It can be so frustrating to get a credit card if you don’t have any credit. There are some credit cards that you can get with no credit, but these are not ideal. With these types of cards, you’ll pay a higher interest rate and not get as many features. Try and build your credit before applying for a credit card. Here’s how.

To Start Building Your Credit

1. Get a bank account. Bank accounts go a long way in building your credit. Here’s the good news too…you don’t really need credit to open a savings or checking account. Your bank accounts will show lenders that you are responsible and stable with your finances.

2. Employment. Lenders like to see a strong employment history. They don’t like to see several periods of unemployment. This causes them to worry about the financial risk you’ll be when you aren’t employed. Get a job and stick with it.

3. Where you live. Have you lived in the same old place for a long time? Good thing. Lenders look to see how often you move around. The longer you live in one area, the more stable you are in the lender’s eyes. They also look to see whether you rent or own. Try not to move around a lot while trying to build your credit.

4. Utilities. If you live with roommates, put the utilities in your name. You’ll help establish your credit just by paying the electric, gas or water bill.

Those are some ways that can help you establish credit. Once you have established a little bit of credit, it is important to know where to start applying for credit cards.

Where To Apply For A Credit Card

1. Start with your bank. Your bank is a great way to start if you are applying for a credit card for the first time. Your bank is able to view your transaction history and see how well you manage your money. You have an established relationship with them already. Utilize that and get a credit card with them first.

2. Department store card. Department stores usually offer you a percentage off your purchase to save money when you apply for and use their credit card. Generally, this isn’t a smart idea because you get lured into the initial discount but don’t realize how high the interest rate is. However, if you are smart with your money and are trying to build credit, this may be the perfect place to start. Try and make a small purchase every month and pay it off before it is due. This is a great way to build your credit.

3. Secured credit card. A secured credit card is much easier to obtain than an unsecured credit card. A secured credit card is one that is tied to your bank account. It gives the credit company access to use your assets in case you fail to make your payments. If you are making purchases wisely, this could be a good route for you.

As you can see, there are several things that you can do to establish credit. You don’t have to have a long credit report to apply for a credit card. However, you will want somewhat of a credit report before applying. This will give you more options to choose from and keep your rate lower.

You can’t really do much these days without a credit card. Even if you plan on using cash at the groceries store or to buy gas, you may still find yourself in a rut without a credit card. It can be really difficult to get a credit card if you have bad credit. A secured credit card may be just what you need to re-establish your credit.

A secured credit card is one that is tied to a cash collateral. In other words, you can only put as much money on the credit card as you have in cash. Say you deposit $1000 into the account. You can only put $1000 on your credit card. The nice thing is that you can add money to your account as you go and you’ll never spend more money than you have.

On our website, you can find a list of several different issuers who have secured credit cards available. You can also get a secured credit card through your credit union or bank. More than half of the credit unions around the country offer secured credit cards to their members. When choosing a secured credit card, it is important to shop around. Choose a card that doesn’t require an application fee. Also make sure that your collateral isn’t going to be swallowed up by monthly maintenance fees, annual fees or application fees.

Some banks are moving away from secured credit cards and towards unsecured credit cards. They are trying to lure people with bad credit into getting an unsecured credit card with a lower limit and outrageous interest rates and fees. If you have bad credit, stick with a secured credit card. This will get you back on track the safe way and you’ll be able to rebuild your credit with your own money.

It is important to understand that, as with all credit cards, there are good companies and bad companies - make sure you shop around. Choose a card that is going to help your rebuild your credit and manage your money. Some companies out there offer secured credit cards, but they are actually a disadvantage to you. Make sure your secured credit card is going to benefit you and your finances. Get a secured credit card that isn’t full of fees and reports to the three major credit bureaus. Without having them report, you are losing a key component to rebuilding your credit.

As with any credit card, you need to use your secured credit card wisely. Make a few purchases each month and be sure to pay off your credit card completely at the end of the month. Rebuilding your credit has never been easier than with a secured credit card. Shop around and choose the best card for you. Be smart with your card and use it responsibly and you’ll have good credit in no time.

Your credit report is a very sensitive thing. It is very easy to damage and hard to repair. Similarly, it usually doesn’t take long to ruin your credit and a longer time to fix it. If your credit is suffering, follow these steps to repair it.

1. Make your payments on time and pay more than the minimum. It is so important that you pay your bills on time. If you can, pay them early. This will not only prevent you from having to pay late fees, it will go a long way in fixing your credit. You also need to pay more than the minimum payments. Minimum payments keep you from paying off your debts and cause you to pay ridiculous amounts in interest. Be careful not to become victim to late payments and minimum payments.

2. Don’t have too many. It is a common misconception that the more cards you have, the better it is. This is absolutely false. Lenders tend to be skeptical and cautious when they see too many open accounts. Even if every account is at a zero balance, it causes lenders to worry. They worry about what will happen if you come across a hard time and max out every account. That is always a possibility, even with the wisest consumer. If you are serious about fixing your credit, close some of your open accounts. Only keep one or two accounts open to prove to lenders that you can be responsible with your finances.

