- A secured credit card is a great way to start off building your credit history. Secured credit cards work by using an amount in your savings account to secure your credit card debt. In the event you are unable to make payments, the amount in your savings account covers the debt. The minimum required to open a secured credit card is usually $500. You can obtain a secured credit card through your local bank or credit union.
- Some retail cards, such as gas cards or department store cards, issue credit cards to borrowers with no credit history. These credit cards are a great option as they typically have low limits for borrowers with no established credit. Choose a retailer you frequent when searching for a card. Opening an account and never using it does little to benefit your credit score. Build a positive payment history by charging small amounts to your card and repaying it before the due date each month.
- If you have no credit, you can apply to receive a major credit card for consumers with bad credit. Choose this option if you do not have the savings to support a secured card or get turned down for a retail card. These credit cards have extremely high interest rates, low limits and mandatory fees. For example, in 2009, First Premier Bank offered a credit card to consumers with bad credit that has an interest rate of 79.9 percent. Fees associated with cards for bad credit may include annual fees, set up fees, and membership fees.
- Be patient when searching for a credit card with no established credit history. The fees related to some entry level or "bad credit" credit cards may not be worth the debt. If you do not have adequate savings for a secured credit card, begin setting aside money each month or pay period to obtain a card. Be sure that any credit card you apply for reports to the credit bureau each month. You can determine this fact by contacting the credit card company and speaking with a representative.
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