Getting A Credit Card With Bad Or No Credit
So you have decided that you want to get a credit card only you may have credit that is not so hot or even no credit history what so ever. Many consumers wonder how it is possible to build a credit history with no credit or credit that might not be so swell. Surprisingly enough it is very possible for consumers finding themselves in these two particular situations to begin building a solid credit history without having to have a traditional credit card.
A secured credit card would be quite simple for someone with no credit or less then perfect credit to be able to qualify for and receive. All you need to do is complete the application for the secured credit card and make the required security deposit. After those two steps are completed you are well on your way to building a solid credit history. Just keep in mind that you need to apply for a secured credit card that will report all of your credit activities to all three of the major credit reporting agencies.
Department Stores such as Sears and Macys will often take a chance on someone who may not have any credit and give them a credit card. So if your luck hasnt been great in applying for traditional credit cards try your luck in applying for a department store card to use as a tool to start a solid credit history foundation.
Many gas stations will allow people with tarnished credit or no credit history to have a gas station credit card. If you are in either of these situations try applying for a card at your local gas station to begin building a credit history.
These are just a few suggestions of steps that you can take to start building a credit history if your credit record may not be so good (or non existent). With a little creative thought and research you will be well on the way to getting the credit and the credit cards that you deserve.
Get A Credit Card With A Low Interest Rate
Before you choose a credit card it would be wise to first find out the interest rates offered by all the credit card companies and banks. While you compare credit card companies and banks, take note of the ones with low interest rates and offer the best benefits. Dont miss the fine print as that is where the most important information is usually given. Fine prints almost always specify the conditions applied on using their service.
It is generally a wise decision to go with a credit card that has a low interest rate. A low interest rate would almost always mean that using the credit wouldnt eat up your savings.
One of the strategies of many banks and credit card companies to attract members is to offer an introductory low interest rate then hike up the rate after a certain period. It is therefore advisable to inquire how long the initial low interest rate would last.
To switch to them, some credit card companies and banks would waive fees if you transfer balances to them from your old card. The fees asked by banks for transfers are actually interest rates in disguise. Make sure that a low fee, which is equivalent to a low interest rate, is charged to you when transferring or you could end paying much more than you actually have to for clearing your debt.
One thing you could do is pay for balance transfers through pre printed checks. Your best option is to transfer balances to over the phone by calling up the customer service line of the bank or company. Doing such would cost a lot less or nothing at all and because you chose a card with a low interest rate you know your expenses would be lower the next time.
It is al important for you to know that incentives such as short term low interest rate will eventually rise even without due warning from your bank or credit card company.
You could always ask the bank or company to give you a low interest rate provided that you have a decent credit history with the company or bank. If they refuse to give you a low interest rate then you can always switch to a service that offers you a better deal.
Remember to use your credit card wisely. Keep a tab on your expenses while using this card, ensure your dues are cleared regularly and ensure that the low interest rate remain low.
Establishing Credit with a Student Credit Card
One of the best ways to establish a credit report is to acquire a student credit card. However, there are a few things you should be aware of if you decide on this. One of this is the fact that your credit report will be kept and maintained by credit bureaus. Thus, whenever credit companies want to look up your credit history, they will contact these bureaus for it. Information on your payment patterns and outstanding payments for your student credit card, both good and bad, will be recorded here.
Essentially, no one can legally change the contents of that report and everything remains in there for up to a decade. Thus, it is important to maintain a healthy credit report by making payments on time, starting with your student credit card. Having a good credit report has a huge impact on loans and on future applications for other forms of credit services, including other credit cards. For instance, low APR cards are everybodys favorite but they are usually reserved only for those with good or excellent credit histories.
In order to acquire an excellent credit history, it is best to pay up your monthly outstanding balances before they are due. This may be harder to achieve if you are a student as you do not have steady income and therefore need to plan your expenditure accordingly. Use your credit card only when you really need it, and set payment reminders in your personal calendar each month.
Some students practice credit card surfing by using a 0% APR student credit card, maxing out the credit limit and getting a new card for their upcoming expenses. This does huge damage to your credit report as you are basically living off debt even before you have the ability to earn your first paycheck. Whats more, when the 0% APR term is over, your interest rates will escalate and your debt will snowball rapidly. At this point, your credit report will be tarnished, leaving you with a pile of debt that you struggle to pay off and high interest rates for future credit applications. Your only option now would be to adopt a credit repair strategy, which will most likely be painful on your ludicrous lifestyle.
