How Can I Get a Credit Card With No Credit History?
Not having a credit card can be a real inconvenience. It can be difficult to rent a car, book a hotel room or take a flight without a major credit card, but when you have no credit history it can be just as difficult to get the credit card you need. You can use a number of strategies, including secured credit cards, to get the credit you need while you establish a good credit history.
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Your Own Bank
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If you need a credit card but have a limited credit history, it is a good idea to start with the bank where you have your checking and savings accounts. An established relationship with the bank can help you get approved for the credit card you need. You might want to speak to the branch manager and explain that you have no credit history before you apply. The manager may be able to steer you toward a card for which you can be approved.
Credit Unions
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Credit unions are owned by their members and not by shareholders, and that means they are often more consumer friendly than big banks. If you have a credit union in your area, it is worth your while to stop in and ask about the credit cards they offer. You might find that you can be approved for a credit union card even if you have a limited credit history. The initial credit limit on that card could be quite low, but paying the card on time can help you establish a credit history.
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Secured Cards
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A secured credit card is tied to a bank deposit, and the amount you can charge is limited to the amount of your bank deposit. Secured credit cards can be a good alternative, not only for those with no credit history but those with a poor credit history as well. Secured credit cards allow you to build up your credit as you make the payments on time, and once your credit history has been established you can move on to a traditional unsecured card. It pays to shop around when looking for a secured credit card, since some cards charge high fees.
Pre-paid Cards
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If you are unable to get a traditional credit card and do not want to deal with the hassle and expense of a secured card, you can purchase a pre-paid Visa card instead. These pre-paid cards provide the convenience of a credit card, since they are accepted at any merchant that accepts Visa payments. You can simply reload the card with additional money when it runs low and continue to use the card. You can use these pre-paid cards while you build up your credit history to the point where you can be approved for a traditional card.
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References
- Photo Credit credit cards image by Aleksandr Lobanov from Fotolia.com
