First Credit Card

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Your first credit card introduced you to a lot of opportunities and amenities. It opened new doors since you were able to make purchases easily by just presenting your first credit card. All it needed was your signature on the corresponding invoices. You had so much fun yet your cash was still intact in your bank account. Soon and at some later period the credit card company’s billing statement will find its way to your mail box.

Your first credit card was also your initial link to your credit history and it had quite an impact on your credit score in ways that you had no idea before. If you handled your payments properly using your first credit card, your credit score would normally be higher. On the other hand, if you mishandled the payments of your credit purchases, your first credit card would have resulted to a bad credit rating and produced low credit scores.     

A lot of college students were given their first credit card by credit card companies. Unlike those who were aware of their credit obligations, most students failed to handle their first credit card wisely. They failed to make good on the monthly payments which resulted to overdue accounts. 

On the part of credit card companies, they went on issuing credit cards to students instead of being more selective. Student credit cards were considered good target markets for credit card companies since credit purchases were as good as covered anyway. One of the requirements is to require the parents to act as co-makers. In cases when their sons or daughters failed to make payments, parents were required to pay in their capacity as co-makers. Otherwise, it would become a reflection of poor credit performance on their parts.      

If you will be offered your first credit card, it would be better to study all its features. Some of the features to look for are low interest on annual percentage rate (APR), other APRs and variable rate. Other features you should examine carefully are the grace period and the method of computation for the remaining balance of purchases. 

You should also checkout the fees on foreign currency transaction, annual fees as well as minimum finance charges and other similar fees. These provisions are usually included in the fine prints of the documents you will be signing. Be sure to take time to read them before affixing your signature because they can all add up to the balance of your account.     

Owning your first credit card should be taken immediately as your chance to have better opportunities in the world of business and finance. It’s not just the power of buying but also the chance to show that you are a matured individual who will make good on your credit commitments. This way, other institutions will consider you as a good credit risk. Based on this, they will decide to give you better credit opportunities with more flexible terms. 

Handling your first credit card properly is about taking good care of the start of a track record of personal credit. 


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