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Applying for your first credit card: A quick Q&A

Applying for your first credit card: A quick Q&A
If you’re thinking about making a credit card application online, you might be wondering where to start. Banking terms can be difficult to understand, not to mention the wide range of products available, but this list of frequently asked questions and answers should help you out.
What is credit?
Firstly, it’s important to understand that credit involves borrowing money with the agreement to pay it back at a later date. If you don’t make transactions on time, you could end up with a poor credit score and this could make it difficult to get a loan, credit card, or mortgage in the future. While lending decisions are based on a number of factors, it’s important to stick to the conditions of the contract as closely as possible. If you don’t think you can manage this, it’s not worth looking for extra funds.
What can I use a credit card for?
While you can purchase almost anything with your credit card, many people will use them to pay for significant purchases – such as a new car or home improvements – over a longer period of time. This means you don’t have to fork out a lot of cash all at once and can incorporate regular payments into your monthly budget. It’s worth noting, however, that spending limits are often capped (particularly for those who have never taken out a credit card before), so always read the small print.
What’s a rewards card?
If you’ve been doing your research, you may have already come across a wide range of rewards cards. With these, you can earn points every time you spend and redeem them against an array of deals and discount. Football credit cards, for instance, are ideal for fans of the beautiful game, as they give you access to special merchandise as well as exciting days out. Many banking groups will also make a contribution to your club whenever you make a purchase at no extra cost to you.
What is a low interest rate card?
Credit cards can come in very useful, but if you pay anything less than the full amount of your statement, you will usually be charged. While fees differ between providers, it’s good to choose a low interest rate credit card, as this will give you more financial security if you do fall behind with your payments. Many banking groups also offer 0 per cent on purchases and balance transfers for promotional period, so it’s definitely wise to compare and contrast deals.
Applying for your first credit card might seem daunting at first, but it’s simple enough – as long as you know the facts.

About Sheila Thomas

Hi, My name is Sheila and I am the Living Smart Girl. My goal is to bring everyone the latest and greatest tips and advice on fitness, healthy choices, recipes, shopping, beauty, home and garden, family and parenting, daily deals, travel, and so much more. I love fitness, but life is more than just exercise and when you visit Living Smart Girl you can connect the dots and live a well rounded life ~ the Living Smart way :)

I love working online and spend most of my day blogging, and researching new topics and tips to bring my readers.

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Sheila Thomas

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