How to Apply for a Credit Card When You Don’t Have a Credit History
Getting a credit card with no credit history can seem like a daunting task. But it doesn’t have to be so challenging. There are steps that can be taken to ensure that you can qualify for a card without any credit history.
Get Pre-Qualified for Credit Cards
A few major credit card companies have an online prequalification tool that helps you see if there are any credit cards that you can apply for. Applying for pre-qualification will not affect your credit score, but can be a great way to understand where you stand.
Get a Student Credit Card
If you don’t have a credit history because you are a student, you may be able to get a student credit card. These cards are offered by credit card companies to university students who do not earn a sizable income or have a strong credit score. There are many excellent student credit cards that you can opt for.
Apply for a Store Credit Card
Retail store credit card issues are known to approve credit card applications even for people who have no credit. Of course, the downside is that you can’t use these cards at different stores, and these cards have low limits and high rates of interest. But if you keep your balance low and don’t rack up a lot of interest, these cards are a good option.
Get a Secured Credit Card
Secured credit cards work like regular credit cards, except that you have a predetermined credit limit that is usually dependent on how much security you pay. This is the most amount of money that you can charge to the card at any point in time. Just ensure you review all the fees and charges associated with the card before you make your decision.
Apply with a Co-Signer
If you want a regular credit card despite not having a great credit score, your best bet is to apply for a credit card with a co-signer. But this has some drawbacks. For one, another person will have access to your credit card account and know what purchases you are making. Also, any payment defaults will also affect their credit score and payment history, so it’s all the more important that you pay your dues on time.