There are many questions and even myths and beliefs about getting a credit card. However, credit cards are not to be frightened of, because when used sensibly, they are a handy tool for managing your finances. We’ll break down some of the credit card myths and give you the best tips for getting your first credit card!
There are a lot of myths associated with purchasing a credit card.
Myth 1. You need to earn a lot to get a credit card
This may not be the case at all, as when applying for a credit card, the bank looks at the customer’s financial situation as a whole. For example, a default payment entry may be a greater barrier to earning a credit card than your income. Sure, getting some credit cards requires a high annual income, but many cards can also be obtained at the very usual income.
Learn more Premium credit card with millions of investments or $ 20,000 in revenue
Myth 2. Must be at work
This myth is not always true either; for example, it is possible for students to get a credit card. However, it is usually a requirement that the card be obtained only after 90 credits have been completed.
Unemployed people can also get a credit card, because at least Aktia also grants the unemployed Mastercard Goldia an annual fee for the unemployed. In addition, students can obtain this Aktia card without any credit requirements. An additional feature of the card is travel insurance (though luggage compensation amounts are not huge) and Purchase Security.
How To Use The Wisely Card
Pensioners, too, are not left out of the credit card market, as the lender is more interested in the employment relationship than regular income. Even if your pension is small, if your Payment History is OK, you can still get a credit card at retirement age.
A pensioner can also benefit from purchasing a credit card in the form of travel insurance. See what the upper age limits for credit card travel insurance are!
Myth 3. Must be cool
This myth is partly true because a minor cannot get his own credit card. However, it is possible for a person under the age of 18 to obtain a parallel card on the parent’s credit card, in which case the parent is also responsible for the purchases made with the parallel card. Getting a parallel card for a child is recommended, especially if the child goes abroad as an exchange student.
Myth 4. Credit card leads to debt spiral
A credit card can be used either responsibly and wisely, or recklessly and without consideration. Everyone is responsible for their own credit card usage. In principle, however, the use of a credit card should not lead to problems; However, when paying with a credit card, keep in mind that it is a good idea to have a plan already in the time of purchase as to how and when your credit card bill is going to be paid off.
Tips for getting your first credit card
Now that the common myths about acquiring a credit card have been lifted, it’s time to look at some tips to help your life with a brand new credit card holder run smoothly.
1. Decide what kind of credit card you want
Credit cards are available for every occasion. First, of course, there are basic credit cards, which have little other features besides credit. As a rule of thumb, you should never pay an annual fee for a basic credit card, there are several cards that are free of charge in the market and include cash benefits such as travel insurance.
In addition to the basic cards, there are a variety of premium credit cards that bring a piece of luxury to your everyday life. The popular card at affordable but premium benefits is American Express Gold. In addition to Premium Cards, there are also Flight and Reward Credit Cards.
2. Compare card prices
Credit card prices are also worth comparing, as the annual fees vary from free to 700 euros per year. However, the cheapest card is not always the best choice if it does not include any worthwhile benefits. The best thing to do is to find a card that has the best value for money relationship to your spending style.
3. Learn to use your card wisely
There are two steps to using your credit card wisely. First of all, it is advisable to shop with the card prudently and reasonably in relation to your own financial situation. Already at the time of purchase, it would be a good idea to have a payment plan and schedule for how your credit card bill is going to be handled. It is also worth remembering that in some situations using a credit card is more than advisable.
4. Pay the bill fixed
The second step to using the card is sensibly to pay your credit card bill wisely. All credit cards offer about 30 days of interest-free payment, so it’s a good idea to try to pay the bill as much as possible. A credit card invoice always mentions the minimum amount to be reduced, but in practice it makes sense to try to pay the invoice as much as possible to avoid accruing interest expenses.
It is worth remembering that when used wisely, a credit card is a useful tool for your own homeowner, and you will reap real monetary benefits!