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Building Credit with Your First Credit Card

At O1ne Mortgage, we prioritize consumer credit and finance education. This article will guide you through the essentials of getting your first credit card and how it can benefit your financial future. For any mortgage service needs, feel free to call us at 213-732-3074.

How Old Do You Have to Be to Get a Credit Card?

In most states, you need to be at least 18 years old to get a credit card. However, in Alabama and Nebraska, the minimum age is 19, and in Puerto Rico, it’s 21. If you’re between 18 and 21, you’ll need to provide proof of income due to the Credit CARD Act of 2009.

Why It’s a Good Idea to Get a Credit Card at 18

Getting a credit card at 18 comes with several advantages:

• Build a Credit History: Starting early gives you more time to build a solid credit history, which can help you secure loans for major purchases in the future.
• Fraud Protection: Most credit cards offer zero fraud liability, protecting you from unauthorized purchases.
• Earn Rewards: Many credit cards offer rewards like cash back or travel miles, which can be redeemed for various benefits.
• Learn Financial Responsibility: Managing a credit card helps you develop good financial habits early on.

What to Look For in a Starter Credit Card

Choosing the right starter credit card is crucial. Here are some features to consider:

• New Credit or No Credit Accepted: Look for cards that cater to individuals with little or no credit history, such as secured credit cards.
• No Annual Fee: Avoid unnecessary fees while you’re learning to manage your credit.
• Low Interest Rate: A lower interest rate minimizes the cost of carrying a balance.
• Offers Rewards: While not essential, rewards can add extra value to your spending.
• Credit Bureau Reporting: Ensure the card reports to at least one major credit bureau to help build your credit history.

What Happens if You Get Denied for a Credit Card?

Being denied for a credit card can be disappointing, but it’s important to understand why. The card issuer will send a letter explaining the reasons for denial. Here are some steps you can take:

• Become an Authorized User: Ask a family member to add you as an authorized user on their credit card.
• Use Other Bills to Boost Your Credit: Services like Experian Boost® can add utility and streaming service payments to your credit report.
• Apply for a Secured or Student Credit Card: These cards are designed for individuals new to credit.

The Bottom Line

Getting your first credit card at 18 can be a challenge, but it’s a crucial step in building your credit history. Whether you become an authorized user or opt for a secured credit card, starting early can set you up for better credit offers in the future. For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey.

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