First credit card is the desire to help them “build credit”. While there is some merit to this idea, it’s definitely not the most important reason. Credit scores are far less dependent (only 15% of the total score) on how long someone has used credit. In reality, most people who get a credit card with the intent of building credit end up doing far more damage to their score by using the card irresponsibly.

Student Credit Cards

When on your search for your first time credit card, you have to remember that only you can prevent debt. You will have to be extremely responsible when using your credit card because most companies will lend you more money than you can handle hoping you can’t pay it off. If you’re a disciplined person and currently attending college, then a college student credit card is the area you should focus on.

Two out of three college students have at least one card, according to a recent study. For too many students, that first card leads to disaster. They’re eaten alive by outrageous interest rates, punishing fees and ever-growing debt. If you’re going to help your children build credit, you’ll want to put just as much effort into helping them build good habits.

Credit card companies want to establish early loyalty so they target students. This is a good risk because they realize that parents will usually bail their children out of any debt problems. However, get a card while in college only if you use the card responsibly and pay it off each month.

First Credit Card

Secured Credit Cards

Secured cards are for those who have no credit or a bad credit history and can’t get a traditional credit card. This card may also be an option for those who have a completed bankruptcy. Consider a secured card as a short-term band-aid to repair your credit. If used correctly, a good payment history with the secured card should improve your credit score enough to allow you to qualify for a standard card in 12 months to two years. The secured card looks like a traditional credit card-a merchant will not know it is a secured card. The difference between the secured and unsecured card is the higher rate and fees for the secured card. This is because the credit card companies have no history on you. If you were to lend money to a stranger, you would feel a lot more uncomfortable then say, you’re long time friend. Just remember that if you pay your bill off on time in full, you won’t be charged the finance charges.

Another note you must jot down is that a credit card company is not going to give you a high credit limit, especially as a student. Your limit is going to range anywhere from five hundred to a thousand dollars. This is once again because you’re new to the game and you have to establish trust with the companies. Once you prove your trust, your credit card score will go up and so will your credit limit.

What to do when your application rejected

Sometimes it happen your application rejected, wait at least 2 weeks till your next application to avoid the automated denial of your application. Credit card companies don’t like people who are desperate for credit and a good sign of that is lots of applications in a short period of time. Try to clean up your financial situation if it’s not too sharp, whether it’s mortgage or any bank payments. Best take it straight to a branch for face to face customer service, since your online query is much more likely to be a vague response or simply ignored. Wait until you’ve settled into a new job or house.

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