If you are applying for a first credit card, it is most likely that you are doing so with some degree of trepidation. After all, with your bad credit history, you don’t want to start off on the wrong foot by being denied credit solely because of your credit history. But even if you’ve got a poor credit history, it doesn’t have to mean the end of the road for you. In fact, the first credit card that you apply for should offer you great security.
The first thing that you should ask yourself when applying for your first card is whether or not you are willing to sacrifice something in order to obtain your goal. This may mean giving up a little bit of convenience. Even if you want to get a good deal and you can afford it, giving up a little bit of convenience now will be worth it in the long run.
Many consumers who first apply for a credit card simply look at the introductory low credit limit and choose the lowest one that they can find. This means that they wind up paying a higher interest rate on the long term. It may seem like a good idea at the time, but in the long run, it just will cost you more money than if you had chosen higher credit limits. You should also consider that there are times when you can apply and be approved for a lower initial credit limit. When this happens, you must keep in mind that you may be able to later apply again for a higher credit limit, but each time you do, you’ll pay a higher interest rate.
Before applying for your first credit card, make sure that you understand how long it will take you to build up a sufficient credit history. It is a good idea to start building up your credit early, while you are still in the learning stage, as your chances of being accepted for a lower introductory low credit limit are better. For example, if you have been saving for years and want to buy a new vehicle, shop for used cars instead of buying one that’s not paid off yet. By starting your spending early, you can ensure that you don’t accumulate too much debt early on. As your payment history improves, the lender may eventually offer you a higher credit limit with stricter terms. However, it is wise to start building up your credit history as early as possible, before applying for your first credit card.
Once you have built up a decent credit history, make sure that you understand when the time to apply for your first credit card increase is. Some lenders offer their customers an instant credit card limit increase, but this means that you need to rush to apply and often get denied. If you know when you will have to submit an application, you will be able to make the necessary preparations so that you won’t end up going to the bank and getting denied again.
One of the easiest ways to determine when you will have to submit an application is to simply look at your current credit card debt. Most consumers have between one and ten thousand dollars in outstanding debt. This means that you have a good chance of being approved for a credit card increase of around five percent without much trouble. The majority of credit card issuers to increase your limit automatically, so this won’t take long. Usually, your card will show a small percentage increase after six months or so, which is still much better than no increase at all.
However, if you would like to be able to request an increase, you have to be ready to spend some time searching for it. The average credit card limit is usually higher at the start, but the interest rate goes up over time. So you need to make sure that you will be able to pay off your debt in a reasonable amount of time. This way, you won’t be punished by paying off your debt too fast and costing yourself points with the credit companies.
Another great way to request a credit card increase is to simply increase your existing security deposit. Most secured credit cards require a security deposit, which means that you will need to make regular deposits to the account in order to maintain a good credit history. If you are able to raise your deposit, you will be able to increase your limit. Keep in mind, though, that it is better to have a lower limit on an unsecured credit card, than a higher one. The reason for this is that you won’t be responsible for as much interest, therefore maintaining your regular payments will be easier.
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