Getting a Good First Credit Card|First Time Credit Card Application.

There are few things you need to know for getting a good first credit card before you submit your first time credit card application. You may be receiving a number of card offers every year from different card companies with offers of a bunch of free stuff. However, most of these offers are extremely unreliable in your endeavor to get a good first credit card. In order to find the right card suitable for you I would suggest you to think about the following six most important points as guidelines before you submit your first time credit card application:

1. Avoid the credit card soliciting mails you often receive.

Majority of Americans receive several annoying mails in a year containing credit card offers from unwanted companies.In these offers all you have to do is to apply and you get a bunch of free stuff. Surprisingly, a high number of students and young people who are not conversant about the subject settle for such easy credit card application with horrible offers as an effortless decision and not as the right one. There can not be two opinions that for something as important as Credit Cards all efforts need to be taken to choose your card wisely to get a good first credit card. If you are in USA you can avoid these worthless credit card soliciting mails by going go to the website, 'optoutprescreen.com' that lets you to shun these irksome mails containing credit card offers. This website helps you to avoid these offers by adding your name to the do-not-call mail lists at the three major Credit Bureaus. But the web site is only reachable through Internet Service Providers located within USA and its surroundings.

2. Try to avoid cash-back cards as far as possible.

I know many of you will ridicule me for this statement. But I can show you that cash-back cards actually pay you back an insignificant amount as compared to savings from other rewards program. It is true that with 1 percent back on all your spending in cash-back cards you get back 30$ when you spend 3000$ per month, which is surely better than nothing, but what if you could save more with a travel rewards card by getting free $600 flight and other rewards point? It may not be as noticeable as getting money each month, but in the long term you will save more with a card allowing free flight rewards.

3. Do not go for retail cards.

When you go for first time credit card application it is usually not wise to apply for retail cards. The difficulty with retail cards is that you can not use the cards anywhere other than the retail store from where you got the cards. As a result if you can’t spend with the cards, you can not really build up your credit as quickly. On the other hand if you intend to spend with the cards you are compelled to buy items you may not actually need. Moreover, retail cards usually carry comparatively higher interest rates.

4. Compare credit cards online.

You can find a good first credit card that is right for you by evaluating various offers online for which you can refer the website, 'bankrate.com' . Nevertheless, in most cases the best place to submit your first time credit card application for the simplest and good first credit card is often your bank. Here the cards are linked to you bank account and you can select from a range of options including rewards, credit limit etc. However, for first time credit card if you go for cards offered by your bank, it has both positive and negative sides. On the positive side such cards are easy to get without much research while on the negative side the rewards offered on these cards are usually seen to be quite average.

5. Make sure that rewards are valuable to you.

You may be using your card rather frequently and spend a fairly considerable amount. Most of the card companies offer all kinds of rewards for using their credit cards based on the amount spent. Common credit card rewards include giving out prizes ranging anywhere from gift cards to electronic items with equivalent cash back as an option, free air flights etc. One who travels a lot, an airline card offering multiple free flights per year may be quite rewarding for him. But if you hardly ever travel, such card will have no use for you. Therefore, while choosing your first credit card make sure that benefits and features of the rewards program associated with your card are something you will actually want and value.

6. Do not go crazy with credit cards.

It is important that when you go for having a good first credit card, do it wisely and do not go crazy about cards. Be careful of being enticed by any number of card offers as every additional card you acquire, would add to complexity in managing your personal finance. As a common thumb rule it is good to have not more than 2/3 credit cards in your personal name (an American usually has four credit cards on an average!). Whenever a credit card company issues a new card, it checks your credit profile. Going crazy about cards may also potentially ruin your credit score before you even get your first credit card.

Your credit score is determined on the basis of your sources of credit taken as a whole besides credit cards (installment loans, personal lines of credit, home equity lines of credit etc.) and is also influenced by the length of time you have been managing your credits. Paying off your debts on time and keeping a small number of card accounts are some of the methods by which you can build a good credit profile. The longer you do this, the better your credit rating will become and help you in getting a good first credit card. To limit opening of credit card to not more than one in a year would, therefore, be a wise decision from the point of building a good credit profile.