There are steps you can follow if you want to open credit without any credit. First, be sure to reduce your expenses. Grocery shopping trips are expensive. Although you may feel tempted using your debit card to pay for groceries, store credit cards have higher interest rates, lower credit limits, and typically offer lower credit limits. Make sure you have a plan for paying off your store card every month. Otherwise, the interest charges you incur can harm your credit score.
Applying to a creditcard without a creditcard
It is important to carefully read the fine print before you apply for credit cards. This will enable you to know the annual fees and the interest rates and keep you from going into debt. You can build credit faster by using your credit responsibly Make sure to make all of your payments on time and keep your balance below 30% of your credit limit.
Secured cards can also be applied for. This requires a cosigner to deposit money as security. These cards usually have low credit limits and many banks don't report any activity to credit bureaus. A co-signer can still make payments if the main cardholder does not make them. They also have access to statements from the cardholder. However, late payments can affect the credit rating of the cosigner.
Credit card applications can be difficult if your credit score is not good. Even if you have poor credit, you can still get approved for a creditcard. These cards are for those who are still building their credit and are much easier to be approved for. Your credit score will depend on which credit account you open. It's likely that your start credit score will be higher than 300.
Discover it(r), Secured Credit Card
The Discover it(r) Secured Credit Card is a great card to get if you have no credit and are looking to start building your credit. This card not only allows you to have a lower credit limit but also gives you cash back rewards that can increase over time. This card can help build your credit. You get 2% cashback for gas and restaurant purchases. If you pay your bills promptly, you will also be eligible for cashback.
The Discover it(r), secured credit card offers a low deposit security, but it provides more benefits than traditional secured card. It has a rewards program that allows for flexible redemption options. And the fees are very low when compared with other secured credit lines. You will also get a See Terms APR, which is based upon the prime rate.
Credit card for stores
Even if your credit score is not perfect, store cards can still be a good option. They are available for easy access and offer money without any fees. They are not always reliable. You can often build up large amounts quickly with these cards, in addition to getting free money.
Store cards are usually available immediately with a minimum credit score. You must be at the least 18 years old. Stores prefer people with good credit to fair credit so don't expect excellent credit. A secured credit card or student card might be more suitable for you if your credit score is not high enough to get a traditional credit card.
As long as you keep your credit utilization below 30% and make your payments on-time, store cards can help to build credit history. Additionally, store credit cards can be an excellent savings tool. However you should be cautious about the ones you choose.