Credit Cards For People With No Credit

Credit card nation - that's what Americans are called for their addiction to and overuse of plastic money. But with such a huge number of credit consumers, still many have not a slightest idea where to go and what to do to obtain their fist plastic and start building payment history with banks.

Major Banks do not feel comfortable about unsecured lending to people without any credit references. And if you do not get a credit line you cannot grow those references. That's' where the catch is, so you actually have to find an institution who'll agree to work with you as a beginner. A secured credit card is easily issued to beginners and is the best tool to establish positive payment references so important for your borrowing abilities in the future.

A secured card looks and works like an ordinary major bank credit card. This means it allows making purchases now and paying for them later, it has a whole range of fees and interest rates typically found on any other plastic. It reports to credit bureaus and shows up in the report as an ordinary credit line. The most valuable feature of a secured card is its credit building program and relatively easy availability to those with no or bad payment history.

The price you pay for easy access to credit seems for many unreasonably high. Secured card grants approval if you meet its major eligibility requirement, in other words, you agree to open a security savings account with the bank. The deposit amount determines your credit line and functions as collateral if you fail to pay bills. Most issuers allow you to charge up to 100% of the amount deposited.

The minimum deposit amount required on most secured cards is $300, the maximum being $10,000 and more. Figuring out which size of deposit you need, 5% of the annual income will do.

Some may think it's pointless. Where do I draw funds for a savings account when I'm looking for a credit card to get those funds? The thing is you need to get on track somehow. If you're ready to pay now, you may grow eligibility for lowest APRs, high limits and rewards cards later.

There are some things to watch out when applying for a secured offer online. First make sure it reports to all major national credit bureaus. As the main reason for using a secured card is to establish credit, monthly reports of your good payments will help grow a positive reputation for you faster. Secured Visa cards from New Millennium Bank and Applied Bank provide monthly credit bureau reporting, so feel free to apply online.

Second, find a secured card application best matching your current financial situation. Mind it that there are lots of fees associated: start-up fees, application fees, finance charges and, of course, penalty fees.

And finally, apply at the issuer that provides interest earnings on the deposit. The average interest rate ranges from 1% to 4%, but some secured Visa offers from Millennium Bank provide a special high introductory savings rate on the collateral deposit. The savings rate becomes critical as the deposit amount grows.

Related Blogs

• National ID Cards Won't Stop Terrorism or Illegal Immigration ...
• More Consumers Pay Credit Card, Skip Mortgage Payments « Real ...
• Why Consumers Should Invest in Credit Repair | 9DOWNSOFT Finance
• What credit-card payoff? Consumers are dumping debt
• How do I get rid of credit cards without hurting my credit ...

written by Admin \\ tags: Addiction, Card Nation, Collateral, Credit Bureaus, Credit Cards Work, Credit Consumers, Credit References, Easy Access, Eligibility Requirement, Fist, Interest Rates, Issuers, Payment History, Plastic Money, Savings Account, Secured Card, Secured Cards, Secured Credit Card, Secured Credit Cards, Slightest Idea

If you dream to have your own credit card but you're under 18, your dream remains as such in most cases. But if you have a parent with good FICO score and a major bank card, there is a great opportunity to obtain that small piece of plastic and benefit from its conveniences and perks. So, how do you clinch the deal?

If your parent is planning to apply for credit card online, ask him/her to tick off the field with additional cardholder. That's it. The issuer does not require any of your personal data except the age of course. Some companies will even approve you for the additional card if you are much under 18! That is how you can get your first credit easy and fast.

If you're going to try it out, make sure you learn about all the benefits and pitfalls of an easy to get additional credit card.

As long as you already know about the benefits - otherwise why would you attempt to get it? - we will drop the details and only highlight the basic things:

Minimum age: some issuers have the minimum age requirement for secondary card user and some - don't.

Eligibility requirements: as additional cardholder you are not subject to credit history and income check. This makes the primary cardholder automatically responsible for all payments and cash withdrawals made with the plastic.

Credit bureau reporting: this is one of the major reasons why a teenager should get an additional credit card. Apart from easy credit, the youngster can start their personal credit report as most companies report the primary user's payment activity on the secondary user's report. It allows you to build up positive payment history which makes you eligible for some of the best credit card applications in the future. This is of most benefit for freshmen who can use their payment records to receive low APR cards with rewards.

Debt collection: as a secondary (authorized) user you are not liable for any debt made by the primary user.

There are just a few pitfalls associated with using additional credit card but they may have negative effects on your financial life as adult.

If the primary card user defaults on his/her account, it'll be reflected in your report, in your name. Guess about the consequences - damaged score, bad risk and denials in credit for major purchases.

Some companies gave up the practice of credit reporting so think twice whether you really need a line of credit that does not build your score. If you are just after an easy payment tool or additional source of income, ask your parent to get you a pre-paid card. It works just like a debt one but does not require you to open a bank account. Your parent can buy a prepaid card for you and load funds on it when needed.

Easy credit is a risky temptation, but if you get its principle - you'll work it out.

