Getting a credit card without a credit history

By Susan Lou, September 02, 2010

The main problems that one can face would be being denied a credit account itself. You will also be denied loans, grants and financial assistance of any sort. You cannot even get a mobile phone connection if you do not have a credit history. You will end up shelling out a huge amount as an initial deposit if you do not have a credit history.

The first thing to do when you do not have a credit history is to start opening bank accounts. Every bank would be willing to give you an account if you are able to provide identification proof and are able to make an initial deposit. Start applying for the right kind of cards. Foreign nationals and international students must and should start applying for card which they are sure of getting. If you are rejected by a certain bank, you will end up being rejected by more. The faster you get an approval the better for your case. And terms and conditions will also be far better if you can get an approval on the first try itself.

You can make a sacrifice and opt for higher rates of interest while applying for credit cards. There are a lot of banks that will offer cards with a very high rate of interest. Such cards can be used for general day to day transactions rather than as a means to borrow money. They are more of a convenience than a necessity in the beginning. You can also start building your credit history by making purchases and paying back on them as and when you get the bills at the end of the month.

Susan Lou

Susan Lou is a business consultant with a largest multinational corporation. With a Masters degree in Financial Management and Accounting from Princeton University, she has been an active member of the financial community. She nurtures an interest in writing and regularly writes articles related to finance and business.

« Basics of doing business with credit cards

Good gets even better: The balance transfer deal »