How To Apply For A Credit Card With No Credit History
If you are searching for how to apply for a credit card with no credit history, then you should probably know that, where there is a will, there is a way. It's really not as tough as you might think it would be in today's economy. Here's the simple truth: credit card companies want people to own cards, and they want business. As long as your willing to try, they are willing to work with you. If you have no credit history, it is likely that creditors will not be able to look into your FICO credit. The FICO score is what determines whether or not you would be a candidate for a credit card. There are a few certain tricks and techniques you can use to get that card in your finger tips in no time.
- Banking. Creating and maintaining a great bank account can get you a long way with no credit history. You don't need a credit history to open and maintain a bank account. Once you have had that bank account for at least six months, you may be able to apply for small personal loans which builds credit history. Not only will having your own bank account help creditability, but you can establish a FICO score from small loans.
- Employment History. Another huge factor that can play a part in getting a credit card with no credit history is to establish a steady line of employment history. Say you have been at the same company for ten years and have no plans of leaving—this makes the creditor feel that you are secure enough to hold down a job, thus proving you could make the payments for a credit card.
- Monthly Bills and Utilities. Yes, who knew that paying your enormous energy bill could give you a chance at a credit card. It's true. This is one easy way to get a credit history without having one. Having your name on these bills not may fully be able to get yourself a credit card, but it establishes a secure foundation, especially for first-timer borrowers and loans.
- Department Stores. While this option may not be the best, sometimes even without any credit history, department stores are willing to give you a chance. These cards are not like a regular credit card, but they can open the door for you. The way these cards work is simply you buy things within that store with their card, pay it off, and it records onto your credit history. The only drawback to these department store credit cards is the fact that they have very high interest rates.
- Check for Secured Credit Cards. Many credit companies actually have what is called a "secured credit card," which is just a card with a certain credit limit. It's usually recommended for first time credit card users, and often the credit companies count on those without credit history to apply for these types of cards.
The bottom line when trying to get credit cards with no credit history is to work up to the actual card. It's best to try to build a financial history whether it be through bills, bank statements, or even your employment history. If you are willing to keep working at it, you will receive the pay off. Just make sure you can back up those credit cards with the correct payments. No credit history is better than bad credit history.
Tips and Warnings:
- Being a student in college may get you a credit card faster. The truth is, the companies are more wiling to give to a student rather than an average Joe.
- Purchasing a prepaid card may work better than an actual credit card for some people that do not want to hold cash on them. Prepaid cards do not help credit scores, but are easily accessible.
- Be careful of "fake" or "spoof" credit card offers you may get in the mail or e-mail. These offers are typically scams to get information.