As a graduate, you’re now on your way to a new life, one where responsibility will shape your every decision. From figuring out your work, managing your expenses, to even building your lifestyle, you need to make sure you stay on top of your game. That being said, one of the most important decisions that you would have to make is choosing your credit card. After all, if you don’t, it’ll be much too difficult to make your way around everyday life with so much already on your plate.

How to Choose a Credit Card?

Picking the right credit card may be difficult, but it will help you manage your expenses better without worrying too much about the interest, payment, and spending. Here are a few things that can help guide you on how to choose a credit card:

Deciding the Use

When you think about how to choose a credit card, the first thing you need to understand is its purpose. People purchase credit cards for various reasons; to keep away for emergencies, for major expenses, for minor everyday expenses such as groceries, etc. Once you have come to a conclusion, you can then proceed to understand which plan would best fit your priority according to the interest applicable to them. As a fresh graduate, there’s nothing more important than your credit score; make sure you opt for a credit card that can help you build rather than break.

Review their Fees and Terms

Contrary to popular belief, people can’t simply get up, head to the nearest bank and pick out a credit card. When looking at how to choose a credit card, fresh graduates need to first understand the terms associated with credit cards. One of the most important would be the rewards.

Most credit cards tend to offer their customers rewards on certain purchases, and these rewards can be availed according to the card’s policies. For fresh graduates, it’s often better to look at cards offering rewards on groceries and travel.

Some rewards may be considered too less, or just not useful for the users. It’s best to steer clear of those by, again, focusing on the first point and understanding your priorities. Secondly, when you look at how to choose a credit card, then you need to also consider the fees and payment. If you cannot pay the entire bill at once, then make sure you at least match the minimum payment.

Know how you qualify

As a fresh graduate, you should keep your work into consideration. If you work full time and have a good credit history (via timely payments, refinance student loans, etc) then you’ll have absolutely no issues in getting a credit card. However, if your credit history is somewhat staggering then you need to know how you can successfully attain a card. Well, you’ll have two options:

1. You can get a co-signer, such as your parents, or anyone else that you trust and has a good credit history, and have them sign the card with you. This way, you get to build your own history as well.
2. You can get a secured card that could aid you in building credit. All you have to do is make an initial deposit, and then you can continue to borrow against it and pay your bills each month.

Understand the Types of Credit Cards

There are several types of credit cards, especially for a fresh graduate such as yourself. You can figure out which would be best once you understand what your requirements are. Amongst the many, students often tend to look at student credit cards, cashback credit cards, and a travel credit card. As a graduate, these would be useful for you as well.

Conclusion: How to Choose a Credit Card

However, the best way to understand how to choose a credit card, you should head on to your nearest bank and get the necessary details you need. After all, this is what could help you make a sound decision! Your credit history will walk with you throughout your life and later judge your eligibility for the opportunities knocking at your door. It’s best that you check out how to choose a credit card and compare different banks to find out which would offer you the best one.