No Problems Getting Credit Cards With No Credit - By: See Author Inside Article, Posted on: 2006-11-26

Author: Attila Jancsina

The bank or credit union where you have your savings or checking account is a good place to go to apply for a it when you do not have established credit. If you have income and have not bounced any checks, you have an excellent chance at getting one from your bank. Since you do not have credit history, you will most likely start out with a low credit limit. Once you begin to make purchases and make timely monthly payments, you can negotiate a credit limit increase if your issuer does not give you one automatically.

If you are not able to get a plastic from your bank, you have other options. Store credit cards and gas credit cards are much easier to obtain than some other ones. Again, you will not start out with a very high credit limit, but if you make your payments on time, issuers will increase your credit limit.

A secured credit card is another option for consumers that do not have credit established. When you have a secured card, you make a deposit into a savings account. The amount of your deposit will dictate your credit limit. Since you have made a deposit against the credit card, the creditor does not have any reason to deem you as a risk. In the event that you do not pay your bill, the creditor uses the amount of your deposit to pay the balance.

Many issuers offer the option to upgrade a secured credit card to an unsecured one after a certain period of time. If you go the route of a secured card, one that can be upgraded is a better choice than one that cannot. You should also find out how it is reported to credit bureaus. Some secured card issuers report the card as being a secured one which can raise a red flag in the eyes of future credit. When you choose this type, make sure it is one that reports as if it were an unsecured one.

Article Source: http://www.southerncaliforniarealestateagent.com/submit-real-estate-articles

Attila Z Jancsina is a freelance copy writer. He occasionally writes for www.balancetransfermall.com/no_fee_balance_transfers

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