Questions about credit cards?
Answer:
If you have had a credit card, car loan, or any other loan for more than six months you can apply anywhere, I would recommend citi.com or americanexpress.com. Avoid chase, capital one, orchard, HSBC, and first premier at all costs. If you have never had credit, I would try a local credit union, maybe one your parents or friends are members at. They will generally be more lenient with granting credit, especially if you have no credit history. Just remember to pay the card off in full each month, you should try to never carry a balance, and never spend more than you can really afford to pay off each month. Ignoring those two bits of advice is how many people get into severe trouble under a mountain of credit card debt! Used as a tool, credit cards can be an excellent way to help you establish/improve your credit, so that when it comes time to buy a car or house you will get the lowest interest rates, and therefore pay far less.
You can apply at a bank or online. Until you have credit, you most likely will not get pre-approved offers.
If you've never had credit before, dont just apply to wherever you see-- you'll rack up inquiries. You'll want a card that accepts low/no credit applicants. If you know your score, you can compare them to those who got cards at www.whogavemecredit.com.
If you dont konw your score, you'll want to choose cards that help people establish credit. You have two options:
*Visas/Mastcards/ etc that are for people like you: Orchard Bank is one of them-- but you'll very likely get a 'activation fee' and a 'annual fee'. The costs are a bit much.
*Store cards like Macy's, Target, etc. You'll probably get a $100 limit, but it will get you started.
Some important things to know:
A big part of your score is "utilization". Dont go over 50% of your limit (Preferably keep it under 30%), or it starts to ding your score.
DO NOT make late payments. If you miss a payment by three days, its okay. Thirty days and its recorded on your credit report-- and with limited background like you probably have, it could make a HUGE impact.
If you DO get yourself into trouble with your card-- over limit, missed payments, etc, CALL THEM and tell them when you can pay them and how much and see if they will work with you to cut some fees and get you back on track.
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