If you’ve graduated college recently and are about to embark on what most people refer to as adult life, then one of the things you’re going to need is a credit card.
Credit cards often have a bad reputation. That’s only if you use them irresponsibly. A credit card is the first step to building your credit history – and a good credit history is going to make your finances easier for the rest of your life. It’ll come in handy when you need a loan five years from now. Or a house ten years from now. Or insurance twenty years from now.
The first challenge for a first time credit card user is getting approval to actually be a user. Options can be limited due to a non-existed or limited credit history. If you have good credit, check out a rewards card, one that preferably has cash-back. And it will be extra helpful if you can show you’re employed and have some income when applying for it. But if your credit reports are more or less blank, consider applying for a secured card. You deposit your own money in advance and this acts as your spending limit. You can do this for about six months to build your credit history and after that apply for a regular credit card. Keep in mind that above all else, you need to find an option without an annual fee.