Credit cards are almost a must-have because digital transactions either in a store or online are increasing year after year. There are just sometimes that having cash or checks just don’t work, plus there are things that credit cards can do for you that debit cards can’t such as building a credit history which is important for taking out future loans. In fact, Supermoney says in 2012 that over $2.48 trillion were made in credit card sales in the US and only 27℅ of in-person transactions used cash. Applying for credit cards Minneapolis MN is not too difficult, but you should know how to use them properly.
Applying For The Right Credit Card
New credit card owners usually are more limited in the kind of credit cards they can get because they don’t have credit history, or they have limited financial reports. If you’re new or even trying to restart your credit history and you don’t get accepted for some of the high credit limit credit cards or luxury cards, you might try getting a secured credit card. A secured credit card requires a deposit to be accepted for, but that amount will be eventually refunded if you’ve made your payments on time, and eventually your card will likely change to a regular unsecured card with higher credit limits. If you want an unsecured credit card, you might look into a low credit limit one like a college student card, a company’s rewards card or another easy option.
Managing Your Credit Card Payments
Once you have your credit card, you have to make sure you’re making your payments on time and with as little balance left over as possible. As the American Banker’s Association states in this article, failing to make your minimum monthly payments not only could result in late fees but could also result in an increase in your annual percentage rate (APR) or the interest you pay on your card. That’s also why you should never pay only the minimum amount on your monthly payments because the interest rates will add up your costs and in time you could pay thousands more than you originally had on your balance. Your best strategy to maintaining a lower balance and fewer payments arising from high interest rates is not to push your credit card to the limit and only to use the card within your personal budget.
In conclusion, credit cards are important to have and using them the right way will put your financial reputation in a favorable place if you need to apply for a mortgage or car loan later. But you should do a careful credit card comparison to make sure you’re getting one that has the lowest APR possible and the fewest fees. It’s usually easiest to apply for a credit card online and as long as it’s a personal credit card, you generally just need to have your proper name and physical address, and proof that your income meets the card issuers requirements.