Have you recently been denied for a credit card because of insufficient credit history? How can you build your credit if no one will qualify you for a credit card?
Apply for a secured credit card to start building your credit history
To get qualified for a secured credit card, you’ll have to provide your credit card issuer with a security deposit prior to approval. The limit on your secured credit card will be the amount of your security deposit.
The credit card issuer reports your purchases and repayment activity to credit bureaus the same way as the unsecured credit card issuers. That will help you build your credit history.
Use the secured credit card responsibly
Once you received your secured credit card, use it regularly, without overspending and get into a healthy habit of paying it on time.
The secured credit card will incur interest on statement balances that are not paid in full and on time. These charges can add up quickly and they will increase your card balance which will negatively impact your credit score.
It is important to pay attention to how much you spend and when you repay. Make your credit card payments on time, all the time.
Monitor your credit score
Check your credit score and credit history regularly as you get used to your credit card. Your credit card issuer may give you free access to your score.
With controlled spending and on-time payments, your credit score and credit history will improve over time.
High credit scores will help you qualify for low interest loans and unsecured credit cards that offer rewards.