What credit card is the best option for someone with no credit?

Answer 1

If the intent is to build up a good credit history, that takes time. Many banks and other lending institutions (Capital One, Chase, Citicorp) issue VISA or MasterCard credit cards with small lines of credit ($300) and watch how you use the card and your payment history. After six months or a year, if you use the card wisely, pay your bills on time and pay more than the minimum, they'll usually raise your credit line. Expect a higher rate of interest on unpaid balances (19% or more), but, once word gets around to other companies, you'll get offers in the mail for cards with better interest rates. Be selective. Don't go for 'debit' type cards (ones that require you to deposit money with them and your line of credit is only as high as what you deposit). That's not a credit card. It's a debit/ATM card and does nothing for your future credit. Try to favor cards with lower interest rates, rather than ones with higher credit limits.They'll be easier to control and keep paid down. The whole point of having credit is for expenses you may have that you can't pay out-of-pocket, like major car repairs or buying that special someone something you can't really afford. To do that, you have to convince everyone that you're trustworthy and will pay your bills.