Most young men and women who are finally financially stable want their own credit card so they can use its benefits and feel more like an adult.
When they finally get their first credit card, they can feel a rush of responsibility and a sense of finally being a part of a society where credit cards are an important part of life. Getting a credit card isn't always a sign of being an adult, but it can be. But this kind of ownership needs serious thought because it requires discipline and comes with responsibilities.
Having a credit card can make a young adult feel like they have too much power, in terms of what they can buy. Anyone can get into serious financial trouble if they don't have any control, even adults who have had credit cards for years but have made some big mistakes.
These big mistakes can hurt a person's finances a lot and set them back a few years in their quest for success. That's why it's important to take certain steps before applying for a credit card and find out what you should look into about them.
Check out everything you can do. If you live alone and have a steady job, you probably get a lot of mail offering credit cards with a lot of promises. These companies may try to get your attention by giving you free stuff, which can be really tempting sometimes. But try to keep in mind that these things could just be the hook. "High Interest Rates" could be the name of the disaster you may be heading toward.
So think about the long run, try to shop around, and look at your options. You can also try the Internet, which is the best place to find information today. There are tens of thousands to hundreds of thousands of websites where you can apply for a credit card online, and some of them do offer good deals and promotions.
Check out the credit card company's annual percentage rate. Some of them may try to get you to sign up by offering low interest rates that change over time. This means that you may have low interest rates at first, but only for a short time. After a grace period, the rates may go up, sometimes doubling in value. Find out which of their offer and a fixed-rate card has a lower APR by figuring out the difference between the two.
Check out the card's fees, such as annual fees, late fees, membership fees, etc. This could make your bill balance go up a lot and cause you to pay for something you didn't even buy. If you don't go over your limit and pay off your balances on time, you shouldn't have to pay penalty fees. However, you never know when you might make a mistake, and if you do, it's important that you don't have to pay a lot of fees for it.
Any contract you sign should be carefully read and looked over, especially the small print. A lot of companies have put loopholes in contracts that let them back out of an agreement and take back the deals and perks they gave at first.
