BEST CREDIT CARD CHOOSING GUIDE FOR THE FIRST TIMERS

Table of Contents

QUICK TIPS TO CHOOSE A CREDIT CARD
CREDIT CARD TYPES
FOR WHICH PURPOSE YOU WANT A CREDIT CARD?
YOUR MONEY SPENDING HABITS?
WHICH TYPES OF CREDIT CARD YOU WANT?
CHARACTERISTICS OF A GOOD CREDIT CARD
WHAT TO NOTICE WHILE APPLYING FOR A CREDIT CARD (HOW YOU CAN APPLY & WHAT IS NECESSARY FOR APPLYING FOR A CREDIT CARD)
BEST CREDIT COMPANIES
SCAMS RELATED CREDIT CARD. HOW TO OUTSMART CREDIT CARD COMPANIES & SCAMMERS
PRO TIPS
GLOSSARY

1. QUICK TIPS TO CHOOSE A CREDIT CARD

The student card is for below 21 people. Students should avoid applying for any card if they are extravagant.
Before applying for a credit card keep yourself update with latest scams/frauds used by companies or fraud people.
It will be better if you keep 2 types of credit cards 1. business card 2. personal card
The reward card is good if you are rich and travel frequently.
Before applying for a credit card check if they have any HIDDEN CHARGE or not. Avoid that company if they don't give any satisfying details.
If you are applying through an agent then make sure he will not charge extra money.
Always choose a credit card which has- LOW-INTEREST RATE, NO LATE FEE PENALTY, CREDIT LIMIT AUTOMATICALLY INCREASES, 0% APR (ANNUAL PERCENTAGE RATE), ACCEPTED IN ALL PLACES, INTERNATIONAL TRANSACTION AVAILABLE.
If you want a credit card which has international transaction then be careful. International transaction cards have high-interest rate & scams also can happen during international transaction. BE CAREFUL...

2. CREDIT CARD TYPES (4 TYPES)

STUDENT CARD
BUSINESS CARD
REWARD CARD
PERSONAL CARD
BALANCE TRANSFER (Optional)
SECURED (Optional)
LOW INTEREST (Optional)

➝ STUDENT CARD

Student cards are mean to save students money.
Student credit card charge less to no interest fee.
Students under 21 eligible for student card.
Students should use student card responsibly to build a strong credit history.
In order to get a student card, a student needs to show either his own income source or need to be co-signed by his guardian.
If you are a student or you don't have your own steady income source then never apply for reward card or business card.
No offer, cashback or reward facility in student cards

➝BUSINESS CARD

A business card is just like a normal credit card with more credit limits.
Business cards need to be more secure
The business card is generally used for a huge amount of money.
It has the offer, rewards, cashback, discount facilities
Your credit history needs to be great in order to apply for a business credit card.

➝REWARD CARD

The reward card is for responsible guys.
It has higher late fee penalty & interest charges compared to other credit cards.
Never apply for a reward card if you have no income source.
Credit history needs to be great in order to apply for a reward card.
Most of the reward card holders are FREQUENT AIR TRAVELLERS.

➝PERSONAL CARD

The personal card is for normal people with income.
If you don't like to spend more money then you should choose a personal credit card that provides offers,cash-backs that never expires.
a personal card should have less interest rate & less to no penalty for late repayment.

3. FOR WHICH PURPOSE YOU WANT A CREDIT CARD?

You have to decide the purpose of your credit card before buying it. Not all credit cards are suitable for all-purpose.

Before applying for a credit card never forget to keep an eye on your financial condition. Choosing a wrong credit card can make you poor.

4. YOUR MONEY SPENDING HABITS

Do you use a credit card for grocery? for shopping? to pay online? to pay employees? to book online?

If you are doing this types of spending regularly then you should choose a card that provides cashback, discount for spending money on these.

Some credit card companies provide a discount, cashback for their selected merchants. It will be better if you

5. WHICH TYPE OF CREDIT CARD YOU WANT?

Do you want a credit card that provides cashback/offers? Do you want a credit card that is more secure? Do you want a credit card that saves your money from unnecessary expenditure?

First, decide which type of credit card you want then go talk to the company that provides a credit card.

