Having no credit history is better than having a bad credit history. This is an advantage actually since you don`t have to be denied of many times for being a bad borrower, regardless of your efforts to get your credit straight. However, this does not mean that you can get approved immediately with any type of credit you want to obtain. Not all credit cards are guaranteed "yes" because many credit card companies still require a good credit history background, the thing you still do not have.
No worries. There is a solution for you. You can still get a credit card even without a credit history. How? It is through Secured Credit Cards.
For credit card companies, you will be classified with those who have bad credit history. But just think that you have better chances than them. Just make sure you make good of the credit you will be applying for. Secured Credit Cards are perfect for those without, with scant and with bad credit history. This credit card only requires you to have a security or a deposit to be able to be approved. Here are the steps in applying for a Secured Credit Card.
This is your first credit card so you will have to start the process by learning about credit cards. As an advice, don`t rush in getting a credit card. It pays to learn more and "shop around" for credit cards. With the rich number of cards out there, you have to obtain the cards with the most benefits and least charges. Those should be your main criteria: Benefits and Low charges. You can do this by talking to account representatives and reviewing the terms and conditions of the credit card you want to apply for. Look out for "gotchas" or catches like high application fees, deposit fees and maintenance fees. Some credit cards can have pitfalls involving high credit card fees that consumers may not be aware of.
2.Choose the credit card
After weighing and comparing credit cards, you may now choose the credit card you think you would go along with. Make sure that you don`t apply for a credit card that would make you look poorer than you started with. Remember that this is your first credit card and you have to make good of it. Before applying finally, check the length of time you need to convert your secured card to an unsecured one. This means that you do not need to have any deposits or collateral to present later on.
3. Make a deposit
Deposit at least $300 or more or according to the minimum requirements by the institution you are getting an account from. Just a note: the more you deposit, the more credit you can have.
4. Build a Good Credit History
This is your first credit card so this is the foundation of your credit history. A good credit history can take you to higher credits, lower interest charges, fast loan and insurance approval and even a good job. Learn to prioritize and budget your funds.