Mark Barclay asked:




If you know even a little bit about credit cards, then you probably already know that it can be difficult to get a new card if you have a poor credit rating. This makes sense if you put yourself in your lenders shoes. If you loan someone money then you want to know they can pay it back, right?

But did you realise that the credit card companies treat bad credit history and no credit history as the same thing? I know this doesn’t seem fair. But if you don’t have a credit history then your lender has no idea how much of a risk you’re going to be.

These can seem like a catch 22 situation. On one hand, you need a credit card to build your credit history, but on the other hand, a credit card company needs you to have credit history to prove you’re not a risk.

So, what can you do if you have no credit history, but want a credit card?

The first thing to do is to demonstrate that you can pay what you owe on time. You may be able to get some form of credit in the shape of a store card at a department store. This will show that you are reliable with your payments (as long as you DO actually pay off that card on time).

Another option that you have is to get yourself a secured credit card. This will mean anything you spend on your credit card will be secured to something that covers the value, such as a car. Over time, you will show you are worthy of a credit card with a bigger company, and with a higher limit.

My final piece of advice is for the younger generation. It can be difficult to get a credit card if you’re young, because you have no credit history, and you can be a high risk to a credit card company.

So what can you do?

The best thing to do is to apply for a student credit card. This will have a lower limit, and a parent/guardian may have to sign an agreement stating that they will pay off your debt if you fail to do so. Despite these drawbacks, you can easily build a good credit rating using this card. This will help you significantly when it comes to applying for a normal credit card.

I hope you find this advice useful. It may be discouraging if your credit card applications get rejected, but there are ways of getting round the problem of no credit history. You just need to do a little research to find a method that will work for you.

Judy

David Patullo asked:




Credit cards are a great solution for purchasing things especially when you don’t have cash. This is even true when you are looking into getting into business but don’t have the capital to do it. And this is where the new business card can help you solve that problem. Business cards are just like normal cards except that they can be used to handle all your business transactions whether it be for office supplies or materials that you need to build your product. However, you need to know how to use these cards properly so that you can be successful not only in business but in your money affairs as well.

o Never mix transactions – There are two kinds of transactions that you will deal with everyday: business and personal. Never mix these two by using the new business credit card solution. You will end up getting really confused which transactions are for your business and which ones are not. You will also find that your accounting will just be a big mess.

o Reports – Credit companies are really great when it comes to new business credit options. At the end of every year, as a business credit card customer you can expect a report at your doorstep that will include all the itemized transactions that you have done in the past year. This is a great substitute to the thousands of receipts you collect over time.

o Build credit – Building your business credit is much like building your personal credit. What you want to do is keep your business credit score in the positive at all times so that you won’t have a hassle trying to get a loan in the future when you want to grow your business further.

o Entertainment – Credit cards will always want to keep their customers happy. They do this by offering rewards programs so that you will always be entertained. Take advantage of plane tickets, office supplies, and even software that is freely given by credit card companies just because you use their new business credit card services.

Connie