Many people who don’t have a credit history find it difficult to get a traditional credit card. Most credit card issuers require that applicants have a credit history before they issue them a card. However, you can’t get a card unless you have an active credit account and have had it for at least six months. The good news is that some credit card issuers realize the conundrum that people with no credit history are in and issue them credit cards so that they may begin building a credit history.
This article will offer tips on how to get a credit card with no credit history. By following the tips outlined below, you should have a better chance of getting approved for at least one credit card.
Secure Employment Before You Secure a Credit Card
To repay your credit card balance every month, you will need a steady stream of income. When you apply for a credit card, you will need to prove you’re either employed or have another source of income. This income can’t come from your parents or spouse unless you have unrestricted access to that money.
Most credit card issuers require that you make enough money to pay back your minimum balance every month. If you have a higher income, you can generally get a credit card even without a credit history.
Pre-Qualify for A Credit Card
Some credit card issuers allow you to find out in advance whether they have a credit card that may fit your particular profile. This pre-qualification process won’t hurt your credit score in any way as it is a soft credit check. If you actually apply for a card, that could affect your credit score.
Just because you pre-qualify for a card doesn’t mean that the issuer will approve your application. The issuer will need to assess other factors such as your source of income to determine whether you qualify for the card.
Secured Credit Cards
These cards may work for people who experience trouble getting a traditional credit card. If you decide to get a secured credit card, be sure to select one that reports to the main credit bureaus and does not hit you with a lot of fees.
With secured credit cards, you’re required to provide a security deposit to the issuer that will then become your credit limit. If you don’t immediately have access to the amount of money that you need to put down as a deposit, you should save for a few months and then apply for the card of your choice.
If you can’t get a credit card on your own, consider using a co-signer (a friend or family member with a good credit history). Getting a co-signer will increase your chances of getting approved for a credit card.
Don’t apply for a lot of credit cards at once. If you get denied for one card, don’t continue to apply for others. Consider getting a secured credit card. Do your research in advance, so you’re not so desperate for credit that you put yourself in a bad situation.
When you get approved for your first credit card, use it wisely. Pay off your entire balance every month so that you can begin building your credit score and get cards and loans with better terms in the future. Make sure that you keep your card balance low as not doing so can negatively affect your credit score.