Bank card applications haven’t changed much with time, what has changed may be the use of information concerning the available offers (thank you Internet). The web charge card application has revolutionized the consumers capability to find the best card offer for their own financial needs.
Applying for your first charge card can be quite a confusing exercise to say the least. I have already been surprised many times to know from other people who reach their 30th birthday without ever applying for a credit card. This really is a sad circumstance, as it can be difficult to be approved for credit without prior charge card history.
The method of successfully applying for your 1st card depends on your age, college enrollment status, and credit rating. It is important to check out a credit card applicatoin strategy that matches your position, to avoid discouraging denials and lower credit scores.
Many major banks offer credit cards designed specifically for college students. Applying for one of these brilliant offers is a superb solution to be approved for your first charge card, and to start a history of responsible credit use. Four years of on-time payments should go a considerable ways to creating a healthy credit score. This will be a great benefit to a new graduate when it comes to buying a vehicle, 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 university student have a bank card in their own name.
If you’re not an university student, finding the right method of applying for your first card is much more complicated. The right approach depends 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. Hacking Forum It is totally imperative that you realize 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 lower your score, thereby reducing the opportunity of you being approved on your next application attempt.
Perhaps you are surprised to get that you do have a credit history even although you have never requested a card. This is often due to accounts with malls, 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 try applying for a “prime” card. Otherwise, you ought to try applying for a “sub-prime” card.
GOOD CREDIT HISTORY
If you think you’ve a great credit history… double check. You must still consider ordering a credit report with credit score. When you confirm that the credit history is positive, you ought to 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 credit cards it is possible to really have a poor credit history. For this reason it is so important to test your credit report and score ahead of applying for your first card. Low scores may have been caused by missed utility bill payments, or other related financial activity that 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 with this card, great… if not, you can move ahead to applying for a secured credit card. The original denial shouldn’t effect your capability to be approved for a secured card.
Secured credit cards require a cash deposit. Essentially, you deposit money in to a “savings” account and then borrow against your deposit everytime you utilize your secured card. While this may sound such as for instance 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. Following a couple of years of paying your bill punctually, you can check your credit score again, and apply for an unsecured card.