Starter Credit Cards For People with No Credit

credit-cardsSuppose your credit history is weak and you want to try for a credit card. With some research you will find out about the many difficulties. You will have to hold on real tight as there is going to be a flurry of ridiculous and unbelievable offers coming your way. This is where the age old adage of when it sounds too good to be true, it just might be that, comes into play. It is important to look out for several details that will help steer clear of credit card scams and misleading offers.

Before looking around, you should get to know your present credit score. There are websites online that you can access and they will charge you a nominal retainer fee. The fee is valid for a certain period and some companies allow you a free trial within a certain period.

During your quest for starter credit cards please keep your eyes wide open. Be on the lookout for outrageous claims and superfluous advertising. Always go through the fine print in all the material that they supply you with. It is advisable to rely on your judgment before going ahead. While it is all rosy at the onset, later on you could find yourself standing in murky waters of hidden charges and fees, high rate of interest and even fraudulent practices.

You should know that getting a credit card with an APR below 15% is improbable. It will be tougher to qualify for a rewards card. You should start by trying to build on your credit history, by creating highly responsible spending habits for yourself. Once things settle, it becomes possible to take up a credit card offering better interest rates and usage rewards.

Approach the local credit union for help. These unions are going to be able to accept your application no matter what. Another fact that you might appreciate is that the federal credit unions are not in a position to charge interest rate above 18% even with missed payments. This is great but you should not make it a routine to miss payments.

It is important to weigh a highly important question that you will be faced with, when applying. The question is whether taking up a high fee card at a low interest rate going to work for you? Or would it be better to take up one with low fees attached but at a high interest rate. More often than not the public tends to go with the low fee option but the high interest rate will make up for it. If you are carrying a balance then it is important that you examine the proper cost of each of your cards. This can be done by considering the recurring fees and also the ongoing APR. If the proposed APR is 30% then simply turn away. The Credit Card Act (2009) clearly mentions that the total fees in the 1st year should never exceed 25% of the user’s credit limit. Beware of over enthusiastic companies as there will be many welcoming you. The many interesting deals that come your way through them, could only push you further down the river of debt.

When your credit rating is poor, look for a secured credit card. Make your payments on time, never miss even a single one, be very smart, earn credibility for yourself and then eventually graduate to the next level of credit cards for yourself.