Tips On How To Apply For A Credit Card With No Credit History

May 1, 2010

Its odd that not only will bad credit work against you when applying for a loan or a credit card, but no credit will too.This doesn’t seem fair right? But this is the way things work in the complicated world of consumer credit. Lenders are cautious about opening accounts for people with no credit history because they simply have nothing to base your reliability on.

So, if you can’t build a credit history without credit and you cannot get credit without a credit history, what can you do?
It’s nearly impossible to rent a vehicle, stay in a hotel, or shop on the internet without a credit card. So what are your options?

Department Store Credit Cards

Most major credit card companies will not give you a card without a credit history. However, some smaller ones, like department stores, will. Find a department store that’ll issue you a card and apply for it. You can try getting a gas station card also. Either way, use your card but be sure to make all payments on time. Your goal is to build a good credit history, not just get a credit card.

Find a credit card company that will review your overall financial situation and not just your credit history. Some lenders will look at your employment history, your housing situation, and how often you have moved. If this is all checks out, they might approve your application. Again, use this card wisely.

Credit Unions

If you’re a credit union member, or are eligible for membership, see what their terms are on their credit cards. They wont just be handing out credit cards with their eyes shut, they will often have more relaxed conditions for members. You no longer have to work for a specific company to be eligible to join a credit union. So it’s well worth checking if there is one in your area.

Secured Credit Cards

Secured credit cards are offered by lenders who will give you a line of credit that either matches, or is slightly higher than, a cash deposit that you give them to hold. As your experience with the card grows, these lenders will often raise your limit without requiring you to increase your deposit. Eventually, you can use your experience with this lender to apply for cards that are not secured.

Student Credit Cards

If you’re a student, then you will be ideal off with a student credit card. Student credit cards can be a great way of building the credit history that you will need to depend upon after graduation. The important thing here’s to remember to use that opportunity wisely. Many banks will issue college students a credit card, especially banks that are located in college or university cities and towns.

When you do manage to get a credit card, remember that you’re establishing a credit history. Show that you’re a good financial risk by paying the bill on time. Don’t go crazy with the spending. It will only cause you problems in the future.

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