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Perfect Ways to Obtain a Credit Card with NO/LOW Credit Score – Great Starters for New Users

Building credit in the modern world, especially for young people and those just grounding their feet in the capital world, can be a paradox at best. After all, how does one obtain such credit if there was none to start in the first place?

Cash may be king in the world of finance but, only if it’s actually available. In an unstable economy with impossible inflation rates, credit cards have proven to be the number one catalyst to manage their needs, satiate those they are in debt to and build credit for themselves. People who’ve not established credit oftentimes experience some of the same downfalls and limitations as people who’ve poor scores. Statistics show that in 2016, 30% of Americans had no source of credit. You may be asking how an individual can apply for a card if the credit companies will only grant them with credit. Fortunately, for consumers, there are some great options and tips in the finance industry that are beneficial to establishing good credit report, developing a stable portfolio and paying debts without a credit history.

Don’t Over Apply On Credit Card Applications

Market analysts use a term called “thin file” in regard to the class of citizens who’ve little credit usage. Consumers who’ve thin files often get turned down for applications or loans. It’s important to note that when a lender is considering a request for a no credit credit card or low credit credit card, they not only look at the borrower’s report but occasionally will take into account supplementary payment data.A thin file consumer can get themselves into trouble if they submit to a wide range of applications. Instead, it’s more beneficial to look closely at all of the terms and conditions the lender is requiring and pick only the ones that are more suited to the needs and abilities of each person’s financial circumstances. For example, if a person has a limited income choosing a low-interest rate over a high one would help avoid accruing late penalties. Keeping fees within reason is imperative to establishing credit and benefits.

Reasons to Acquire a Secured Credit Card

Accruing A Secured Credit Card Has Many Benefits A secured credit card is offered through many banks, although many lending institutions go out of their way to not publicize their availability. Secured cards work through collateral down payments. If a consumer were to go to the store with $300, using that cash purchase would never get reported onto their credit history. However, if that same $300 were put as collateral or a line of credit on a secured bank card, they could make a purchase and establish the credit transaction on their credit file.A crucial thing to look for when signing up for this kind of card is if the transactions made on the card are reported to the three main bureaus. These widely used bureaus include Transunion, Equifax, and Experian. Below is some of 2017’s best no yearly fee secured cards. A secured credit card is offered through many banks, although many lending institutions go out of their way to not publicize their availability. Secured cards work through collateral down payments. If a consumer were to go to the store with $300, using that cash purchase would never get reported onto their credit history. However, if that same $300 were put as collateral or a line of credit on a secured bank card, they could make a purchase and establish the credit transaction on their credit file. A crucial thing to look for when signing up for this kind of card is if the transactions made on the card are reported to the three main bureaus. These widely used bureaus include Transunion, Equifax, and Experian. Below is some of 2017’s best no yearly fee secured cards.

  • Citi Secured
  • MasterCard Secured
  • Visa Platinum and Secured
  • Harley Davidson Secured

Acquire A Credit Builder Loan

Credit loans are quite analogous to secured cards. A lending institution will provide a small capital advancement that the borrower uses to procure a certificate of deposit. The bank owns the certificate, but as payments are made on it until it’s paid in full, it’s then transferred to the ownership of the borrower. There are fees and interests associated with the usage of these loans and they vastly differ between banks, so be sure to pick one with the most advantageous conditions and fees. These are three excellent ways of how to build equity and a higher credit history. A no credit credit card and a low credit credit card are viable options offered to consumers with great return benefits and are how to fix low to nonexistent credit report history.