Getting Your First Credit Card

If you are currently considering getting a credit card for the first time, you may have noticed that in most cases you need credit in order to get credit. This presents a very real problem for the first-time credit card applicant. Having no credit history means that you have not yet earned a credit score, the criteria used by most credit card companies to offer you a card.

Fortunately, there are ways around this problem. Just remember that, in most cases, credit card companies want to make their card available to consumers; your job is to prove that you are a good credit risk.

Special credit card offers for students

Getting your first credit card may be easier when you're a student because some banks extend special offers to college students and high school seniors. The credit limits on these cards are typically small — somewhere between $500 and $1,500 — but can increase after a student builds a good credit history by making their monthly payments on time. (Be sure to submit your monthly payment at least ten days in advance of the payment due date to allow time for the credit card company to process it.) Credit card applicants who are past college-age may not qualify for the same special offers, but they will still have several credit card options from which to choose.

Fees associated with credit cards

For most first-time cardholders, getting an unsecured credit card may prove very difficult. Lenders place a great deal of emphasis on credit history and credit scores – two things a first-time applicant doesn’t have. But here is an exception to this rule: first-time credit card applicants can qualify for a secured card if they are willing to make a deposit with the a credit card company equal to the credit limit on the card or, in essence, by paying your card balance in advance. By taking this route, you’ll be able to build a credit history without you or the credit card company incurring risk.

On your way to establishing credit

Once you acquire your first credit card, you’ll be well on your way to establishing a credit record. Make sure to pay at least the minimum due on your card every month and make your payments on time, in this way you’ll build a good credit history and pave the way for making it easier to obtain another credit card or loan in the future.