Do you want to get approved for a credit card without a credit history? And what about learning how to get out of debt using a credit card? Well, let's talk about credit cards...
GET A CREDIT CARD WITHOUT A CREDIT HISTORY
In order to access credit cards or loans, you usually need to have a good credit history. In fact, the better the score, the better interest rates you'll get! But, is it possible to get approved for a credit card if you don't have a credit history?
Fortunately, you can! Check out these tips and learn how you can do it:
A) The importance of having a job: The credit company will need to check if you are capable of paying your credit card debt, so if you don't have a credit history, you should at least have a job! In order to qualify, you will need to present proof of income. The higher the income, the more chances of approval.
B) Co-signer: Having a co-signer can be an advantage. Choose a co-signer that has good credit and you will have more chances of getting approved. Bear in mind that the co-signer will have access to all your transaction information, so choose wisely!
C) Go for a secured credit card: If you are worried about not having a credit history, you can choose a secured credit card. These types of cards require cash collateral, meaning that you will have access to the exact amount of money you deposit to your account. Secured credit cards can also help you start building credit and help you qualify for a traditional card soon.
D) Student credit card: If you can show proof of income or have a co-signer, you can apply for a student credit card. This works just like traditional credit cards, but have a lower credit limit. Bear in mind that these cards usually have higher interest rates, so make sure you can pay off your debt on time.
E) Be an authorized user: If you don't have a credit history, you can get approved for a credit card by becoming an authorized user of a credit card. Remember to always pay on time and make sure that your partner also does. Otherwise, your credit report may be damaged.
GET OUT OF DEBT USING YOUR CREDIT CARD
If you read that you could use a credit card to get out of a credit card debt, you’d probably think that it doesn’t make any sense. And for a lot of reasons you would be right, but what if there was an actual way of using a credit card to get out of another credit card’s debt? Well, keep reading.
Balance Transfer Cards
You can move an outstanding debt on one credit card into a new one. That is a balance transfer. Most new credit cards offer 0% APR for 12 to 21 months, which means you won’t pay any interest if you transfer your balance during that period.
However, some cards charge you a balance transfer fee that is usually around 3% to 5% of the balance amount you are to transfer. But even if that is the case, it is still a better option because the 0% APR makes it a lot easier to pay it off.
There are many options for you to choose from, and each of them has their own initial benefit pack, so make sure you take a look around and compare what each card offers before you settle for one. Also, there are some that even have rewards programs and consumer protection, so take the time you need to gather information.
If possible, try to find cards that don’t charge a transfer fee. Although most of them do, some will give you a grace period of up to 60 days. So, if you transfer the balance during that period, they will waive that fee.
Don’t Use Credit Cards
Once you get a new card make good use of the 0% APR for a limited period of time, do not use it to purchase things. Always keep in mind that the idea of getting a new card was to pay off your debt. During your pay-repayment plan, stick to your budget and use debit instead of credit.