| It will come as no secret to most people that if | | | | Many department stores have much more lax |
| you have bad credit, it will make it tougher for | | | | credit requirements and although the interest high |
| you to get a new credit card account approved, | | | | is usually astronomical, you are not getting the |
| simply because you are seen as a higher credit | | | | card so you can charge it to the hilt, you are |
| risk, and perhaps higher than a particular lender is | | | | trying to establish a credit history. Remember the |
| willing to see for his customer base. | | | | goal here and read that last sentence again! |
| But having NO credit established is almost as bad. | | | | Credit cards with gas stations are also relatively |
| It's not as bad as having proven yourself to not | | | | easy to get, since most do not have the highly |
| make timely payments or even default on | | | | stringent requirements for a previous credit |
| payments, as what typically happens when you | | | | history. Again, make sure that you charge a little |
| have bad credit, but no credit falls into an area | | | | bit each month and pay it off or at least the |
| where the applicant is still a high risk factor | | | | minimum payment at the end of the month, and |
| because the creditor has no idea what kind of risk | | | | be sure to mail the payment so that it reaches |
| you will be. The interest rate that a lender sets, | | | | them in time to be posted before the due date. |
| as well as whether or not they will even approve | | | | Although many of the major credit card |
| a new account for someone, is heavily dependent | | | | companies won't give you a card without a credit |
| on how they view the applicant as a credit risk. | | | | history, some smaller ones will. Department stores |
| So where does one start? For the typical college | | | | are likely candidates. Gas station cards are also |
| student today who is looking to get a credit card, | | | | easier to get. |
| the "catch-22" is that they do not have credit | | | | If you are a member of a credit union or your |
| established so there is no credit history or credit | | | | university has a credit union you can join, they |
| score to judge them by. So they cannot get | | | | probably offer a credit card for members. This |
| credit because they have no credit history, and | | | | may even be a secured card, where your credit |
| they have no credit history because they cannot | | | | limit is defined by how much money you put on |
| get a credit card. As odd as that scenario sounds, | | | | deposit with them. Even with a secured card, this |
| that is the situation faced by tens of thousands | | | | is an excellent way to build a credit history. |
| of college students every year. | | | | There are multiple options for you. The key to |
| But there are ways around this if you are willing | | | | remember is to make timely payments each and |
| to start smaller and get a credit history built up. | | | | every month, and keep your running balance |
| Although you will clearly not qualify for an | | | | below about 30-35% of your credit limit. With this |
| American Express card with no credit history, let's | | | | pattern established, you will have a very good |
| explore some of the credit options you do have | | | | credit history in a short period of time, and be in |
| to get that credit history established. | | | | a position to move up to the big leagues! |