Having no credit history is not as bad as having a terrible or poor credit history. Building credit history from scratch takes time and requires some level of patience. These situations are most common in students or citizens who have never had the need to borrow money or use a card that is obtained through a financial institution. Under such circumstances, it is natural that the individual will have no credit history. Building credit history is important because when an individual applies for credit or a mortgage loan the lenders will check the credit history of the person. With the credit history, one can arrive at the repaying capacity, the timely payments before the due date, etc. This helps lenders arrive at the creditworthiness of a person and will thereby help them in arriving at a loan amount that would be sanctioned.Tips on how to build credit:
• Shop around for a secured credit card. This could be done online and one could choose from the various options that are available. To obtain a secured credit card one does not have to have a credit history. A deposit is made to the issuer, and this would be used as a guarantee in case of misuse of the card. The credit limit would directly depend on the amount that is deposited as a guarantee. The credit limit could be anywhere in the range of 50% to 100% of the amount that is deposited, and it depends on the issuer.• Investigate different issuers that offer secured credit cards such as Visa Cards and MasterCard for those with no credit history. • Check online for these cards and make comparisons and choose the one that is best suited for your needs. • Once the choices are made with regard to the secured card then follow the simple instructions and fill in the application form and submit it online. Your social security number may be required as identity proof. Then deposit the amount at the bank by way of checks or by paying through a debit card. The application will have to be processed and approved once the payment is authorized. The issuing bank will verify the social security number as well as the identity before confirmation and will then provide a credit limit.
Regular credit card:There are many credit card companies that issue credit cards with no credit history, but the cards come with limited options. To apply for Visa or MasterCard one must enter detail information about one`s credit history, and if you do not have any "credit history", one would have the option of various cards that are available for those with no credit history. Check the entire list and make comparisons with regards to the charges as well as the benefits that come with the card. Select the appropriate card and check the website. Follow all the instructions step-by-step to fill out and submit the form then wait for a response. Some card companies may take a few minutes while others may take longer to reply with a decision.