6. CHARACTERISTICS OF A GOOD CREDIT CARD

CREDIT LIMIT AUTOMATICALLY INCREASES
SECURE
NO LATE FEE PENALTY
0% APR (ANNUAL PERCENTAGE RATE) ON BALANCE TRANSFER
LESS NEED TO SPEND IN ORDER TO QUALIFY SIGN UP BONUS
GRACE PERIOD
THAT LET YOU BUY OVER YOUR CREDIT LIMIT
EMAIL ALERTS FOR VARIOUS PURPOSE
ACCEPTED IN MAXIMUM PLACES

7. WHAT TO LOOK WHILE APPLYING FOR A CREDIT CARD?

IF THE CARD IS SECURE OR NOT
WHAT IS ITS ANNUAL PERCENTAGE RATE (APR)
INTRODUCTORY INTEREST CHARGE
CREDIT LIMIT AUTOMATICALLY INCREASES OR NOT
LATE PAYMENT PENALTY OR NOT
REWARD/SIGN UP BONUS
INTEREST FOR SELECTIVE PURCHASES OR NOT

Points to remember:-

Credit card approval is strict. If you are a beginner to a credit card then credit companies will ask you about your income source.
If you don't have any income source then you should avoid applying for credit card. Because this can decrease your credit score.
Established credit card companies need a good credit score history in order to approve your application.
Before applying for credit card first sort out 10 best credit card companies. Then check their minimum credit score requirement.
After checking their credit score requirement check your credit score. (THERE ARE SO MANY ONLINE CREDIT SCORE CHECKERS AVAILABLE ON THE INTERNET)
After knowing your credit score applying in the credit card company that suits your credit score.
NEVER APPLY FOR MULTIPLE CREDIT CARDS AT A TIME.
You can get a credit card without job and income but you need a guardian for this. Credit card for a beginner is approved on the basis of income. If you don't have any income source then your guardian need to show his income.

8. BEST CREDIT CARD COMPANIES

VISA
MASTERCARD
AMERICAN EXPRESS
CHASE
CITIBANK
DISCOVER
CAPITAL ONE
BANK OF AMERICA
USBANK
BARCLAY

*Visa is the most widely used credit card company if you are visiting any foreign country then you should choose a visa because it is approved by more merchants compared to any other credit card companies.

9. SCAMS RELATED CREDIT CARDS

Beginners mostly fall in the scam trap of credit card companies. Read these articles and act smartly against credit card frauds.

10. PRO TIPS

Always carry different types of credit cards ( for example- business card+ personal card or low-interest card+ business card )
Carrying different cards will help you take a better financial decision
Before applying for a credit card through an agent thoroughly check about that credit card facility, features etc.
High alert against scams and frauds!!! specially for international credit card, reward card and business card.
Check if your credit card has a facility for an international transaction or not. The international transaction is good for you if you are an internet savvy.
But check interest rate, an annual charge of international credit cards. (INTERNATIONAL CREDIT CARDS ARE GENERALLY PRICEY)
Company and customer signed for a credit limit. The company keeps a credit limit for you as per your wish or capacity.
Many companies increase the credit limit automatically which is good for you. NEXT TIME ASK YOUR CREDIT COMPANY IF THEY AUTOMATICALLY INCREASE CREDIT LIMIT OR NOT. IF THEY INCREASE CREDIT LIMIT AUTOMATICALLY THEN CHEERS!!!
Choose a credit card company that is secure, never sell any of your data that gives alert every time you spend or monthly payment alerts.

11. GLOSSARY

🔉CREDIT HISTORY:- Credit history is just like ATTENDANCE. Whenever you apply for a new credit card credit card companies will check your credit history. Means they check your history of paying habit.

They check if you are repaying money late or on-time. The credit score is also available in the credit history. If you repay the money on time or fulfill all the conditions of credit card issuer then your credit score will increase.

🔉APR:- Some credit card companies charge interest monthly and some charge interest yearly. The yearly interest charge is known as APR (ANNUAL PERCENTAGE RATE).

You can avoid APR by repaying on time.

🔉FREQUENT AIR TRAVELLERS:- Those who use the airplane to travel maximum times.

🔉 AUTOMATICALLY INCREASE CREDIT LIMIT- When someone applies for credit card credit card company keeps a credit limit for the borrower. Means you cannot spend more money than your credit limit.

If you regularly spend more money then your credit limit will automatically increase.

🔉BALANCE TRANSFER:- Means When you pay off the balance or loan to credit card company by transferring money to another credit card.

When you transfer money to another credit card you need to give some % of your total transfer to your credit card company. (Not all credit card companies charge money. It is good for you if they don't charge any money)

🔉MERCHANTS:- Merchants can be retailers, wholesale retailers, vendors etc.