You’ve never had a credit card but you’re thinking about getting one. What should you look for?

Figure Out What You will be Approved For

Do you have a credit history? In other words, have you ever taken out a loan of any kind? If not, you might not have any credit history and getting approved for a traditional credit card could prove difficult. If you have no credit history, consider one of two options.

Apply for a Secured Credit Card

Secured credit cards require a refundable security deposit, sometimes as low as $200, which you use as collateral and then borrow against. In other words, the bank or credit union agrees to loan you the money with the assurance of being able to seize your security deposit if you don’t pay it back. If you manage the credit card well, you’ll be able to build credit and upgrade, at a later date, to a better card. For the best affect on your credit core, .

If You Can Get Approved for a Traditional Card

If you can get approved for a traditional credit card, based on your income and credit score, we suggest getting something practical. If you are young and just starting out, you’re usually still building your credit score and developing good habits. We suggest opting for a credit card with no annual fee, a low limit, and simple rewards.

A good tip for the “right limit” is to go with what you earn in one paycheck. That way you’re less likely to have a card that can get you into trouble.

Use the card for practical expenses you were already going to make such as for gas or groceries and pay it off without being charged interest every month. Down the road, after you’ve proved to yourself that you can be responsible with a credit card, you might consider something with more bells and whistles.

We’re Here to Help

If you’d like to learn more or speak with someone about building credit or getting your first credit card, our helpful local team is here to help. Give us a call or schedule an appointment.

Check out WECU’s podcast episode about choosing a credit card! 

Listen here.