How to choose the best Credit Card
Getting Your First Credit Card !
Many times people who have never had a credit card or any other form of credit think that the banks will turn them down for lack of credit history.
In fact, there are many banks that routinely offer Visa or MasterCard credit cards to first time applicants. Everyone must establish a credit history somewhere! If you have employment or other means of steady income, select a bank and apply for their credit card. Don’t apply at ten different banks attempting to increase your chances, because that will actually have the opposite effect. Each time you apply for credit, whether it is for a credit card or a loan of some sort, the lender makes an inquiry on your credit report. Rejections show up on your credit report, and multiple rejections send off a red flag to potential creditors that you are desperate for cash and therefore might have difficulty repaying the credit.
If your first attempt to getting your first credit card doesn’t land you a card, there are two other things you could do to start building your credit to remedy the situation. First, head to your favorite department store and try getting a store specific credit card. These department store cards are easier to get than a Visa or MasterCard, and you will most likely be approved for one of these cards even if you’ve never had credit before. Once you have a department store card, buy something and then pay it off when the statement arrives. You might want to do this for a few months, making purchases and paying them off when the statement arrives.
This will start establishing a credit history, and it will show that you make your payments on time. 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.
