College student Daniel Lehrman was rejected for the first two credit cards he applied for.
"They said I didn't have enough credit history at all, and they couldn't back me for a card," he said.
Consumer Reports money experts say that even if you are able to get a credit card when you have little or no credit history, the cards are often a bad deal.
"These can have huge start-up costs, big maintenance fees and giant interest rates," said Mandy Walker with Consumer Reports.
Take the Matrix card by Discover from Continental Finance. It has a $75 annual fee, plus a $12 monthly fee that kicks in after the first year.
And the First Premier Bank card has a super-high annual percentage rate -- a whopping 36 percent!
"One of the best options for a first-time cardholder is to get a secured card. It'll require a security deposit that's generally equal to your credit limit," Walker said.
The Capital One Secured MasterCard is better than many. It has an annual fee of $29, its APR is currently 22.9 percent and it has a low late fee of no more than $19.
"If you get a card and establish a good payment history for a year to a year and a half, you can then ask for another one with better terms."
Lehrman was finally accepted for a credit card, and he knows he has to use it carefully.
Consumer Reports says developing good habits with your first credit card can spare you a lifetime of financial grief. Make a point of paying off the balance every month. That way, you won't get buried in debt and end up paying oodles of money in interest charges.
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