How To Get A Credit Card If You Have No Credit History

If you want to have a credit card and it is your first time to apply, you might find it hard to find an issuer who can give you a card without much hassle. Some company will take the time to investigate your bank account, salary and work history. Many major providers will not risk issuing credit cards to people who have no borrowing history.

One needs to establish a good credit history in order to boost his creditworthiness. Getting some form of credit is the only way to have a credit history. Making good in your payments and on time settlements of debt balances will earn a person higher creditworthiness score. But where will you begin getting some form of a credit? There must be a starting point where you can build your credit record. Because of this need of people with no credit record, some financial institutions offer some types of no credit credit cards.

The most common type of no credit credit cards is the secured credit card. When you apply for this card, the issuer will not check your debt records; therefore you can be assured of approval even if you have not established a credit history yet. You will just be required to deposit a set amount of money ($200 - $300) in a savings account in a bank. This will serve as collateral to ensure that in case you fail to pay your balance the lender can get their money back. The amount of your deposit will be the equivalent limit that you can use. The lender will only charge from the amount in your savings account if you default in your payments.

Secured credit cards will report to major ratings bureaus monthly your credit payments. The credit bureaus will keep a record of your credit history and this will be the basis of your credit scores. This will serve your purpose of building up a good credit history. You therefore need to keep yourself within the spending limit and pay your bills on time to make your credit record good and have a high credit score. Getting high credit score will boost your creditworthiness and will make you eligible for getting credit cards with better deals like lower interest rates, increased credit limits, rebates, discounts, rewards and many other perks and privileges.

There are a handful of no credit credit cards in the market today. Some examples are the Orchard Bank Classic MasterCards, Public Savings Bank Classic Secured Visa®, IberiaBank Visa® Classic Card, AccountNow® Prepaid Visa® and many others. Most of them have introductory offers like no annual fee for the first year, no activation fee, minimal starting deposit, etc.

Shop around and compare the benefits that you can get before finally deciding to apply for one. Once you have your no credit credit card, spend within the limit and make your payments on time. Within 18 months or so, you will have your credit history established and you may then apply for other types of cards that may offer better benefits than the one you have.

About the Author:
Lam Bong is an Author living in Sydney, Australia. He is interested in reading and creating websites. His latest website is about Perth Tutor and maths Perth tutors on the web today.

How To Get A Credit Card If You Have No Credit History

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