Hond Financial

Now,That You Turned Eighteen and Old Enough To Get A Credit!

So you are old enough to get credit. The problem facing many young adults is that to get credit, you need to have credit. If you follow these guide you are sure to get that first card credit.

First, you must remember to be realistic. When just starting out you cannot expect to get a credit card with High limits or get good interest rates. Credit card companies are concerned about giving cards with large limits to young adults. Also, remember that even young adults can have credit problems

Step 1: Don’t Fill Out Many Applications!

One of the biggest mistakes that young people make is is filling out many credit applications. If young adults keep applying for credit cards that you have little or not chance of being approved for and keep getting denied this starts a vicious cycle. The more company’s deny you, the more likely the next company that you apply with will deny you. A lot of inquires on your credit, but no credit from the company that did the inquire is a big problem for credit cards company’s, making it all the more difficult to be approved.

Step 2: The Co-signer alternative

A great way for a young adult to get that first card is to get a co-signer. When you have a co-signer you are both legally responsible for the balance and both receive statements. Typical,a co-signer is a parent, but anyone can co-sign with you. When manging your credit card you must be careful, because not only your credit is on the line, the person who co-signed with you is also affected.

Step 3: Credit Card Offer In The Mailbox

A lot of young people occasionally receive credit card offers in the mail. Generally, these offers fall into one of three category’s: an “Offer to apply”, A “confirmed offer”:, and a “pre approved” offer. an invitation to apply is just that, there is not guarantee that you will be approved. I recommend ignoring these. A confirmed offer is better that just an invitation. This means, that the company has checked your credit report and you fall into the category that would be approved for the offer that they are sending. So most likely, if you apply you will be approved. the greatest of all is a pre-approved offer. This means that all you have to do is call in, mail or go online to fill out the application and they will mail you there credit card.

Step 4; Do Research On The Internet

The Internet is a great tool to research credit cards. By going to the various company’s web sites you can check all of the pros and cons and find that credit card that is right for you. be sure to look at every factor such as, annual fees, late fees, online ability, interest rates. Please, remember that at first you only may qualify for a very low(0 or 0) credit line, but if you stay under your credit limit and pay on time you will be able to increase your credit limit in a short period of time. You must remember to be realistic. When just starting out you shouldn’t expect to get a credit card with a ,000 balance. Many credit card companies are wary about giving credit cards with huge limits to young people but If you follow this guide you will have your first credit card in no time! You should also undestand how credit cards affect your credit reports

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