The Best Credit Cards for First Time Users

Published: 16th February 2010
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Some people are lucky enough to get exposed to credit cards at an early age. Usually, these people get firsthand experience from their parents' cards. While still in grade school, they were already entrusted with credit card extensions and such. The advantage of this, if parents ever gave advice, is the exposure to the ability and risks of credit cards.

But borrowing from their parents can only last so long. There comes a time when they will have to be financially independent. This comes during college, right after college or at an age when it is right to have their own cards.

As first time card owners, they still have a lot to master when it comes to credit card issues. And even after how many years, like the millions of adults before them, they still have to keep learning the ropes. But for a start, they should think of getting the best credit cards that could aid them in their finances.

All frequent credit card users, should try and stick to one card only. This is to prevent them from having unbearable debt in the beginning. This should prevent financial downturn in the future as well.

There are credit cards suitable for first timers. Usually, these cards are custom-made and are beset with low interest rates and other perks. But a word of caution: most of these are effective traps for people to get the wrong cards.

Some credit card companies offer an initial low interest rate but it ends right after a few months or so. And by the time the offer expires, what transpires is a shocking high interest rate. This rate is trapped for penalty charges and other hefty fees. If first timers are not careful, they will surely get strapped in credit card debt within a year or even a few months.

So what they should look for in a card are reasonable interest rate and validity of it. They should also highly consider the terms that come after this fancy offer. Usually, 14% or below is good enough as interest rate. They should also note the rewards, rebates and other cash backs that accompany the card. A lot of people actually fail to regard these issues for their doom.

But the most important thing for first time users to consider is self-control. This should be implemented in spending and prioritising. As a part of the financial industry, they should be aware of the long-term results of irresponsibility. The late credit crunch and untimely economic crisis are two of the sad results.

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