Whether it’s through a major financial institution or your preferred retail outlet, credit cards are seemingly everywhere nowadays. They serve as a good tool to make purchases when you don’t have cash on hand, or to build up your credit score. However, if you’re a young adult looking to apply for your first credit card, there are a few important “do’s” and “don’t’s” that you should know first.
Do: Look for a credit card with a rewards program. The Polam FCU credit card offers points for shopping whenever you use it; once you’ve earned enough points, you can browse our online rewards catalog and even save items to a “wish list.” From personal items, travel products and services, activities to event tickets, the variety of shopping options through our rewards program will please any happy consumer.
Don’t: Fall behind on payments. It’s always for the best if you pay off your balance every month, especially when you’re trying to accrue points and rewards. If you can’t do that, it’s very important to make the minimum payment every month on time in order to keep your account in good standing. If you are unable to make on-time payments, your credit score may be affected, as well as your credit history.
Do: Understand the importance of building credit. This is especially important for a young adult looking to open their first credit card. “Building credit” is how you establish a well-documented credit history by borrowing money and paying it back on time with regular payments. The track record you develop in borrowing and paying back is then used by lenders to decide how fiscally responsible you are as a consumer, which helps them determine the interest rate at which to charge you for future loans.
Don’t: Choose a financial institution you don’t trust. When it comes to borrowing money, whether it’s through a loan or with a credit card, you always want to know you’re in safe and communicative hands. Polam FCU has a longstanding history of taking the best care of its members, and our Visa credit card is a fantastic starting point for any young adult looking to build credit. With our rewards program, low annual fee and competitive rates, you can jump start your credit history with us.