How to Compare Credit Cards With No Credit History

Researching credit cards saves money in the long-term.

A variety of credit cards for people with no credit history exist. Research terms and fees before you apply. Understanding the terms of a credit card decreases the chance of becoming victim of high fees and interest rates.

Introductory Rates

Compare introductory rates. Some cards offer introductory rates to new customers. In some cases, high late fees and annual percentage rates accompany the card after the introductory period ends. Reading the fine print is essential to determine whether you can afford the card when the introductory period ends.

Fees

Pay attention to annual, inactivity, and over-the-limit fees. According to a survey conducted by Bankrate, only a small number of credit card issuers implement these fees; however, some companies still utilize them. High annual, inactivity, and over-the-limit fees add up fast and lead to needless hassle and money loss.

Secured Credit Cards

Review terms of secured credit cards. A secured credit card provides the benefits of a traditional credit card except the credit line is secured by funds deposited by the borrower. Avoid secured credit cards with processing fees and high interest rates. Curtis Arnold of CardRatings.com notes that he has never heard of an application-processing fee for a secured card.

References

• Bankrate: How to Find the Best Credit Card Rates
• Bankrate: Are Credit Card Fees Increasing?
• MSN Money: The World's Worst Credit Cards