If you have recently turned 18 or you’re applying for credit for the first time, then you might be learning that getting a great credit card isn’t easy. If those offers of credit card reward programs sound enticing, be forewarned that it takes a little bit of time before those cards are available. However, you can start building up your credit score now, starting small!
First-Time Credit Users
First-time credit users have a few options available for building up a credit score. Your first option is getting a secured credit card. Secured cards are for people with no credit history or bad credit history. Essentially, you put up the money for the card up front and then get to use the card as a credit card.
Your second option is department store-issued or oil company-issued card. These cards come along with high interest rates, so be very careful to make your payment each month. Otherwise, you’ll be slammed with credit debt – something you definitely don’t want on your fresh credit score!
Your third option is to get an entry-level credit card. Much like the other two cards, this will have a high interest rate and a low limit, so avoid credit debt and pay off your balance on time and in full.
Once you establish a good credit score (after about a year), you can “graduate” to a better card with more perks. However, start small and start responsibly, and you’ll be well on your way to getting cash-back and free airline miles galore!