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What Should Be Your First Credit Card?

Receiving your first credit card in the mail is just as exciting as receiving the first driver’s license. Not only does it mean that adulthood has been achieved, but it shows a lender is willing to put their trust into you and your spending habits.

With several options available today, which line of credit is right for your first credit card?

It usually begins with a secured credit card or a poor credit type credit card.

It may require a deposit to secure the credit, but it is an easy way to begin building up a credit profile.

If that’s not what you’re looking to have, then maybe one of these additional options could be a better choice.

#1. No Annual Fee credit cards help people save money. Many credit cards have annual fees that take the place of a security deposit. Some of these fees can reach $600 per year on premium cards. Although rewards programs may ultimately pay for this fee, first-time card holders may not have a high enough limit to do so.

#2. Balance Transfer credit cards are more about debt management. If you’re trying to consolidate student loans for a low rate, then this credit line might be beneficial. Most first-time credit card users won’t need this type of card.

#3. Cash Back credit cards reward your spending habits. Most cash back options range from 1-5% and will reward specific category purchases or all purchases with money back at a certain time. This is an easy way to save money on groceries, fuel, or even your bills.

#4. Low Interest credit cards are for solid credit. If you have an established credit profile, then looking for a low APR card will save you money if you plan on having month-to-month debt that you carry.

#5. Point Reward credit cards offer a wide range of options. Credit cards offer rewards programs that recognize spending habits much like cash back cards do, but only through points instead of actual money. Points can be turned in for merchandise, VIP experiences, concert or movie tickets, and pretty much anything else that is attractive to you.

#6. Prepaid credit cards make it easy to manage money. These cards are perfect for gifts. They’re also a solution for those who want the convenience of a credit card for spending, but want the flexibility of a “pay as you go” lifestyle that cash provides.

#7. Travel credit cards are helpful for a wide variety of lifestyles. People who travel a lot aren’t the only ones who benefit from these credit cards. It’s possible for a year’s worth of spending to fully fund a family vacation every summer with the right card.

It can be difficult to select what your first credit card should be. By weighing the pros and cons of each line of credit type, you’ll be able to find one that can best meet your needs and reward you for the money that you’re already spending today.

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