Getting Credit for the First Time with no Credit History
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Getting Credit for the First Time with no Credit History

Getting Credit for the First Time with no Credit History

Add to Favorites:
If you do not have a credit history, then getting loans and credit cards might be a big problem. There are many advantages to having a healthy credit history and a good credit score. This is why you should start building on your credit score as early as possible. Even when you are a student you make lot of purchases. This might as well be a good chance to add to your credit history if you are sure that you would be careful in your expenditures are confident of the way you can manage your budget. This credit score can help you going forward to get loans for education or home at much lower interest rates. They will also help you get the credit cards with rewards that you can better utilize. When you are starting out with no credit history, the best thing you can do is get yourself a credit card from a departmental store, retailer or a gas station. However, you must ensure that they report to the credit bureaus so that your positive credit is taken into account every month. These cards unlike your regular Visa and Mastercard have much higher interest rates, which means you must be careful with your expenses and clear your dues well before time. So eventually you will be able to derive benefit out of the positive credit history that you build over a period of 5 - 6 months. You may even approach the bank where you have got your savings or checking account and ask them for a credit card. Depending on your financial statement or past transactions, they may grant you a credit card but since you are still high risk, the interest rate will be high. This wouldn't harm you as long as you can manage to keep your outstanding at the end of the month to zero. Eventually, you end up building a good credit history. If you are a student, it is understood that you wouldn't have a long credit history. There are many credit card companies which approach students in campuses for credit cards. You can apply for such a card and make all your purchases and transactions with it. If you do not use them for any extra purchases and do all your bill payments, you would never run into debt and you can add up all your credit which will build to a good level by the time you complete your education. There are many banks and online sites that give credit to high risk profiles. The interest rates are high but the bigger problem is that they may need a security deposit. Although, you can get a credit history with such a card, this should be the last resort. That is because if you have outstanding dues you might end up risking your asset. However, some people take loans and make monthly payments purely to build on their credit history and it is not a bad idea to do the same before you can look for credit.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading