Five Ways to Get a Credit Card Without a Credit History
Is it possible to get a credit card without a credit score? Not having a credit history can make it difficult to get approved for a credit card, but it is not impossible. In fact, there are certain cards designed specifically for those who have no credit score or very limited credit history. While you may face some hurdles when trying to qualify with major banks and lenders, here are some good options for getting your first credit card with no advance credit.
Apply for a secured credit card
One of the best ways to get a loan off the ground is to use a secured credit card. With a secured card , you pay a refundable security deposit, usually $200 or more, which becomes your credit limit. Because a deposit reduces risk for the lender, it’s much easier to get approved for secured cards if you don’t have a credit history. You can browse your card options at Creditcardsexplained.com . Of course, be sure to make all payments on time and keep your balance low. After 12 to 18 months of responsible use, you can often upgrade to a regular unsecured card and get your initial deposit back.
Get a student credit card
If you’re a college student, consider student credit cards from major issuers like Discover, Capital One, and Bank of America. These cards are designed for students with little or no credit history, although you may be required to show proof of income from work or other sources.
Become an authorized user of someone else’s credit card
Another option is to become an authorized user on someone else’s credit card with a long positive credit history and a low balance. Essentially, it’s using their credit history and their good habits will help improve your credit score. See if a parent, spouse, or other trusted person adds you as an authorized user on their credit card account.
If necessary, consider using a retail store card.
Retail credit cards, while not ideal in the long term, can help you get credit. Brands like Target, Kohl’s and others may have less stringent approval requirements. Just beware of lower credit limits and higher interest rates on retail cards. Use them sparingly and consider cutting them completely once your credit is in good standing.
Ask a close family member to be your collaborator.
Some major credit card issuers allow applicants with limited or no credit history to have a co-signer. A co-signer is a person with a good credit history who agrees to share responsibility for the debt if you fail to pay it. This may help you get approved, but comes with risks for both parties.
Be prepared for liability before you apply.
Before you apply for any credit card, review the card’s features, fees, APR and approval requirements. Make sure you understand its annual fees, interest rates, and credit limits. Many student and secured cards have lower fees and benefits, so set realistic expectations. Once you’ve been approved for a card, it’s important to use it responsibly . Make payments on time every month, keep your credit utilization low, and avoid maxing out your available credit. Think of your first credit card as a tool for building a solid credit history through good financial habits.
It is absolutely possible to get approved for your first credit card, even without a credit history. To get started, be strategic, be a responsible borrower, and be patient as your credit score improves over time.