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If you've applied for your first credit card and were rejected, the reason is probably because you have no credit history. Another reason could be because your existing credit history is poor. One way to build or repair your credit is by obtaining a secured credit card. You may obtain one of these cards through many local banks and credit unions. These cards are backed by money you place in a bank account. Your credit line is determined by the amount of money you place in this account. If you don't pay your bill, the bank will automatically withdraw the money to cover the bill. Make sure that you research several banks and credit unions before applying for a card. Some may charge application and annual fees, as well as other fees. These fees vary among different companies, so shop around compare before deciding on a card.
You may qualify for a secured credit card if your bills are paid on time and your credit report is clean for at least the past six months. Make sure that your secured credit card company will report your activity to the three major credit bureaus. You should prove your responsibility by making several purchases on your credit card and paying your balances in full every month. After one year of responsible credit card usage, you may try to apply for an unsecured credit card. If the credit bureaus see that you were able to handle this card, they will be more likely to approve your application for another card.
(c) by Jeffrey Altmire
www.best-credit-card-cards.com
(Posted on: April 26)
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