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1. The Best Credit Cards Aren’t for Beginners

• Premium credit cards with high rewards and perks typically require good to excellent credit scores (690+) and longer credit histories.
• Starter options:
• Student Credit Cards (for college students).
• Secured Credit Cards (require a cash deposit).
• Cards for Fair Credit (credit scores 630–690).

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2. Secured Credit Cards Make Approval Easier

• How they work:
• You provide a cash deposit (e.g., $200–$500), which serves as your credit limit.
• Deposit is refunded if the account is upgraded or closed in good standing.
• Key benefits: Build credit by paying on time and using responsibly.

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3. Your First Card Can Build or Harm Your Credit

• Credit-building tips:
• Pay on time and in full each month.
• Keep balances under 30% of your limit.
• Monitor your progress with free credit score tools.
• Mismanagement (e.g., late payments, maxing out) can hurt your credit score.

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4. Rates and Fees Are Transparent

• Schumer Box: Details rates and fees like:
• Annual Fee.
• APR (interest rate for balances).
• Foreign Transaction Fees.
• Late Fees.
• Check this box before applying to avoid surprises.

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5. Credit Card Fees Are Avoidable

• Strategies to avoid fees:
• Choose no annual fee cards.
• Pay bills on time to avoid late fees.
• Don’t use for cash advances or balance transfers unless necessary.

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6. Interest Can Be Avoided Too

• Grace period: Pay the full statement balance each month to avoid interest charges.
• Carrying a balance means interest accrues immediately on new purchases.

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7. Always Pay More Than the Minimum

• Why? Minimum payments mostly cover interest, leaving your debt largely untouched.
• Pay in full or as much as possible to avoid spiraling debt.

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8. Late Payments Are Costly

• Consequences of late payments:
• Late fees: $20–$40.
• Penalty APR: Can rise to 30%+ for missed payments.
• Credit Damage: Payments 30+ days late are reported to credit bureaus.
• Set automatic payments or reminders to stay on track.

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9. High Balances Can Hurt Your Credit

• Keep your credit utilization ratio low.
• Example: On a $2,000 limit, keep balances below $600 (30%).
• Lower utilization = better credit scores.

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10. Fraud Protection is Strong

• Advantages of credit cards over debit cards:
• Fraud affects the card issuer’s money, not yours.
• Federal law caps liability for unauthorized transactions at $0.
• Easy replacement for compromised cards.

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11. Rejection Isn’t the End

• If denied, the issuer must send an adverse action notice explaining why.
• Common reasons:
• Low income.
• Insufficient credit history.
• Use this feedback to improve your next application.

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Final Tip: Start Smart, Stay Disciplined

Your first credit card is a powerful tool for building financial stability. Use it wisely, and you’ll set yourself up for long-term success!

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