In addition to convenience, rewards, etc., using a credit card is a simple, practical way to build your credit score.
Your credit score is a number that represents the risk to a lender when you borrow money. Your credit score impacts the likelihood that your credit card application gets approved. If your credit score is below the credit card company’s required score, they could decline your application.
Take the opportunity to strengthen your financial situation and increase the likelihood of approval the next time you apply.
Order your credit report for free to verify your information, then start building or improving your credit score. Look for ways to boost your income and lower other debt. Avoid re-applying until some time has passed and you have a more substantial employment history.
Some companies might offer a secured credit card option for low-scoring customers.
Simply put, a higher credit score indicates a lower risk to lenders.