14.04.2024

Tips on how to choose your first credit card

The first credit card is one of the first achievements of adult life. While still in their teens, many dream of having their first card to make purchases and have more freedom.

Having a credit card represents freedom, but to make it really worthwhile you need to know how to choose, and we’re here to help you with that mission. Tips such as looking for a credit card with no annual fee and lots of benefits are essential to having a card full of advantages for your lifestyle.

Understand your needs

To make the right choice, you need to know your needs. What do you want to use the card for? What are you planning to buy? What benefits would you like to have? These are some of the questions you need to ask yourself. If you intend to travel, for example, give preference to cards that offer advantages, such as a miles program.

In addition, evaluate issues such as the possible due dates of the bill and the initial limit you need to make your purchases.

Also check which card brands are most widely accepted on the market or are accepted in the establishments where you shop most. All of this is important if you want your credit card to bring you real advantages on a daily basis.

Check annual fees and interest rates

Not all credit cards have no annual fee. Many financial institutions still charge an annual fee, so it’s important to keep an eye on this! In some cases, banks set a monthly spending limit so that the customer can be exempt from the annual fee, so check this information before applying for the card.

Another important point is to know the interest rates applied by the card company. Interest rates are fees charged for late payment of invoices and are usually quite high. That’s why it’s important to know the figures so you don’t get any surprises. Also check the possibilities of paying the bill in installments and the interest involved in the operation.

Evaluate the benefits offered

A credit card is much more than a purchasing tool, it involves a number of benefits. Now that you’ve followed our first tip and understand your needs, research which cards offer benefits that meet them. That way, you can understand whether it makes sense for what you want.

Nowadays, it’s common for credit cards to offer advantages such as benefit clubs, cashback, air miles programs, discounts on purchases from the card’s partners, among others, so keep an eye out! Find out what benefits are on offer and understand how they can meet your needs in order to make a good choice.

Negotiate the limit

The credit card limit is already predefined by the operator, but you can try to negotiate it to make shopping easier. Do some research and see what limits are offered by different cards and understand which ones meet your shopping needs.

If the limit is lower than you expected, which is often the case when you first get a credit card, try to negotiate with the operator. If it’s not possible to increase the limit right away, set up a spending strategy for the first few months of the card.

This way you’ll start to build up a payment history with the operator and you’ll find it easier to receive a limit increase in a short time.