How To Get A Credit Card – Apply Online
When you have good credit it's easy to find a credit card; however, if you have no credit or a poor credit history getting an unsecured card can be quite difficult. Whenever a bank issues a credit card it takes a risk. If you have no credit history or a poor credit history, you are naturally a greater risk.
This is why very often, people who do not have a well-established credit history must start out with a secured credit card (i.e. a card that requires you to pay a deposit) or a store or catalog card to help build up credit history; however, this is not always the case.
In this article, we will explore some steps on getting approved for an unsecured credit card even if you have no credit history or poor credit history.
Starting With Secured Credit Cards
A secured credit card is often a good short-term solution to your problem. Very often when you have no credit or poor credit, the only unsecured cards available to you come with very high annual fees, penalties and interest rates.
If you have the option of getting a secured card that converts to an unsecured card once you have proven your credit worthiness, this is worth considering.
Your bank or credit union may offer you a secured card. If the deposit on the card is not too high and the terms are good, you may wish to go ahead and accept this offer just to get started. If you manage your secured card well for six months to a year, you may be able to convert it to an unsecured card.
If nothing else, your responsible management of a secured card will give you a positive credit history so that you can apply successfully for an unsecured card through your bank, credit union or other lender.
If your own bank or credit union does not offer a secured card, the Secured Visa Card from Wells Fargo may be a good option for you. This card carries an annual fee of $25, which is quite reasonable.
Store Cards & Catalog Cards Can Be Helpful
Another way that you can begin building up a credit history is to apply for and use store and/or catalog credit cards responsibly.
This type of card usually has a very high interest rate and a very low credit limit; however, if you just use store or catalog credit cards occasionally for purchases that you can pay off quickly, you can avoid high interest rates, late fees and penalties.
Your responsible use of these cards will help you build a strong, positive credit history.
Some easy cards to apply for and get include department store choices such as Montgomery Ward online, Amazon, Stoneberry, GAP and Peebles. All of these stores offer standard household items and other practical merchandise. The cards all charge high interest rates and fees, so you would not want to run up a big bill with them.
Just take advantage of the convenience occasionally to replace or obtain a necessary household item and be sure to pay your bill promptly. This will help you build up an excellent credit rating so that you can apply for and receive an unsecured card with good terms.
Where Can You Get a Good Unsecured Credit Card?
You may simply get offers from established companies in the mail, or you may wish to seek out a credit card from your bank or credit union. If you have a good history of managing your checking and/or savings accounts well, they may be happy to provide you with a small amount of credit at reasonable rates and fees.
Today there are some specific unsecured cards created just for people with less than ideal credit history. This type of card usually has high interest rates and fees coupled with a very low credit limit, but they do provide a good starting place.
Once you have gotten an unsecured credit card, you can build up your credit rating. Here's how:
- Keep your card balance below 30% of its limit.
- Try to pay your total balance monthly.
- Pay your bills in a timely manner.
- Know your credit score.
If you follow these four simple tips for six months to a year, you will probably be offered a card with lower fees and interest rates. If and when this happens, don't cancel your old card. Just tuck it away and use it occasionally to make a small purchase. This is a good practice to continue building your good credit rating.
What Unsecured Credit Cards Are Easy to Get?
There are quite a few credit card companies that offer low credit limit, unsecured cards specifically designed for people with no credit or poor credit. Here are some of the top choices:
BarclayCard Rewards MasterCard: If you have average credit and you would use your card to purchase groceries and gas, this is a good card to have. When you use this rewards card to pay your utility bills, purchase groceries and buy gas you earn two points per dollar.
For other purchases, you earn one point per dollar. You can redeem these points as credits on your statement. There is no annual fee, and you may be eligible for a credit line increase after five months of timely payments.
Barclay NFL Extra Points Credit Card: If you have average credit and are a football fan, this may be the card for you. With this card, you earn one NFL point for every dollar that you spend. If you use your card to purchase NFL branded products or team gear, you will earn two points per dollar. You can redeem these points as statement credit.
This card carries no annual fee and comes with a sign-up bonus of 10,000 points following your first $500 in purchases made within the first three months of sign-up. This is enough to get $100 credit on your statement!
CapitalOne – QuicksilverOne Cash Rewards: With this cash back card, you get 1.5% cash back on all purchases with no limit. This card is available to people whose credit rating is average or better. The card carries an annual fee of $39, and you will be eligible for credit increase after five months of timely payments.
The Visa Gold Card from Somerset Trust Company: This card has a very good introductory annual percentage rate (APR) of 3.9% for the first six months. The APR increases to a 10.9% variable rate thereafter. This card does not charge an annual fee and does not offer rewards or points. If you think you will need to carry a balance on your card, this may end up being the most affordable option.
It is certainly not impossible to get an unsecured credit card even if you have no credit history or poor credit history. Be aware that you should not simply accept anything that is offered to you. There are plenty of credit card charlatans and predatory lenders who would love to fleece you with extremely high fees, interest and penalty.
Take your time and select the best option that is available to you.
Understand that when you are just starting to build your credit rating, your main focus should not be on trying to get a card with a very high credit limit or even the very best of terms.
Instead, focus on making the best possible choices among the financial tools that are available to you to increase your creditworthiness so that you can eventually qualify for the very best deals.