Credit Cards For 18 Year Olds With No Credit

One vital lesson that can be learned from the financial hardship that many Americans are experiencing today is that the use of credit is both a privilege and a responsibility.

It is often misconstrued as an entitlement, when it should be deemed as an opportunity to learn how to manage finances wisely. Prior to getting a credit card, usually financial institutions have to look at your credit history to determine your credit worthiness. However, getting credit cards for 18 year olds with no credit history is apparently possible in America.

In the past, the idea of credit cards for 18 year olds was a novel one since they were seen as immature and incapable of handling finances. Nowadays, it is getting easier to give credit cards for 18 year olds with no credit history, thanks to Fair Isaac's Expansion Score. This system makes use of non-traditional information, such as the applicant's payment history for rent and other bills. Another way for eighteen year olds without credit history to obtain credit cards is to be employed in any job; with this, they would have their own bank account courtesy of their employers. It is advisable that they should procure their credit card from the same bank, which usually has a low limit with a high interest rate. By paying the monthly dues, they are gradually building their own credit history; eventually, they can apply for a new credit card, this time with a higher limit and better interest rates.

Getting credit cards for 18 year olds with no credit can also be possible by maintaining a good payment history. Payment histories are transmitted to the Payment Reporting Builds Credit. This alternative credit bureau collects information on rent and payments made for utilities such as insurance, cable, cell phone, and other bills. The most guaranteed way to get credit if you do not have one is to apply for a secured card through the websites or; with this you can make a savings deposit that is equal to your credit limit. These cards unfortunately, charge a high interest rate plus an annual fee. You could be eligible for unsecured status and better terms if you continue to pay on time for a year.

Credit cards for 18 year olds with no credit make it possible for young people to practice debt and finance management. Through them, they would learn to purchase only what is necessary and important. Once you have your own credit, keep in mind that it is necessary not to close the account, in order to establish and maintain a great credit history. Nonetheless there are still a number of people who are opposed to the idea of credit cards for 18 year olds with no credit history.


Source: Credit Cards For People With Bad Credit Rating

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