If you have no credit history, it can be difficult to get approved for a credit card. Without a credit score or credit report, lenders have no way of knowing how likely you are to repay your debts. However, there are several strategies you can use to increase your chances of getting a credit card with no credit history. In this blog post, we’ll take a look at some of the best ways to get a credit card with no credit history.
- Apply for a secured credit card
A secured credit card is a type of credit card that requires you to make a deposit upfront. This deposit serves as collateral for your credit limit, and if you fail to make your payments, the issuer can use the deposit to cover your debts. Because secured credit cards are less risky for lenders, they’re often easier to get approved for, even if you have no credit history.
When applying for a secured credit card, look for one with a low annual fee and no hidden fees. Make sure to use your card responsibly and make your payments on time, as this will help you build your credit history over time.
- Become an authorized user on someone else’s credit card
If you have a family member or friend with good credit, you can ask them to add you as an authorized user on their credit card. This means you’ll have access to their credit line and can make purchases with the card, but you won’t be responsible for paying the bill. However, it’s important to choose someone who uses their credit card responsibly and pays their bills on time, as their credit history will affect yours.
Becoming an authorized user can help you build your credit history quickly, as long as the primary cardholder makes their payments on time and keeps their credit utilization low. Just keep in mind that if they fall behind on payments or rack up a lot of debt, it could hurt your credit score.
- Apply for a credit builder loan
A credit builder loan is a type of loan designed to help people build their credit history. With a credit builder loan, you borrow a small amount of money, typically between $500 and $1,500, and make monthly payments until the loan is paid off. However, instead of receiving the money upfront, it’s held in a savings account until the loan is paid in full.
Because credit builder loans are low-risk for lenders, they’re often easier to get approved for than traditional loans. And because you’re making regular payments, they can help you build your credit history over time.
- Apply for a student credit card
If you’re a student, you may be eligible for a student credit card. These cards are designed for people who are new to credit and often have lower credit requirements than other types of cards. Some student credit cards also offer rewards or cash back for purchases, making them a great way to build your credit while earning rewards.
When applying for a student credit card, make sure to compare the fees, rewards, and interest rates of different cards to find the best one for you.
- Apply for a store credit card
Store credit cards are often easier to get approved for than traditional credit cards, especially if you’re a regular customer of the store. However, they often have higher interest rates and fees than other types of cards, so it’s important to use them responsibly and pay your balance in full each month.
When applying for a store credit card, make sure to read the fine print and understand the terms and conditions, including the interest rate, fees, and rewards.
In conclusion, getting a credit card with no credit history can be challenging, but it’s not impossible. By following these tips and using credit responsibly, you can build your credit history and increase your chances of getting approved for other types of credit in the future.
