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04.01.2021 / Borrowing « Back to all articles

How to Get Your First Credit Card
Cheerful excited young woman with credit card standing outdoors

Many of life's most significant financial decisions require a good credit score. Most people start their credit history with a credit card, as this is one of the easiest forms of credit to obtain. For those wishing to apply for a credit card, you must meet the minimum age requirements and provide proof of income to pay the account. You can also follow these tips to improve your chances of approval. 
 

Choose a Card for Your Situation 

Younger applicants, those between the ages of 18 and 21, don’t have the credit history that many lenders desire. Because of the risk lenders assume with a credit newbie, you may not be approved for a platinum-level rewards card. Those without a credit history would be best applying for an entry-level credit card, such as a student card or a card that requires a deposit. Deposit cards are also called secured cards, where the amount of credit is equivalent to the amount of cash placed on deposit. 

With these cards, paying the bill on or before the due date starts to establish a positive credit history. Your approval amount doesn’t matter as much as your payment history and credit management does. Therefore, it is important to choose a card that matches your financial needs. Your spending could earn rewards, but you want to reserve your credit card usage to areas of greatest impact. 

Rely on the Credit of Others 

New credit card applicants may not be approved for a credit line due to marginal income, but that doesn't limit your options for building credit. Being added as an authorized user to a family member's credit card or line of credit is a way to extend their creditworthiness to your credit report. Though this is a way to start building a credit history, any decision you make (such as missing a payment or overspending) will not just hurt your credit but also that of the primary cardholder. 

Control Your Credit Needs 

If you apply for several credit cards at one time, it sends red flags to potential lenders and credit companies. It could send the message that you are desperate for credit and are getting multiple denials, or it could indicate that you could potentially lose control of your debt.

Give Proof of Income 

Without a job or verifiable source of income, lenders are not likely to extend a line of credit. You should have steady employment that can be validated, and you should have an accurate estimation of your financial responsibilities. Lenders look more favorably on applications that have consistent income that isn’t tied to other debt or financial commitments. 

Credit cards are a way to further your financial standing, though all credit use should be undertaken with caution. Following these suggestions can make your application more favorable to lenders. 

09.09.2021 / Safety

Use These Tips to Ensure Your Mobile Cheque Cashing Goes Smoothly
COVID-19 has changed the way banking services work for the near future. Due to necessary social distancing measures,…

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04.01.2021 / Borrowing « Back to all articles

How to Get Your First Credit Card
Cheerful excited young woman with credit card standing outdoors

Many of life's most significant financial decisions require a good credit score. Most people start their credit history with a credit card, as this is one of the easiest forms of credit to obtain. For those wishing to apply for a credit card, you must meet the minimum age requirements and provide proof of income to pay the account. You can also follow these tips to improve your chances of approval. 
 

Choose a Card for Your Situation 

Younger applicants, those between the ages of 18 and 21, don’t have the credit history that many lenders desire. Because of the risk lenders assume with a credit newbie, you may not be approved for a platinum-level rewards card. Those without a credit history would be best applying for an entry-level credit card, such as a student card or a card that requires a deposit. Deposit cards are also called secured cards, where the amount of credit is equivalent to the amount of cash placed on deposit. 

With these cards, paying the bill on or before the due date starts to establish a positive credit history. Your approval amount doesn’t matter as much as your payment history and credit management does. Therefore, it is important to choose a card that matches your financial needs. Your spending could earn rewards, but you want to reserve your credit card usage to areas of greatest impact. 

Rely on the Credit of Others 

New credit card applicants may not be approved for a credit line due to marginal income, but that doesn't limit your options for building credit. Being added as an authorized user to a family member's credit card or line of credit is a way to extend their creditworthiness to your credit report. Though this is a way to start building a credit history, any decision you make (such as missing a payment or overspending) will not just hurt your credit but also that of the primary cardholder. 

Control Your Credit Needs 

If you apply for several credit cards at one time, it sends red flags to potential lenders and credit companies. It could send the message that you are desperate for credit and are getting multiple denials, or it could indicate that you could potentially lose control of your debt.

Give Proof of Income 

Without a job or verifiable source of income, lenders are not likely to extend a line of credit. You should have steady employment that can be validated, and you should have an accurate estimation of your financial responsibilities. Lenders look more favorably on applications that have consistent income that isn’t tied to other debt or financial commitments. 

Credit cards are a way to further your financial standing, though all credit use should be undertaken with caution. Following these suggestions can make your application more favorable to lenders. 

Need a
Loan?

Loans from $120 to $15,000. Get funded as soon as today!

09.09.2021 / Safety

Use These Tips to Ensure Your Mobile Cheque Cashing Goes Smoothly
COVID-19 has changed the way banking services work for the near future. Due to necessary social distancing measures,…