Getting your first credit card requires making trade-offs. In exchange for having no credit history, your credit card issuer may want to have more protection for themselves, uncertain of how you’ll handle credit.
By becoming an authorized user on someone else’s credit card—be it a parent, guardian, or other trusted adult—the credit card issuer will send a card to the primary cardholder having your name appear on the card.
A credit builder loan functions as a tool for people who have low or no credit history. They can use them to begin building up their credit scores by establishing a credit history.
These loans also help lengthen your credit history. Loans appear on your credit report as soon as they are disbursed, even if you don’t start paying towards them until after you graduate.