![]() ![]() Your history of payments and debts are two of the most important factors that will be examined. If you're older than 21, issuers will look at your credit report and history to determine if you'll be approved for a card. They are usually easier to qualify for than regular credit cards and often have lower credit limits, but may have higher interest rates. Student credit cards are intended for individuals who have not yet built up credit histories. While Chase does not offer secured credit cards, check with your credit card issuer to see if they do. This money acts as collateral in the event that you default on your payments. The difference between a secured credit card and an unsecured credit card is that with a secured credit card you put a cash deposit down for the amount that you want in credit on the card. Options for a first credit card include: Authorized user cardĪssuming the credit card issuer reports authorized user activity to the credit bureaus, you can be added as an authorized user to a card to begin building a credit history and learn how to manage a credit card. What are my options for my first credit card? Keep in mind that this income should be able to cover your living expenses, credit card bills and extra leftover for savings. You have a steady income: You have a steady stream of income coming in each month to pay your bill.You want to start building credit history: A positive credit history can help you with securing loans and having access to the best interest rates.That's why it's important to know how to create and stick to a budget before receiving a card. If you can't pay it back on time, you'll quickly wind up in financial quicksand by having to pay high credit card interest rates on top of money owed. You know how to stick to a budget: While getting a credit card can feel like you're receiving "free" money, it's important to remember that it's a loan.Three signs that you might be ready to get your first credit card include: Three signs you might be ready to get a card ![]() Keep in mind that prepaid card activity isn't reported to the credit bureaus, so this won't help you build credit. Instead, the card is prepaid ahead of time. With a prepaid card, you'll still be able to make purchases online and in-person the same way you can with a credit card, but it isn't connected to a line of credit. Activity on it isn't reported to credit bureaus, so it won't help build credit. ![]() You could also get a prepaid card, which isn't a credit card. Being an authorized user can help you begin to build a positive credit history, assuming the credit card issuer reports authorized user activity to the credit bureaus and the cardmember is paying balances on time. As an authorized user you'll get your own card, but the primary cardmember is responsible for your credit card spending. Some issuers have minimum age requirements for becoming an authorized user. If you want a card and you're under 18, you can have access to a card by becoming an authorized user on someone else's card (typically a parent or legal guardian). There are two ways to have access to a card before you're 18: Authorized user How can I use a credit card before I'm 18? If you can't show a source of income, such as a job, you'll need to have a cosigner on the card or ask to be an authorized user on a friend or relative's credit card. You'll need to show proof that you have a steady source of income to qualify. You'll need to be at least 18 years old to sign a credit card contract however, since the Credit Card Accountability Responsibility and Disclosure Act of 2009, getting an unsecured credit card before you turn 21 isn't easy.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |