Initial Credit Card : The way to Efficiently Submit an application for The Initial Credit Card.

Bank card applications haven’t changed much with time, what’s changed is the usage of information about the available offers (thank you Internet). The online charge card application has revolutionized the consumers ability to find the best card offer for their own financial needs.

Applying for the first charge card can be quite a confusing exercise to say the least. I have already been surprised many times to listen to from other people who reach their 30th birthday without ever applying for a credit card. This really is an unfortunate circumstance, as it can be difficult to be approved for credit without prior charge card history.

THE APPROACH

The approach to successfully applying for the 1st card will depend on your actual age, college enrollment status, and credit rating. It is very important to follow along with a software strategy that fits your circumstances, to avoid discouraging denials and lower credit scores.

COLLEGE STUDENTS

Many major banks offer charge cards designed especially for college students. Applying for one of these offers is a good solution to be approved for the first charge card, and to begin a history of responsible credit use. Credit Cards Four years of on-time payments should go a considerable ways to creating a healthy credit score. This is a great benefit to a fresh graduate in regards to buying a vehicle, home, as well as applying for work (yes, many employers will check the credit reports of potential hires).

For most of the above reasons we recommend that every scholar have a credit card in their own name.

NON-STUDENTS

If you’re not a college student, finding the right approach to applying for the first card is a bit more complicated. The best approach will depend on your credit history.

NO PREVIOUS (OR UNKNOWN) CREDIT HISTORY

If you do not have any credit history, or don’t know what your credit score looks like, the first step is to get a credit report with a FICO score. It is totally imperative that you understand your credit status before applying for the first card. Applying for a card that is from the reach (due to a low FICO score) can further reduce your score, thereby reducing the possibility of you being approved on your next application attempt.

Maybe you are surprised to get that you do have a credit history even although you haven’t requested a card. This can be because of accounts with shops, utility companies, mobile phone accounts, etc.

If your report doesn’t show any negative information (late payments, etc) and your score is above 600, you can look at applying for a “prime” card. Otherwise, you should try applying for a “sub-prime” card.

GOOD CREDIT HISTORY

If you believe you’ve a good credit history… double check. You must still consider ordering a credit report with credit score. After you confirm that the credit history is positive, you should try applying for a “prime” credit card. Look for credit offers that need “good” credit. 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 the reason it’s so important to check on your credit report and score ahead of applying for the first card. Low scores could have been brought on by missed utility bill payments, and other related financial activity which is reported to credit bureaus.

If you find yourself in this situation, begin by trying to use for a card designed for people with “fair” credit. If you should be approved for this card, great… if not, you are able to move on to applying for a secured credit card. The initial denial shouldn’t 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 every time you employ your secured card. While this could sound like a hassle, it will be the only way (based on an unhealthy credit history) to be approved for the first card. Look at this as a temporary solution to a longterm problem. After a year or two of paying your bill on time, you are able to check your credit score again, and apply for an unsecured card.

Leave a reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>