Credit cards are a great convenience and provide us much needed financial respite, but it still takes quite an ordeal to maintain them and get that credit history right. Some of us may not prefer to own a credit card, but with no credit card
, there is no sound credit history. Having no credit history might be a disadvantage if you plan to take loan or planning for a mortgage, or even renting an apartment. With the financial world being so credit driven lately, everyone involved in any kind of major financial transaction, refer to a person's credit history. If it is a good one, handling financial situation is much easier. Having no credit card
or no credit history, disadvantage as it is, does not leave us without any options. There are a few ways to deal with that urgent need for money or to handle a rough financial situation.
If you want to start building your credit or you are planning for a loan sometime in the future, you can always use the secured credit
cards. They are usually offered by all major banks and they work just like regular credit cards. The difference is that you will have to keep a sum of money as a security to the bank that issues the card. Once you start using the card on a regular basis and be up to date on all the bills, you can switch to a regular credit card.
If handling credit card is not a very good option for you, and carrying around cash does not do any good, then prepaid cards are a great way to manage your finances. prepaid credit cards
are easily available options for people without credit history. To use prepaid cards, you will have to load a sum of money onto the card before using them. That way there will be no exceeding the credit limit and overspending. Prepaid credit cards are mostly available in all major banks. Although they are an option to have your finances organized, prepaid credit cards are not a very good option if you planning to start building a credit history. Prepaid cards are not counted on the credit report since the credit bureaus do not get the report of your bill payments and financial transactions.
Options for personal loans are also quite a few, for people with no credit history. Unsecured loans can be obtained from the bank or credit union in which you hold an account for a long time. Paycheck advances can also be another option since it is usually based on your employment history. Approaching your bank is the first step towards obtaining unsecured loan, as it will help to have a long standing financial account in the bank. Home mortgage can be another issue if you do not have a credit history. Having a sound employment history or getting a recommendation from your current landlord can be considered in place of credit history. Employment records for at least 2 years can replace your credit history while you are applying for housing mortgages.
Dealing with financial crisis with no credit history is not an impossible task with so many options around. Prudence and planning is required to make the most of these, and sail through any financial situation at any given time.