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Whether you have a credit history or no credit history, the fact that you will have to build it as early as possible is always true. This is for various reasons, based on the fact that credit history is an indicator of your creditworthiness. If you have no credit history, major credit card issuers will not approve a credit card for you. Similarly, banks wouldn’t extend loans to you. Even the insurance providers would be sceptical of your creditworthiness and automobile insurance or life insurance will be very expensive. In the present scenarios even landlords and prospective employers join the list of entities which are interested in an individual’s credit history. So you will have to build a credit history and for that you have to ensure all your transactions are tracked somewhere. Here are some of cards that you can still hope of getting.
Secured credit cards
In principle, secured credit cards wouldn’t really need you to have a credit history. This is because the lenders have nothing to do with your creditworthiness. To get this card, you will have to deposit some amount in your card account and then use the credit card. The credit limit available to you is usually a percentage of the amount you have deposited in the card account. As long as you make consistent payments you can use the card and your security deposit stays untouched. However, when you fail to pay the monthly payments on time, the lender can claim the bill from your deposit and you will have to replenish it before using the card again.
Prepaid cards are a great option for those who would need to do online transactions to benefit from specific deals available on the internet. These cards are also helpful for paying your bills online. Prepaid cards are cards which you actually purchase like any other product in departmental stores or sometimes gas stations as well. Usually a percentage of what you have paid becomes the money available on your prepaid card. You will be paying a commission for the card, which is why you will not get total value in most cases. You can use the prepaid card like any other credit card. Most importantly, you can start building your credit history, if you pick up these cards from places that report to credit bureaus. The biggest benefit is that you don’t really have to be worried about high interest rates or being penalized for crossing credit limits.
Instant approval credit cards
Instant approval credit cards are those for which you usually have to apply online. The lenders usually don’t take a credit check for the applicants. Although it would take some time to get the card, you will know almost immediately if you qualify. One has to be careful with these cards though as the interest rates are very high and the credit limits would be possibly much lower. However, you can use these credit cards carefully for half a year or so to build a credit history.