What to do when you have 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 » What to do when you have no credit history?

What to do when you have no credit history?

The content is accurate at the time of publication and is subject to change.
Credit history is a record of a person’s financial transactions which shows his borrowing and repaying activities. There are a number of reasons, why you may not have a credit history. One main reason is age. You have to be 18 years and above to hold a credit card. You can have a credit card even if you are under age, if you show a steady income or if your parent gives a surety for the credit incurred by you. In case you are not able to pay back the credit on time, your parent has to clear the debt. Another reason could be that you are used to paying by cash and you don’t have a bank account, so no credit card and no credit history. Sometimes it so happens that you use your spouse’s credit card and may not hold one of your own. In emergencies, this can prove costly. It’s always better to have your own credit card and keep a good credit history. Acquiring a credit card for the first time is difficult as a lender finds it difficult to judge a person and trust him without a credit history. There are a few ways you can start building a credit history by using the easily available sources, such as a bank or departmental stores or a gas station. If you have a bank account and have a good standing in the bank, it can help the lender to judge whether you are a credit risk or not. So, your account history in the bank is very important in securing a credit card or loan for the first time. A departmental store card can also help you establish a good credit history. It is easy to get a department card as the store benefits from your purchases. Here, you have to be on guard and not be impulsive in buying so that you are not able to pay them on time. Also remember to report to the credit bureaus once your card is activated. By paying on time and without default, you can maintain a good credit history which in turn can get you different credit cards. You can get credit with no credit history also by mortgaging your assets such as a house or a car. Here, you have to be careful to pay the credit on time or else you might lose your pledged property to the lender in order to compensate for the debt. Sometimes, having a permanent residential address, especially your own can get you credit even if you are a first time credit seeker and have no credit history. Having a telephone in your name or having an electric bill or gas bill can also help in getting you credit for the first time. If you have a good employment history and you show that you have steady job too helps you in procuring a credit card. Once you have a credit card, use it wisely and pay the credit on time and thus build a good credit history. Remember, timely payment and not going over your limit in transactions while using the credit card goes a long way in establishing a good 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.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

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

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

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... 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!