How to Choose Your First Time Credit Card

It can be worse to have no credit than it is to have poor credit. Having no credit can really limit your ability to get a mortgage, buy a new car, or even get that job you want. While it doesn’t make sense, you can’t get credit when you have no established credit. Your first time credit card could be a bit difficult to get. 

There are a few things you can do to establish credit. You can maintain a checking account and show you can handle it, your utility bills are paid on time and show the receipts, or any other receipts from regular monthly payments you have made. 

Before you send in that first time credit card application, you need to check out your credit report. This can be obtained free once a year. Do not submit too many credit card applications in a short period of time or your credit rating will go down. It will also go down if you have too many credit inquiries in a short time. 

One thing that can boost your credit rating is to have a passbook savings account and ask the bank for a secured loan. They can keep the passbook until the loan is paid. You need to be sure the payments are kept current and made on time. It is also wise to make sure the bank reports to the credit bureau on the status of your loan. 

If you are a full time college student, apply for your first time credit card by making out an application for a student credit card. Card companies are more apt to issue first time credit cards to those who are interested in education because they feel these people are a bit more responsible. 

You can also get a first time credit card that is secured. This is where you deposit the amount you want as a balance into an account and this will be used when you use the card. You will still need to pay your payments on time to keep a good credit rating. 

You may also be added as an authorized card user to the account of another person who has a good credit history. This could be a parent or grandparent, this will help to show creditors that you are responsible and you can be removed once you are able to open your first time credit card account. 

Once you have opened your first time credit card account, use it wisely. It is important that you know your limitations or you will find your credit rating will be a mess. It is best to only use this first time credit card when it is absolutely necessary. It is also best if you are able to pay off the entire balance every month.