How To Get Your First Credit Card
Most people with no credit history and only an income of 40k or lower, will be looking at getting either a secured credit card – where you have to leave an opening deposit with the bank and that will essentially be your credit limit at which you are even charged interest – or a card with a very low credit limit and no perks, and outrageous interest rates and hidden fees. In my opinion both options suck! Your first option isn’t really a credit card at all, you would basically just be spending your own money and paying it back to yourself each month, not to mention the interest.
The second option of an unsecured credit cards usually leads people down the road of a debt trap by opening credit cards with the following credit card companies:
Credit one bank, horizon gold, first premier bank, meta bank, green dot e.t.c
These are all bottom feeder subprime credit cards and what I mean by that is that they prey on people with low credit or beginner credit history. They are usually the first bullies that are standing at the gate to keep you at the start of your credit building journey. You will inevitably default because of the outrageous interest and succumb to what I like to call “Low limit frustration spending” which is essentially maxing out your low limit because of the frustration of it never increasing.
The Capital One Platinum card is easy enough to get for a beginner, and it’s designed especially for people building credit or repairing bad credit. Capital One normally issues a 300-dollar credit limit for people with poor credit ratings or no credit history. This is then increased to $500 after five months, as long as all the payments are met on time. After that, further on-time payments lead to further increases. Don’t worry if your income is low, I have heard of cases where students or people with incomes only a little over 10k per year have been approved for this card.
So what’s better than both of those widely known options? I’ll tell you! Its getting approved for 10K of unsecured credit NO MATTER HOW BAD YOUR CREDIT REPORT LOOKS!
There are two financial institutions you need to know about if you are building your credit: Major Financial, and Carmel Financial.
You sign up with these two companies and they will both extend to you $5000 of unsecured credit in which you can use at their online stores. There is an enrollment fee of $99 to join the program and then you will need to make a purchase of a small product about $150-$200.00 and then you will be instantly approved and the Tradeline will report to your credit the following month. You will need to maintain perfect payments on these accounts in order for your credit history to grow and since these two accounts are 5k each, putting a $150-$200 balance on these accounts will definitely keep you below the 9% credit utilization recommended by myFICO.com this is crucial if you want to build your credit. This is a lot better than just be spending your own money and paying it back to yourself each month, not to mention the interest with a secured credit card or choosing the second option of only being approved for $300 and having to wait at least half a year for that bad boy to grow to $500…
If you want to take advantage of these two amazing Tradelines here's a link to their website where you can learn more about how they work better yet, SIGN UP 😎:
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