Applying for credit cards without a credit history

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Credit Card Applications » Research » Guides » Building Credit History » Applying for credit cards without a credit history

Applying for credit cards without a credit history

The content is accurate at the time of publication and is subject to change.

Applying for credit cards is the easiest way to start building a credit history. Although having no credit history is beneficial in a way, it has more disadvantages and causes more problems to deal with any financial transaction.

Credit card companies look for some kind of security before approving a credit card application, and therefore credit checks are almost mandatory in every credit card company. Person having a bad credit history will have chances of getting the application rejected since the record shows that the person to be high-risk borrower. Having no credit history puts the applicant in the same books as having a bad credit history since the credit card companies will not have any reference of the credibility of the applicant. Although both of them are completely different, the disadvantages of both bad credit and no credit conditions are similar. It is never good if a credit card application is rejected, therefore fulfilling all the requirements of the application is important.

It does not necessarily mean that having no credit history leaves people without any options for obtaining credit cards. There are some credit card companies that offer credit cards for high risk borrowers, without demanding a credit check. Because there is no credit check involved, these cards will cost much more than the regular credit cards. The applicants must be ready to pay a higher interest rate for these cards which can range anywhere from 35% to 40%. Some companies may charge some annual fee, until the card holder builds upon the credit history. Even the high interest rates can be reduced with time, once the card holder establishes a good credit history. There are other different options for people looking to apply for credit cards without a credit history check. Some of them are listed below:

  • Students can apply for student credit cards and avoid paying high interest rates too. Credit unions do not check credit history for student credit card applicants since most of them will be applying for their first credit cards. A valid student ID from the university is a requirement to apply for a student credit card.
  • One option to avoid paying high interest rate is to have a co-signee to sign up for the credit card. Co-signee will be responsible for any debts accumulated on the credit card. Having a co-signee makes it more important to be prompt with payments towards the credit cards.
  • Prepaid cards and secured credit cards are options that can be explored, but they do not contribute much towards building a credit history.

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.
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