dollar spent on restaurants and entertainment. The one flaw that this card has is that it will require an above average credit score from its cardholder. Therefore this may not be the first card for someone to get, but when it comes to credit cards to establish credit, this can surely be the one.
Establish credit is very important for the future success of one’s financial needs. It is always a good option to begin early and use credit cards to establish credit. Why not start now?