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You can just understand how important it is to have a credit history. From this you will be able to get loans and credit cards that you need for your family's expenses. Sometimes when cash is not enough to suffice the needs of the family, this is what you resort to and in order for you to have this privilege of borrowing money, you need to have a good credit history and a good credit score. People who do not have a credit history are having difficulty in getting a loan and even a credit card. So, let us explore how they can build credit and if there are credit cards that they can apply for.

Are there banks that are willing to approve credit to people who have no credit history?

Yes, there are. Although it is rare that banks find people who have no credit history, unless for teenagers who just turned at their legal age and are applying for credit cards, there are still banks who have good customer service and helps those who are worthy to get credit but does not have a credit history.

How will they evaluate if I am qualified?

Banks will find ways on how to assess whether you are creditworthy or not. Although some banks that can reject you just because you do not have any background on money borrowing and lending, there are institutions that understand that you preferred cash before and now turning to credit for convenience. So, what they do, they pull up information about you like if you are employed, how long have you been employed, if you have saved up, if you have bank accounts that they can peek into and utilities that are under your name. From these, they would be able to evaluate whether you are ready to take on credit and you are capable of taking on this responsibility.

What is secured credit?

Secured credit is what you can apply for if you have no credit history. This is much easier to apply for with your situation. You will be required to make a security deposit equating to the limit on your credit. If you are able to manage a secured credit, your performance as a good payer and debtor will be reflected on your record with the credit bureaus and eventually you can take on unsecured credit, one that you can borrow with a high credit limit.

What are prepaid credit cards?

Prepaid credit cards are also what banks offer for people who have no credit history. You will be loading your card with your money and use it for your purchases. This will also enable you o start building credit. It will not be long until you are able to take on other types of credit cards and loans.