Monday, December 12, 2011

How can you get a credit card with no credit?

And what are some credit cards for people with no credit? What sites are fraud and which are not? I really need to know. I'm looking to build credit. I'm 19 and I've never had any kind of credit card. Could I have credit without doing that?

Much help appreciated!!How can you get a credit card with no credit?
I agree with the secured card suggestion.

If you have a credit union in your area, stop by and ask about their secured credit cards. These cards are excellent ways to establish credit.

This is how they work.

Say you want a $500 credit limit. You will need to deposit $500 into a savings account to back the credit card. Note, this is NOT funding for the card. It is a guarantor savings account that will only be touched in the event your payment is late or you default on the card (both very bad ideas).

The bank issues you a credit card for $500. You use it, just like a regular credit card, making timely payments (to better increase your credit score, never go over 30% of your credit limit at any time).

In the meantime, the credit union is reporting your good payment history to the credit bureaus, establishing and raising your credit score. With responsible use, most credit unions will elect to convert your secured card to an unsecured card with a higher credit limit after a year or two. As a bonus, you will still have that money in savings to back your secured card and it will have earned some interest.

The reason I recommend credit unions over banks is because more credit unions offer these cards than banks and second, credit unions won't charge annual membership fees or other bogus fees that banks love to charge, and in all cases, the APR for the card will be lower than secured cards from banks.

You may find you like dealing with a credit union so much, you'll decide to move your other accounts to it. I moved accounts to a credit union ten years ago and never regretted the decision. They treat us as valuable members instead of nuisances or cash cows. We got our last auto loan through them at a much lower interest rate than the banks were charging and, since credit unions are member owned, we get a dividend check deposited into our savings account every year.

Don't apply for retail or gas cards. Retail cards have tightened credit requirements considerably and are, in some cases, more difficult to get than bank cards. Also, each application for credit, whether approved or not, can lower your FICO score by 5 points due to the ';hard pull'; inquiry on your credit report and stay there for two years.

With no credit, you can almost certainly qualify for a secured card.How can you get a credit card with no credit?
Go to any reputable bank and ask for a secured credit card.
19 Are you in college? Any student loans in your name . I had perfect credit and didn't know it in college . Even though u may not have had any payments on a student loan yet is shows up on a report as unsecured debt in good standing (a.k.a. good credit ). I went to establish credit and wound up in bad shape financially . But if u must have a credit card most banks have a program where if you give em 250-500 bucks they will issue you a secured credit card(if u don't pay on it u lose your deposit) but be careful make sure that the card goes from secured to unsecured in 6-12 months . Another way is to have a substantial down payment on a car / house . The more u put down on something the less risk is involved for the lender . If finacially it is not feasable maybe we should be looking at saving money before we try and establish credit One final word: Credit is for investing - not consumer spending , it'll save u a lifetime of frustration
Store credit cards (Best Buy or Target) are a good place to start building credit. Make sure you pay them off quickly though, they have very high rates.

Weistie doesn't sound like she knows a whole lot about credit, secured credit cards are a fine way to get started but the advice about a car or home loan are unrealistic. No one will qualify for a car loan or a mortgage without some good credit history, even with a big down payment.
Many ';secured'; credit cards are available, but only if you deposit money in a bank first.

Do not apply on any websites. Go into a bank that offers secured credit cards and do it in person. You will need to go into the bank anyway, to deposit the money, before you obtain the secured credit card.

Do not apply for any credit cards that are not secured. Applying for credit cards that are not secured before you have credit is not a way to get a credit card. It is a way to prevent yourself from getting a credit card in the future. (They keep track of applications and may reject anyone who has a history of applying too much.)

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