A Guide To Find The Best Credit Cards For No Credit History
(for students, etc…): To begin build credit
Credit history is one of the primary factors that credit card companies consider when approving an applicant.
When applying for your first credit card, you will find yourself in a classic Catch 22 situation – how do you build credit history when you have not had a credit card before?
Getting approved for your first credit card can be difficult as financial institutions have no way to gauge your ability to repay loans or to pay bills on time.
Fortunately, it is not impossible.
Here is a guide to finding the best credit cards for no credit history.
If You Are A Student…
If you are enrolled in college, you have a good chance of getting approved for a student credit card.
These cards are meant for college students who may not have a large income or credit history.
Choose carefully- some student credit cards have high annual fees and interest rates, which make them a bad option for a first credit card.
Look for one that makes it easy for you to build good credit and choose just one.
If You Are Not A Student, Get A Job
Earning a steady income will put you in a better position to get approved for your first credit card.
Before they approve you, credit card issuers have to make sure you have the means to repay the credit card balance with your own money –your parents’ or spouse’s income does not qualify you for a credit card.
Apply At Your Bank
If you have been responsible with your checking or savings account, your bank is a good place to apply for credit cards for people with no credit history.
Visiting the bank branch is better than applying online as it puts you face to face with a bank official who may have more authority to get your application approved.
Get A Retail Or Department Store Card
While retail and department store cards have interest rates and are limited in that you can only use them in that particular store, they can help you build up a good enough credit history so it is easier for you to apply for a major credit card in the future.
Apply for a Prepaid Card
The easiest way to build credit and enjoy the benefits of a credit card is to apply for a prepaid card.
You do not require credit history to apply for a prepaid card and it can be used just like a regular credit card.
Moreover, you do not have to worry about exceeding your credit limit or late fees.
With prepaid cards you will find you have two options to choose from.
Some cards require no activation or overdraft fees but because they do not report your credit to any major credit bureau, they may not help you build credit history, which is your mail goal.
Other cards, charge you a fee for activation, but by reporting your credit, they help you build that all-important credit history.
Best prepaid credit cards for no credit history:
- Bankcorp Bank-Paypal Prepaid MasterCard
With no credit check, no interest charges, no overdraft fees, this is a highly recommended prepaid card.
- Bancorp Bank Pink or Purple Diamond Prepaid Visa RushCard
While you will have to pay an activation fee for this card, it is great if you are looking for credit building credit cards.
Click the banner above to find and apply to these cards
Apply For A Secured Credit Card
The only criterion for applying for a secured credit card is that you have to make a deposit against the credit limit of the account.
The bank holds the deposit just in case you don’t make your payments as agreed.
As long as you’ve been making your payments on time, most issuers will agree to convert this secured card to an unsecured one.
Best of all, there’s nothing on your credit report to indicate you have a secured credit card so it won’t hurt your chances at getting other credit cards.
Make sure you pick one that has low fees and reports to the major credit bureaus.
Best secured credit cards for no credit history:
- Capital One® - Capital One® Secured MasterCard®
With no processing or activation fees, It will help build your credit by reporting to the major credit bureaus. It will also help you monitor your credit with access to your credit score and other tools.
Click the banner above to find and apply to this card
A Few General Tips For Applying
Applying only to those cards that target ‘moderate’ or ‘limited’ credit will improve your chances of getting approved.
Proceed cautiously when applying for any credit card that guarantees approval without checking credit score.
These usually have a catch, which could be in the form of high interest rate or high fees or both.
Don’t let a few denials discourage you.
It is only expected when applying for credit cards for no credit history
Persistence, research and patience are the key to getting approved for your first credit card.