A credit card is nothing but cash in the form of plastic card with magnetic stripe. Today wherever you go shopping, in malls, showroom, etc., credit card is widely accepted. There are heap of things to understand regarding credit cards and ignorance could lead to have an empty pocket at the end of the day. If you have never used a credit card before and are planning to get a credit card, you must be aware of certain factors before you get your first credit card. Understanding about credit cards will help you to make correct choice. Here are the 5 things you must know and understand before getting your first credit card.

1. Know the various types of Credit Cards

Although credit cards have identical shape and size, they do not have identical terms and conditions. Some credit cards are meant for businessmen whereas some are made especially for students. Both have different terms and conditions as well as different benefits keeping in mind the user status of the credit card holder. So you will most likely pick up the right credit card if you know about the different types available in the market.

2. Check Credit Card Features

Ensure that you check out the disclosure of the credit card which includes the features for that credit card. Interest rate, annual fee are simply a couple of vital features to check. Compare different plans for credit cards and choose the best one with features best suitable to you. Usually the providers give a chart for easy comparison.

3. Billing Cycle

There is a billing cycle for a credit card. Every month your credit card provider will send to a statement containing the transactions done in the last month. If you have got any outstanding balance then you will have to make the required payment. A billing cycle is normally between 21st and 29th day on the month.

4. Fees for Credit Card

Credit Card providers' charges fees and interest for say late payment, etc. and this is how they actually make money. You can avoid late payment by simply making the payment on time. But fees like annual fee are unavoidable and are mandatory to be made although normally it is a one-time fee.

5. First Credit Card may be Hard to Get

Most companies or banks are not invariably willing to provide credit card to first time users whereas the remaining wants you to have good credit worthiness and you will have to satisfy them that you have the ability to pay the dues. Students mostly can't prove their credit worthiness. So the best place to go is to a bank in which you have an account. They ask you to have a secured credit card. Secured credit card means that they want you to make a fixed deposit of a certain amount and get a credit card against the security of that fixed deposit and the process is usually fast without any headache and if you use it very well then after 6 months or 1 year you will have a traditional credit card without any fixed deposit.

Have Any Questions?

We hope these 5 must know things will lead to get a perfect credit card which can fulfill your needs. If you have any questions, feel free to ask and do share your experience after you get your credit card.