If you are wondering when to get your First Credit Card, the right time is probably now. Before we begin to underline the apt time for you to get a card, let us first understand its importance. A Credit Card doesn’t just facilitate another small loan that you can borrow from a friend, and repay it at some time in the future. It is, in fact, a tool that helps you build a credit history, something which comes very handy when you are looking forward to take crucial financial decisions, such as:
While there is no definite time or age to Get Your First Credit Card, you should get one when you are mentally and financially prepared to pay off your balance, in full, every month. Just in case, you are above the age of 18 but are still studying, and are getting financial support from your parents; you can opt for a student Credit Card.
In case, you have already completed your studies, but aren’t employed yet; you can choose from one of the many Credit Card offers for young professionals. And if you enjoy stable employment, there is absolutely no reason for you to delay the opportunity of getting a Credit Card at the earliest possible. No matter, the stage of professional life you are at, once you are 21 years and can commit to using the card judiciously, you should apply for a Credit Card without any delay.
You might be wondering that we are probably pressing too hard for you to get a card. Well, this is simply because the moment you get a card, the credit bureaus start taking note of your repayment behaviour, which then contributes to your credit score. As mentioned earlier, having a credit score (albeit, a positive one), can work wonders for you when it comes to establishing a trust-based relationship with a bank, a lender, your landlord, or even a prospective employer.
Then again, the earlier you get a card, the longer will be your credit history, and the better will it reflect on your credit report. Having a report that suggests a score of 700 or above, which will help you get a loan, or a home on rent, or even a job in the swiftest manner possible.
Now, if that doesn’t seem like a high return on investment, we don’t know what will!
Everything said and done, here are a few aspects that you ought to take into consideration before you jump on the first Credit Card offer that you come across.
Owning a Credit Card itself means that you will spend on a wide variety of things. The card shouldn’t be one of them. After all, in no way does it make sense to pay more money on your expenses. Hence, try finding a card that has no joining/annual/membership fee, whatsoever. If possible, also insist on getting a card without any yearly renewal fee.
Since, this is your first Credit Card, in most likelihood, you will be offered a card with comparatively higher interest rate than prevailing in the market. And why not? Since the bank has no proof of your credibility when it comes to paying your bills on time, it can only cover the risks involved by offering you credit at a higher rate. That said, you should not shy away from comparing various Credit Cards available for you basis on their rates, and pick the one that offers the best value.
And while you are at it, don’t make the mistake of thinking that you will be infallible when it comes to paying your bills. Life is uncertain, and so is your financial situation. No matter how much control you exercise over your finances, at one point or the other, you may fail to pay your bills on time. This is the reason why we insist that you look for a card with the least possible rate.
In the present day scenario, almost every Credit Card in the market offers at least a few perks if not all. These might range from simple reward points at select shopping centres/websites/brands to discounts, cashbacks, airline miles, and more. Of course, as a first-timer you can’t expect multiple benefits; however, you can always shop around to get a card with the most valuable perks. While doing so, it is highly recommended for you to read the fineprint to understand the terms and conditions attached to these perks.
We hope that you now have a clear picture regarding the right time to get a Credit Card, and about how to do so in an efficient manner. Now that you have all the information you need wait no more before you start your search and get the financial freedom and other valuable perks that a Credit Card offers!
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