Applying for credit for the first time may look scary at first. Sometimes you wonder what your credit future is. Will you be a good borrower? Or will you default a lot and may end up bankrupt? Nah, it’s too early to say that. Having a credit card the first time is a challenge. And adventure which requires you to decide a lot and forces you to put on your thinking cap to come up with ways on how to get the bills paid.
Think of it as another part of your life that would provide your needs and test your responsibility level. But if you are still not up to it, better forget about the credit cards and just live with cash alone, which is good and ideal to some. But for many people and especially business owners, credit is an answer to a prayer. It is a card with value that has the power to buy anything you need but it can also destroy if you don’t sustain its needs. Sounds a little interesting, huh? Credit cards are no joke, I tell you. If you get along with it by paying on time and paying the interest charges, then you are a good borrower and might end up having an excellent credit history. But if you didn’t do what was expected, better not go down deeply and work hard to get those bills disappear through paying it all.
Beginners should know that getting approved for a credit card is not that easy. In fact, it is really hard, especially when credit card companies only allow those who have an established good credit history, obviously an ingredient a first timer is lacking. Here is where secured credit cards offers come in. Credit card companies have to come up with a way to market more credit card holders, though they deny first timers for a regular credit card, they don’t want to let go of potential card holders. But in order to protect themselves from opportunists, they need to ask for a security from them. Secured credit cards require first time credit card holders to deposit a security amount that will be placed in an account and will be reserved. It will be used when the card holder defaults, thus applying the amount deposited as payment for the credit. That’s still good, right. Even if you made a default, it won’t be reflected in your credit history because in your bill, it will be marked as paid. However, you lost your deposit though, so make it a point to pay bills on time and consider the deposit for emergency purposes only.