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Most
of us get a
credit card
on our name when we go to college or when we are
in our senior years of high school and all of us
stumble into the same types of difficulties when
it comes to finding an issuer and managing the
credit card. Most banks ask for a prior type of
credit history
that most of the time lacks and for some type of
warranty that we will be good payers. It is true,
finding the right issuer and building a credit
card history is not easy, but it can be done.
When
you apply for a credit card the bank will usually
ask you questions regarding your previous
credit lines.
Most young people do not have any type of credit
history and this makes the banks unable to
positively respond to their application. There are
two things that you can do to go around this
problem. One is looking for an issuer with a
special offer, as there are many banks that offer
credit cards
for people who are just starting their first
credit line.
It is true that you will not have an extended
credit line at first, but if you prove to be a
good-payer and a loyal customer to the bank, you
are likely to receive more credit line in time.
If, however you cannot find an issuer that will
give you a first chance with credit lines, you
will need to build a credit history yourself. You
can do this by getting credit cards from gas
stations or from stores. There are gas stations,
as there are supermarkets and department stores,
which offer fidelity credit cards to their
customers. Once you become the owner of such a
card, make sure to balance it wisely and after a
couple of months you can re-apply for a
bank-issued credit card.
Actually, the most useful tips for those who get
their first credit cards now are not those about
how to actually obtain the card but about how to
use it. Some happy card holders hit the shops as
soon as they have the little plastic card and
spend much more than they can pay back. The banks
will never like that and there are no exceptions
or
grace periods
only because you are new. All late payments count
as bad credit and if you make such reckless
spending, you are in danger of having your credit
ceased as soon as it was approved. You will also
be considered a "bad" client if you lose your
credit card or if you forget credit card
information often. Avoid carelessness when you
deal with money and note down all the information
regarding your card and the transactions you have
made with it. Another good advice that all new
card holders should follow is about owning only
one credit card in the beginning. This is a good
idea because it helps you get familiarized with
the banking world, the card system and it is also
a test to see if you can balance money. After one
year or so, of good credit history you may apply
for a second credit card; however, if you've had
payment problems it is wise to stick to that one
single card until you can correctly manage
card-money.
It
is always difficult for new-comers to break
through in the baking world, yet with patience and
a bit of wits you can become the owner of a new
credit card. The difficult and tricky part begins
when you start balancing it. Keeping records of
card information, of the transactions made with
it, remembering never to overspend or delay
payments and generally having a careful and wise
banking-attitude will make you a good client and a
satisfied customer at the same time.
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