How to Get Credit When You Have No Credit History
- Author Teddy Holz
- Published October 21, 2010
- Word count 357
One of the great ironies of the credit world is you have to have credit to prove you're a good credit risk. But if you've never had credit before, how do you get it for the first time? Basically you have two choices (1) You can start with merchant cards or (2) you can get a secured card...
Although most people prefer bank-issued credit cards (Visa and MasterCard) to credit cards issued by a single - merchant (Mobil, Exxon, Sears), if you have a hard time getting a bank-issued card first, its fine to start with a department store or oil company card first. Just be sure to pay the balance in full each month - merchant cards are notorious for charging high interests rates. Then once you've established a credit history with one or more of these merchant cards, try to get a Visa or MasterCard.
It's important to eventually get a Visa or MasterCard because these cards are better for establishing credit. Since merchant cards are generally easier to obtain. Most credit grantors give them less weight than bank cards when assessing your creditworthiness. Plus, you'll have greater flexibility with a bank-issued card, since Visa and MasterCard are accepted all over the world.
Your other alternative is to go get a secured credit card. You have can get a secured Visa or MasterCard card from a bank and it works just like a regular credit card. But instead of the bank issuing you a line of credit, you must make a deposit. Your credit line is equal to the amount of the deposit. As long as you pay your bills, your deposit stays intact and you should build a good credit history. Eventually, after a period of time of timely payments, you will build a good credit record and be able to apply for an unsecured (regular) credit card.
Secured credit cards are also useful for people with poor credit records...
Potential Traps: Secured cards have become big business for con artist.."Credit problems? Turned down for credit?" they advertise. We'll repair your credit immediately. Just send $99" Beware of ads like these. Stick with banks you know...
The Author has been writing articles for years. Not only does he specialize in Credit and Debt and Weight Loss, you can also check out his latest website on Online Steaks... which reveals the best sources to Buy Steaks Online.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Acura MDX and Honda Pilot: Which one will you choose?
- How to Save Money Every Day With Promo Codes
- Fresh Paint for a Fast Sale: Here's Why You Should Paint Before Listing
- The Invisible Impact of Missing Teeth: Why Replacing Them Matters
- Detecting Dental Beauty: 5 Core Traits of a Beautiful Smile
- Timeless Toothcare: Dental Hygiene Tips for Seniors
- Saving Old Smiles: How In-House Dental Discount Plans Help Seniors
- Too Much of a Good Thing? Signs You’re Brushing Your Teeth Too Hard
- Why a Root Canal Might Be the Best News for Your Tooth
- What is DuckDuckGo?
- The Role of Lighting Stores in Brampton: Shaping Spaces for the Future
- The Role of Commercial Cleaning Services in Auckland: A Comprehensive Guide
- Exploring the World of Chauffeur Service: Benefits, Challenges, and Best Practices
- Nerds and Geeks: They still live on!
- IQ Tests: History, Uses, and Choosing a Reliable Resource
- 8 Great Ways To Teach Kids About Oral Hygiene
- App Development as a Catalyst for Business Growth
- Costs of arranging a Mortgage in Spain
- TikTok and Instagram: Ways you will grow and learn.
- Mustang GT: Ford Motor Company is a Rising Force!
- 10 Ways to Transform Production Scheduling in Business Central
- Elevating Your Home with Bold Decor and Vintage Carved Doors
- The Ultimate Skin Care Guide for Every Weather
- Do I Need Insurance When I Rent a Boat?
- Casino Bonuses: How to Maximize Your Rewards and Enhance Your Gameplay
- Was Joseph Stalin a good or bad leader of the Soviet Union?
- Top 5 Slots with the Highest RTP: A Winning Guarantee or a Myth?
- The Thrill of the Hunt Discovering the World of Location-Based Entertainment
- How Much Is the Hermès Cleaning Fee?
- Does Hermès Offer Free Repairs?