Hello,
As the title suggests, I am looking for advice on deciding on my first credit card. I turned 18 recently, and want to begin building my credit score as soon as possible. I've already researched and analyzed a few cards, some more student focused (as I am in university) and some more new-user focused.
I've compared cards from Chase (The Freedom Rise, Freedom Flex, and Freedom Unlimited cards), Capital One (The Savor Rewards, Quicksilver Rewards, and Platinum cards), and Discover (The Discover It for Students and Discover It Chrome for Students cards).
I don't really have many large expenses, due to my universities meal plan making eating out/groceries negligible, still being included on my parent's insurance, etc. When comparing costs in other fields, my largest expense category would be entertainment (6.99/mo Spotify subscription), and I know that may affect which card would be a better fit for me.
I have Chase for my Checking and Traditional Savings accounts, but I noticed that their cards has a higher APR – 19-27% – than the Capital One – 18-26% – and Discover – 16-24% – cards.
In general, would you say the cash back/benefits/lower fees is worth the higher APR?
Any advice, tips, anecdotes, or personal experiences would be greatly appreciated. Any tips on building/maintaining good credit would also be quite welcome. I want to have a thorough basis/understanding before opening a card, and I want to do it correct/efficiently from the very start.
Thanks in advance 🙂
Advice on choosing a first-time credit card?
byu/lucienrpjames inpersonalfinance
Posted by lucienrpjames
2 Comments
Theoretically, you should maximize any incentives to use the card (e.g. points) regardless of the APR because you should NEVER CARRY A BALANCE EVER NOT EVEN ONCE. And if you can do that then the APR doesn’t matter.
Theoretically.
Using a credit card (when done the right way) serves two main purposes: 1) to build your credit, and 2) to take advantage of the rewards the card offers. If you’re using your credit card as you should, the APR doesn’t matter because you’re not going to carry a balance. You’re going to pay it off before it accrues any interest. Also, if you just turned 18 and presumably have little to no credit history, you may not even get approved for all these cards. Just something to keep in mind.