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Using a credit card is something everyone does. Most people use it on large purchases which they can later pay off in installments. This is very useful for when they have to buy things in bulk for the home or for work. Especially when it comes to business needs such cards are very handy to have. When you apply for a credit card, you can be sure that you will have to pay a certain amount of interest or an annual fee. Unless you have a really good score and you get a low interest card or one with no annual fees. A problem most people experience is when they are applying for their first credit card. If they are fresh in college they will find it difficult. The new rules requiring people to be at least 21 before being eligible for a credit card will add to the situation.
Credit cards are very difficult to get if you have no previous credit history. It is as good as a rejection if you try applying for some card without having ever had a credit card before. Banks will find it difficult to trust someone who has not been using credit before and they have no dealings with. Thus as a first timer, you may want to consider trying out options such as a store credit card, or a card that is secured so that you can establish a working relationship. Once the bank has seen that you are a credible consumer who can afford a good card, they will offer you a better deal. Then onwards you need to take care that you read through every term and condition on your card so you know exactly what you are getting.
Credit cards can be an expensive affair in any case, hence for a young college student with no credit history to be given one chances are more difficult. If you wish to have your own credit card and without any help, then you will need to prove to the bank that you have a source of income or are employed to get at least a card with a low credit limit. It is an ideal way to start early on in building your credit history. You can show them a pay slip or employment records to convince them. Also if you have a checking account with the bank they will be more willing to work with you and offer you a suitable card for your needs.
With no credit history there is also one more way to get a credit card. You can have a co-signor. It can be a parent or a spouse or someone else. What you need to be careful through is that both of you are equally responsible for the card and any negative marks or missed payments will affect both your scores irrespective of who is responsible. When you are not conscientious about your credit card payments you are jeopardizing all your chances for getting any credit in the future. The more carefully you use it, the better your prospects will be.
