Credit unions and secured credit cards are two ways of getting a credit card without a credit history. For this article we will look at a credit union credit card.
There are several credit unions in United States and as far as you and I are concerned they work just like a bank. You can open a savings and checking account, get an auto loan and get a credit card from them. However they are slightly different from banks and if you are interested to know how they operate, you can read about them in Credit Union.
As far as a credit card is concerned, you need to get yourself enrolled as a member of a credit union first. For this there are certain eligibility criteria that you must pass.
Usually these are the ways in which you can get registered:
1. Relatives are members: The easiest way to join a credit union is when someone from your family is already a member. They can just refer you and thats it!
2. Your employers is an eligible entity: Credit Unions have a list of companies which are their affiliates. If your employer is part of this list then you qualify automatically.
3. Your organization is an eligible entity: If you attend a place of worship, school or any other organization that is on the approved list, you can join the credit union.
4. Your community is eligible: If you attend school, job, church or any other organization that is part of an approved community, you get automatic membership.
So as you can see getting membership in a credit union is easier than you think and once you have membership, you can apply for a credit card and in most cases get one.
This may well be the best way to start building up your credit.