How To Apply For A Credit Card Without Credit History

Are you aware that no credit can be just as bad as bad credit?
It seems totally unfair but this is the reality. It's just the
way things work in the world of consumer credit. Lenders are
very leery about lending money to anyone without a history of
being able to repay the debt. They have no way of knowing if
you are a good risk or a bad risk.

So what's someone in this situation to do? You can't get a
rental car, stay in a hotel or shop online without a credit
card. So let's look at a few of the options that can help you
establish credit.

Some of the credit options

Think small. While most of the major credit card companies will
not give you credit without a prior credit history, some smaller
ones such as department stores may give you credit. Another
place to try is the gas station credit cards. Apply for several
gas and department store credit cards. If you are lucky enough
to get one, make sure you use it, but more importantly, make
sure you make your payments timely. Your goal is to establish a
credit history, not run up a huge credit card bill.

Also try and find a credit card company that will look at your
overall financial picture and not focus solely on your credit
history or lack of it. Some may also consider your employment
situation, how often you have moved. If you score well in these
areas they may approve your credit application.

Secured Credit Cards

Secured credit cards are offered by lenders who will give you a
line of credit that either matches, or is slightly higher than,
a cash deposit that you give them to hold. As your experience
with the card grows, these lenders will often raise your limit
without requiring you to increase your deposit. Eventually, you
can use your experience with this lender to apply for cards that
are not secured.

Student Credit Cards

If you are a student, then you'll be best off with a student
credit card. Student credit cards can be a great way of
building the credit history that you will need to depend upon
after graduation. The important thing here is to remember to
use that opportunity wisely. Many banks will issue college
students a credit card, especially banks that are located in
college or university cities and towns.

When the time comes that you finally get your first credit
card, use it, but use it carefully, and most of all, make
certain you pay your bill on time.


About The Author: This article courtesy of http://ptgnet.com

Personal Finance - Have Consumers Had A Belly Full Of Personal Debt?

For months, we were trigger-swipe happy, putting our groceries,
clothes, holidays and service charges on our credit cards. We
wanted mortgages, we took out loans, we watched Property Ladder
and What Not To Wear. Whether you were born middle class, had
middle class aspirations, you became middle class through your
spending. Debt united people around the UK, we sympathised with
each other on what we couldn't afford - but it didn't matter, we
still bought it. Soon everybody had a bottle of Jacob's Creek in
their kitchen and olives and humous in the fridge.

Yet, it would seem as if a debt conscience is setting in. This
morning, The Guardian printed a story based on the fact that
Nationwide had reported a 0.2% decrease in the average house
price, whilst the Times reported on a statement from the Bank
of England, showing that credit-card borrowing was at its
slowest rate for more than four years, with mortgage lending
also very static.

According to the latest Department of Trade and Industry
Survey, 5% of individuals reported finding their household's
debt repayments a "heavy burden" and 4% of individuals are
currently behind in payments for at least one credit commitment
or domestic bill over the past three months.

According to Credit Action, in December 2004, 1.2 million
electricity and 1 million gas domestic customers were behind in
repaying their debts to their supplier. Additionally 20% of
people say that they often neglect checking their bank balance
because "they are too scared to find out how much money they
have", according to Lloyds TSB.

Credit Action also reported that the number of people searching
for help to manage their debts had almost doubled in May in
2005, compared to figures in May 2004 and a survey from Relate
revealed that 44% of couples find money to be a contentious
issue in their relationship and a quarter of people in debt are
receiving treatment for stress, depression and anxiety from
their GP.

It doesn't have to be all doom and gloom however. If you're
lucky enough to have no outstanding debt, you can keep you
finances in shape by exploiting the services of sites such as
moneynet, which provide financial product price comparison
information and extensive consumer information guides. If you
have any outstanding debts, you can seek advice from the
Consumer Credit Counselling Service (CCCS) or Citizens' Advice
and financial comparison sites like lowermybills and moneynet
also provide detailed research on debt consolidation loans and
debt management.

Resources:
http://www.moneynet.co.uk/credit-card-guide/index.shtml
http://www.creditaction.org.uk/debtstats.htm


About The Author: Rachel writes for the personalfinanosaurus
Cashzilla http://www.cashzilla.co.uk Rachel has been writing
personal finance related articles for six months and has learnt
so much about mortgages and life insurance, that nobody invites
her out to dinner anymore. :(

Bad Credit Home Loans - Dealing With Bad Credit

Dealing with mortgage companies online can enable you to get a
home loan even with bad credit. Bank associates' skepticism and
talk around are avoided when you apply online with a mortgage
broker. You also can compare multiple financing offers to
ensure you are not getting scammed just because you have poor
credit.

To get the most out of your online mortgage company, follow
these tips:

1. Learn About The Loan Process

Don't be a victim to predatory lenders. Educate yourself about
the loan process by reading articles on mortgage brokers'
websites. You will quickly find out what fees and interest
rates you can expect to pay for a sub prime loan, as well as
the type of financing that will best meet your needs.

2. Apply For Quotes

There are two types of mortgage quotes that you can find
online. One is a generic estimate based on limited information
such as your estimated income and monthly bills. This is
similar to the quotes posted at the front of a bank. They are a
fast way to compare mortgage lenders, but not a quote you can
rely on.

To get a real quote, you will need to fill out detailed
information since there are so many factors besides income that
determines your mortgage rate. If you have a FICO score of less
than 600, you will be required to put down at least 5%. Here's
a hint - to qualify for a lower rate, increase your down
payment amount.

3. Compare The True Loan Cost

Looking at interest rates shouldn't be the only way you compare
costs. Closing fees, loan application fees, or fees by any other
name can add thousands to your loan. To determine the cost of
your loan add the amortization and loan fees. Many mortgage
lending websites offer an amortization calculator to make this
easy.

4. Follow Up On Your Loan Application

Once you have picked a lender, you can finish the mortgage
process by applying online. Don't forget about the application
though, keep all records from the mortgage lender and make
weekly phone calls to ensure the money is processed on time.

5. Plan To Refinance

After you have completed your mortgage loan, plan to refinance
after three years when you have established good credit. Make
it a habit to make regular payments and reduce your short-term
debt to maximize your credit rating for lower interest rates in
the future.


About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans. To view our list of our most
recommended bad credit mortgage lenders online, visit this
page: http://www.abcloanguide.com/lessthanperfectcredit.shtml