Getting your first credit card is always going to be a tough job, especially during these times where banks have stricter rules and regulations governing the issuance of credit cards to customers. A person with no credit history or a poor credit history refused immediately. If you are applying for your first credit card, chances are that you do not have a credit history at all. Let us take a look at the four options available.
This is the easiest credit card to get for people who lack credit history. However, this is a good option if you are applying for it when you are still at school or college. With the new CARD Act coming into play recently, there are a few changes that apply to people applying for these credit cards. If you are below the age of 21, then you need to have a co-signer on your application form. If you want a credit card without a co-signer on it, you will have to show that you have the potential to repay the amount you use on the credit card.
If you have been holding a savings or checking account with a bank for a long time, the chances of banks approving your credit cards application is high. If you have been maintaining the minimum limit specified by the bank and do not have any check bounces on your account, the bank will surely be willing to issue a credit card to you based on your relationship with them. You can also look forward to a credit card with favorable terms and conditions that can help you build a good credit history.
It is true that the store credit cards and gas cards are slightly expensive as compared to the regular credit cards. However, these are easily available to people with no credit history. You can obtain these credit cards and build a good credit history that can help you being approved for regular credit cards. Once you get the standard credit cards, you may want to consider closing these cards due to their higher maintenance value.
The secured credit card is the safest option for first timers. It will help you learn better credit card management without taking a lot of risks. Since these credit cards are issued against a particular sum of money deposited with the bank, they are easily available for first timers.