These steps will help you get started with credit. First, you need to limit your expenses. Grocery store trips can be expensive. While you might feel tempted to use your debit cards, store credit cards usually have lower interest rates and credit limits. Make sure you have a plan for paying off your store card every month. The interest you pay can cause credit damage.
Applying for a Credit Card without a Credit Card
Read the fine print when you apply to a credit-card. This will ensure you are fully informed about the annual fee and interest rate. It will also help to avoid getting into debt. You can establish credit quicker by responsibly using your credit card. Make sure to make all of your payments on time and keep your balance below 30% of your credit limit.
Secured cards can also be applied for. This requires a cosigner to deposit money as security. These cards are generally low in credit limits and not reported to credit bureaus. However, a co-signer is still responsible for payments if the main cardholder fails to make them, and they can view statements on the cardholder's statement. The co-signer can be affected if they are late with their payments.
Applying for a credit card if you have poor credit may prove difficult. However, even though you may not have a great credit score, you can still be approved for a card. Secured and starter cards are specifically designed for people just starting to build their credit. They are also easier to get approved. Your credit score will be determined based on the credit card you open first. Most likely, you will open a credit account with a credit limit of 300 or more.
Secured Credit Card Discover It(r)
If you are new to credit building and have no credit, the Discover it(r), Secured Credit Card is a great choice. The card offers cash back rewards and a low credit limit. This card is great for building credit. It gives you 2% cash back on gas purchases and dining out. If you pay your bills promptly, you will also be eligible for cashback.
The Discover it(r) Secured credit card comes with a low security deposit, but it has more benefits than a traditional secured credit card. You get a rewards program with flexible redemption options. The fees are also relatively low, especially in comparison to other secured credit card. It also has a low fee and an APR (regular See Terms) that is based at the prime rate.
Getting a store credit card
If you have poor credit, store cards may be an option. They offer free money and are easy to access. However, these cards are not always trustworthy. These cards not only give you access to money for free, but they also allow you build large balances in a very short time.
Store cards don't require any credit score and can be applied instantly. You must be at the least 18 years old. Good to fair credit is preferred by most stores, so don’t expect to have outstanding credit. You may be able to get a secured credit card or student credit card if your credit score falls below the minimum required to qualify for a credit card.
A store card is a great way for you to establish credit history. However, it's important that you make your monthly payments on time and keep your utilization under 30%. Store credit cards can also be useful as a savings tool. But you must be careful what ones you choose.