Types of credit cards for no credit history
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Types of credit cards for no credit history

Types of credit cards for no credit history

Add to Favorites:
If you are starting from scratch with no credit history, you represent a very risky prospect for lenders. This is all the main reason why most credit card issuers do not approve credit cards to such borrowers. However, you have to start building your credit history from somewhere, and although the process is difficult and potentially risky, you are required to begin with the cards that are available for customers with no credit history. Prepaid Credit Cards Whatever be the state of your credit history or credit rating, you can always get yourself a prepaid card, and also choose the one you prefer the most. Prepaid credit cards are those where you pay the money upfront, and are then be used the same way as you would use a normal credit card. The benefit with prepaid credit cards is that you can never really exceed your budget. Good prepaid credit cards usually provide a credit limit equivalent to the money you have paid to obtain the credit card. You should be cautious about the credit cards which have high activation and transaction processing fees, as that will reduce some of your credit. Prepaid credit cards are available at gas stations, grocery stores and supermarkets. Secured Credit Cards Secured credit cards are similar to prepaid credit cards, with the exception that you can keep using them for some time by paying the monthly bills regularly. You pay a security deposit up front, which the lender can take if you fail to make the monthly payments on time. Therefore, secured credit cards represent less of a risk to the customer, which is why the interest rates are slightly lower than what is be expected from those with no credit history. No credit, credit cards Many lenders offer credit cards to customers without any credit history. There are quite a few online sites which approve such credit cards. The only downside is that such credit cards come with huge interest rates, sometimes as high as 60%. Your finances need to be managed appropriately, and payments made on time to avoid negative issues in the long term. However, at a time when credit card issuers are shying away from giving you credit, this could be one option to start building your credit history. Student credit cards Students without any credit history can go for student credit cards, and if they are below the age of 21, their guardian or parent must co-sign in order to qualify for the credit card. If not, the student will have to provide proof of income to show that he or she is capable of taking up that obligation. Instant approval credit cards Instant approval credit cards do not usually check your credit history. Unlike regular credit cards, you get to know whether the credit card will be approved very soon. These credit cards have low credit limit and high APR, but could be helpful for emergency transactions or for building credit history.

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

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading