Credit Cards To Establish Credit

It's a classic Catch-22: you can't get credit until you've established a good credit rating, and you can't establish a good credit rating without having any history of credit. Perhaps you're a young person just starting out, or a divorced woman who has never had credit solely in her name. So what are you to do if you have no credit history?

Use a Secured Card to Establish Credit

One option is to obtain a secured credit card. Here's how it works: with unsecured credit, you are allowed to make purchases with your card on the basis of your promise to pay later. With secured credit, you have to back up that promise by depositing funds in advance. You can then use your card up to that sum. Each month you make a payment to keep your security in the company's account. Once you have established credit by making payments on time and staying within your limit, the company will refund your deposit. Then you can stay with them or take your new credit history to another company.

When companies lend to someone with no credit history, they are taking a risk, even if the account is secured. Therefore they often charge higher interest rates, and may have other restrictions. You need to do extensive research to find the card that offers you the best terms.

At MyFreedomCreditCards.com, we can do that for you. You don't have to find which cards are possible for you, read reams of small print and fill out countless applications. We are familiar with all the cards available, so just give us your basic financial information and we'll put our knowledge to work for you. We'll filter out the best offers available, and pass them on to you.