Three Things You Need to Know for New Credit Card Holders

Having a credit card is said to be the first step of being a college student. Picking out the card for you and learning how to manage it properly and wisely is crucial for you. Many young citizens ages 18 to 24 have an average liability of $2,002 in their credit cards, this is according to CreditKarma.com.

This is why it is crucial you know how to handle your credit card responsibly before you get your hands on one.  Here are things you need to learn about credit cards. Before a client applies for a credit card, he is first given the summary of the conditions on the credit card. It is wise to look at these three words APR, Fees and Rewards.

Annual Percent Rate or APR tells you how much you have to pay the credit card issuers from month to month for the amount you borrowed from them. Currently the average APR is 14% to 16%, if you want a lower cost for your debt look for a smaller interest rate.

Fees or annual fees are the amount you are charged for the credit card whether or not you made a purchase with it. Student cards and secured credit cards have annual fees so if you are smart you will want to look for a card that has low annual fees or one that has none. Look at the balance transfer fee as well, cash advance fee and late fee to better prepare you in case you have to incur any of them.

Rewards are the perks and discounts you get for having a credit card. Find out how the system work is your card comes along with a rewards program. It will be a sure way to save and enjoy freebees at the same time.

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Filed under: Credit • credit cards • line of credit • Loans • Student Loans

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