No one tells newbies credit card tips like nobody else

You may be surprised to know that best credit card for construction business can be opened at as young as 18 years. This is the minimum age for opening your first credit card.

Financial experts recommend that you build credit as soon as possible. However, not all people are the same. Select has seven surprising tips for beginners, regardless of age.

A deposit is a necessary step to build credit.

Credit cards work by granting you credit lines that you can use for purchases. The loan is then due to be repaid in full, ideally at the end each billing cycle. This will avoid interest. Credit card companies prefer that you have a way of repaying your credit line, even if you’re just starting out.

Credit novices cannot get a regular or unsecured credit card until they are ready to apply for one. They start by getting a secured credit card.

Before you submit your application, shop around

Credit card issuers must disclose on their websites their interest rates as well as fees such foreign transaction fees. You should take advantage of all information available to you before you make a decision about which card to sign up for.

There are a few no-annual fee credit cards that you can use as a starting point to get your first credit card.

Remember that any time you apply for credit cards and a lender checks credit, it will be recorded as a hard inquiry on credit reports. Hard inquiries can affect your credit score by a few point so make sure you do your research so you only reserve hard inquiries for the cards that you really want.

You won’t pay interest if you pay your bill on-time, in full (not the minimum), and your bill is paid on time.

Although credit cards’ high interest rates (also known as APRs) may make you feel intimidated, as long as your credit card bill is paid on time and in full you will never have to pay them again.

Many credit cards have a grace period. This is the time period between the end of your billing cycle and the due date. You may not be charged interest during a grace period as long as your bill is paid by the due date.

Each card issuer has its own grace period, but it must be at least 21 days after the end of each billing cycle. If your billing cycle ends at the end of each month and you have a bill due on the 22nd, your grace period will be 21 days. Interest will accrue if you carry any portion of your balance to the next month.

You can only use a small amount of your credit limit

A key step towards achieving a high credit score is to spend less than your credit limit. It is best to limit your spending to 30%. Some experts recommend a threshold of 10%. This is commonly known as your credit utilization rate.

Your utilization rate refers to the ratio of how much credit you use to how much credit you have. This calculation takes into account both your credit limit and credit card balance.

Review your credit card statements regularly

You should immediately report any unauthorized credit card charges to ensure you don’t get overcharged. However, a credit card is much safer than a debit card in terms of fraud liability.

While you may be held fully responsible if someone steals your debit cards information, credit card issuers usually offer 24 hour fraud protection and identity theft assistance to help you with fraudulent charges. Federal law states that the maximum amount you can be held liable for fraudulent credit card charges is $50.

You can make it a habit to monitor your credit card bills. You might find it motivating to see your spending habits and make budgeting fun.