As a first-time credit card applicant, it can be challenging to access a majority of the premium cards or receive approval for a new card instantly. Issuers use credit profiles to assess risk when making approval decisions. That doesn’t mean it’s an impossible feat to get a new card. You’ll just need to try different avenues.
As a rule, nowadays, most people prefer to receive approval and gain access to credit instantly with kreditt lån på dagen (credit card on the day). Still, premium credit card issuers looking at applications from clients with little to no credit or less favorable profiles won’t make their cards available.
Few cards are accessible to those who have never applied for or used a credit card in the past. It takes careful consideration and forethought to determine the most suitable option when researching as a first-time applicant. Accepting an offer straight away is unwise without comparing it with others. Not all are created equal.
Each will have unique terms and benefits. That’s true of starter cards, secured cards, and all unsecured credit.
Before applying, you should be aware of how your credit profile impacts obtaining revolving lines of credit and why the score matters. Further, educate on how interest with credit cards works, how this can be avoided, and why you need to prevent it. How can you get a credit card as a first-time applicant? Let’s learn.
For those over the age of 18, there’s no need to have a parent or guardian assist in the application process. The only challenge is that issuers won’t have a history to assess responsibility if this is to be your first credit card or loan application.
In that case, you’ll have limited access to cards, meaning premium options will have to wait until you can prove reliability with your repayments. The choices often provided for new cardholders are “starter” or “safe” cards as a sort of entryway into building a history.
Some options are secured cards, store credit, student options, or those designed specifically for applicants with no profile or a minimal one. Something to pay attention for is these will often have less than favorable terms. As an example, you want to avoid annual fees for secured cards.
These require you to pay a deposit serving as your credit limit, so the issuer has minimal risk. You would be paying the issuer above and beyond, essentially to develop a credit history. You don’t need to do that. There are cards available without that requirement.
An ideal way to learn the ropes with credit is to become an authorized user on a close friend or relative’s account. While the individual will give you limited access, they will also guide you through the process of making repayments and educate you on the interest.
One advantage of using someone with excellent credit is that their usage will show on your profile, benefiting you when it comes time to apply on your own. The primary account holder’s premium credit score and on-time repayment history will ultimately impact your personal credit rating.
It also works the opposite way. Using someone less than responsible with their habits can reflect negatively on your profile, causing a disadvantage when it comes time for you to apply on your own.
The process should work by discussing with the primary account holder how much they feel comfortable with you spending each month.
You should make sure it’s an amount you can readily repay in full when the invoice comes due to avoid the potential for the balance having to be carried over, accruing interest. This is how you’ll learn healthy credit card habits before applying for one you’ll solely be responsible for.
When you’re ready to get your first credit card, hopefully, you will have formed the best habits with either a starter card or by becoming an authorized user. By this point, you will have the beginnings of a credit profile for issuers to get a semblance of an idea about your responsibility level.
It’s still unlikely that a premium card issuer will be willing yet to take a chance on someone relatively new despite on-time payments. Usually, merchants want to see a consistent, long-term history before issuing top-notch cards. How can you “graduate” to that degree? Consider these steps in getting your profile to qualify.
You can earn a lot of rewards rapidly when making large purchases, but a substantial charge should only be placed on a card or any transaction if you know you can repay that balance when the invoice comes due with that month’s billing cycle.
Carrying the balance over to the next month involves expensive accrued interest that equates to a significantly greater cost for the item than you might have intended to pay or than it could actually be worth.
If you have a major purchase deemed a necessity, but you know you can’t pay it off straight away, a credit card is the more expensive approach. Instead, it’s wise to consider a personal loan offering a lower interest and fixed repayments.
Sometimes, carrying a balance plays into your “game plan” for the short term. The priority is to ensure that the payoff objective you set will be manageable for the duration.
You don’t want it to grow out of hand, eventually creating an all-encompassing financial hardship. Before it gets to that point, gather your resources and eliminate the debt.
Swiping a card to pay for purchases in a store or punching in the numbers online is simple, but you can forget how many times you do this or the amounts when you do. It’s essential to hold onto receipts and keep a record of your spending with the account to avoid a shock when the invoice comes due.
Plus, you want to stay within what you can manageably pay at the end of the month. Many apps are available for budgeting, or you can simply use a notepad to record the information manually. Banks and credit card companies make these available to simplify the process.
If paper receipts are unavailable, ask that a receipt be emailed to you or that a text be sent to your mobile since many places avoid paper printouts. Not only is it good to keep track of your monthly spending, but it’s beneficial to have a record of the transaction.
If you need to make a return or prove a purchase, the receipt is a vital piece of information. It’s unwise to forego this critical detail under any circumstances.
Many people nowadays are in a hurry to get all personal tasks wrapped up without delay. That includes getting approval and access to the use of a credit card as soon as a day. Still, this is not always possible, particularly if you’re a first-time applicant with little to no credit profile.
Issuers will have no method for assessing your responsibility with repayments and, therefore, can’t ascertain your level of risk. That leaves you with limited accessibility to cards meant to establish and build a profile. Some of these are secured cards, store credit, and student options.
You can also serve as an authorized user on an account for someone with a favorable profile which will show on your history, boosting your score and eventually leading to your ability to graduate to a card of your own.
When becoming a new credit card holder, the priority is to maintain a low balance with charges you can repay at the end of each month to avoid the possibility for carrying amounts to the following pay cycle. This will prevent interest accrual and help establish a positive repayment history.
The longer you show responsibility with repayments and a good credit score, you’ll graduate to top-notch cards with offers showing up for you to take advantage of.
Don’t accept the first one or answer every offer. Do your research, compare terms, fees, and benefits, and then apply to the most advantageous for your needs, circumstances, and lifestyle.