There are many types and options of credit cards to help build your credit. The best credit card for you depends on your financial situation and personal goals. You should consider rewards credit cards, which don't require an annual fee. They report to all three credit reporting agencies and provide additional benefits to cardholders. However, if you want to build your credit quickly, you should consider secured cards first. In general, secured cards are less expensive than unsecured.
Starter cards provide cash back rewards
A starter creditcard can help you build credit history. These cards can be used to fund many things, but you must make sure you pay all your bills on time. Starter cards often have very high interest rates so avoid them if your budget is tight. Likewise, make sure you pay off the balance in full every month to avoid the APR from coming into play.
When comparing different starter credit cards, be sure to keep in mind that they often have other fees. All fees should be considered, including balance transfer fees, foreign transaction charges, returned payments and penalty APRs. A starter credit card should aim to help you build good credit for larger purchases later in life. By paying off your bills on time and in full every month, you can expect to qualify for the best overall credit cards in no time.
Secured cards tend to be less expensive than unsecure cards
For people who want to build their credit history, a secured loan is the best option. These cards do not require a credit check or a minimum credit score, and the money you deposit is repaid each month. However, this type of credit card does not have a large credit limit, so people with high spending habits should look elsewhere. Secured cards are less expensive than unsecured cards, but they have higher costs to help build credit.
Another disadvantage of secured cards is their fees. They can charge large security deposits or have high annual fees. Other secured cards do not charge an annual fee, so people with poor credit should opt for them. Some issuers will even transfer your account after just a few months. It is important to make the right choice. Some issuers will transition your secured card to anunsecured card after about a year.
Student cards are simple to obtain
A student credit card should be opened during college. It is a great time to start building your credit. This is ideal for practicing responsible credit card usage and establishing a good payment history. But, it is important to understand that credit cards opened while you are still at school won't offer you many rewards.
It is easy to get a student credit card. Many credit card issuers aggressively market these cards on college campuses, and even send direct mail promotions. Students are subject to stricter requirements in order to obtain a student card. You must be at least 21 years old and demonstrate adequate income to service the account. Students under 21 years old can still apply for student cards, but they will need a cosigner as federal law requires that all borrowers below the age of 21 have a steady job.
Capital One Quicksilver Secured Card provides a higher credit limit
Capital One Quicksilver Secured Card has a $200 minimum deposits and offers a $1,000 up to $3,000 credit line. This card also comes with a no annual fee and allows you to build your credit over time. There are some disadvantages to this card, however, so it's best to shop around before applying. You may have trouble getting a credit card if you have poor credit. The Capital One Quicksilver Secured Card will not work for everyone. This card might not suit you if your credit history is poor or you have had recent loan defaults.
Although the Capital One Quicksilver Secured Card has a lower credit limit than the Quicksilver Secured Card, you may find it more convenient to make purchases with it. To avoid interest charges, you should never spend more than 30% of your credit limit. This card also reports payments to the major credit bureaus so that it can build your credit history.