At the age of eighteen an individual is permitted to obtain a credit card and begin building credit. This is the age when most young adults seriously take up the financial torch for the first time. Credit cards make life much easier in regards to convenience.
Although many people have had bad experiences in managing their credit card, they are still one of the best ways to build credit and are wonderful in cases of emergencies or large expenses. At first the process of getting a credit card may seem daunting and possibly quite confusing, but it doesn’t have to be.
Many credit card companies are not very eager to give someone a credit card if they have never had one before. This might discourage you at first, but there are specific companies which cater much more to those who are inexperienced. These are the companies you may want to look for.
Before you make the big leap of getting your own credit card make sure that you are in a good position to do so. Being a responsible, mature adult and having a steady job which allows you to pay off expenses are both essential before getting a card. If you are not at a place in your life where you’re honestly ready for such a big endeavor you should wait before applying for one.
When you are looking for a credit card search for cards which accept limited or moderate credit history. Without any credit history you are essentially starting from the very basics and not all companies want to be a part of that. Everyone has to start somewhere, however, and there are options available for poor credit history if your Canadian or American.
The thing to be wary of when considering one of these options is that, although they are the easiest and some of the most obvious options, they may have high interest rates or annual fees. Your local financial institution may be a good place to begin, and if you already have an account there then your chances of getting approved may be increased.
A secured credit card is a little different than an ordinary credit card, but it could be a good place for you to start. This type of card has a security deposit, lessening the blow if you default on a payment. After a period of time you could upgrade to an unsecured card.
Before you get a credit card the best thing you can do is carefully evaluate your credit situation as an individual. Once you have determined that you are ready for the responsibility which comes with having a credit card you can begin to consider your options. Review all of your choices earnestly and decide, in light of your circumstances, what is the best thing for you.