What to do when you have 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 » What to do when you have no credit history?

What to do when you have no credit history?

By
Add to Favorites:
Credit history is a record of a person’s financial transactions which shows his borrowing and repaying activities. There are a number of reasons, why you may not have a credit history. One main reason is age. You have to be 18 years and above to hold a credit card. You can have a credit card even if you are under age, if you show a steady income or if your parent gives a surety for the credit incurred by you. In case you are not able to pay back the credit on time, your parent has to clear the debt. Another reason could be that you are used to paying by cash and you don’t have a bank account, so no credit card and no credit history. Sometimes it so happens that you use your spouse’s credit card and may not hold one of your own. In emergencies, this can prove costly. It’s always better to have your own credit card and keep a good credit history. Acquiring a credit card for the first time is difficult as a lender finds it difficult to judge a person and trust him without a credit history. There are a few ways you can start building a credit history by using the easily available sources, such as a bank or departmental stores or a gas station. If you have a bank account and have a good standing in the bank, it can help the lender to judge whether you are a credit risk or not. So, your account history in the bank is very important in securing a credit card or loan for the first time. A departmental store card can also help you establish a good credit history. It is easy to get a department card as the store benefits from your purchases. Here, you have to be on guard and not be impulsive in buying so that you are not able to pay them on time. Also remember to report to the credit bureaus once your card is activated. By paying on time and without default, you can maintain a good credit history which in turn can get you different credit cards. You can get credit with no credit history also by mortgaging your assets such as a house or a car. Here, you have to be careful to pay the credit on time or else you might lose your pledged property to the lender in order to compensate for the debt. Sometimes, having a permanent residential address, especially your own can get you credit even if you are a first time credit seeker and have no credit history. Having a telephone in your name or having an electric bill or gas bill can also help in getting you credit for the first time. If you have a good employment history and you show that you have steady job too helps you in procuring a credit card. Once you have a credit card, use it wisely and pay the credit on time and thus build a good credit history. Remember, timely payment and not going over your limit in transactions while using the credit card goes a long way in establishing a good credit history.

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