What Are the Easiest Credit Cards to Obtain?

What Are the Easiest Credit Cards to Obtain?

When it comes to obtaining a credit card, many people may find it difficult to get approved due to limited credit history or a low credit score. However, there are credit cards that are easier to obtain for those who are just starting to build credit or trying to improve their credit. In this article, we will explore the easiest credit cards to obtain and what you need to know before applying for them.

Secured Credit Cards

One of the easiest credit cards to obtain is a secured credit card. A secured credit card requires a cash deposit that serves as collateral for the credit limit. The amount of the deposit typically equals the credit limit, meaning if you put down $500, you will have a credit limit of $500. Secured credit cards are a good option for those with no credit history or a low credit score. They also help build credit history as long as the cardholder makes on-time payments.

Store Credit Cards

Another option for those with limited credit history is a store credit card. Store credit cards are typically easier to obtain than traditional credit cards as they have lower credit requirements. However, they often have higher interest rates and lower credit limits. Store credit cards are best for those who frequently shop at a specific store and can take advantage of the rewards and discounts offered.

Credit Builder Loans

A credit builder loan is another option for those looking to build credit. With a credit builder loan, the borrower takes out a loan that is deposited into a savings account. The borrower then makes on-time payments on the loan, and once it is paid off, the savings account is unlocked. This type of loan helps build credit history and can be a good option for those who do not want to put down a cash deposit for a secured credit card.

Prepaid Debit Cards

While not technically a credit card, a prepaid debit card can help build credit history. Prepaid debit cards do not require a credit check or credit history, but they do report to the credit bureaus. By using a prepaid debit card responsibly and making on-time payments, the cardholder can build credit history and eventually qualify for a traditional credit card.

Things to Consider

Before applying for any of these credit options, it is important to do your research and understand the terms and conditions. Make sure to read the fine print, including the interest rate, fees, and any rewards or benefits offered. It is also important to use the credit responsibly and make on-time payments to avoid harming your credit score.

Investment Tips

Once you have obtained a credit card and started building credit history, it is important to continue to manage your finances responsibly. This includes creating a budget, tracking expenses, and paying off balances in full each month. It is also important to regularly check your credit report to ensure there are no errors or fraudulent activity. By building a strong credit history and managing finances responsibly, you can set yourself up for financial success and potentially qualify for better credit cards and loans in the future.