Related Blogs

• 0% APR Credit Cards: How Can They Do That? | Personal Finance ...
• 0% APR Credit Cards: Use Them To Your Advantage! | 0 Interest ...
• These rates are based upon the annual - thepalmasacademy.org
• 3/11 (NFSE.OB) nFinanSe Reducing Cardholder Fees | Public Wire
• As a credit cardholder, you might « independentlifestyles.net

written by Admin \\ tags: Apr Cards, Cardholder, Cash Withdrawals, Conveniences, Credit Bureau, Credit Card Applications, Credit History, Debt Collection, Eligibility Requirements, Freshmen, Good Fico Score, Issuers, Payment History, Personal Credit Report, Personal Data, Pitfalls, Rewards, Score Card, Teenager, Youngster

If you have no credit or have a relative new credit history, chances are that you will be turned down for most credit card applications. You have to apply for credit cards that are specifically targeted at those with no credit history. This article highlight the limited choices that are available to those with no credit history or very limited credit history.

However, aside from credit scores, some issuers also place heavier emphasis on your income. So you may be able to get a regular credit card even if your credit history is limited. If you get turned downed for regular credit cards, then essentially, your choices boil down to getting either a secured credit card, or if you are a college, then a student credit card.

What is a Secured Credit Card?

A secured credit card, unlike an unsecured credit card, requires you to put a deposit with the credit card issuer. You normally have to put in a minimum of $300 and a maximum of $5,000 to $10,000. The amount of money you deposit will become your credit line and act as a collateral. Many secured credit card reports to all three major credit bureaus and even report them as an unsecured credit. This way, you can build a credit history and within a year to 18 months, you will probably receive unsecured credit card offers which you can apply for. (or you can come back to this site!). Secured credit cards normally charge an annual fee which ranges between $20 and $50.

If you are a student

The best time to get a credit card is when you are a student because almost all student credit cards have no annual fee. This is perhaps the only time when you have a wide variety of no annual fee credit cards to choose from even if you have no credit. Use your card responsibly and you will have a much easier time after graduation when you are looking for an apartment or an auto loan. Check our college student credit cards section for a suitable card for yourself.

Student Credit Card Recommendations

Below are a couple of student credit cards we recommend.

The Citi? mtvU^TM Platinum Select? Visa? Card for College Students. The card has no annual fee. You can earn five points for every dollar you spend at (1) bookstores, (2) record stores, (3) restaurants (including fast food), (4) motion picture theaters and (5) video entertainment rental stores and earn one point for every dollar spent on other purchases. You also earn 25 points each time you pay your minimum bills on-time and if you do not exceed your credit limit. You can also earn point twice a year for getting good GPA scores (4,000 points for a perfect score). You can also redeem points to reduce your student loan.

Citi student cards require no income or co-signers.

Another great student card is the Discover® Student Card , which allows you engrave your initials on the card in a variety of cool colors. In fact, I would say that Discover's Student Cards are the best cash back student credit cards available in the market today. With this card, you can earn:

5% rebates on Airlines, Hotels, Car Rentals and Cruises between Jan and Mar

5% rebates on Home Improvement Stores, Department Stores and Clothing Stores between April and June

5% rebates on Gas Stations, Hotels, Theme Parks, Zoos and Bookstores between July and September

5% rebates on Grocery Stores, Restaurants, Movie Theaters, Movie Rentals between October and November

5% and 20% rebates (I look at them more like discounts) at over 100 online retailers like GAP.com, OldNavy.com, Dell.com, BestBuy.com!

You can also Double the value of rebates that you have earned if you redeem them for select gift cards (over 100 partners). For example, if you have accumulated $40 in rebates, you could get a $80 celebrity cruise, carnival cruise or Universal Orlando Resorts gift card or a $100 Hyatt Hotel and Resorts Gift CardNo other credit card allows you to earn 5% rebates for so many items. Students will find this such a useful card.Best Secured Credit Card for People with No CreditIf you are not a student and you do not get approved for the above cards, then getting a secured credit card is the best move. Below is what we recommend.

The Public Savings Bank Secured Black Card is one of the best card to get if you have no credit or poor credit. Because it is a secured credit card, there is no credit checks or income checks performed and you are almost certain to get the card. This is one of the rare secured credit card with no annual fee (though you have to pay a one-time $79 application fee). Unlike most secured credit cards, this one allows you to deposit up to $10,000 in your account and it is all FDIC insured.

Regardless of the type of card, you get, make sure you use the card responsibly, pay your bills on time. You will build up a credit history over the course of a year or so and then be offered better cards.

Related Blogs

• How To Fix Bad Credit Using Credit Cards To Improve Your Rating ...
• How To Start Internet Banking Today | College Student Credit Card
• Holidays on a Shoestring Budget | College Student Credit Card
• Closing Credit Card Accounts | College Student Credit Card
• Online Credit Card Application – Fast, Easy, Instant Response ...

written by Admin \\ tags: Amount Of Money, College Student Credit Cards, Credit Card Applications, Credit Card Issuer, Credit Card Offers, Credit Cards For People With No Credit, Credit Cards For People With No Credit History, Credit Scores, Fee Credit Cards, Issuers, Major Credit Bureaus, No Annual Fee Credit Cards, Secured Credit Card, Secured Credit Cards, Student Credit Card, Student Credit Cards, Three Major Credit Bureaus, Unsecured Credit Card, Unsecured Credit Card Offers, What Is A Secured Credit Card