Credit Card Matcher

Applying for your first credit card can be a bit difficult, since credit card companies determine how creditworthy you are by how well you have handled credit in the past. You can’t show that you have handled credit well because you don’t have any credit history, and if no one will give you credit, you can’t show them that you are a responsible person who pays on time.

It may take a bit of time, but there are some steps you can take to show credit card providers that you would be a good customer. Here are some suggestions that should help:

1. Demonstrate that you can hold a job.

A stable employment history is one thing that credit card companies look at when you apply for a card. Having several jobs within a short time may work against you.

2. Open a checking account at a local bank.

You can open a checking account at a bank without a credit check being done, and the fact that you have an account does not get passed on to credit reporting agencies. Having a checking account that is in good standing will show a prospective lender, including a credit card company, that you are capable of managing your money, though.

3. Add overdraft protection to your checking account.

Overdraft protection means that the bank will extend a certain amount of credit on your checking account to cover a check that is larger than your account balance. You will be responsible for paying a service charge and/or interest until the amount of the overdraft is paid. Depositing funds to pay off the amount of the overdraft and bring your account balance into the black is a way of demonstrating that you are responsible with this amount of credit. Don’t go over the amount of your overdraft protection, though, since this will work against you in establishing yourself as someone who is creditworthy.

4. Apply for a gas company or department store credit card.

These types of cards are relatively easy to get, and the credit limits are usually low. This may be a good place to start, but keep in mind that the interest rate you will be charged will probably be higher than with other types of credit cards. Keep an eye on your spending, and make sure you pay at least the minimum amount due each month.

5. Get a secured credit card.

To establish credit when you don’t have a credit history, apply for a secured credit card. With this type of card, you put up a security deposit equal to the amount of your credit limit. The money is held in a bank account and used to pay the balance owing if you don’t make your payments. Start with a small credit limit of a few hundred dollars at first; you can always increase it by putting up a larger security deposit later. By making your payments on time, you are establishing a credit history that will make it easier for you to get an unsecured credit card later on.

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