Pennsylvania consumers working to build a credit history from scratch often face a seemingly uphill battle. Typically, it takes credit – ideally, good credit – to get credit. So, how should a consumer in Pennsylvania start building a credit history in order to earn a good credit score? Often, experts advise consumers with no credit or thin credit files to apply for secured credit cards. However, opening a secured credit card account requires a cash deposit. Or, Pennsylvania credit seekers with little to no credit history might qualify for a credit card meant for consumers with bad credit. Yet, these cards typically come with high interest rates. Now, a few companies have introduced credit cards that don’t require credit scores to open, and they offer certain benefits. But they also pose a few risks.
How Pennsylvania Consumers Can Benefit from Credit Cards that Don’t Require Credit Scores
The issuers of credit cards such as Deserve® and Petal don’t base approvals on credit scores. Instead, they look at what they call “credit potential.” Factors that help Pennsylvania consumers qualify for these cards include a regular income and proof that they pay their bills on time. Applicants gain an extra advantage if they receive their income via direct deposits. It is also helpful if you subscribe to a service that requires automatic payments.
None of these types of credit cards require security deposits or co-signers. However, consumers in Pennsylvania who sign up for the non-student version of the Deserve® card must pay an annual fee of $39. Still, for a fairly small price, the credit card comes with decent perks for a starter card. So, if used carefully and responsibly, these cards could definitely help Pennsylvania consumers with no credit build credit histories from scratch. However, as mentioned previously, these consumers should know about the risks involved.
Why Pennsylvania Consumers Should Approach Credit Cards that Don’t Require Credit Scores with Caution
Most consumers in Pennsylvania who apply for credit cards that don’t require credit scores receive spending limits of $500 or less. This means that, in order to use these cards to build good credit scores, they must keep their charges small. Ideally, no Pennsylvania consumer should ever use more than 30% of their available credit at any given time. Otherwise, it looks like you are too reliant on credit, and your credit score can drop.
Therefore, if you have a $500 spending limit, you should charge no more than $150. It is also a good idea for consumers in Pennsylvania who use these cards to pay off their balances in full every month. This helps to keep utilization ratios down, and it also saves card holders from interest charges. Unfortunately, credit cards that don’t require credit scores normally come with higher-than-average interest rates. Yet, if you use one of these cards as a credit building tool by charging small amounts to it every month and paying the balance in full, having a high interest rate won’t matter.
How Pennsylvania Consumers Can Protect their Credit Scores While Building their Credit Histories
While building your credit history and growing your credit score, don’t forget to check your credit reports at least once every 12 months. Many Pennsylvania consumers may not know this, but creditors and the credit bureaus frequently make mistakes by mishandling consumer information. These mistakes then show up as errors on credit reports that often damage credit scores.
The Fair Credit Reporting Act (FCRA) entitles all consumers to accurate, error-free credit reports. Yet, you must find inaccuracies in order to demand their removal. So, go to www.annualcreditreport.com to request your free annual credit reports from TransUnion, Equifax, and Experian.
Then, once Pennsylvania consumers have access to all three credit reports, they should review them carefully, and make notes about anything that doesn’t look correct. If you see that errors have brought your credit score down, contact Credit Repair Lawyers of America in Pennsylvania. Instead of dealing with the frustration of the dispute process on your own, let our credit pros do the work for you. By trusting our firm with your credit issues, you’ll also get access to an experienced credit attorney. We’ll do whatever it takes to get you clean credit reports – legally and for FREE.
The Free and Legal way to Get Better Credit in Pennsylvania
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? The law allows us to collect our fees and costs from the defendants in any successful action. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (855) 956-2089 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/pennsylvania/credit-repair/.