When you apply for a credit card, the bank wants to see your credit history and be sure you're a good risk - so what if you have limited or no credit history? The time to start building with one of these cards, recommended by Credit-Land.com, has come.The card for limited/no credit history may not come with many perks, since their main purpose is to give you an opportunity to build credit. Consider this as an investment in your future. Never miss a payment, pay off your balances, and you'll be on the road to excellent credit. In time, you'll be eligible for amazing rewards. It pays off to be patient.
Banks have set up special credit lines for new immigrants and people who have barely established their credit history. In fact, if you have just become a permanent resident of the USA, you will probably be approved right away for your first credit card. Banks are more willing to give offers to people with limited / no credit, compared to people with bad credit history. You are a blank slate, ready to start great credit!
Credit History: First Steps
The following steps will help you establish your credit history:
Find a job. You need to show that you have steady income so banks could see you can repay loans and lines of credit. When you apply for an account, you will be asked for proof of employment.
Sign up for a checking account. Banks will want you to have a backup account on your application, and having access to a checking account helps you develop discipline and learn good credit habits.
Apply for a credit card for people with no credit history. The only way to build a credit reputation is to be a responsible credit card user. Keep these tips in mind as you build your credit and you'll be on the road to excellent credit:
1. Use your card for smaller expenses like groceries and gas.
2. Don't carry a balance as you begin to build your credit history. Pay your account in full every month. Also be sure you make every payment by the due date. This will help you to get into the habit of always paying on time and will help you avoid interest payments.
3. Spend small, but spend consistently. The more active your credit account is, the better your credit score will be.
4. Stay within your budget, don't get near your limit, and keep a tight reign on your spending.
5. Know what your APR is. Many banks are eager to lure you in with terrific offers like 0% interest for the first few months - just be sure you know how long your introductory rate is going to last. The ongoing rate is usually much higher.
Please specify the following:All these fields are optional
By providing this information you help us make our news letters more useful and informative. Thank you!