The question of whether or not you should apply for a credit card fresh out of college is a difficult one to answer.
There are pros and cons of both paths, which makes it even more difficult to decide what to do next.
Before we go any further, here’s one thing to remember: you don’t want to make a rash decision to apply for a credit card. It’s better to be 100 percent sure before taking action.
Here are five questions you can answer to help you decide in favor of or against opening a credit card right after graduation:
1. Why do you want to apply for a credit card?
Don’t apply for a credit card just because you think it’s the right thing to do. Apply for a credit card because you have a good reason, such as wanting to establish a credit history or to better manage your monthly expenses.
2. Have you run into any issues with credit cards in the past?
For example, if you had a student credit card during your time in school, it may have caused you more harm than good.
3. Are you confident in your ability to responsibly manage a credit card?
This goes a long with point #2 above. If you have any reason to believe that you won’t make responsible decisions, you’re best off waiting for the time being. You can always apply for a credit card once you work through your concerns in the future.
4. Do you have any fears about applying for a credit card?
There is a lot to consider before applying for a credit card. You need to be clear in regards to what you’re getting, which type of card makes the most sense, and how you’ll manage your spending.
5. Are you open to both secured and unsecured credit card offers?
If you don’t have a credit history, you may need to use a secured credit card for a few months or longer. With this, you make a security deposit. This gives the credit card company peace of mind, as they know they can keep the deposit should you default.
You don’t have to immediately apply for a secured credit card, but be open to the idea if you’re unable to obtain an unsecured card.
Only you know if it’s a good idea to apply for a credit card fresh out of college.
Compare the pros and cons, think logically, and make a final decision when you’re ready to do so with confidence.
When did you apply for your first credit card? Was it shortly after graduating?