By Rick
Securing your first card is an important step in building your credit history but can also be a bit of a challenge. The question of how do I get a credit card with no credit is a common one that has a few different answers. Finding a company that will issue you a card, even if you have a limited credit history takes a little work that will be well worth the effort.
Student cards are a great place to start
Credit card companies will go out of their way to issue credit to students as they consider them a good credit risk. These student programs understand that most students have a very limited credit history and qualification requirements for one of these cards is typically lower than a standard card. Some of these cards will be co-branded with the school the student is attending and may even come with specific discount programs for using the card on campus. A student card is a great way to help someone asking “how do I get a credit card with no credit?”. If you do decide to apply for one of these student card offers, be sure to clearly understand the interest rate and ask about any annual fee on the card. Sometimes the credit card company will try to offset their risk of issuing the card with a higher interest rate or substantial yearly fee on the card. While you might still be OK with both of these, you’ll want to know what you’re applying for when considering a student card.
Consider store cards and gas cards
Most large retailers and gas companies offer company branded credit cards that can be used in their locations. While these types of cards don’t offer the flexibility of a normal credit card, they are a great way to build up a solid credit history that over time can help you qualify for a standard credit card. This type of card is typically much easier to quality for as well and might only require you to have a mailing address and proof of employment. Once you secure a card like this, try to use it often and strive to pay off the balance in full each month to help bolster your credit rating. Doing this for as little as 6 months can help you establish enough of a credit rating to secure a standard credit card with many companies.
Secured cards are another option
A secured card is a great option when trying to answer the question “how do I get a credit card with no credit?” These secure cards are fairly easy to obtain but will require you to maintain a balance of available cash to use the card. While they are not technically a credit card in the truest sense, they do help you to establish a credit history on your way to securing a conventional credit card. Some of these companies will even start to allow you to use the cards for purchases beyond what you have on deposit and slowly transform them into a credit card over time. This is a great way to ease into a standard credit card and allows you to develop the critical habit of managing your credit responsibly.
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