How to Get a Credit Card
If you're new to credit, questions of how to get a credit card are probably at the top of your list. Most credit companies allow you to apply as soon as you are legally an adult. However, as you have little to no credit, getting a card can be more challenging than expected.
Start by carefully considering why you want or need a credit card and look for cards that match those needs well. As a new credit customer, you should look for cards that have good benefits including low interest, no annual fee, no bank service charges, air travel bonus miles, or credit points toward purchases, long-distance phone calls, or gasoline.
Here are some excellent places to consider applying for cards from.
1. Retail Stores: These companies are great options for people just looking to establish credit. The credit limits tend to be fairly low, but don't require a high income. Applications can usually be filled out direct in the store and may be available for immediate approval.
2. Bank and Saving Institutions or Credit Unions: If you have a checking or savings account, there's a good likelihood that your bank will be willing to approve you for a credit card. Again, depending on how much money you have in your bank accounts, you may not have a high credit limit. However, a pre-established connection with the business does give you better prospects.
3. Student Focused Credit Companies: If you're a student, there are several companies that cater to that market. During the first weeks of a new school year, you will often see information tables set up around campus. Take the opportunity to ask questions and get clarification on anything that you don't understand. The cards offered usually have low credit limits and fairly high interest rates, but they are a good stepping stone to higher limit cards.
4. Secured Credit Card Companies: This should be your last choice option. These companies will provide credit to anyone that applies, but your own money is the foundation of your credit. You will be required to open and maintain a savings account as security for your line of credit. Your credit line will be a percentage of your deposit.
Once you have decided on which card you want, gather any information you need to complete the application. Most credit applications will ask for some basic personal information including whether or not you have a checking and/or savings account, your estimated yearly income, and possibly information about major monthly expenses like rent payments, insurance, and car notes.
At this point, you can apply for the credit card. Generally applications can be submitted by mail, phone, and/or online.
Once the application is submitted, it's simply a waiting game. Most companies process applications quickly and you may have a new credit card in as little a two weeks!
