It is very difficult to get a credit card
without any credit history. The problem gets bigger when you start applying for credit cards everywhere. This is because if your applications are rejected, that too would start showing up on your credit report, making your cause difficult even further. It will also show that you are desperately looking for credit which is not a very good impression to build when you are trying to get your first credit card. Here are some of the ways in which you can go about getting your first credit.
Approach the bank where you have a savings account or a checking account
If you have an account, which has a reasonable history of deposits and withdrawals over a period of time, you could approach the bank to find out if they have a credit card that doesn't require any credit history. You must be prepared to pay slightly higher interest rate for such credit cards because your creditworthiness is low enough to make you a risk for the bank.
Gas stations or grocery stores
Your local grocery store or gas stations will also sell cards although they might not be linked with any of the major brands. You have to be careful about two things here. Firstly you must ensure that you are not walking into the trap of huge interest rates and hidden charges to get your first credit card. Secondly, you must ensure that the cards you pick are being reported to the credit bureaus, without which it doesn't help you a lot to pick up these cards at the first place.
Student credit cards
Students are not usually expected to have a credit history. But there are many companies which offer student credit cards. This is a great opportunity to start building a credit history. Most of the student credit cards
require a guarantor to sign and if one has a guardian with a good credit history, getting a credit card with attractive interest rates and rewards is not very difficult. In fact, it is best to try and get a credit card while one is a student to ensure they have built a decent credit history by the time they start working and their expenses would grow.
Secured credit card
Although this is a very expensive option, one can go for a secured credit card
, if there isn't much of an option left. In secured credit cards, you will need to make an initial deposit and your credit would be either to equal to or slightly less than your initial deposit. Once you use up all your deposit, you will have to deposit some more money again in order to use your card. This is a good way of building credit history, especially if you are unable to find a credit card from anywhere else.
Not all prepaid cards
help in building credit history which is why it is a good idea to confirm before one goes for a prepaid card, since there could be high charges and fees levied on these cards.