For many who are young (16-21 years old), getting credit is almost impossible. The reason is that they haven’t yet established a long credit history. So a car loan company or mortgage company will be wary to loan someone tens of thousands of dollars when they have yet to prove their creditworthiness (I can’t believe that’s a word). So the task is to build up your credit. One great way of doing that is with secured credit cards.
Here is how secured credit cards work. You deposit funds into your credit card account. That amount you have is your credit line. You can then use whatever balance you have to make purchases. There is little risk for the credit card company, since they’re not loaning you any money. These cards are extremely easy to get approved for and are great for a young person to build up their credit. Not only that, but you can even earn a little bit in interest from your balance every month.
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