Credit Cards For No Credit

For those who do not have an established credit history, getting a credit card can be challenging, but it is not impossible, and it is much easier to get a credit card if you have no-credit than it is to get one if you have bad credit. Though new laws have been passed recently that are designed to help protect vulnerable consumers, such as those with no established credit history, it is still important to be cautious when trying to find no-credit credit cards. Keeping a few simple tips in mind can help you to find the best credit card for your needs.

One of the easiest ways to get credit cards with no credit is to find someone with a good credit record to co-sign. Since most people without established credit are young, often parents make excellent co-signers. When you have a parent or someone else with good credit co-sign, the credit card company will base their response on the co-signer’s credit history instead of just yours. Not only will this increase your chances of being approved, but it may also earn you lower interest rates. It is important to remember, though, that in this situation, the co-signer is equally responsible for any debt you incur.

If you are unable to find someone who will co-sign, you will need to find a a company that caters to people without established credit. There are numerous credit cards for people with no-credit, but it is important to carefully read their terms and conditions prior to applying for a card. Many no-history credit card companies charge customers high fees. In some cases, the fees charged on a new account will eat up a large portion of your credit limit before the card even comes in the mail. Some also charge very high annual and monthly fees. Another option is a secured credit card. These cards work similar to debit cards. Customers are required to deposit an amount of money to their account, and then they can charge that amount. Unlike a debit card, however, secured credit cards report to the major credit bureaus, making it possible to establish one’s credit with such a card. Though they only allow customers to essential spend their own money rather than charging, they are a great way to build a good credit record. Secured credit cards are available from major credit card companies such as Visa and Mastercard, so they can be used as a credit card wherever these cards are accepted. For those who are in a crunch and need money to make a specific purchase, many store credit accounts have less strict requirements than major credit card companies. Getting a store credit card can allow you to make the purchase you need, but it can also prevent you from spending on other items at other stores. Some banks also specialize in providing credit cards to those with limited credit history. Though they charge initial and annual fees, Orchard Bank and First Premier Bank provide no-credit consumers with credit cards.

Once you have found the right no-credit credit card for you, it is important to be responsible. Always pay your bill on time, and if possible, pay more than just the minimum amount. Using credit cards responsibly is an important step in establishing a good credit history that will allow you to easily obtain credit in the future.