How to Avoid First Time Credit Card Mistakes

How to Avoid First Time Credit Card Mistakes
If you are applying for a credit card for the first time, be sure to avoid making some of the same mistakes that other first-time credit applicants make. In addition to not reading the fine print, not take the time to evaluate the offer, applying for too many credit cards and applying for credit cards they will not qualify for, there is a long list of common mistakes that new applicants make when applying for a credit card on or offline.

Mistake #1 – Not Reading The Fine Print
Even the most experienced credit card holders have trouble making sense of credit card rewards offers. As such, new applicants with little to no experience managing credit cards need to be very careful when evaluating an offer. Whether a credit card offer sounds to good to be true or not, it is important to take the time to read all the fine print.

After carefully reading all the details, you may discover that the offer is too good to be true or you may learn something about applying for the card that you would not have known otherwise. It is always important to read any fine print below, above, on the back or second page of any application whether applying online, in person or via the mail.

Mistake #2 – Applying For The Wrong Credit Card
One of the most common errors that first-time applicants make is applying for the wrong credit card — basically ensuring that the card you get does not live up to your expectations. Although everyone seems to have one or more reward cards in their wallet, first-time credit card applicants are extremely vulnerable. This is because many newbie applicants do not take the time to learn more about the offer and what they will receive in exchange.

As many applicants go on to discover, rewards are based on a small percentage of their spending. At the end, rewards are only a small percentage of qualified purchases. In addition, many of the reward cards are limited to a certain dollar amount, so credit card holders will never receive too much. addition to these limitations, there are usually many other restrictions that applicants need to consider as well.

Mistake #3 – Not Considering The Annual Fee and Interest Rates
In addition to having false expectations about the credit card offer, many first-time applicants fail to consider the annual fees and interest rates before submitting their application. Evaluating the fees and interest rates are important because credit card holders need to make certain that the rewards they receive will surpass what they can expect to pay in fees and interest when they sign up. If the fees exceed the expected rewards, then the applicant may want to reconsider applying for another rewards offer.

Mistake #4 – Applying For Credit Cards With Strict Requirements
In addition to not taking the time to read all the fine print, many first time applicants get rejected by credit card companies because they do not have an excellent credit score or a solid credit history. Although getting rejected by a credit card company is not the worst thing that can happen, each time a credit card company receives an application they usually check an applicant’s credit report. Multiple inquiries by different credit card companies can lower a credit score over time.

By taking the time to learn more about the common mistakes first-time applicants make, you will be on your way to applying for the best rewards card based on your personal circumstances. Before signing on the dotted line, it is important to read the fine print, take a look at the interest rates, annual fees and consider whether the credit card offer will really live up to your expectations.

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