Imagine that credit card offers are arranged by the type of credit score on a ladder. The bottom rung is applications for no credit history, the top rung - excellent credit deals. Want to go up? The ladder-climbing process could take several years, but the aim is worth your time and effort. You can build a positive FICO score if you show that you can manage your money sensibly. The first step is to apply for an appropriate plastic. You cannot stay on the sidelines because it is impossible to prove your financial responsibility without credit companies reporting.
Credit score is a measure of your potential credit risk. It is used to determine who qualifies for a credit card, at what interest rates, and with what spending limits. Having no credit history can be no better than having bad credit. The lack of financial experience is always associated with higher finance charge. If you are in this boat, don't get disappointed. With credit cards for no credit you can establish and build a solid credit history that will serve you for years to come.
Consumers with 0- 349 FICO points are eligible for several credit card types. First, you can apply for a secured credit card. They look like any other plastics and come with the same features and options. The difference is that you need to open and maintain a special savings account which acts as collateral for your spending limit. If you fail to make timely credit payments, the funds in the savings account can be used to cover your debt. That's why it is easier to qualify for a secured credit card than for an unsecured plastic: the lenders won't lose money if you default.
The next option is unsecured credit cards for people with no credit. If you think that such plastics come with unfavorable terms, look at Platinum Visa from Capital One. It offers a 0% introductory APR on purchases and a low variable interest rate afterwards. In addition, you can take advantage of zero fraud liability protection and significant money-saving discounts on hundreds of featured items. This credit card offer can be an excellent way to build your FICO score without extra charges!
If you are a student, you can apply for a student credit card. As it follows from its name, these plastics are specifically designed to introduce beginning college students into a new world of credit cards. They come with reasonable interest rates, extendable spending limit and attractive rewards programs matching young people's interests and way of style. You will accumulate reward points that can be redeemed for CDs or DVDs, brand-name merchandise, cinema or MTV awards tickets and other incentives.
Many lenders regard people with no FICO score as high risk customers, because they have no financial experience to manage their debt properly. So when you qualify for your first credit card, you receive a cart blanch to prove your reliability. Make sure that you use your plastic in the most appropriate and responsible manner. Sensible money management is the core of your financial well-being.
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