If you've never applied for credit before, start with a department store charge card. Macy’s in particular is easy to qualify for and simple to use if you follow certain guidelines.
You’ll need a FICO score of at least 500 to get accepted. You should live in your home for a minimum of three months before applying. If you meet those two requirements you'll likely qualify for credit immediately. Even if you have no credit history but a good employment record and a bank account, try to talk the manager into accepting your application anyway.
You can apply online, by phone or in the store. If you fill out an online application or apply by telephone, you’ll need a major credit card in your name. That’s not necessary if you sign up at the store.
Interest Rate Charges and Late Fees
Macy’s charges an annual percentage rate of 22.9 percent and late fees of anywhere from $15 to $35. If you fail to make the minimum payment for two consecutive billing cycles or you miss a payment twice in a six-month period your interest rate will go up to 24.9 percent. But if you pay your bill on time for six months, the rate will go back down to 22.9 percent. There is no annual fee or over-the-limit penalties.
Bottom line: If you shop at Macy’s a lot anyway, this is a good card to have in your wallet. The special sales events and services make it convenient and economical…But only if you pay the entire bill every month. At an APR of 22.9 percent, you don’t ever want to carry a balance.
How to save big with coupons you get in the mail.
Learn about prepaid credit cards for teens.