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People often hear about no credit history being a real problem. Whatever you want to do in life, having credit history is the very first step. It is important to find one way or another of making sure that you have a decent credit history. When you never have had a credit card, this can be rather difficult. There are some simple steps you can plan to make sure that you have a proper credit history for your needs. If you are a college student and are looking for your first credit card, don’t panic thinking that you cannot get credit history. It is possible to apply for credit cards while in college with some simple steps.
There are two options available to you if you have never had credit cards before. You can start small; opt for a prepaid or secured credit card. This is often the best way to begin especially in college. It will allow you to have more control on your spending as the credit limit will depend on how much money you can put into your account. You may not be able to always spend more but this will be a healthy way to get used to having a credit card. In addition many secured cards have an option by which you can ensure that it gets reported to the credit bureaus.
Another way to sort out the problem with no credit history is by deciding to opt for a joint card. There are situations where if you opt for a joint card with a parent or a sibling who has excellent credit history you can easily get your first credit card. But this is a risky thing to do, if you make a mistake or miss out on a payment; it will cost both of you dearly and will affect both your credit reports irrespective of whose mistake it is. Make sure that you do your payments regularly and don’t end up spending more than you can afford to pay off.
People can also opt for a credit card from a bank where they have had a salaried account for years together. This will mean that they have a working relationship and with an account in the bank, they will be willing to offer you a good deal. Even if you get a lowered credit limit to begin with, it’s better than nothing at all. Slowly you can improve your credit history and credit scores. Make sure that you discuss the option of a lowered APR as well if possible.
Having no credit history is not necessarily the end of all your credit card dreams. There are ways to be eligible for cards and to work your way up the ladder. You can even opt for some store credit cards while you are at it, learning how to use them and making your payments correctly. Sometimes these can also be used as a means to getting your first ever credit card. Remember, these cards when used right will be a good bet always.
