Despite the plethora of financial troubles, some individuals
are seeking to start building their credit this fall, namely students, recent
graduates and those with low credit
scores. With so many types of credit cards to choose from, it’s difficult
to know which one is right for you.
Shop Around
Before signing the dotted line on any card, be sure to
evaluate what you are looking for in a credit card. If you’re a frequent flyer
or drive a gas-guzzler, using a rewards-based
credit card might be best for you. For students or individuals looking to
establish credit, find one with low rates and no annual fees. Prior to using,
be sure you can pay the bill to zero for each and every purchase; this way,
you’ll eliminate the risk of gradually slipping into debt.
Read, Then Sign
Agreement terms are written in fine print, encouraging
confusion and a headache. Maybe your initial rates are a steal, but after a
year, they could triple. It’s not uncommon for this hard-to-read section to
detail changes within 6 months or a year after signing. If you have trouble
deciphering the legal jargon, hire a lawyer to explain the agreement. Once you
fully understand the terms of agreement, then and only then should you sign the
dotted line.