How to Get a Credit Card If You Have No Credit History

Building credit with a credit card is one of life’s paradoxes – you need credit to get a credit card. If you have no history yet, creditors will often treat you as if you have bad credit, though they are not the same. The reasoning behind this logic is that you have not been able to show how disciplined you are as a payer and cardholder.

Obtaining Credit Score

In order for you to qualify for a card, you need credit history. Your credit score is a rating for your credit behavior and your behavior is displayed in your credit report. Your credit report contains your credit history information, how you paid your balances, and whether or not you have existing debt. Creditors take a look at your credit report as well as your credit score. Unsecured cards have credit score requirements.

If you don’t have credit history, you can’t have a credit score. To obtain it, you need to have a credit card or any type of credit line that has been active for at least six months.

Why Get a Credit Card

If your main goal is to establish history, remember that a credit card is not the only way to build it. However, if you don’t have such plastic yet, you are missing out on a lot of things. First is that there are credit card perks that you can acquire for free. These include extended warranties on your purchases, travel insurance, automatic eligibility for roadside assistance, and anti-fraud protection.

Second, although a credit card is not your only choice for building credit, it is actually your best choice. It has the ability to establish, maintain, and raise scores faster than any other type of credit line. If used responsibly, your card can be your gateway to obtaining a low-priced dream house, for example. This is because there is a huge difference between the amount you will have to pay if you have excellent credit and when you have poor or limited credit.

How to Get a Card

Obtaining a credit card without credit history is difficult, but it is not impossible. Here are some ways to get your first card: 

• Get a store card – Many stores are willing to dole out cards to buyers, even if they have no history. Apply for one that reports to credit bureaus. Start using the card, but make sure you don’t purchase more than how much you would with real cash. Moreover, don’t forget to pay off your bills in full each month.
• Open a secured card account – Make a deposit, usually from $200 to $3,000 and link the secured card to your savings account. Start making purchases against it and make timely payments. Most secured cards report to credit bureaus, but it still pays to make sure your card does so. When used wisely, you may be allowed to switch to an unsecured card after at least six months.

 The two types of cards mentioned above don’t require credit check. Use them correctly to build your credit history and to be able to get the card you truly want in the future.