Earning a credit card with no credit history


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Earning a credit card with no credit history

Earning a credit card with no credit history

Updated: September 28, 2018

The content is accurate at the time of publication and is subject to change.
If you are an individual without any credit history, you might be facing a lot of trouble getting loans from banks, insurance with low premiums and credit cards from reputable card issuers. Credit history is the sign of creditworthiness of an individual and your sole aim should be to build a good history. Good credit history is developed through reasonable expenditure, low or no debt and consistent monthly payment of bills, whether it is credit card bills, phone, internet or water bills. Here are some tips for those who are starting out with no credit history. Go for prepaid credit cards Prepaid credit cards can be used in the same way as one would use normal credit cards. In the present scenario, where a large number of people prefer online shopping because of the deals available and the discounts, a card is an absolute necessity. If you have no credit history, it would be a good idea to purchase a prepaid credit card which is available in departmental stores, some gas stations and supermarkets. It is important to find out whether these venues report your credit history to the bureaus. In a few months’ time you will have some credit history to show on your profile. You must be careful not to go for prepaid credit cards which charge exorbitant processing fee and substantial commission. The advantage on the other hand is that you don’t have to be worried about late fee, overdraft fee or paying high interests. No credit, credit cards Credit card issuers are trying to lend to those customers who seem to be trustworthy and have a good record to show for it. There are some lenders though, who are taking this as an opportunity and lending to customers with no credit history. When the risk is high, the gains are high too and such lenders charge very high interest rates on the credit cards. However, for someone with no credit history, such high interest credit cards could prove useful to build a good credit history. There should be extreme caution though, to avoid any sort of late payments as the fees and the interests are very high and will add substantially to the card debt. A benefit with such credit card issuers is that there isn’t any credit check at all in some scenarios. Instant approval credit cards These cards like no credit, credit cards are offered to card holders with no credit history. They are called instant approval cards, because they are offered without a lot of delay in the approval process. The applicant can apply online with all the details and would get to know almost immediately whether or not the card is available for them. This is in contrast to the longer waiting period in case of the major card issuers’ approval process. Secured credit cards These cards eliminate the risk involved with customers without a credit history. Applicants are provided credit cards after depositing a requisite amount in their account. If the card holder fails to make the payment, card issuers can claim it from the deposit.

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.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!