How To Get A Credit Card With No Credit History

Oddly enough, not only will bad credit work against you when
applying for a loan or a credit card, but so will NO credit
Even though this doesn’t seem fair, it’s the way things work in
the complicated world of consumer credit Lenders are leery
about opening accounts for people with no credit history, simply
because they have nothing by which to judge your reliability
If you can’t build a credit history without credit, and you
can’t get credit without a credit history, what can you do? It’s
nearly impossible to rent a car, stay in a hotel, or shop online
without a credit card
Let’s explore a few ways to work around this “Catch-22″
Getting Started in Credit
Although many of the major credit card companies won’t give you
a card without a credit history, some smaller ones will
Department stores are likely candidates Gas station cards are
also easier to get
Also you can look for a credit card company that will review
your overall financial situation, not just your credit history
Some lenders will look at your employment history, your housing
situation, and how often you have moved If all this meets their
standards, they may approve your application
Credit Unions
If you are a credit union member, or are eligible for
membership, see what their card issuing terms are They 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 to find out if there’s one
in your area
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 you will need after graduation Many banks
will issue college students a credit card, especially banks that
are located in college or university cities and towns
Secured Credit Cards
As a last resort, because of their high interest rates, secured
credit cards are available They are offered by lenders who will
give you a line of credit either equal to, or 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
When you do manage to get a credit card, don’t go on a spending
spree — you will regret it in the very near future Use your
card wisely, and above all be sure to make all payments on time
Your goal is to build a good credit history, not just get a
single credit card Soon you’ll be complaining about all the
credit cards being offered to you in the mail

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