Ironic though it may seem, getting credit cards is dependent on credit history and building credit history is dependent on credit cards. Obtaining a credit card without credit history is a task that is easier said than done. After the economic downturn, banks are very specific about the people to whom credit cards are issued. However, donЎЇt fret; there are options available for first timers applying for credit cards without a credit history.
You are in luck if you are a college student applying for a credit card. Banks and other credit card lenders are willing to offer student credit cards to such applicants. This can serve as your first credit card and help you establish credit history so you can gain eligibility for regular credit cards. However, it is important to remember to apply for one credit card only. Applying for multiple cards at the same time and getting them will have an adverse impact on your credit history and this might prove to be a setback.
The next option you have is to approach your current bank with the request for a credit card. If you have a savings or current account with any bank for a long period of time, the chances of that bank offering you a credit card is high. If you have been maintaining your account as per the norms stipulated by the bank, you are in luck because the bank will not think twice about heeding to your request.
There are other options also that you can give a thought to. Department store cards and gas cards are also easily given out to people with no credit history in order to help them build one. But, these cards should not be your first priority. Though these cards are easily available, the charges are exorbitant and you may end up paying more than you spend on the card. You will have to research department cards that offer favorable interest rates and terms.
The best option for people with no credit history is to opt for secured credit cards. These cards are issued to applicants against a deposit they pay to the bank before getting it. The banks are willing to take the risk because they can recover from any losses incur by deducting funds from the deposit. However, if you want to build a good reputation, then it is imperative to stay within the permissible limits and repay your balances on time.