Getting A Credit Card Without A Credit History

Getting A Credit Card Without A Credit History
Oddly enough, not only will bad credit work against you when
applying for a loan or a credit card, but no credit will too
Even though this doesn’t seem fair, it is the way things work in
the complicated world of consumer credit Lenders are leery
about opening accounts for people with no credit history because
they simply have nothing to base your reliability on
So, if you can’t build a credit history without credit and you
can’t get credit without a credit history, just what has a
person to do? It’s nearly impossible to rent a car, stay in a
hotel, or shop online without a credit card, so let’s explore a
few of the options that can eliminate this Catch-22
Available Credit Options
Although many of the major credit card companies won’t give you
a card without a credit history, some smaller ones, like
department stores, will Find a department store that will issue
you a card and apply for it You can try getting a gas station
card also Either way, use your card but be sure to make all
payments on time Your goal is to build a good credit history,
not just get a credit card
Find a credit card company that will review your overall
financial situation and not just your credit history Some
lenders will look at your employment history, your housing
situation, and how often you have moved If this is all on the
up and up, they may approve your application Again, use this
card wisely
Credit Unions
If you are a credit union member, or are eligible for
membership, see what their card issuing terms are Although they
are no giving out cards with their eyes closed, they will often
have more relaxed conditions for members You no longer have to
work for a specific company to be eligible to join a credit
union So it’s well worth checking if there’s one in your area
Secured Credit Cards
Secured credit cards are offered by lenders who will give you a
line of credit that either matches, or is slightly higher than,
a cash deposit that you give them to hold As your experience
with the card grows, these lenders will often raise your limit
without requiring you to increase your deposit Eventually, you
can use your experience with this lender to apply for cards that
are not secured
Student Credit Cards
If you are a student, then you’ll be best off with a student
credit card Student credit cards can be a great way of building
the credit history that you will need to depend upon after
graduation The important thing here is to remember to use that
opportunity wisely Many banks will issue college students a
credit card, especially banks that are located in college or
university cities and towns
When you do manage to get a credit card, remember that you are
establishing a credit history Show that you are a good
financial risk by paying the bill on time Don’t go crazy with
the spending It will only cause you problems in the future

Tags | card, companies, consumer, credit, department, employment, financial, history, lenders, reliability, result, secured, specific, station, stores