If you’re a beginner with using credit and need some advice on how to get started,this is a little guide with steps to get you on the right track. Some people see credit cards as a bag thing but if used responsibly credit cards allow you to earn a high credit score which will lead to getting approved for loans and better interest rates.
There are various entry-level type credit cards you can consider which don’t require a lot of personal information to get approved. A popular choice are pre-approved cards like the Indigo apply pre-approved . Here is a quick list of entry-level type cards to consider.
Store/Retail Credit Cards
This is perhaps the most popular way to receive a credit card through a popular retailer. Retail credit cards or store credit cards at your favorite store such as Kmart,Jcpenney,SteinMart,and others are options to begin with.
They are not as stringent on their application process and are more open to giving people with little to no credit history a shot at using credit.
Secured Credit Cards
These cards have been around for a long time and they typically require a cash deposit which is collateral just in case you renege and stop paying your credit card bill. With these cards you will need to make sure they are issued through a reputable financial institution.
Typically banks offer secured credit cards so you can stop by your local branch and see what they have to offer. Be sure the card reports to all three credit bureaus.
Student Credit Cards
Student cards are popular items that banks are offering to college students and younger. This allows students to begin building their credit score at an early age so they can be prepared for large purchases such as new cars,loans,or homes.
Students will need to be prepared to pay higher interest rates and manage their account responsibly.