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. Otherwise, the interest charges you incur can harm your credit score.
Applying for credit cards without a card
It is important to carefully read the fine print before you apply for credit cards. This will help you know the annual fee and the interest rate, and will also keep you from spiraling into debt. You can establish credit quicker by responsibly using your credit card. You should make your payments on time, and your balance must not exceed 30% of your credit limit.
You can also apply for a secured card, which requires a co-signer to deposit money as security for the credit limit. These cards usually have low credit limits and many banks don't report any activity to credit bureaus. Co-signers are still responsible for payment if the main cardholder cannot make them. You can also see statements on your cardholder's statement. Late payments can damage the credit of the cosigner.
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 by the first credit account that you open. It is possible to start with a higher credit score than 300.
Secured Credit Card Discover It(r)
If you want to improve your credit score and have little credit, the Discover it(r) Secured credit card is a good choice. This card not only allows you to have a lower credit limit but also gives you cash back rewards that can increase over time. This card can help you build your credit by giving you 2% cash back on gas and restaurants purchases. Cash back can also be earned if you pay your bills on-time.
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. In addition to low fees, the card also comes with a regular See Terms APR that is based on prime rate.
Credit card for stores
Store cards are great for those with poor credit. These cards are free and easy to use. They are not always reliable. You can often build up large amounts quickly with these cards, in addition to getting free money.
Store cards don't require any credit score and can be applied instantly. At least 18 years must be passed to apply for store cards. Many stores prefer people who have good to moderate credit. Don't expect to be able to show off your credit score. A student card or secured card may be more accessible to you if your credit score doesn't meet the requirements for traditional credit cards.
You can build credit history with store cards, provided you make your payments on schedule and limit your utilization to 30%. Additionally, store credit cards can be an excellent savings tool. However you should be cautious about the ones you choose.