bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 1012  >> 

Finding A Credit Card For Individuals With No Credit History







Whether you are a young adult or just someone who has not paid much attention to building credit over the years, you may find yourself in an awkward situation when trying to make a large purchase such as a vehicle or home using credit. Credit history is used to determine eligibility for loans to secure these types of purchases which give lenders an idea of how likely you are to repay the loan and not default on it. One way that many people are helping establish a credit history is through the use of credit cards.

Obtaining a credit card to help build your credit is often much easier than securing larger loans for homes and vehicles. The reason for this is credit cards offer smaller lines of credit so the eligibility requirements are a bit more flexible than those for larger lines of credit. Having no credit history does not automatically disqualify you for credit card where it could possibly disqualify you from securing a larger loan. There are a variety of different types of credit cards that you can apply for to help you get started building a credit history.

How a credit card helps you build a credit history is simple. You make purchases using the credit card and you are then billed monthly for the amount you spent. In many cases you can pay that amount all at once or in monthly installments. When you make monthly installments promptly and on time, your credit worthiness builds up as time progresses. This is what lenders look at when evaluating credit histories. There are two types of credit cards that are typically issued to people who have no credit history. The two types are secured and unsecured credit cards.

Secured credit cards as the name implies require a security deposit to be made in exchange for a credit card. The security deposit amount will vary depending on the credit card company. With a secured credit card, you will be given a credit line equal to or slightly higher than the amount of the security deposit that you gave. The other type, an unsecured credit card, gives you a line of credit without having to make a security deposit. Unsecured credit cards will give you a credit limit that is reasonable but is rarely high enough to allow you to get deep into debt.

Finding the right credit card that fits your needs requires a little bit of research. There are a number of credit card companies out there who offer a variety of different credit cards with varying interest rates. Additionally, some even offer different rewards or perks as part of being a customer with them. Compare companies and find the credit card that will best suit your needs. Also, do not rely too heavily on your credit cards. Using them to supplement income can be dangerous and lead you down a road to excessive debt that may hurt you in the long run.


About Author Hunter Riley :

Hunter Riley is an editor at creditcardrates.com, a website that will help you find the best credit cards to match your lifestyle. <a href="http://www.creditcardrates.com" target="_blank">http://www.creditcardrates.com</a> is dedicated to finding you the lowest credit card rates around.


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/404644


Article Added on Saturday, April 13, 2013
LD
Other Articles by Hunter Riley

100 Approval Credit Cards
You may have heard of credit card companies offering credit cards that are guaranteed approval for anyone. This can seem suspicious because not everyone has good credit standing and will likely be approved for a credit card by a reputable lending company. Many companies advertise 100% approval for any person who is old enough to qualify for a credit card and this leads to many consumers being suspicious. While this seems like an unlikely offer, these cards are actually available, though they...

Credit Card Options for People with Bad Credit
Trying to get approved for a credit card when you have bad credit is difficult because most major credit card companies do want to take a chance on someone who has an unstable financial history. People have bad credit for many different reasons. Some people overspent in their younger adult years and now find themselves stuck in a situation where they have massive amounts of debt to pay off. Others lost jobs and were unable to pay on loan accounts, and others had medical emergencies that...

How to Improve Your Credit Rating by Using Credit Cards
Your credit rating plays an important role in your life though many do not realize it. Your credit rating is the biggest determining factor when trying to secure a large loan for a house or a car. A poor credit rating can disqualify you from getting the loan you need to help you make the large purchase of a home or car which is a big part of the American dream. If you have a poor credit rating, all is not lost. You can work to improve your credit rating so that you can easily qualify for the...

Credit Card Options for Young Adults
When a person is in his or her early twenties, it can be tough to get approved for a loan if he or she has not had much of a chance to build up the credit score. Credit cards can help young adults to begin developing a credit history and if the person makes payments to the account on time every month, he or she will be well on his or her way to establishing a solid credit history. This can help the individual in the future when it comes time to take out a loan for a house, car, vacation, or...

Learn How to Keep Your Credit Card Purchases to a Minimum
Unfortunately, credit cards have gotten a bad reputation because they are considered to be responsible for people incurring large amounts of debt. While credit card debt is indeed a contribution to the debt that many people are faced with, it is how credit cards are used that are the real culprit. Those who are faced with large amounts of credit card debt are typically ones who have used their credit cards irresponsibly and failed to keep their credit card purchases to a minimum. If you...

New Year s Resolutions for Using Credit Cards
Credit cards themselves are not a bad thing. It is how we use them that create problems that sometimes can cause us to remain in debt. With so many people across the nation in debt, it is no wonder that many have made New Year's resolutions to get out of debt. Their first instinct is to cut up all their credit cards as a way to achieve their goal. While this may be a seemingly easy way to accomplish this, it does come with a few drawbacks. Being more responsible and making a resolution on how...

How to Obtain a Low Interest Credit Card
Credit cards are quite convenient to have and to use but do require you to use them responsibly to avoid getting into debt. Even with proper budgeting and fiscal responsibility, credit cards can become a burden mainly due to the interest rates that are a necessary evil when it comes to credit cards. Some credit cards start you off with a low introductory rate and then increases significantly when the promotional period has ended leaving you in an uncomfortable position if you did not properly...

Information for New Credit Card Holders
Becoming a credit card customer for the first time can be exciting and it can also cause a person to be cautious. Being cautious is a good thing when you are a new credit card holder. It is important to understand how to remain on a monthly budget you set for yourself, even when you have access to additional money through a credit card limit. Small purchases are suggested when you first begin to use your credit card. Purchases ranging between fifty dollars and a hundred and fifty dollars per...

Reading Blogs about Credit Cards Can Provide Helpful Insight to Consumers
Because there are so many different options in available credit cards, it is helpful to review easy-to-access online information about each different type of credit card. Online blogs about credit cards and credit card reveal some of the most helpful information on the web. These blogs are written by consumers who have tried and used many different types of credit cards and then the blogger consumer reports on which card companies were easy to deal with and which card companies were a hassle...

When Should You Use a Credit Card
? Getting a credit card can be a huge advantage to people if they use the credit card responsibly. While there have been many negative statements made by consumer companies about the use of credit cards, these credit-extending cards can help a person out of a rough financial situation when it is needed. It is important for people who use credit cards to use them responsibly and to try at all costs to avoid frivolous spending. This is a trap that millions of people fall into and then they are...

Click here to see More Articles by Hunter Riley
Publishers / Webmasters
Article ID: 404644
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


173 Users Online !
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Email Marketing Services Provided By AwareIndia







Company IDS