I can almost hear you: “Credit cards for people with no credit history? You’ve got to be kidding!” Well, building a credit rating has to start somewhere. Banks and other lending institutions are still in the business of making money! The truth is that, with no credit history, you stand a better chance of getting a credit card than the person with a poor credit history. While it’s true that you shouldn’t expect to get a large line of credit, lenders and credit card companies do give credit cards for people with no credit history, particularly if you can demonstrate that you’re a good risk. So, just how do you demonstrate this favorable characteristic? Here, we’ve got a few pointers to help you get a credit card going and build a good credit rating.
Just as it’s difficult for young people with no job history to find a job, it can be difficult to obtain credit without previous credit behind you. That is, unless you know how to go about it. The key is to start small and make the most of your reputation. What does this mean? Read on …
Let’s say you have a job and are regarded by your employer as a dependable and honest employee. Favorable image number one. Furthermore, you have a bank account you’ve kept in good order. Do you also have a savings account, to which you make regular deposits? These are all signatures of a financially responsible person. If you don’t know have these ducks in a row, get them going now.
Most credit card applications have space for you to list credit references. When it comes to credit cards for people with no credit history, think outside the box! Do you rent your home? Pay for electricity or other such services? If you’ve always paid these debts on time, list them as references. Remember, credit card companies want business. They’ll check these references. Good feedback helps you here.
Do your parents have good credit and have trust in your financial judgment? Ask them if they will co-sign on a credit card. This is a great way to obtain credit cards for people with no credit history to speak of … this method also helps add to your credibility. With a small credit limit, timely payments and no over-the-limit dings, the bank will automatically raise your credit limit over time. What’s in it for them? Interest, of course!
One thing you don’t want to do is apply for multiple credit cards, not until you’ve established a good credit rating with one credit card. Make every payment on time. When you’ve demonstrated yourself to be a good risk, with a history of at least 6 months of reliable payments, you may be tempted by several other credit card offers coming to your mailbox. As said above, start small. Don’t take on more than you can realistically maintain.
Have you considered getting a gas credit card? These are among the easiest credit cards to obtain. You buy the gas anyway, so why not use this fact to start building a credit history?
In all of this, making payments on time is paramount. Credit cards for people with no credit history? Sure. Why not?