Your First Credit Card: Credit Card Applications

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If you are a young adult looking into your first credit card or even an older adult who has just never established credit history, there are banks that can help you get started. Plenty of credit card offers out there are geared towards people who just want to establish a credit history. You can search for 0 apr credit cards and other offers online or you can go to your bank. Review your options closely, then pick one and see if you get approved. Don't apply for more than one because credit card applications show up on your credit report, and multiple inquiries tend to be red flags to credit issuers.

If that first application doesn't get you a charge card, there are two ways you can begin building a credit history. The first is to start with retail store credit cards or gas cards and establish some credit using those. Those cards are usually easier to obtain than the major credit cards. Beginning a payment history, even with a small-time card, will help you quality for the major credit cards down the road. Even if you just get a small line of credit through your bank, it is a great way to start showing that you're responsible enough to handle more. My first credit card was a Macy's card, and after paying that one off, I got credit card offers for several 0 apr credit cards.

Now, it is crucial that you remain current on all of your bills once you do have that coveted card. Late or missed payments and other problems will reverse all of your efforts to build a good credit history--something that is important if you are to have easy access to credit in the future. It's okay to carry a small balance on a gas or retail card, because it shows that you know how to handle an outstanding balance. But you have to make sure that you're working at a steady pace to keep the balance low, no matter how frequently you're sliding that card.

Once you've been established as a credit card holder, you should look at your credit report regularly. The credit bureaus will send you a free copy if you've been turned down for credit within the past 60 days. Otherwise, you'll pay at least $9 for each report. Clear up any disputes or errors before applying for a new card, purchasing a vehicle or applying for rental property.

Card applicants with limited or no credit history rarely qualify for 0 apr credit cards, but you should accept the card anyway if you're approved. After about six months of paying on time, you can probably renegotiate your interest rate. But then again, if you pay your balance in full each month, you won't even have to worry about paying interest! Though it may be a chore to establish credit at first, it will come easily after that, as long as you manage your debt and keep it low.