No Credit History? Apply for a Secured Credit Card!

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
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 » No Credit History? Apply for a Secured Credit Card!

No Credit History? Apply for a Secured Credit Card!

The content is accurate at the time of publication and is subject to change.
Secured credit cards are perfect for people with no credit history. Though people may live without a credit card, meaning no debts or burden or whatsoever, it is undeniably true that we still need credit to back up our finances especially when we don`t actually belong to the wealthy and the might who have available cash anytime. Sometimes, plastics can have more advantage than cash to avoid getting physically robbed. Also, credit cards can help us most with traveling expenses, hotel rooms and other establishments. But enough with the benefits of the plastics; ask yourself: are you qualified to get a credit card? Many credit card companies require a credit history check. This is for their security to avoid defaults that may make them lose a lot. This is why credit companies can be so strict that they have to reject applications from people with bad or no credit history. If you have no credit history, true to say and unfortunately, it will be difficult to have a regular credit card. But no worries! As mentioned before, secured credit cards are perfect for people with no credit history. Before applying for a secured credit card, here are some basic things you need to know: 1. Costs: Be prepared with the application fees, processing fees and the annual fees. Sometimes, banks charge a one-time application fees which would not require annual fees to be paid anymore. There are some credit cards that charge high fees. Be wary of them and stay away from them. Before applying for the card, know the fees first through the representatives of the banks. 2. Deposit: Secured credit cards require a deposit that will be held in an account. If you make defaults on your account, this deposit will be applied as a payment to your debt. This is good since you don`t have to be marked as in default because your balance is backed up by a certain amount. Try not to have a credit over the deposit though or the credit may accumulate and may make your paying of the principal a little more difficult. 3. Eligibility requirements: Secured credit cards still have to undergo process and may not available to every person with no credit history. You still have to be eligible to get the card. Even when you already have available funds for security deposit and you are willing to put it down to their desk, you still have to be qualified. Don`t worry, again, they will only require you to have a savings account or a checking account with their bank. 4. Credit limits: Credit limit is sometimes a percentage of the deposit made. But to make most of it, you should at least equal to the deposit or even more. 5. APR: Annual percentage rate. It is the interest rate that will be applied to your account balance. This means that the higher the rate, the higher your interest fees. 6. Conversion to an unsecured credit card: An unsecured card often has lower fees or zero fees, lower interest rates and lax restrictions. You`ll be getting a good bargain if the secured card you are applying for has this conversion offer.

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:

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… 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!