Yes, you can now build credit with a major bank credit card specifically designed for people with bad credit or high banking risk. If you have bad credit or no credit, some banks may not issue you a no annual fee credit card with rewards. The best way to use credit cards in your situation will be to fix bad credit and establish a decent credit history with on time payments and minimal balance. For most people, it takes less than 6 months to obtain additional credit and the best unsecured credit card offers if you can maintain a good payment history during this time period.
Even though you may have poor credit, you still need to buy goods such as home appliances, a car or truck or even a house. It is important to build a good credit history so that you are eligible for cheap prime loan rates and other benefits. Unless you do not need a loan, you will find that lower interest rates on your home loans can save you thousand of dollars each year. You can also choose from a variety of lenders with no restrictions once you have a good credit rating.
Note that there is a slight difference between having no credit versus bad credit. In the first case, most students and new graduates do not have any credit since they do not have a good history of stable full time income. The only entry that may show up on their credit report is their student loan and whether they are paying on time or not.
For those with bad credit, it is usually because they misuse the credit and loans provided by banks and other financial instructions. For example, you may have borrowed money at a high interest rate and end up unable to pay back on time. Or worse, your credit report shows that you have filed for bankruptcy or have your home or car repossessed.
Credit Cards For People With No Credit Or Bad Credit
Some lenders consider both people with no credit and bad credit in the same high risk category. Thus it is not easy to for young people to try and establish credit. You may feel that it is not fair for major banks to deny credit for young borrowers who have not made any credit mistakes. This is based on the reasoning that the lenders cannot determine whether someone with no credit history will be responsible towards his or her debt obligations and pay back on time. In fact, some lenders treat payment activities on your credit report very seriously and may not even provide a mortgage loan unless you have records that show you have been paying back a car loan or something of similar value diligently without fail for at least 12 months.
That is why you should treat those student credit card offers seriously while you are still in college. These are the best ways to establish credit for students so make sure you do not misuse these cards. By not maintaining any balance beyond the interest free period, you will be able to build up an excellent credit history that will help you apply for cheaper prime rates to buy a car or house in future.
Easy Approval Bad Credit Credit Cards
Actually, there are many easy to get 100% approval bad credit credit cards available. The problem is that most of these are secured cards with no real credit, so you can only use them to rebuild credit after bankruptcy or some other problems. You cannot use these secured or debit cards to get a loan from the bank, since you can only withdraw up to the deposit you have placed in your account.
Many credit cards for bad credit offer online applications and instant approval. You should compare rates and fees carefully and do not open more than 2 such accounts since it is not necessarily beneficial to your credit score. Generally, the fees are higher for no deposit credit cards for poor credit so it may be better to place a $100 deposit to qualify for cheaper secured credit cards.
Unsecured Student Credit Card Offers
As for students with no credit, you should take advantage of unsecured student credit card offers while you are still in college. These usually come with 5% cash rebate rewards for typical student purchases such as books, fast food, movie tickets, etc and you get a $1000 credit limit which is handy when you need a fast loan.
Avoid spending unnecessarily thinking you have time to pay off the balances on these accounts. Used correctly, it is easy and fast to fix bad credit with credit cards issued by major banks.