Credit Cards for Those with No Credit or Bad Credit History
Credit Cards for Those With No Credit
In today’s world, credit cards are vital in building a credit history. You need credit for getting car loans, home loans, renting a car, going on vacation, and your credit is now checked even when applying for many jobs. If you have no credit history, this is a good and bad thing. Since you don’t have bad credit you are not considered a high risk customer due to late payments, charge-offs or bankruptcies. On the other hand, having no credit history gives the credit card companies nothing to go on when trying to determine how responsible you are. So you may be wondering, how do i get credit cards ? Don’t despair, there are many credit card companies that offer credit cards for those with no credit. And some of these same tactics can work for those who want credit cards and have a bad credit history; and for college students who want credit cards.
One option is through the use of secured credit cards for those with no credit. These type of cards require a minimum deposit of usually $300.00. This is great because it allows you to establish credit while keeping you from going over your pre-set limit. Most of these cards have an annual fee and an annual percentage rate on purchases ranging from 15.99% to 28.99%. Research carefully and you can find a card with no annual fee and maybe a lower apr. After six months to a year of payments made on time, you can apply for an unsecured credit card.
Another idea is to apply through your bank for a credit card. If you have a checking and/or savings account, you already have an established relationship with them. If you bank with a credit union, this could be even better because they are smaller and consider their customers to be members. These institutions may be willing to issue you an unsecured credit card with a modest limit and a small amount of fees.
An important piece of information to keep in mind is that the more times that you apply for a credit card, the more inquiries are going to show up on your credit report. If you are continuously rejected, this is not a good thing. It says to those companies that you are applying to for credit that you may have too much debt or are in a financial bind. So before you apply to many different credit card companies, research carefully and look for one or two that look good to you and apply to them. If you are rejected, try other methods, such as applying for a gas
card through a gas station, or a department store credit card through one of your favorite department stores.
After making timely payments for about six months, reapply for a credit card. Your chances will be greatly improved and more often than not you will be approved!
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This page created 10 November 2009.