Obtaining your first credit card

How to get your first credit card, without having an established credit history

It is difficult to get your first card, without a co-signer.  Some suggest that it is best to start with small cards such as gas and department store credit cards.  This method can work, but it will take time before your credit history is established. 

A similar method would be to apply for a credit card where you already bank.  Your local bank may be in a greater position to extend you credit initially.  If you are already doing business with a bank for services such as checking and debit cards, you will have a much better chance of receiving a credit card.

Some sources may advocate applying to several places at once.  This method is not recommended, as credit bureaus update their systems in virtually real time.  Multiple applications for new credit made in a short amount of time can be a red flag and cause automatic rejections.

One of the best ways to get your first credit card is to use your educational status.  There are many companies out there with specific programs which will allow college students to obtain credit.  This does not mean you have to be in a degree program.  In certain cases, simply enrolling for a full time course load at your local community college may be enough to get a credit card.

The best place to find these offers may be your physical college campus.  There may be brochures in areas such as dining halls and college book stores with applications.  Another source for applications is to search directly online for student credit card offers.  By searching online for offers, you can quickly compare against several different offers.   Beware that some offers may be for cards which charge fees.  Search carefully to make sure you understand all the terms and conditions for each credit card you may be interested in applying for.

The student credit card programs are targeted towards those who have full time enrollment at school.  These programs will automatically grant you a card, as long as you have either good or no credit.  No credit history is different than having an adverse history.

If you are not sure, you can check with the major credit bureaus for free.  The FACT (Fair and Accurate Credit Transactions) act was passed into legislation in 2003.  This allows you to check your report for free, once every 12 months.  Be sure to check around, as some may use free credit reports as a way to lure you to purchase other products or services.  In April 2010, the FTC (Federal Trade Commision) revised rules in an effort to warn consumers from misleading advertising practices.  The new law requires websites which offer free reports to state that annualcreditreport.com is the only authorized source under federal law which provides free reports.