How to Get a Credit Card with No Credit History

 | Capital Markets

Getting approval for a credit card can be difficult if you have no credit history to your account. This is because most of the banks or issuing agencies need a previous credit history or a credit score for them to approve your credit card application. For the past few years, there are plenty of credit card types available for people having no credit history.

Good job

– An individual must be employed somewhere. It should be a good source and a descent of monthly earning should be a must. An individual looking to get a credit card must have sufficient earnings that will lead to waiving off his balances if any. The income of your spouse, husband, parents, and siblings will not land you a credit card. You should have your income source. If you are authorized to have access to their accounts than you may be given access to your card if certain terms and conditions of the issuing company are met. The more the income you earn the more the chances of your t get a credit card. There is no minimum income that will entitle you to a credit card. But you should make sufficient money such that you can repay your credit card balances with it.

Utilization

– To have a strong credit score you should have managed your account in a very good manner. Pay off your debts on and even before time. Waived off any of your bills on time and have maintained sufficient savings in your account. These attributes can assure your good credit history and a decent credit score and you may qualify for a credit card.

Prequalification

If you are already having a bank account and meet certain requirements of the company, then you may be offered a credit card. There are many such issuers which offer you credit card on your existing profile. This is a great opportunity to have a credit card and increase your credit score such that you can apply for the desired credit card in time to come with better prospects. A pre-qualified credit card comes with most bank account types. These are great to have with no credit history. Prequalifying for the desired credit card does not entitle you to a card. Your income, source, verifications also play an important part in it. If you applied for an application before and got rejected, then you must have received a letter. You should refer to that letter to find the causes of rejection. Work on them and ameliorate those areas to make a better chance of getting a credit card.

Secured Credit Card

– If you have been rejected for a conventional credit card then secure credit cards are good options for you. For obtaining a secure credit card you have to deposit a security amount initially. Depending upon the type of deposit or fees required for secured credit cards, there are numerous types available in the market. Capital One Secured Credit Card is one such type of card.

Obtain a credit card for student

– Most of the students qualify or are eligible for a student credit card. They are designed for students who have no credit history or not sufficient sources of income. To be eligible for a credit card of student type you must be a student in a university or a college. These credit cards have more amounts of fees that they charge and more interest rates.

Credit Card for retailers

– There are specific credit card types for retailers. Issuers of retail credit cards often approve applications of individuals who lack a credit history. This card can only be used for that particular store as they lack mater card or visa card brand to the name. Thus these credit cards cannot be used outside the specified store. But they prove beneficial to improve your credit history and score. High-interest rates and low credits are a few areas that come with these types of cards.

Minor Spending

– If you had a credit card in the past and have not used in the while, then you can spend some amount to pay from it. Good credit history from your bank account will prove beneficial and entitle you to a credit card.

Pay debts

– If you had a loan assigned to your name and have paid the dues and interest back on time and even before time then you can become eligible for a credit card. Issuers are seeking customers that are loyal and careful enough. If you have not paid off your debts on time or interest or even the due date has passed then there are negligible chances you may get a credit card. So ensure that you waive off your loan time and build a good reputation for securing a credit card.