Credit Cards for People With No Credit History

If you do not have any credit or if you have a credit history which is relatively new, it is highly likely you will be denied credit on most credit card applications. The key is to apply for specific credit cards which are designed for people with no credit history. The interest rates may be higher and you may have to meet additional requirements to qualify, bit it can be worth it to build up your credit history. If you find you are getting denied for regular unsecured credit cards, you still have options. You can apply for a secured credit card or, if you are attending college, a student credit card.

Secured Credit Cards

If you choose to apply for a secured credit card, you will be required to give a deposit to the credit card issuer, normally a minimum of $300 with a maximum of $5,000 or $10,000. Your deposit amount will be equal to your credit line and the money the credit card issuer holds for you will act as collateral. Most of the secured credit card companies do report to the three major credit bureaus which helps you to build up your credit history. Within 12 to 18 months, you will more than likely start to receive offers for unsecured credit cards in the mail which are pre-approved.

Student Credit Cards

A great time to start getting credit cards is when you are a college student. This is because student credit cards rarely have an annual fee and the credit requirements are more lenient as they are targeted towards people who are not likely to have much of a credit history. As you use your student credit card in a responsible manner, it will become easy to qualify for regular credit cards. Your good credit history will also be helpful as you try to qualify for an apartment or car loan after your graduation.

If you have no credit or a limited credit history, these are likely your best options. A secured credit card issuer will report your payments to the credit bureaus and in some cases they do not check your credit records. This is basically a guaranteed approval!  If you have no credit and you want to build up your credit history with a credit card, just take the time to thoroughly research and review all of your options and choose the card that works the best for your needs.