Credit Card With No Credit History - How to Obtain a Card If You Have No History

If you have no credit history, it can be difficult to obtain a credit card. You would usually have to wait a little longer than someone who already have a good history and rating, that is if the two of you applied at the same lender. However, there are a few steps you can take to hasten the process of being approved for a card with no history behind your application.

There is no point wondering whether you would be approved or not because there is always a first time for everything for everyone. So you have start from somewhere to build your rating and your score. Find below 5 steps you can take get a credit card approved for the first time.

1. What credibility do you have that works in your favor? Since you do not have any history behind you the only way lenders can judge, to some extent, your ability to repay your balances are things like how long you have lived at your current address, the length of time you have been in employment and how long you have had your bank account. Obviously, the longer these are, the more it works in your favor. So write these on paper before you make your application with any lender.

2. If you are in college, consider getting a student credit card. A lot of lenders (banks) target this group because of the potential with the students. It is the easiest way of getting a credit card with no credit history behind you.

3. What about those who are out of college? Get a relative to co-sign with you are out of college. If you have a relative such as a parent or sibling or a spouse who has an excellent rating, get them to co-sign with you. You use their excellent rating to get your card because the banks or financial institutions take into consideration the credit score of your co-signer when they are considering your application.

When you get your card, practise good credit building habits so that you can also have an excellent score yourself. What are some of these good credit building practices? Paying your bills on time is one of them. Late payments are not only expensive, but they also dent your score. Another good habit is to pay more than just the minimum required balance on your statement. Also, if you have lots of debts, try and reduce or remove as many of them as possible. This will make your debt-to-income ratio very small, making you an overall good risk in the eyes of lenders.

4. Get in touch with your bank. If you have a savings account, your bank may consider and give you an unsecured credit card based on your financial records. The reasons are simple. They already know your bank account and address history so this can help them decide quickly if they should give a regular, unsecured credit card.

5. Your last resort is to get a secured credit card. Banks will give you a secured credit card if you have a savings or checking account with them and you have money in it. The amount of

money needed here is anywhere between $300 and $1000. The card is secured on the account. This way over a period of 9 months they are able to study your credit behavior. Then after the 9 months you can upgrade to an unsecured, credit card.

Using these tips will increase your chances of obtaining a credit card if you do not have a credit history.

You can search online today for an unsecured credit card. But what if you had a website where there is a selected number of lenders are ready to listen to credit needs? Right now, visit our website on how to obtain different types of lines of credit today including getting a new credit card with no history.

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