Getting credit for the first time is easier than you think.
How do I Get My First Credit Card?
How do you get a credit card if you are under 21 years old?
Building credit is a critical part of an individual’s financial life. The sooner you start, the sooner you can hope to meet long-term financial goals such as owning a home. It is more difficult today than it was in the past for a person to obtain their first credit card. This article will detail different strategies in getting approved for a credit card for the first time.
How do you get a credit card with no credit history?
There a few ways you can get a credit card with no credit history. Listed below are the most common ways young people today obtain their first credit cards.
Credit Cards for Bad Credit or No Credit
Credit cards for bad credit are the most common way people get credit for the first time. These credit card offers are specially designed to help individuals with no credit get credit. Every credit card company that issues credit for no credit history has different criteria for approval. You are not guaranteed to get a credit card if you apply. Also, there are fees associated with this type of credit card. Read the terms and conditions carefully for every credit card you apply for.
Secured Credit Cards
Secured credit cards are one of the most common ways to obtain a credit card for the first time. With a secured credit card you are using your money as collateral. This collateral is the reason why a person with no existing credit gets approved. By securing your line of credit, there is no risk to the credit card company. The banks do not care if you default. The bank will only use your money to pay the debt off. This type of low-risk lending is a win-win for the lending institution. You, on the other hand, will not want to default on this line of credit. Every missed payment will be reported to the credit bureau. If your account is closed due to default, it will be reported on your credit report.
There are high fees associated with secured credit cards. You first need to deposit at least the minimum required which is usually between $300.00 – $500.00. There is typically an annual fee associated with secured credit cards. There can be some additional card charges; read the terms and conditions carefully. Is a secured credit card worth it? Yes especially if this is your only way to obtain a credit card. View the best
Find a cosigner
This may seem like the best and easiest route to go, but often it turns painful. In most cases, it is better to walk the path to good credit alone. A cosigner assumes responsibility if you fail to meet your financial responsibilities. Failing to make even one payment on time can affect the other person’s credit. Avoid getting a cosigner if there is even a remote chance you will forget or stop making payments. Cosigning can be a bad idea! Obtain a cosigner for a credit card works only if you are committed to making every payment on time.
Gas Cards and Department Store Cards
Credit cards from one particular retailer, whether it is a store credit card or gas station is often an easier way to get a credit card. Sometimes these card offers get mailed to you. In these select cases, most of these credit card offers are pre-approved. If you get one of these credit card invitations in the mail, you are lucky. There are no guarantees, but you have a better chance of getting approved than having applied for the card yourself. A benefit of having a store credit card is that in most cases there is no annual fee, but the interest charged tends to be high.
Building good credit is one of the most important things a person can do to make their financial life. Good solid credit history makes many things possible. Getting your first credit card is your first major stepping stone in building your financial future. The higher your credit score, the easier it will be to make many of life’s financial goals come true. The sooner one starts building good credit history the sooner they can make these dreams possible.
Advertiser Disclosure for the CreditFast website – CreditFast.com, provides information about the best credit card applications, as well as other financial products and services. Our goal is to provide you with fair, balanced reviews. Some credit offers that appear on our website are from companies from which CreditFast receives compensation, and some are not.
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