Bank card applications haven’t changed much over time, what has changed could be the access to information concerning the available offers (thank you Internet). The online credit card application has revolutionized the consumers capability to find a very good card offer for their own financial needs.
Applying for your first credit card could be a confusing exercise to say the least. I have now been surprised often to know from other individuals who reach their 30th birthday without ever applying for a credit card. That is an unlucky circumstance, as it could be difficult to be approved for credit without prior credit card history.
THE APPROACH
The way of successfully applying for your 1st card will depend on your actual age, college enrollment status, and credit rating. It is important to follow along with a software strategy that fits your situation, in order 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 superb way to be approved for your first credit card, and to start a history of responsible credit use. Four years of on-time payments should go quite a distance to creating a healthy credit score. This will be a great benefit to a fresh graduate as it pertains to purchasing an automobile, home, or even 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 scholar have a bank card in their particular name.
NON-STUDENTS
If you’re not a scholar, choosing the best way of applying for your first card is a little more complicated. The right approach will depend on your credit history.
NO PREVIOUS (OR UNKNOWN) CREDIT HISTORY
If you do not have any credit history, or do not know what your credit score looks like, the first step is to purchase a credit report with a FICO score. Best Blacknet It is absolutely 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 possibility of you being approved on your next application attempt.
Perhaps you are surprised to find that you do have a credit history even though you have not applied for a card. This is as a result of accounts with department stores, utility companies, cell 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 need to try applying for a “sub-prime” card.
GOOD CREDIT HISTORY
If you think you’ve an excellent 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 need to try applying for a “prime” credit card. Search for credit offers that want “good” credit. These cards will offer better features and lower fees and rates then cards designed for those who have poor credit.
POOR CREDIT HISTORY
Even without prior charge cards it’s possible to really have a poor credit history. For this reason it’s so important to test your credit report and score ahead of applying for your first card. Low scores may have been brought on by missed utility bill payments, or other related financial activity which will be reported to credit bureaus.
If you find yourself in this example, start with trying to apply for a card designed for those who have “fair” credit. If you should be approved because of this card, great… or even, you are able to move on to applying for a secured credit card. The first denial shouldn’t effect your capability to be approved for a secured card.
Secured charge cards require a money deposit. Essentially, you deposit money into a “savings” account and then borrow against your deposit everytime you use your secured card. While this might sound like a hassle, it may be the only way (based on an undesirable credit history) to be approved for your first card. Look at this as a temporary means to fix a long haul problem. Following a couple of years of paying your bill on time, you are able to check your credit score again, and apply for an unsecured card.
Business
Read More
Recent Comments