How To Get Your First Credit Card
Having credit history will make it easier for you to borrow money later for things like a car or a house. Having a good credit score also makes it possible to borrow money at a lower rate. One of the best ways of establishing your credit is through the responsible use of credit cards.
If you’re young and want to get a credit card, you’ll most likely be denied for having no credit. But that was the reason you wanted a credit card in the first place, to build up your credit. So what can you do? There are some options I’d like to discuss that will help you get your first credit card.
- Start with a secured credit card. Almost everyone qualifies for a secured credit card. Here’s how it works. You can load the card with an amount such as $500. You can then use the card just like you would use a credit card, but your credit limit is $500. The credit card company isn’t at risk of losing any money since they’re not letting you borrow any. These types of cards are great if you can’t get credit either because you have no credit or because you have bad credit.
- Use a cosigner. You can be approved for a credit card if you use a co-signer, like a close relative who has good credit. The problem with doing this is that if you miss a few payments you can ruin the credit of your family member and ruin your relationship with them.
- Store cards. Almost every major store has their own credit card that you can get with them. With these cards, you can only use them inside their store. If you have no credit, this is a good way to begin building your credit.
- Student credit cards. If you’re still going to school you can apply for a student credit card. Most of these cards aren’t anywhere near as good as regular credit cards, but it’s a good start to establish your credit.
