Establishing Credit When You Have None
When you are shopping around for a new credit card, be sure to use Florence Banking Rates as an invaluable tool in your search. Florence Banking Rates finds you the lowest credit card interest rates in your area and can match you with a perfect card even if you have poor credit.
However, what if you don’t have any credit at all? Often, applying for cards in order to build credit and then being denied because you have none can become a viscous circle.
There are several steps you can take to build your credit when you have none and qualify for a credit card with an attractive APR.
- Do not apply for multiple cards at a time. Credit reporting agencies do not like to see a sharp rise in your application history and doing so will negatively impact your credit score.
- Take out a very small loan and have someone with excellent credit (like a family member) co-sign for you. As you begin making payments, your credit will grow.
- Apply for a store card. These function just as a regular credit card does but they can only be used in that particular issuing store.
- Apply for a secured card. Secured credit cards work by extending a line of credit equal to a small deposit you pay in advance. Not all secured cards build credit, so it is important to research cards ahead of time.
