KredittKort is so Important to Have – Finance and personal financial health can sound like a topic impossible to tackle on your own. Particularly, the world of credit cards is muddled with lots of information but not many explanations. Thankfully, it’s not insurmountable anymore!
Credit cards are a vital part of adulthood and maintaining a good situation with your money. Most of us need to take out a loan at some point – be it for a car or a house. Many of us already have loans from private companies or the government for our schooling. However, without much credit, you often need a co-signer to get these.
This is, obviously, inconvenient. To avoid this situation, you can build up your credit health before you take those big steps in your life. One of the most efficient and simple ways to do this are obtaining a credit card.
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When to Get a Credit Card
I think the best time to get your first credit card is probably during your late teenage years to your early twenties. I waited a few years, because I used to be quite irresponsible with money. I knew the temptation from a credit card might be too much.
There are plenty of options for student credit cards that make for a great first step. You’ll want to wait until you have some sort of income that enables you to pay back your purchases. Without that, you probably will not even qualify for one, so it’s important to keep in mind as you embark on your financial journey.
Consider yourself. Only you know your own spending habits. If you don’t think you can trust yourself not to max out your credit card immediately, it’s probably best to wait. That being said, a small credit line when you’re starting out can really help with something like this!
What Kinds of Cards Should I Look For?
Obviously, the options out there for credit cards are nearly endless. There are so many available. There are a lot of places for kreditt kort info that allow you to explore your choices. Let me explain some of the different types for you! Hopefully this will help you select one for your specific financial needs.
Rewards Credit Cards
These cards are typically aimed at specific types of purchases. An example of this is a gas card – you’ll get cash back rewards from buying fuel at a pump. Some of these cards reward you with travel points. If you’re a frequent flyer in particular, this might be a good choice for you! After all, if you often have to fly for your job, you may as well get rewarded for it!
It’s good to note that a rewards card might not be the best choice if it isn’t geared towards your purchasing style. For example, a travel points card would probably not be best for me – I do not really commute anywhere or travel internationally for my job. However, a cashback card geared towards eating out – well, that would be awesome for me!
Business Credit Cards
These are generally exactly what they sound like – a credit line aimed at small businesses to assist in purchasing bulk supplies, for the most part. If you’ve got a company function and need to cater it, this is also a good option.
What’s great about these is that they offer special options for the business owners. Purchase tracking and reporting is really helpful – especially if you trust an employee with the card. For more information on business credit cards you can follow this link: https://businesscreditblogger.com/2020/07/31/how-to-build-business-credit/
Standard Credit Cards
As the title implies, these credit lines are the “normal” card that you think of when you see one advertised or hear about them on a television show or movie! Typically, these are “unsecured.” This means that they do not require a deposit to open one. They also generally do not have a monthly fee, but some can have an annual fee that rarely goes above $100.
These cards have what is known as a “revolving” balance. This means you get a certain amount of credit, and when you make a purchase, it is taken from that balance. You pay off some of this each month. With them, there is always a minimum charge – your bank should have details about this and it should be in your contract when you apply for a card.
This type is the most common one, which makes sense. There aren’t any special rewards for them but they are good for building up credit – especially if you get a smaller credit line such as $300. That’s generally a good place to start.
Balance Transfer Cards
Balance transfer credit cards are a bit more of a niche choice. If you’re not even sure why you would need one of these, this article details their uses more in depth than I can. That being said, this is generally one used to help get someone out of debt.
A balance transfer card can be used to consolidate the balances off of other cards. You may be wondering why you would do this – well, the answer lies in interest rates. Often, these cards will offer a lower one than other cards! It also makes handling your finances easier each month, as you only need to make one payment instead of multiple.
Secured credit lines require a deposit before you open the account. These are typically one of the only choices for someone with very little credit history or a poor credit score. The way they work is your credit line is equal to the deposit you make.
That makes a card like this great for anyone who is concerned about their own spending! You can’t spend more than you have, because you have to make that deposit in the beginning. If you decide to close the account, most companies will return that money to you if there is any remaining.
Store Credit Cards
This type is probably the most separated from the other kinds I mentioned, hence me explaining it last. These are issued by a specific chain or store and is thus quite a limited-use one. If you consistently purchase from one store, it’s not a bad option – especially because you can get rewards and discounts for using one!
This list isn’t entirely extensive as far as these categories of credit lines go, but they go over some of the most common kinds.
Credit Cards and Financial Health
So – now I’ve explained some of the different forms of credit cards, and when to get them. You’re probably wondering why all of this is relevant! Well – these cards are a really big part of building up your financial background.
A lot of things, even renting an apartment, will depend on your credit score. A credit line will help you build this up or maintain it if yours is already high. That’s why it’s a good idea to start planning early.
You want to be careful to select the type of card best for you, with the best interest rate you can with your own score. While you might not qualify for the premium rates at first, that’s part of the reason to start building your score up now! The sooner the better for getting started on your personal finance journey.