Credit Card Application - How to Establish a Good Credit History?
Most credit card owners start almost the same way. For students or grads, a plastic is the beginning of a new life. Living on your own - it sounds fabulous. Generally young people are extremely excited about this fact. And what about managing your budget? Does it seem like a great idea? This is when the problems appear. The key factor is responsibility. If you clever enough, you will succeed to make the most of your credit card application. If not - get ready to face never-ending debts. "You must spoil before you spin", says the proverb. "Not necessarily", assure credit card specialists.
To take the initiatives is a real challenge, especially when you are young, inexperienced and live separately from parents. Still, the majority of students share the opinion that a credit card is one of those things you need here and now. It's a kind of fashion in student circles.
On the one hand, it's a good idea to start building your credit history while studying. On the other hand, without a regular job and parents' assistance it will be rather hard for you. Moreover, there is nothing shameful in the fact that you don't have a plastic. You have every chance to become a trustworthy cardholder for half a year.
If you are determined to make your first credit card application, don't be lazy and do a little research. Mind that all those "buy now, pay later" offers look so luring but turned out to be so troublesome afterwards. Unfortunately, the best way to realize this is to get into debts.
Among a wide range of plastics, there are special offers for students who start to establish their credit history. Don't be upset if your request for a student credit card was denied. No need to apply for cards again and again with the hope to receive consent. It has an effect on your credit report. Your persistence will not be rewarded. Just the other way round.
To be on the safe side, start with department store or gasoline credit cards. They are much easier to get in comparison with major credit cards. If you get an approval, go ahead! In six months take an attempt to be approved for a credit card you like.
Another way of building your history may be a secured credit card. It means that you have a deposit and you can get a credit card with a limit of your deposit amount. That is also a good chance to show your credit capacity. If you make your payments on time, you will sure to get an offer for an unsecured card with lower interest rates.
There's one point to remember - not all providers report your achievements to credit bureaus. In this case all your efforts will be in vain. Your credit report speaks volumes for you. If you want to have a good credit history, make certain you do everything right.
Try to figure out the amount of your monthly payment, and make it a rule to pay off your balance each month. This good habit will protect you from penalties and debts. Live within your means, and spend your money wisely. This way you are sure to enjoy using a plastic in future.