Many of you might be asking this same question so I’m posting with the answer here. Enjoy. The question is from m
im 19 with almost no credit (only a consistantly-paid cell phone bill) i am looking for to get a credit card with a low interest rate and the opportunity to earn air miles. (i live in new jersey and often visit michigan for short weekend trips) my first goal in this is really only to build credit but i travel so often that any help would be greatly appreciated. thank you very much and i look forward to seeing all of your suggestions.
Answer: Unfortunately Miguel, back on 2/22/2010, a new law was passed that says you cannot get unsecured credit until you’re 21 unless you have a co-signed or proof of stable income/job. So unless you have one of those, your SOL for the moment as far as getting a card that gives you air miles.What I would suggest is to go to a local credit union and see if they offer “secured cards”. These are cards that you put down a security deposit usually between $300-$500 and that amount becomes your high credit limit. Just make sure they report to at least one, or better yet all three credit bureaus or you’re not accomplishing anything. There are a lot of companies that offer this type of card because it’s no risk to the lender, but most have outrageous fees and interest rates, which is why I say go to a credit union. You’ll find no better rates and fees.Just make sure you don’t charge more than 30% of your high credit limit, even if you pay it off every month (which you should – don’t get in the habit of carrying a balance) and make your payment on or before the due date every single month. After about 6 months to one year, as the Credit Union to convert it to an unsecured card. Once you have a good credit history, typically two years, it will be easier for you to get the unsecured credit card with the air miles that you want.