Charge card applications have not changed much over time, what’s changed may be the usage of information regarding the available offers (thank you Internet). The online bank card application has revolutionized the consumers ability to find a very good card offer for their particular financial needs.
Applying for your first bank card could be a confusing exercise to state the least. I have been surprised often times to hear from other people who have reached their 30th birthday without ever applying for a credit card. This really is an unfortunate circumstance, as it can certainly be difficult to be approved for credit without prior bank card history.
The way of successfully applying for your very first card will depend on your actual age, college enrollment status, and credit rating. It is essential to follow along with a software strategy that matches your circumstances, to prevent discouraging denials and lower credit scores.
Many major banks offer charge cards designed especially for college students. Applying for one of these brilliant offers is a superb solution to be approved for your first bank card, and to start a history of responsible credit use. Four years of on-time payments will go a considerable ways to developing a healthy credit score. This is a great benefit to a fresh graduate when it comes to buying a car, home, as well as applying for a job (yes, many employers will check the credit reports of potential hires).
For all of the above reasons we recommend that every college student have a bank card in their very own name.
If you’re not an university student, finding the right way of applying for your first card is a bit more complicated. The right approach will depend on your credit history.
NO PREVIOUS (OR UNKNOWN) CREDIT HISTORY
If you may not have any credit history, or do not know what your credit score looks like, the first faltering step is to purchase a credit report with a FICO score. It is totally imperative that you know your credit status before applying for your first card. Applying for a card that is out of your reach (due to a low FICO score) can further decrease your score, thereby reducing the chance of you being approved on the next application attempt.
You may be surprised to find that you do have a credit history even though you haven’t sent applications for a card. This can be because of accounts with department stores, utility companies, mobile phone accounts, etc.
If your report does not show any negative information (late payments, etc) and your score is above 600, you can look at applying for a “prime” card. Otherwise, you must try applying for a “sub-prime” card.
GOOD CREDIT HISTORY
If you were to think you have a good credit history… double check. You ought to still consider ordering a credit report with credit score. After you confirm your credit history is positive, you must try applying for a “prime” credit card. Try to find credit offers that want “good” credit. Best Blacknet These cards will offer better features and lower fees and rates then cards designed for people with poor credit.
POOR CREDIT HISTORY
Even without prior charge cards it’s possible to have a poor credit history. This is why it’s so important to check on your credit report and score just before applying for your first card. Low scores may have been due to missed utility bill payments, or other related financial activity which is reported to credit bureaus.
If you find yourself in this situation, start by trying to use for a card designed for people with “fair” credit. If you should be approved because of this card, great… if not, you can move ahead to applying for a secured credit card. The initial denial should not effect your ability to be approved for a secured card.
Secured charge cards require a cash deposit. Essentially, you deposit money right into a “savings” account and then borrow against your deposit each time you use your secured card. While this might sound like a hassle, it could be the only way (based on an unhealthy credit history) to be approved for your first card. Understand this as a temporary means to fix a longterm problem. After having a couple of years of paying your bill promptly, you can check your credit score again, and apply for an unsecured card.