Getting Your First Credit Card: A Guide
First you must remember to be realistic. When just starting out you cannot expect to get a credit card with a $5,000 credit line. Many credit card companies are wary for giving cards with large limits to young people.
Step 1: Don’t apply too much!
One of the biggest mistakes that young people make is to apply to a bunch of company’s all at once. If young keep applying to cards that you have little or not change of being approved for and keep getting declined this starts a vicious cycle. The more company’s deny you, the more likely the next company that you apply with will deny you. A large number of denials is a big red flag to credit cards company’s, making it all the more difficult to be approved.
Step 2: The Co-signer alternative
A very good way for a young person to get that first card is to get a co-signer. When you have a co-signer you are both legally responsible for the balance and both receive statements. Typical a co-signer is a parent but largely anyone can co-sign with you. When manging your card you must be careful because not only your credit is on the line, the person who co-signer with yous credit is on the line.
Step 3: Check your mailbox
Sometimes you may receive credit card offers in the mail. Generally these offers fall into one of three category’s: an “Offer to apply”, A “confirmed offer”:, and a “pre approved” offer. an invitation to apply is just that, there is not grantee that you will be approved. I recommend ignoring these. A confirmed offer is better that just an invitation. This means that the company has checked your credit and you fall into the category that would be approved for the offer that they are sending. So most likely, if you apply you will be approved. the best of all is a pre approved offer. This means that all you have o do is call in and and they will send you there card.
Step 4; Use the Internet
The Internet is a great tool to research credit cards. by going to the various company’s web sites you can check all of the pros and cons and find that card that is right for you. be sure to consider every factor such as, Interest rates, annual fees, and on-line banking ability’s. Please remember that at first you only may qualify for a very small credit line but if you stay under your credit limit and pay on time you will be able to increase your credit limit in no time.
You must remember to be realistic. When just starting out you cannot expect to get a credit card with a $5,000 credit line. Many credit card companies are wary for giving cards with large limits to young people but If you follow these steps you will have your first credit card in no time!
