Getting your first credit card is an exciting milestone in the path to financial independence. But how does someone with no credit history actually get approved for a credit card? Fortunately, the process is not difficult. If you’re certain that you’re ready for a credit card, are some steps to consider before applying for one.
Secure a Steady Source of Income
For first-time credit card users, a co-signer with a steady source of income is required to grant someone with no reliable income their first credit card. In fact, the Federal Law requires all young adults under 21 must have a full-time or part-time job before they can apply. Those with verifiable sources of income are already in a good position for obtaining a credit card. This is the hardest aspect of qualifying for a credit card, but considering how difficult it can be to land a job in today’s economy, there are ways to work around it.
Look for Specialized Credit Cards
Certain kinds of credit cards in Altoona, PA will easily approve those who do not currently have a typical job. Being a responsible manager of a savings and/or a checking account at a commercial bank or a credit union like ARC Federal Credit Union, particularly if the client has taken care not to rack up overdraft fees, will boost the chances of getting a credit card. Visit the organization’s website or ask to apply at the local branch to learn what kinds of credit cards can be granted to a good customer with no credit history. Applying for a secured credit card is also an option. Secured credit cards work just like unsecured cards, except a cash deposit must be made beforehand. Whatever amount of cash is deposited would be your credit limit. They can be opened for as little as a few hundred dollars, and can be converted to an unsecured card after a period of responsible usage.
There are even more credit cards in Altoona, PA to choose from, such as retail credit cards, limited credit cards, and student cards. No matter how great they sound, make sure they don’t come with high interest rates and annual fees. Check each option beforehand and you will be on your way to selecting the right credit card to build your credit history with.