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When credit cards were first introduced, they were a pretty simple proposition: use your card for purchases, and be charged a single rate of interest on your unpaid balance.
Then came the rise of the ATM (cash machine), and credit card issuers realised they could lend money by allowing their cards to be used to withdraw cash on account, and could
earn more this way by hiding away a higher interest rate for cash withdrawals in the credit agreement small print.
Next came the balance transfer offer, with either long term low rates or an introductory 0% deal, closely followed by introductory deals on purchases too. Not to forget the
different interest rate often charged for overseas use.
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All these different rates for different kinds of card use can easily become confusing, and survey after survey showed that many credit card users were unaware of how much their
card use was actually costing them.
In many respects, this suited the card companies down to the ground as they could advertise eye-catching rates for purchases and balance transfers while quietly imposing more
lucrative charges on other kinds of card use.
Amidst all the confusion though, some card issuers spotted a gap in the market - how about a simple, easily understood credit card with no offers or benefits, just a single low
rate charged however the card was used? These cards became known as flat rate cards and their names usually reflected their transparency and ease of understanding, for example
Barclaycard with their 'Simplicity' card, or the Co-op Bank's Clear.
Flat Rate Credit Cards
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So you have decided that you want to get a credit card only you may have credit that is not so hot or even no credit history what so ever. Many consumers wonder how it is possible to build a credit history with no credit or credit that might not be so swell. Surprisingly enough it is very possible for consumers finding themselves in these two particular situations to begin building a solid credit history without having to have a traditional credit card.
A secured credit card would be quite simple for someone with no credit or less then perfect credit to be able to qualify for and receive. All you need to do is complete the application for the secured credit card and make the required security deposit. After those two steps are completed you are well on your way to building a solid credit history.
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Just keep in mind that you need to apply for a secured credit card that will report all of your credit activities to all three of the major credit reporting agencies.
Department Stores such as Sears and Macy’s will often take a chance on someone who may not have any credit and give them a credit card. So if your luck hasn’t been great in applying for traditional credit cards try your luck in applying for a department store card to use as a tool to start a solid credit history foundation.
Many gas stations will allow people with tarnished credit or no credit history to have a gas station credit card. If you are in either of these situations try applying for a card at your local gas station to begin building a credit history.
Getting A Credit Card
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