How to Get a Credit Card?

Answer 1

If you have not yet established a credit history or your credit history is less than perfect, you can still get a credit card if you know how to play the game.

Where To Start

Most large banks offer prepaid credit cards, which are perfect establishing credit and improving your credit score. There is a difference between bank-issued prepaid cards and the prepaid gift cards you can find in stores. Both cards require that you add money to your account before you can use them. However, bank-issued cards typically report to at least one of the three credit bureaus. This is important because you want other banks to see that you are a good candidate for other credit cards and loans.

Start by researching prepaid credit cards online. Go to any of the national bank websites, such as Chase, Bank of America, Citibank or Capital One. If you have poor credit, start with Capital One, which often takes a chance on high-risk consumers. Read the details of the card thoroughly before you pay a deposit. Look for a card with little to no maintenance or start-up fees. Also, as mentioned above, be certain they will be reporting to a credit bureau.

Improve Your Status

Although you will have put down a deposit equivalent to your account limit, purchases will not be deducted from the deposit. You will still be expected to pay a monthly bill. Pay your bill on time every month and limit your purchases to 30 percent of your credit limit. Doing this shows the bank you are a responsible cardholder; and within a year, they will likely notify you that you qualify for a credit card that requires no deposit.

After you receive a traditional credit card from the bank, continue to pay on time and keep a relatively low balance. Generally, every 3 to 6 months, banks increase credit limits to responsible cardholders.

It is wiser to pay a deposit for a prepaid credit card than accept a traditional credit card with excessive fees.