Major companies like Visa, MasterCard, American Express, and other well-known credit card companies might offer you a free credit card, with no application fees and charges. This is fine for the most part. However, when you run into a no-name company that you’ve never heard of and you see that they have a guaranteed $2,000 credit line that is free to you, check to see what the catch is. If credit isn’t considered, then it could very well be a prepaid card or one that has more fees than it is worth.
I think that credit cards can be an asset if they are used properly. Part of that is knowing what the different cards offer and how you can really get a free credit card. Here’s an important thing to note, though: credit cards are only ‘free’ to have and apply for. Unless you have excellent credit and get a 0% APR card, you’ll end up paying for having the card in the way of interest charges. If the card has a $1,500 limit and you max it out, getting the payments under control can be challenging, because the interest will add up. At first, minimum payments might only be $20 or $30 a month, but when you’ve got it up to the limit, the payments will be closer to $100 a month and most of that will be covering finance charges and interest.
So you see, even when you go to a major credit card company and apply for a credit card, it won’t really be a free credit card. That’s why it is so important for you to understand credit and know how to use it responsibly. If you don’t have the tools and education to use credit properly, those so-called ‘free’ credit cards might cost you everything in the end.
Here are some final tips for applying for a free credit card:
-Unless you want premium cardholder benefits, never pay an annual fee for a card.
-Don’t get credit cards that you can’t afford. Even if you are approved, you might not have the extra money to make the payments.
-Never spend on credit what you can’t cover in cash. Save the cash until the end of the month, and pay off the bill when it comes. This is the best way to build great credit and use credit cards responsibly.
With these tips in mind, I wish you luck and financial security in your credit card matters.