3. Pay off the highest interest cards first. If your credit is damaged, take a careful examination of all of your outstanding debts. Make a list of everything you need to pay off. Rank them in order of highest interest to lowest interest. Pay off the high interest accounts first. Once those are paid off, work on the next highest interest accounts. You’ll be able to whittle down a lot of your payments by getting the high interest accounts out of the way first.

4. Keep an available limit. Once you have paid off some of your cards, you need to concentrate on keeping an available limit. Just because you only have a few credit cards doesn’t mean you can max them out each month. You need to budget your money carefully and create a buffer zone. This buffer zone will help in emergencies and show lenders that you aren’t racking up a lot of credit card debt.

5. Check it. You need to request a copy of your credit report at least every year. If you can, check it every three months. Make sure you check your score with all three credit bureaus. Some times, one credit bureau can have different information from another. Also, check your report for any errors. These errors could be dragging your credit score down. Remember, we are trying to build it up.

It does take a longer time to repair your credit score once it has been damaged. If you are diligent and disciplined, you can have your credit score fixed in no time. Budget your money carefully and really work on paying off your debts. Also, be careful not to become a victim to credit card debt. Use your credit card wisely and you’ll stay out of debt. No debt equals good credit.

Credit cards can be a good thing if you know how to use one.  These are ways that credit cards can make your life better:

1. Accumulate reward points for free merchandise.  Get a reward credit card and get free stuff.  Each time you use your credit card, you’ll accumulate points that can be redeemed for discounts on gas, movie tickets, restaurant gift cards, and more.

2. Buy Now, Pay Later.  Credit cards give you the option to make a purchase now and pay for it later.  This is a great benefit, especially for emergencies.

3. Accepted virtually everywhere.  Credit cards are generally accepted everywhere. This is great when you are running low on cash.

4. Easy to carry.  A credit card takes up less room than a wad of cash does.

5. Online shopping.  Pretty much the only way to buy things online is by using a credit card.  Your credit card comes in handy if you do a lot of online shopping and many offer a virtual credit card number to help protect your identity.

6. Build credit.  Using your credit card wisely is one of the best ways to build your credit.  This will show lenders how responsible you are and make them more willing to loan you money.

7. Teach responsibility.  Credit cards can teach you responsibility because you have to account for each purchase you make in order to stay out of debt.

8. Teach money management.  Credit cards are a great way to teach you how to handle your money.  You have to carefully budget your money and your purchases.

9. Variety of payment options.  Many times, you can chose different payment options.  You have the flexibility to chose your due date and payment amount.

10. Online monthly statements.  Most credit card companies offer an online program where you can view your credit card activity.  This helps manage credit card purchases tremendously.

11. Not having to carry cash.  Isn’t it a pain and a hassle to carry cash all of the time?  Credit cards make it so easy to swipe and sign.

12. Good customer service (most of the time).  You can’t call a customer service department if you have a question about the cash you carry.  You can, however, call in regards to your credit cards and credit account.

13. Earn cash back.  You can earn cash back through a percentage of your purchases.  This is a great way to combat rising inflation too.

14. Give you a buffer until payday.  Credit cards help get you through until payday, especially when unexpected circumstances arise.

15. Tool for tracking your expense.  It is so easy to track expenses and purchases now with different tools that the credit card companies offer.  Most companies have an online tracking system.  Many also offer a year-end statement that categorizes all of your purchases from the entire year.

These are just a few of the ways that credit cards can make your life better.  Credit cards can be an unmatched tool that can assist you on your quest for financial freedom.

Many people have a general idea of what to do if their credit card is stolen.  However, most people don’t realize that there is more to do when their card is taken.  It is important to have a good understanding of these steps so that you are prepared if this ever happens to you.

1. Be aware.  It is absolutely vital that you are aware of where your credit card is at all times.  Put it in the same place in your wallet after you use it and check that place often.  Being aware will help cut down the amount of time a thief has to use your card.

2. Call the credit card company immediately.  Federal law states that your maximum liability for unauthorized charges is $50.  If you call the credit card company before your card is used, you cannot be held responsible for any unauthorized charges.  If your cards are used before you report them missing, you can only be held accountable for $50 of their purchases.

3. Call the credit bureaus.  This is an absolutely necessary step.  Many people don’t think about calling each credit bureau after their card is stolen.  You have three bureaus to call: Experian, TransUnion and Equifax.  They will put a hold on your credit once the theft is reported.  This hold will help you clear any unauthorized charges much easier.

4. Law enforcement.  You should call the police as well.  Let them know all the details surrounding your loss.  If you can, get a statement in writing from them just in case.

5. Check and re-check.  You will need to double check your monthly statements carefully now.  If you notice an unauthorized charge, call your credit card company and make them aware of the situation.  You will also need to send them a detailed letter explaining your dispute so they have it in writing.  It is always best to send them documentation in writing, so that there can’t be any misunderstandings.  You will also want to carefully review your credit report for at least a year.  You won’t want anything creeping onto your credit report that may damage your credit identity.

Having your credit card stolen is a traumatizing experience.  Try to stay calm and remember these important steps.  You’ll want to review every statement, bill, or notice for several months following the loss.  You can help protect yourself from additional losses if you proactively prevent it.