Easy Ways To Obtain Credit Cards Even With No Credit History
Did you know that besides bad credit, a no credit history could also hurt you when the time comes for you to apply for a loan or a credit card? Surprising, isn’t it? This may seem unfair or unreasonable from your point of view. However, look at it from the perspective of the moneylenders. It would be a little scary to open an account for a person who has no credit history. Without a credit history, lenders and credit card companies are not able to judge your reliability to make payments on time.
What are you supposed to do, then, when you can't build a credit history when credit card companies won't approve your credit card application in order to build a credit history? There's actually a few ways people with no credit history build one.
Credit Card Options Available to You
You might not be able to get a credit card without a credit history from the bigger card companies, but you would be able to obtain one from the smaller companies, such as department stores or gas stations that offer a line of credit. Whichever one you choose, make sure that you pay on time because you want to build a good credit history to demonstrate to bigger credit card companies that you are a credible card user.
You could also try a credit card company that is willing to look at you entire financial situation instead of your credit history. Things they will review are your employment history, housing situation and the number of times you have moved. If a company gives a favorable review of your financial situation, you might get your credit card application approved. Again, use your newly acquired credit card wisely.
Credit Cards from Credit Unions
If you are eligible for membership or already a member of a credit card union, look at their policy for issuing credit cards. Although credit unions tend to be selective when issuing credit cards to members, they usually have less stringent terms. Because credit unions don't require you to be with a specific company in order to become their member, it's a good idea to check them out if one exists near where you live.
Secured Credit Cards from Lenders
A lender would generally give you a line of credit that is equal to or a tad bit higher than the cash you deposit with them. This type of credit is called a secured credit card. As you use your secured credit card and make payments on it regularly, your lender may increase your limit without the need to add cash to your deposit. You can eventually apply for an unsecured credit card from bigger credit card companies because you would have established a credit history with your secured credit card.
Student Credit Cards for Establishing Credit History
If you are a student, you can avail of a student credit card. Having a student credit card is a good way for you to build a credit history. By the time you graduate and enter the real world, you will have an established credit history and it will be much easier for you to get approved for major credit cards. Check the banks near your college or university. Most of these banks are willing to issue credit cards to college students. Once again, always remember to use your student credit card sensibly.
Whichever option you take, keep in mind that you are trying to build not just a credit history, but a good credit history. Whether it's a department-sponsored credit card, a credit card issued by your credit union, a secured credit card or a student credit card, show future lenders and credit card companies that you are a reliable credit card user, not a financial risk to them. Use your card wisely, pay bills on time and avoid making outrageous purchases. By learning how to use these cards properly and wisely, you will become a good credit card holder.
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