Starting out in the financial world without a deep credit history can be frustrating. After all, with little to no credit, it can be difficult to convince a company to take a chance on you. This can hinder your ability to rent an apartment, open a phone line, or purchase a vehicle, among other things.
One of the best ways to prove you are financially fit is to build a good credit rating by showing regular, responsible use of credit and making payments on time each month. At Resource One Credit Union, which serves the North Texas and Houston Metro areas, you could build your credit through a platinum or secured credit card. Read on to see which one would best improve your situation.
R1 Visa Platinum Credit Card
Unlike some credit cards, this one does not have an annual fee. In other words, whether you use it a lot or just for emergencies, you don’t have to pay for the ability. Cash advance and balance transfers also come without fees, and you are set with a low, fixed rate. You can apply for a credit card, but your chances of being approved for this option are greater the more previous credit history you have.
RI Visa Secured Credit Card
If you don’t have much credit history, a secured card is probably the best way to go. That is because they aren’t much of a risk for credit unions to issue. Essentially, you pay a set amount to get the card, and that amount becomes the line of credit for you to use. If you pay $500 for the card, you will have a credit limit of $500. Using your own money as collateral gives you the chance to make a record of purchases and payments so you can prove your credit maturity and move to a regular credit card with a higher limit in the future.
Resource One’s secured cards also come with no annual fee, cash advance fee, or balance transfer fee, and a low, fixed rate.
You can learn more about your credit-building options and apply for a platinum or secured credit card through Resource One.