1. Choose a department store credit card that is easier to apply for to establish personal credit.
Generally, department stores often encourage applications during promotional periods by offering gifts. Although these cards are limited to use at the specific department store, during economic downturns in the retail industry, they stimulate consumption, and since their credit limits are not as high as regular credit cards, the approval process is more lenient, making it easier to obtain such a credit card and thereby establish a personal credit record. Once credit is established, it is essential to maintain a good credit record, using this card as a stepping stone for future applications for other credit cards.
2. Open a bank account and apply for a credit card simultaneously.
In major cities in the United States, banks are abundant and offer a wide range of services. Additionally, banks value new immigrants and student consumers, encouraging them to open accounts and deposit funds. Therefore, the credit limits are not initially set very high. However, this presents a good opportunity for new immigrants and students without a credit history to apply for credit cards. New immigrants and international students should actively inquire with local banks to avoid missing out.
Many banks may require individuals without established credit to deposit money as collateral. Generally, depositing $2000 can provide a $1000 credit limit, and some banks, like the Bank of Montreal (BMO), only require a deposit of 125% of your credit card limit. Once you have your first credit card and use it regularly, after six months to a year, if you have a job, applying for any card will likely be successful.
3. Student-specific application forms.
The student credit card market is increasingly being recognized, so various application forms specifically for students can often be found on school bulletin boards. These application forms usually require the submission of a student ID, enrollment verification, or tuition bill, and some even require a stamp from the school registration office to verify the student's identity. Because there is relative proof of school affiliation or student status, it is easier to obtain approval.
4. Find a cosigner to assist with the application.
For those who cannot obtain credit due to a lack of credit history or insufficient income, it is best to use an application form that includes a cosigner's signature. The cosigner should ideally be a friend or family member with a good credit record, whose purpose is to guarantee your repayment responsibility in case you are unable to pay. Credit card companies are more willing to issue cards to such applicants, as there is no concern about insufficient claims. Once credit is established, try applying independently to build personal unsecured credit.
5. Utilize mailbox information.
Once a personal credit record is established, credit card application forms may even be sent directly to your mailbox. These application forms often boast of pre-approval. However, individuals can assess their needs and the aforementioned factors to decide whether to apply, filling out the forms accurately, as there are rarely cases of rejection.