Legend,
I am assuming that you are trying to establish credit. You shouldn't be worrying about APR at this moment as they will usually be anywhere from 19% to 29%. Why you ask? For banks you are just a risky lender and you don't have an established credit. There are two routes you can go.
a) The secured way (guarantee to get a credit card):
Apply for a secured credit card. Your credit limit is determined on the amount you deposit. Lets say if you deposit $500 then your credit limit will be $500.
If you pay your bills on time and don't keep any balance then they will refund your initial deposit in one year and hike your credit limit plus decrease your interest rate. You are guaranteed to get a credit card this way. Bank of America has a good secured credit card program. Visit your local Bank of America branch.
b) Piggybacking:
So you want a little higher credit limit and a lower interest? Do you know any friends and family who are responsible and pay their bills on time? If so ask them for a favor. Tell them to add you on one of their credit card (as an authorized user) with a highest credit limit that they use frequently and don't keep high balance.
They just need your name and may be a social security number. Tell them you don't need to card and they can keep it with themselves.
Now you are bit confused? What will happen now is you will piggyback on their credit history. In lame terms their credit card history for that particular card will be linked to your credit profile. Wait for a month or so and then apply for a new credit card. You have a better chances of getting a good credit line and a lower APR. I still recommend that you apply for a student card to be on the safe side.
Citi has a good student credit card program. Visit www.citicards.com/students
Hint: While applying as student they will ask for your major. Say you are an engineering student. Why? Finanacial institution while lending have a formula set up to approve your application. If you are an engineering student it is assumed that you are more responsible then Psychology, for example. Hence your chances are higher of getting approved. As lame as it may sound! I know! But I've heard and read about this before.
From here it's your decision. But be responsible with your credit cards as it can help or hinder you. Be informed about the credit card. Read the Terms and Condition before applying. Don't be like half of the people in these forums who sign up for something are not curious enough to do enough research on it.
My two cent.
My Best,
Incandescent.
Last edited: 27-Jun-10 01:51 PM
