Credit Card Basics in a Nutshell: Credit Cards for New Credit

One of the most favorable things we all enjoy these days is the use of credit cards. A lot of individuals from various walks of life would absolutely have an account on various credit card service providers in the market. There are various ways on how a credit card can be used. It is extremely useful for shopping online and on one’s local department store. Moreover, paying bills, gas and other necessities at home are also covered by the benefits of credit card use.

Fullscreen capture 2122013 95950 PMGetting a credit card account for the first time will be confusing if not given proper guidance. College students more specifically are the ones who are candidate for new accounts. Generally, credit cards for new credit card owners are popular these days. These are financial firms who can provide students fresh from college or those who are applying for the first time (immigrants and adult individuals). The requirements might be tedious and there will be varied types of documents to submit for credentialing. A credit report is one of the most important components of one’s credit profile.

The credit report will include the ratings provided by previous loans and financial institutions which an applicant has done business transactions with.  All sorts of feedbacks regarding a loan or a credit card account are provided through this report. Keep in mind that a good credit score is only given to those who have paid their dues and payments on a timely manner. Furthermore, good credit ratings are more favorable to have in terms of future loan approvals.

On the other hand, bad credit ratings are not that favorable for maintaining a viable history or credit track record. This will be a big problem in terms of future applications for loans and credit cards.  Most of the time, financial institutions and credit card companies would prefer those individuals who have a higher credit score. This will only give these companies an impression that an applicant is indeed responsible enough to handle such financial obligations. It is extremely important to maintain a good credit score.

However, credit cards for new credit can be obtained for those fresh college students and first time users of credit cards. Two of the most viable options for new credit cards are prepaid credit card and secured credit cards. Both of which would not require stringent requirements to comply with. It is important that such documents are provided to ensure a bigger chance of getting an approval for one’s credit card application.

Prepaid credit cards work like the average type of credit card. However, the best thing about this credit card is that it will not require any credit investigation. The only thing needed for this credit card is the deposited money will determine the credit limit. There is no absolute need to submit personal information for these types of credit card alternative for newbie.

The secured credit card works like these prepaid credit cards. This will require a “cash bond’ to serve as guarantee. After the deposit has been made, this credit card type will function similar to what the usual credit card type account has been granted.

Tags: , ,

No comments yet.

Leave a Reply