Credit Cards With No Credit History
Applying for a credit card with no credit history can be a daunting task. Getting credit is often a catch-22 - credit card companies want you to have an established credit history, but none will give you a chance to prove yourself.
The most common types of people with no credit history are students or new residents of the US. You may also find yourself without a credit profile if you have never had utilities in your name or rented an apartment. Generally, providing your social security number when signing up for products or services will establish a credit history - and provide means for collecting if you fail to pay your bills.
What are your options?
No credit history credit cards are available and can help pave the way to a solid and healthy credit history. Here are some options:
Student credit cards are designed for people with limited or no credit histories. These are generally reserved for students 18 years or older attending an accredited college.
Department store credit cards typically have low limits and high interest rates. You are also limited to only using the card at the department store.
Secured credit cards require you to put up a deposit to cover your 'credit' line should you fail to pay your bills. Your credit line (above your deposit) will generally be very small.
Cards for damaged credit. Unfortunately banks often view people with no credit history as high risk borrowers. Credit cards for damaged credit often have hefty fees but can be a small price to pay to establish your creditworthiness.
Personal loans may be available online or from your local bank. While personal loans do not have the convenience of credit cards, they can be another way to establish credit.
Getting a credit card with no credit history will be easy for some and challenging for others. Since every situation is unique it is up to you to determine what product will get the best results. Once you establish a positive credit profile be sure to practice responsible credit management. If you think getting a credit card is difficult with no credit history, just ask someone with bad credit!
