In this article, you will learn how to get a credit card without a credit history. It is always very hard for people without a credit history to get a credit card. However , some financial institutions have mapped out some credit cards for people who do not have credit history. What do you need to do?
Get a Job
If you do not have a stable source of income, it will be very hard to repay your credit card balance. The income on your credit card application form must be your own. You cannot use somebody’s income to qualify for a credit card unless you have reasonable access to that money. But it is best to have your own income.
Ensure that make enough money to repay your credit card balance monthly. When your income is higher, you get better chances of being approved for a credit card even though you don’t have a credit score.
Apply for a Store Credit Card
Most retail store credit card issuers approve credit cards for people with no credit. You can easily get a card with no Visa or MasterCard brand. You won’t be able to use the credit card outside that particular store, but it will give you a chance to quickly start your credit history.
Get a Student Credit Card
Are you a student? Apply for a student credit card. These cards are designed for college students who may not have enough income or a credit history. To qualify, provide proof that you’re a college or university student. Choose carefully. Some student credit cards have high interest rates and lots of fees.
Pre-qualify for a Credit Card
A few money lenders and financial institutions have online pre qualification that allows you to see if there’s a credit card available for your credit profile. They are soft credit checks , they will not affect your credit score or show up on your credit report.
However, pre-qualifying for a credit card is not a guarantee for approval. Your income or any other factor could cause you to be denied for a credit card for which you’ve been prequalified. If you’re denied, you’ll get a letter in the mail that tells you the specific reason why. Use this information in the letter to decide what you want to do next. Capital One and Citi both have online prequalification applications.
However retail store credit cards have low credit limits and very high interest rates.
You can also do the followings;
- Get a Secured Credit Card
- Apply for a Credit-Builder Loan ; You take out a small loan from a bank, and you use the loan funds to purchase from the bank a certificate of deposit (CD). You make payments to the bank over time, and when you pay off the amount, you own the CD.
- Get a Co-Signer ; take advantage of somebody’s good credit. You could get someone with a job and good credit to apply with you. Think carefully before you get a credit card with somebody else..
- Make small purchases. Do not overspend. It kills good credit.
Other Useful Tips If You Have No Credit History
After your credit card approval, use your card responsibly so that you can qualify for better credit cards and loans in the future. Maintain a low balance and pay it in full every month to build a good credit history. Also :
- Speak to lenders and ask if they have other ways to qualify you for a credit card. Some lenders will consider payment history from rental or utility records, and you won’t know until you ask.
- A prepaid card is an alternative to a credit card, but it’s only helpful if you don’t have a checking account and debit card. Prepaid cards don’t help you build a credit history.
- Do not apply for many credit cards. If you are turned down for a major credit card , do not apply for it again. Instead, look for a store credit card or a secured credit card.
- Search for credit cards that guarantee approval without first checking your credit score. There’s probably a catch in the form of high fees or a high interest rate or both.