Insights on Credit Cards for Beginners

Fullscreen capture 2122013 100230 PMCredit card use is one of the most convenient ways to shop and transact business. There are a lot of things to consider when applying for a credit card. There are credit cards for beginners which are available in the market. However, financial institutions these days are more conscious on granting loans and credit card accounts to their applicants. They particularly assess and evaluate the worthiness of their clientele before any account is approved. It is true that getting an approval from credit card companies can be extremely hard. However with the right application process even applicants without credit history can get a credit card that are easy to get approved.

Those who are on the hunt for credit cards for beginners are oftentimes college students, immigrants and young adults without any credit history at all. There are alternative provided for them in order to gain credit card approvals.  Some of these are the following:

For Students - There will be a slight possibility of getting an approval because they don’t have a credit history. However, there are certain things to consider before applying for a credit card. The CARD Act of 2009 provides the following prerequisites:

  1. A proof that the student has a steady source of income or a co-maker to guarantee payments of the credit card dues.
  2. A co-maker to ensure timely payments of credit card bill
  3.  an authorization signed by parents ( oftentimes parents gives credit cards limits to guide the credit card holder on the proper way to handle their accounts)

Conforming all of the requirements above will greatly help students avail credit cards for beginners. In addition they will have the benefit of avoiding the scrutiny of financial reports done by the financial institutions before any application is to be approved.

The options for those adults or immigrants who do not have such traceable credit card profile would include secured credit cards and prepaid credit cards. These two are the most recommended credit cards for beginners:

A secured credit card works just like a credit card without the need for an approved or credible credit history. One of the most essential things to provide for this type of account is a deposit. This has to be made to secure that this type of credit card alternative can be used immediately. There is absolutely no need of waiting for approval from the credit card provider. Once a fund has been made available, the card can allow the user to make purchases similar to the regular type of credit card.

Prepaid credit cards are an alternative to the usual credit card account. It will not need any credit verification and would have easy approval as well. There will be no need to submit financial credentials and other personal data. Furthermore, there is no need of doing a credit investigation. Thus, it is a perfect option for those who are looking for credit cards for beginners

Tags: , ,

No comments yet.

Leave a Reply