Getting Your First Credit Card – Why Is It Important For You?
Why should you look for any banks in Mesa, Arizona to get your hands on the latest credit cards for excellent credit? Why should you use credit cards in the first place? This is a very valid question and you should know that by using a credit card, you can easily build strong credit in your name. You can do that without using a credit card as well but this financial instrument has a lot of advantages beyond just letting you build a strong credit. Needless to mention, they are easy to use and give you the option to add more accounts to your credit history. If you already have any other types of accounts such as installment loans, using a credit card is of benefit to you. Following is a list of several advantages that a credit card entails:
1. Absolutely Free
Several credit cards don't even come with an annual fee. They are free to use and have.
2. Free Of Any Usage Charge
That’s right. You can also avoid paying any interest on your credit card as long as you don't have any revolving balance on your credit card bill. Whenever you are moving from one month to the next, make sure that you do not carry any balance on your credit card and this is also going to help you build credit.
3. Building Credit
Credit cards for excellent credit give you the opportunity to build credit by responsibility using this financial instrument. Remember, responsible credit card use is going to improve your credit score and eventually your credit reports over a period of time.
4. Purchasing Power
Credit cards provide you a great deal of buying capacity. Is there any other way to carry around $10,000 worth of purchasing power in your wallet?
5. Advanced Security
Ask your banks in Mesa, Arizona what security measures their credit cards offer to the users. In the event of you losing your credit card, you can cancel it and also ask for a free replacement. This is not something you can do with any other financial instrument or cash.
6. Limited Liability
Yes, you will not be held liable for any fraudulent credit card use. You do not have to worry about credit card theft as long as you have reported the incident immediately to the bank and to the relevant authorities.
7. Credit Card Rewards
Nobody is unaware of the number of credit card rewards and points that one gets from using this financial instrument. You get points and cashback and free miles among many other rewards point these can add up to significant to savings over a period of time and in many cases you can avail several services absolutely free of cost.
You also get additional online rewards for using your credit cards on a regular basis. Some card issuers offer reward points through their official discount portals. You can find some very popular retailers associated with your credit cards and this makes shopping even more fun!
9. Purchase Benefits
Do you know that several reputable credit card companies provide purchase protection to their credit card owners? They will offer to cover any damages caused to any items that you purchase for a few months. Thefts and breaches of contracts on the part of vendors are also covered under these purchase benefits. Extended warranties, travel insurance and auto rentals also fall under this category of benefits.
How Will You Go About Choosing Your First Credit Card?
If you do not have a credit card already, you may not have any credit history at all. In order to determine where you currently stand credit-wise, checking your credit reports and scores is a good idea. You also need to understand your options when you are about to get your first credit card. This step is not going to have any direct impact on your credit scores until you apply for a card in the first place. The right credit card for you is going to be the one that fits easily into your lifestyle, expenses, purchasing habits, incomes and savings. The ideal credit card should be easy to use and if you are already using a debit card to buy things, it will be easier for you to transition from it to a credit card over a period of time.
Using A Credit Card For Excellent Credit To Build Credit
Credit cards have the power to impact your credit in more than one ways as soon as you apply for one. The biggest principle that you need to follow while using a credit card is that always be responsible when paying your bills. Pay them in full and on time. But remember, there is much more to successful credit card management then just paying your bills at the end of every month.
Approval Requirements For A Credit Card Application
You Should Be At Least 21 Years Old Or 18 And Should Have Your Parents’ Permission To Apply For A Credit Card
According to the Card Act of 2009, marketing credit products to young adults who do not have any source of income to pay their obligations is strictly prohibited. If you are under the age of 21, you may have to provide enough documentation to prove your source of income and your parents' consent.
You Should Also Have A Verifiable Source Of Income
You will be required to show proof of your regular income and if you are not able to do that, the financial institution / bank is going to reject your application. Remember, you do not have to report all your income but just the portion of it that you want to be considered as available to repay all your credit card bills at the end of the month.
Get A Social Security Number If You Do Not Have One Yet
Non-citizens or individuals that do not have a social security number are not likely to get a credit card. In the end, you also need to have a positive credit history to apply for a credit card which is soon going to be possible by using your credit card responsibly.