Getting approved for a credit card can be difficult without a positive credit history working in your favor. It ‘a Catch-22: To obtain a credit card, you need a good credit history. But to have a good credit history, it is necessary to establish good credit!
This no-win cycle can keep people with a non-existent credit history, limited or negative to get approved for a credit card. But it is not necessary if you understand the type of credit cards available and how to build a good credit history.
When it comes to credit cards, the type of card you apply for will depend on your situation. If you are a student, yes, of course, join a student card. But if you are a student with a non-existent or bad credit history, a card that is secured or obtained with a co-signer may be your best option. With co-signed credit cards, the co-signer guarantees and is responsible for the debt. This means that the co-signer is responsible for paying the full amount of the debt if the cardholder does not pay. In fact, the debt should be co-signed in default, three out of four times co-signers are normally asked to repay what is owed, according to the Federal Trade Commission.
Furthermore, the issuing bank to pay the debt can groped without first trying to collect from the cardholder. The bank can also use the same collection methods against the co-personal signature, including suing and garnishing wages. If the debt is not paid, may leave a negative mark on the credit history of the co-signer, as well as the card holder.
