Trying to establish credit for the first time can be frustrating some times. It’s frustrating because it may seem like a “catch 22″ situation, you cannot get credit without a credit history. So how do you go about obtaining that first credit card without any credit history? Well, there isn’t really a foolproof way in obtaining your first credit card. However, there is a logical sequence of events you can follow to obtain your first credit card.
If you’re a full time college student, simply apply for a student Visa or MasterCard. Many card issuers are at the campus offering applications for student to sign up. They are more than willing to help you out, they want your business. They’re more likely to approve college students because on average they tend to be more responsible when it comes to paying the bills.
Try obtaining a secured loan from your bank. If you have a savings account at your local bank or can open one up, ask the bank to give you a loan against the money in your account. Without any established credit, you may be required to pay a slightly higher interest rate. Make sure the bank reports to the credit bureau because your intention is build up positive credit history.
Another option would be a secured credit card. This is usually applied at banks. You would deposit a sum of money as security in exchange for the secured credit card. Use the credit card and make sure you pay your bills on time to improve your credit rating. Not all card issuers of this type reports to the credit bureau, so make sure that it does before you apply.
The key to building up your first credit history is to not spend more than you have. Keep in mind that this is your first card and your purpose is to establish a good credit history. Don’t run your card to the limits and always remember to pay on time. By keeping these in mind you should be on your way to establishing a good credit history.
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