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Answers to Three Most Important Questions Beginners Ask about Credit

By George Hauser
Published: Tuesday, December 1st, 2009

So you have finally made up your mind and thought that starting a credit is just the solution to some of your financial problems. You considered your financial capabilities in repaying the money you need to borrow and the picture is perfect. Other than that, you think that paying on time is not a problem. To be extra sure that you can handle the responsibilities in establishing good credit, you have also read and different credit score tips. 

Many of the credit score tips teach you of the value of a high credit score, and the ways to achieve it. Apart from this, one of them could have also helped you realize why you need to be updated with your credit report as much as your future creditors will be. There are those credit score tips that have also told you about the proper way to file disputes as they can increase your credit score and repair your bad credit. 

Finally, you can consider several credit score tips that talk about what kind of credit card to get, how many and how to use them. You seem to be completely equipped with the right information needed to start with credit. It’s time to understand how to apply for one. 

Where to apply?

There are ultimately two kinds of credit: revolving and installment credits. Loans are considered to as installment credit. This means that you make your payments with interest on a regular basis until the amount you borrowed is paid in full already. In contrast to this, revolving credit most commonly exists in the form of credit cards. Though how credit cards are more difficult to maintain and most credit score tips tell you to get away from them as much as you can, many people recognize the benefits of having credit cards. 

There are different kinds of credit cards. If you want to have one and you are still a beginner, you should look for the kind that is especially built for people who are just starting out. Remember to get the one which is for people who have a limited credit history. Many creditors will refer to your credit history to determine your experience in handling your finances. 

You can ask if the bank can offer you credit card services as a beginner. Or you can apply for a secured credit card before you move on to major credit cards. 

How old should you be?

You should be at least 18 years old to apply for a credit card. However, even teenager nowadays can have credit cards under joint ownerships. There are also some stores which provide credit cards for those who are below 18, but the major credit cards will deny your application if you are under-age. There are new laws that are stricter when it comes to regulating who can apply for credit. Credible credit score tips will tell you to be updated with the newest news about the credit system and apply these changes. 

What to stay away from?

You can not inquire for too many credit card applications because it will appear on your credit report as your desperation to have credit. There are many kinds of scams and most of them introduce very easy ways to apply for a credit card. Finally, use your credit card wisely. There are credit score tips that can help you manage your credit card accounts responsibly.

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