How To Apply For Credit Card With No Credit History

Need to know how to apply for a credit card with no credit history? Most new college students know the frustration of trying to apply for a credit card without a solid credit history. It is similar to trying to get a job with no experience, but everyone must start somewhere. So how do you apply for a credit card without a credit history? This paradox can be fixed pretty simply by going through just a few easy steps.

1. The easiest way to apply for a credit card with no credit history is to apply for a secured credit card. A secured credit card means that it's secured by cash—yours. Check with various credit card companies who offer secure cards and make sure you understand the interest rate attached to the credit card. If you are accepted, you will need to deposit a certain amount of cash right up front with the secured credit card company. This becomes your limit, so you're basically pre-paying for this type of credit. Some secured credit cards have as small a limit as $250. Remember, though, that until you build your credit rating, you can only charge up to your secured limit. Any charges over your credit limit will be declined.
2. Another way to get a credit card with no credit history is to get a cosigner. A cosigner basically guarantees that she will pay the credit card bill if you default. Choose your cosigners carefully, as this kind of business partnership can ruin family or friendly relationships.
3. Check with your bank to see if you can attach a credit module to your debit card. Most debit cards these days can act as credit cards also. Check with your bank to see what your credit limit will be, and always check to see what the interest rate will be. Your goal should be to pay off the credit card monthly so that you don't have to pay interest. This will also build your good credit history quickly.

Remember, credit cards can get you into a world of trouble. It's very easy to break out the plastic instead of cold, hard cash for that beer after work, but consider how that $2.50 beer will taste when you realize that it could become a five-dollar beer after interest if you don't pay off your credit card balance monthly.