Summary of the Best Credit Cards for Beginners
Other Strategies for Getting a Loan So You Can Get Your First Credit Card
If you’re not a college student or don’t have the savings to make a security deposit for a secured credit card, there are other ways you can increase your credit to the point that you’ll be eligible for a loan. Your first credit card.
Jointly signed loans
This is usually a car loan or other type of installment loan. If you don’t have a credit history, you can often get an approved loan if it’s signed by someone with a high credit score. You will make monthly payments and your payment history will be reported to the credit bureaus. It may take a year or more of timely payments before you have a credit score sufficient to qualify for a credit card.
Become an authorized user of someone else’s credit card
This will usually be the parent. You must be added as a fully authorized user, which means they will ask for your social security number. As long as monthly payments are made on time by you or the primary user, it will help boost your credit score.
developer loan
They work like secured credit cards, but you don’t need to have money in a savings account or for collateral.
Here’s how it works: You take out a $1,000 construction loan. The money is immediately deposited into a savings account in your name, but acts as collateral for a loan. Monthly payments are deducted from the savings account. As the months go by and payments are made, you start building up a credit history and credit score even though you’ve never actually made direct payments.
bottom line
Getting started with a credit card is a catch-22. You need a card to build your credit history, but it can be difficult to get approved for a card if that history isn’t shown up front. But not everything is so hopeless. Luckily, there are quite a few secure cards, student cards, and beginner-friendly non-secure cards to help you out.