About New to Credit Credit Cards
Do you need to go with a no credit history credit card?
If you do not have credit history, then typically yes, you will need to start off with a credit card that allows for limited or no credit history at all. Credit card companies will want to know that you will be able to pay your balances and are a responsible credit holder. Once you build enough credit you may be able to be considered for a credit card with more features and benefits and higher limits.
What is a new to credit credit card?
New to credit credit cards are for people who either have a limited credit history or none at all. These credit cards are great for starting to build up your credit. They mostly consist of secured credit cards where you have to make a security deposit with the issuing bank and the amount of your security deposit is generally what determines your line of credit. With responsible use by you, such as paying your balance due on time your credit score should improve.
What kind of card can I get?
If you are starting to build credit or want to rebuild your credit, there are both secured and unsecured cards that may be an option for you. With responsible credit management by you, you can start building up your credit history to move on to better offers. This is a solid starting point if you are a first time credit card owner or if you find yourself looking to rebuild your credit.
What are the pros and cons?
The upside to these cards is that you do not need a credit history in most cases to apply and get accepted, however approval is not guaranteed. Most secured credit card offers request a relatively low deposit to get started and some even offer rewards. The downside is that they can have relatively high interest rates, most have an annual fee you have to pay, and in some cases a processing fee as well. If one of your goals is to build or rebuild your credit be sure the card issuer reports your transactions to the three major credit bureaus. It’s important to start building up your credit as it can affect the types of loan terms you can get, the insurance you will pay, and the type of apartment you can rent or car you can buy. In some cases it may even translate to the job you can get. These credit cards can be a stepping stone on your journey to building your credit, but remember, it is up to you to manage your credit responsibly.