Bank Credit Cards

• Some banks offer Visa or MasterCard credit cards to people who are beginning to establish their credit history. Look first to the bank with which you already have a checking or savings account, since it may be more likely to offer you a credit card based on the fact that you have established a financial history with it. Generally, these credit cards have low limits, but they help you build credit. The creditor may eventually raise your limit, or through responsible use, you will grow your credit history to apply for credit cards with higher limits.
  
  

Store or Gas Credit Cards

• Another approach is to apply for a store or gas credit card. These credit cards are generally easier to qualify for than traditional MasterCard or Visa cards. Make sure that the card reports your activity to the credit bureaus --- Experian, Equifax and TransUnion --- or else you won't be building credit to qualify for a traditional credit card.
  
  

Warnings

• Don't apply for multiple credit cards at once; doing so reflects badly on your credit report and may make it difficult to qualify for new credit in the future. Multiple rejections appear to creditors as though you're desperate for credit. Not only will it limit your future options for credit, but multiple applications can hurt your score. Instead, wait a few months before applying for another card.
  
  

Building Credit

• Building up your credit prior to applying for a credit card helps to boost your chances of qualifying. One method is to apply for a personal loan using your established savings account as collateral. If you can't qualify for a loan on your own, you may be able to do qualify with the help of a co-signer. Similarly, you may consider piggybacking on a family member's established credit card, which means someone else adds you as an authorized user, which helps to build your credit. Once you've established a history of making responsible payments, creditors will feel more comfortable about extending credit to you.