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This Is How to Go About Getting Your First Credit Card

Tips for navigating the world of credit cards.

It seems harder and harder to pay for anything without plastic these days.

But the choice of card has implications for your financial future.

Far too many young people shy away from credit cards. Only 33% of people between 18 - 29 even have a credit card.

Not having a credit card means not having credit history.

Banks won't lend money to those with no credit history - it's just too risky.

Plus, banks are reluctant to give credit cards to first time users, which makes building credit history all the more difficult.

There's a solution - a secured credit card.

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This is a real credit card but a security deposit is added before you start spending.

When you rent an apartment, the landlord wants a security deposit to make sure they have money to cover costs if the space is damaged.

In this case, the bank will keep your money on the sidelines, so if you go on a spending spree and disappear, they have your cash.

It's not just having a credit card that's important - using it responsibly is key.

Responsible use of a credit card means paying off the balance in full every month and not just the minimum payment.

This one practice results in stellar credit history, which means a lower interest rate on a car loan or mortgage.

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