People who have no credit often have a hard time getting a credit card for no credit. They often find themselves caught in the familiar Catch 22, wanting to build credit, but because credit card companies see there is no credit history, they cannot. Despite being against the odds, there are several ways individuals can obtain a credit card with no credit. We won’t pretend that it’ll be easy (nothing in life is) but there are definitely steps that consumers can take to establish credit and finally be recognized by the credit card companies as a financial player.
Employment is First When Applying For Credit Cards For No Credit
The first thing on the list of dos when it comes to qualifying for a credit card for no credit, is to make sure you have a job. No one will be willing to hand you a credit card without a sufficient income to repay credit card balances. We think this is just common sense. So, if you’re a freshman just making their way on campus, we want to say that the student job that comes with Financial Aid probably won’t count as a sufficient income source. Income from a spouse, parent or other household members cannot be used when filling out a credit card application, so do yourself a favor and make sure your income is up to par.
Check with Retailers for Credit Cards for no Credit
Another option for consumers with no credit is to apply in-store. Retail store credit cards have a reputation of approving credit card applications for people with no credit. Unfortunately, you’ll be more likely to get approval from credit card companies that do not carry the VISA or MasterCard branding. Another drawback to this method is that retail store cards have lower credit limits and higher interests rates. So, if you find yourself approved for one of these types of credit cards, be sure to keep your balance low and make all payments on time to avoid getting slapped with ridiculously high interest rates.
Secured Credit Card Options
Secured credit cards are also a viable option. Secured cards are one of the best sets of credit cards for no credit. What makes a secured credit card different from other credit cards is that users have to make a security deposit in order to gain access to their credit limit. Potential credit card holders have to be aware, reading the fine print. A lot of the secured credit cards for no credit history contain fees that can end up costing the cardholder more than they bargained for. Keep in the know when choosing to go this route.
There is no need to be hopeless when attempting to obtain a credit although there is no credit history involved. Several options are available to consumers who want a credit card but have no credit history to obtain one. Companies are making it possible for prospective cardholders to earn their way to a better credit.
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