Credit Cards For No Credit History - What to Look
Posted on: 10 January 2017 by Tim Mathews
A guide on how to select a best credit card in case you have low credit score.
Couple of months back I was in a situation where I had to apply for a Credit Card and my credit history was sub 500. Increasing medical/medicines costs of me and wife led to this situation. So before I went ahead and selected Walmart Credit Card, I researched a lot on this. In this blogpost I have shared my experience on what to look for a credit card when you have low credit score.
Although most consumers know that it is difficult to obtain a credit card with a poor credit history, not many people are aware that it is even harder to get one when they have no credit at all. While this is not fair, a person with no credit poses a great risk to credit card companies; lenders are overly cautious about giving people credit cards for no credit history because there is no way to determine how reliable the potential account holder will be. But many smaller companies are willing to extend credit to first-time card holders, such as gas stations and department stores. In addition, there are certain companies that take an applicant's entire financial situation into consideration as opposed to only their credit history. For example, a few credit card lenders will give a credit card to someone who is able to pay their rent or mortgage on time, has not moved too often and has been able to keep a steady job over a long period of time.
Those who hold an account at a credit union may be eligible for credit cards for no credit history if their account is in good standing. In general, credit unions require conditions that are easier to meet. Nowadays, it is not necessary to work for a certain company or be a member of a particular organization in order to join a credit union. College students without credit history can obtain credit cards too. Student credit cards are an excellent way to build a strong line of credit. Quite a few banks that have a branch close to a college or university offer attractive credit card terms for students.
Credit Cards For No Credit History - What You Should Know
Secured credit cards are other credit cards for no credit history that although have high interest rates, are still a viable option to those lacking a credit history. In order to get a secured credit card, the borrower must give the lender a cash deposit to hold and as long as the borrower repays the lender on time each month, the borrower can eventually build a credit history that is good enough to obtain a traditional, non-secured credit card.