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Overview

In today’s world credit card is a very important part of purchase and shopping. Eighteen is the age when you can have your own credit card. It is not enough if one is qualified to have a credit card for one also should be responsible enough to charge only what one can afford. Thus it is important to be cautious about using the credit card and also to know how to buy a credit card for the first time.

Approval of the Credit Card

Getting the right approval for a credit card is usually tough and if one is below the age of 21 and do not have a job then it becomes difficult. The Federal Law specifies that the young adults who are below the age of 21 and have a legal income are approved for a credit card. However, an allowance cannot be considered as a source of income. If you do not have an income then you have to persuade someone who is willing to open a joint account for credit card.

Having a Credit History

Having the right credit history is also a crucial factor to get the first credit card. One of the main factors that normally credit card issuers think about while they approve the applicant. Having a steady income, thus forms the crux of getting a credit card. It could either be a part time or a full time job, this makes you eligible to be in a position to get your first credit card. Normally, the issuers have to ensure that you will be able to afford and repay the balance, only then your application gets approved.

More About First Credit Card Application

If you is enrolled in a college and still a student, then there is every chance that you can get approved for a student credit card as your first credit card. Most of the issuers usually have a student credit card. However, it is not a good idea to be owner of a credit card as it has student in the title. Some cards also have higher interest rates and annual fees, thus making it a very bad deal for first timers.

A Savings Bank Account Could Help

At times for those who have a savings account, the first credit card application could be easier. Having an existing bank relationship enhances your chances of getting a credit card application approved. This is also possible more when the account has been handled responsibly. When there are no overdrafts then there are more chances of being approved. One can also apply online, however it is always good to visit a bank branch and have a face to face talk with a representative who has more authority to get the application approved.

Credit Card Through a Retail or Departmental Stores

Usually retail and departmental stores have easy approval for credit card. There are disadvantages in this too and these have higher interest rates that make it a very costly deal. You may be required to carry forward the balance from one month to the next month. There is another disadvantage with the credit card which is indeed versatile. One can also use them in the store. These kind of limits, whatever you want to buy but it also encourages you to go on a shopping spree and accumulated points giving a lot more discounts. A retail store credit card could be the first credit card and this helps you to have a good credit history to apply for a major credit card in some time.

Applying for a Secure Credit Card

If you wish to have a secure credit card, then the credit history helps you to apply for a usual credit card and also for a secured credit card. With a secured card, you can make deposits against the overall limit that is permissible in the account. The bank has this money so that you are covered from risks of payments. Most of the credit card issuers usually convert the secured credit card to an unsecure one, if you fail to make monthly payments on time for at least a full year. You need not worry about having a secured credit card, as it will not render you from getting some other credit cards. Also, it is kept confidential, for higher purpose, and never registers if you have a secure credit card.

Cards That Have Limited Credits

Usually there are some credit cards that show the type of credit history that is needed to get approved for the listed cards. For one who has a credit card, there are other cards that normally accept applicants who have moderate or have no credit at all. You should apply for cards that are surely turned towards maintaining a credit history that enhances the changes of getting the card approved. Always try and avoid applications for credit cards that need good credit, as they could be, at times, denied.

Applying for a credit card largely depends upon your earnings and credit history, as these factors mainly decide your credibility to pay up the balance amount due in next month. You can always choose which type to go for, according to your need and convenience.

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