I thought my first salary would make my economic troubles disappear. The boy is me wrong.
People without a credit card are usually the hardest to apply for a credit card. This is because most credit card issuers require applicants to have some form of credit history, including credit scores, to approve new credit card applications.However, you won't get a credit score until at least one active account in your credit report is six months old. Some credit card issuers realized that people had difficulty getting credit cards for the first time, and they made credit cards for people who don't have credit cards.
Here are a few ways to increase your chances of getting your credit card and starting a credit history.
You need to find a job
You must have enough income to pay off your credit card balance, especially if you are under 21 years of age. Your income on your credit card application must be your own: unless you have a reasonable channel to use the money, you cannot use your parents, spouse or other family members to earn credit card eligibility.
Revenue limits vary by credit card, but you must earn at least enough money to repay your monthly credit card balance. The higher your income, the more chances you get credit card approval even if you don't have a credit score.
Credit card prequalification
Some major credit card issuers have online prequalification to let you see if a credit card is available for your credit file. These prequalifications are usually soft credit checks, which means that when others check your report, they won't damage your credit score or appear on your credit report. If you end up with a credit card application, this hard-check will appear on your credit report and it may reduce your credit score.
Advance credit card eligibility does not guarantee approval. Other factors, such as your income, may cause you to be pre-qualified for credit card eligibility. If you are rejected, you will receive a letter telling you why. Use the information in the letter to decide what to do next. Both Capital One and Citi have online prequalification applications.
Get student credit card
If you are a student, you can apply for a student credit card. These cards are designed for college students who do not have enough income or credit history. To qualify, you may need to provide proof that you have entered a qualified college or university. Choose carefully. Some students have high interest rates on credit cards and high fees.
Apply for a store credit card
Retail store credit card issuers have a reputation for approving credit card applications from credit card holders. You are more likely to get approval from a “closed-loop card” without the Visa or MasterCard brand. You won't be able to use a credit card outside that particular store, but it will give you a chance to start your credit history. However, be careful because retail stores have low credit card credit limits and high interest rates. Keep your balance at a low level and pay off quickly so as not to accumulate a lot of interest.
Get a secure credit card
A secured credit card is a pass for those who cannot be approved by a traditional credit card. As long as you choose a secured credit card that reports to the major credit agency and costs very little, there is nothing wrong with it.
The difference between a secured credit card and another credit card is that you deposit to get a credit line. Some secured credit cards bring a lot of money, but some credit cards will keep costs to a minimum. If you don't have enough money to deposit a deposit now, you can spend a few months depositing a deposit. The minimum guaranteed deposit for a capital-guaranteed MasterCard is $49, $99 or $200, and the credit line is $200.
Get credit builder loans
This type of loan is similar to a secured credit card. You borrowed a small loan from the bank and then used the loan funds to buy a CD from the bank. As time goes by, you pay the bank and when you pay the amount, you own the CD. Think of it as a mandatory savings plan that can help you build credit at the same time. The downside is that you have to pay interest on the loan from your pocket, and you won't have any funds for any other purpose until you pay the CD.
Get a co-signer
If you don't get a credit card yourself, you can take advantage of someone else's good credit. You can find someone with a job and good credit to apply with you, but be aware that applying for a credit card with the co-signer has drawbacks. You have another person involved in your finances, observing your purchase and making sure you pay for the credit card. If you are not responsible for the credit card, if you miss the payment or the maximum card, the co-signer's credit will also be affected. Think carefully before buying a credit card with someone else.
Become an authorized user
Being an authorized user on someone else's credit account is a bit like using a co-signer, but the risk may be greater. People who already have a credit card account can request that you add them to their account and order an additional physical credit card for you to use. The danger is that if the account holder suddenly has no money to pay for the account, you may be stuck in the account payment.
People who make you an authorized user are taking the risk that you may charge a credit card and then skip the town, so both parties involve a large degree of trust in this arrangement. If you follow this route, please check with the credit bureau to ensure that your usage is reported and that if the primary cardholder does not pay the bill on time, you may receive a negative mark on the credit report.
Small purchase
If you have a credit card before, and you still have a credit account, but haven't used it for a while, consider a small purchase and pay it quickly. Even good credit activity will disappear from your report after 10 years, so you may need to start using any existing credit so you can re-establish your credit history to get a new credit account. qualifications.
More useful tips if you don't have a credit history
If you don't have a credit history before, don't give up. Talk to the lender and ask if they have other ways to qualify for a credit card. Some lenders will consider the payment history of rent or utility records, and you won't know unless you ask.
Avoid submitting a large number of credit card applications. If you are denied a professional credit card, even if you are a student credit card, don't apply all the time. Instead, find a store credit card or a secured credit card. Choose these credit cards in advance so you don't desperately look for a credit card that can approve you.
Beware of any credit card, guarantee approval without first checking your credit score. There may be high fees or high interest rates or a combination of both.
A prepaid card is a replacement for a credit card, but it only works if you don't have a checking account or a debit card. Prepaid cards do not help you build a credit history. They just let you trade like a credit card, such as paying at a gas station.
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