Ways to make an online transaction with no credit history

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Ways to make an online transaction with no credit history

Ways to make an online transaction with no credit history

If you have no credit history, but want to make an online transaction, the situation could get tricky for you. You can always use your parents' credit, but if that is not possible, there are other ways to go about it. No credit history implies that you are a very risky proposition for lenders. Therefore effectively your credit line is zero and card issuers don't trust you with a credit card and banks wouldn't trust you with a loan either. However, here are some of the ways you can make an important online transaction with no credit history. Get a prepaid card This is perhaps, one of the easiest ways to have a card for online transactions without the need to apply for credit cards. You can get a prepaid card at gas stations, groceries and super markets. There is a fee for activating the card. Good cards will allow you to use up the greater part of what you have paid for the card. You should be particularly careful about the transaction fees, which could be high for some prepaid cards. Getting a prepaid card from places that report to credit bureaus, is a good way to start your credit history. Get a secured card A secured credit card is offered to a customer in return for a security deposit. There are two benefits of this. Firstly, you can get a card, which can be used similar to any other credit card, without any credit history. Secondly, the interest rate on the card will be lower than unsecured credit cards. This is because your deposit can be taken by the card company, if you don't pay the bill at the end of the month. The credit limit on the card is less than the deposit for all practical considerations. Therefore you represent no risk to the lender. If you can manage paying the bill on time, your deposit stays intact and at the same time your credit history improves as well. Get a student card If you are a student, it is likely that you have no credit history. But that shouldn't stop you from making an online transaction. This is because getting a student credit card is really easy with many credit card issuers offering wonderful deals. The only issue would be to get a co-signor guarantee for you if you don't have a source of income. If that is possible, taking a student card is very advisable to build a credit history from an early stage. No credit credit cards There are instant approval credit cards that offer cards to customers with no credit history whatsoever. To make an urgent online transaction, this is often one of the best ways. You can even start building a credit history if you have a regular income and are capable of paying off the bills on time. The downside of these cards is that the interest rates are way too high, which is why you must ensure you are not stuck with an outstanding balance at the end of the month.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

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
How to Earn on Black Friday Deals in 2017

How to Earn on Black Friday Deals in 2017

Posted: November 23, 2017

Black Friday is around the corner! Ready, steady, go! But before you go on a shopping spree to catch the jaw-dropping deals and discounts, make sure you maximize them. Did you know that you can not only save on Black Friday, but also earn? ... Continue reading
Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading