5 Easy Methods to Get Credit Card without Any Credit History
When you apply for a credit card, the credit card company will see your credit history. Bad credit history means you have a low opportunity to get approval. Good credit history will give you the approval that you need. But, what if you never built your credit history before? People with no credit like this can apply for a credit card with no credit. Here are several methods you can use to get a credit card without using a credit history.
1. Apply for Secured Credit Card
The secured credit card uses the deposit system to open. It means you don’t have to have a good credit or even a credit history to use this product. You only need to put down a deposit with the specific amount of money that the issuer states. Then, you will get the approval and can use this credit card.
The first deposit amount is varying. Mostly, you have to put at least $200 as your first deposit. That money will become collateral for the credit card company. Furthermore, that number also becomes the credit limit for your credit card. If you want to get a higher limit, you also have to put more money on your first deposit.
Best of all, a secured credit card also is a valuable tool for building your credit history. The issuer of this card will treat it similarly to the standard credit card. They report your credit activity with this credit card to the credit bureaus. So, if you pay it before the due date, pay it in full, and always use it below its limit that will improve your credit score. Therefore, you will have a good history from the beginning.
2. Apply for Student Credit Card
The student credit card also doesn’t require a credit history to apply because it is for a student that never builds any financial structure in their life. Their parents still become the guarantor of them. Therefore, the credit card company removes the credit history requirement from its approval points.
However, you still need to include the guarantor that will pay for this credit card. So, make sure you apply it with your parent or anyone that are willing to pay it for you. They also are required to submit their income status. The credit card company will use it to measure your application. If it is good, you get a credit card.
In the past, only a student was eligible to apply for a student credit card. However, today, you can find many student credit card products that also accept anyone regardless of their profession. For example, the Journey Student Rewards credit card from Capital One accepts all applicants. They should have a good and stable income to apply and get this credit card, though.
3. Authorized User Method
One of the best methods to get a credit card with zero credit is by becoming an authorized user of other people’s credit cards. You can use that credit card for a transaction and other activities like you can do with a standard credit card. However, you are not the owner of that credit card. The owner only permits you to use it. Moreover, the real owner of the card has the responsibility to pay its fee, including your spending with that card.
This method is one of the best choices for parents who want to give their kids a credit card, plus a good start to build their credit history. As for the credit history building, you can change the card account name to yours. That way whenever the credit company reports to credit bureaus, it will also improve your credit history. Once you get a good credit score, you can apply for a standard credit card with your name.
4. Co-Signer Method
A co-signer maybe is the easiest way to get a credit card with no credit. This method allows you to get a credit card by using other people’s credit history to apply. It is a bit similar to the authorized user. However, you start completely new here. The credit card you will get will be issued under the other person’s name.
This method allows the other person that signs the card to see your financial condition, spending, and how you manage the credit card. If you don’t want to feel being monitored by other people, this method is not for you.
Of course, you are the one that uses it, so you also have the responsibility to pay the credit card. However, the report that the credit company made to credit bureaus will affect the other person’s credit history. If you mismanage it, it also gives a bad score to that person’s credit. Therefore, you should manage it well and the person that will be the co-signer must be the person that you can trust, like a family member.
The co-signer credit card method gives you the easiest and fastest method to get a credit card. The flaw of this method is it won’t help you to build your credit score. Plus, it also can ruin your relationship with the co-signer, if you didn’t do your responsibility. That person even can sue you, if they wanted.
5. Apply for Credit-Builder Loan
If you don’t have a credit history or score, you can make it by using the credit-builder loan. This loan gives you a simpler way to build your credit, similar to the first deposit of the secured credit card. Now, you have to pay this loan on time. The loan period mostly is around six to 24 months. Try to pay it without being late even once.
Once you pay them out, you will have a good credit score you can use to apply for a credit card. Of course, this loan also has an interest rate, which you also have to pay. Also, you can’t see this loan as a way to get funds. See it as the way to build your credit, so you can achieve the real purpose of this loan.
It may take some time to apply for a credit card by using this method. But, we recommend it, because you also can learn and train your habit of credit and money management. That will help you a lot in the future after you get your credit card.
Tips for Applying for Credit Card without Credit History
Lastly, we have several tips you can use to utilize our methods above and get their benefits:
- Choose a company with a various upgradable credit card, so you can upgrade yours once you build enough credit point,
- Pay on time, in full, and use below the limit,
- Only apply for that credit card, if you need them. Otherwise, you can try to use other methods to build your credit and pay for the transaction.
As you can see, applying for a credit card with no credit is doable. Follow the tips and methods that we have explained, and you are on the right track to get your first credit card. Additionally, you also can ask for some onion from the professional to help you decide the best credit card that you can apply for. You get more benefits and free from problems in the future with that method.
It’s a suitable guide for you about credit card with bad credit