Of course we still can live without credit cards but let's also admit it or not, they have now become a very crucial part of our lives. When emergency come and we get short of cash, credit cards can be our lifesavers. There are a lot of companies offering cards with different perks and deals but without a credit history, it could be hard getting one.
For some, having nothing to worry about monthly credit card payments is a relief but then again, it is a benefit having one for unexpected expenses and needs.
Before one becomes qualified for a credit card, a credit history is a main requirement. It should be an impressive one so you can get the approval. Credit history is a way for lenders or credit card companies to know whether you deserve to be a credit cardholder. Without a credit card history, lenders do not have a place to check on your creditworthiness.
Credit card companies and lenders invest money on you so your credit history is important to them. Your application could get rejected without a credit history but good news is that there is a credit card meant for people with no credit history.
The secured credit card is a card type where credit history in not checked on. The only thing you needed to present is your social security number and a minimum cash deposit.
It is called a secured card because you need to deposit cash as a fund for your card before you can start using them. The minimum cash deposit for secured cards is three hundred dollars. If you wanted a higher credit then a higher deposit is also required. Once you have your card, try not to overspend; don't spend more than your fund. Remember that you applied for secured credit card to build your credit history so overspending should be avoided.
Another important thing that you should not miss doing is asking your bank or your credit card company when you can change from a secured card to an unsecured card. When looking for unsecured credit card, don't make a rush. More often than not, decision made in haste makes you regretful in the end. Secured credit cards may not work as the regular credit cards but it could be your best option of establishing a credit history.
Whatever kind of credit card you own, it is important to always remind yourself that your spending habit and paying capacity go together; spend only within your paying capacity.
Most people blame their credit cards for their over expenses but the real reason for their financial burden is the wrong management of their card. If you don't spend wisely, you surely will find yourself paying more than you have expected. Have lenders' trust towards you by being a good spender and payer so you easily can get approval for future loans and cards. Build and maintain your good credit history and can have instant cash when you needed it.