Although many people may think that it is difficult to get a credit card for the first time as you don’t have any credit history, there are chances that you may be able to get one provided you have a steady income.
Where to get your first credit card?
There are many banks that routinely offer Visa or MasterCard credit cards to first time applicants. But everyone must establish a credit history somewhere. If you are employed and have a steady income, select a bank and apply for their credit card. But don’t think that applying at ten different banks at the same time will increase your chances of getting a card, because that will actually have the opposite effect.
Every time you apply for credit, whether it is for a credit card or for some loan, the lender makes an inquiry about your credit report. All types of rejections show up on your credit report, and thus multiple rejections will alarm the potential creditors that you really don’t have any money and you’re desperate for cash, therefore might have difficulty repaying the credit.
Tips to get your first credit card
In case you don’t a credit card in your first attempt, you can do two things to help you get one. The first thing you can do is to go to your favorite department store and try to get a store specific credit card. It is easier to get these department store cards as compared to a Visa or MasterCard, and it is most likely that you will be approved for one of these cards even if you’ve never had credit before.
Once you have a department store card, use it and clear off your balance each month to build some good credit history. Once you’ve done this for a few months, you can try to apply for the Visa or MasterCard again. The banks will then have your income and a credit history to use as a basis for determining whether or not to extend you credit.
The other way to establish your credit history when you don’t have any, is to get yourself a secured credit card. In secured credit cards, you deposit a certain amount of money to the credit card company and then your secured card is limited to the amount of money deposited. Therefore basically, it is kind of a debit card that is not connected to a checking account.
Although it is impossible to get a secured card if you don’t have any credit in the first place, it is a good option to establish a credit history if you have some money that you want to spend.
Things to keep in mind
Whichever option you choose to establish your credit history, whether with your department store card or secured credit card, it is extremely important that you do not have late payments or miss a payment.
However, in order to show potential lenders that you are able to handle an outstanding balance, you can carry a small balance from one month to the next on your department store card.
You can successfully establish a strong credit history if you pay your bills regularly on time, and do not carry a large balance from month to month. Follow these steps and after a few months of these good credit habits, you should be able to get a traditional credit card without any problem.
