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Getting a Credit Card with No Credit History

Many people are afraid to apply for a credit card because they have no credit history. It is beneficial to keep in mind that you can still apply for a credit card even with no credit history. The downside is that your options will be limited. Credit history is an important factor in getting approved for a credit card, so having no credit history does arise challenges. Some credit card options for people with no credit history are student credit cards, secured credit cards, retail credit cards, alternative credit cards, or becoming an authorized user.

Your credit history report can be compared to a report card for your overall finances. Your credit score is basically a three-digit number generated based on important factors from your credit report. This report can include things like how good you are at paying bills on time and how much debt you might have compared to your credit limits. When credit card companies review your credit history, they usually focus on the factors that directly affect your FICO credit score. These factors include your payment history, any amounts owed, and the length of your credit history, credit mix and new credit. Your annual income is also considered since most credit card companies want to make sure you can repay what you charge.

Not having any credit history is not always an instant barrier to applying for a credit card. The factors that can help you get approved for a credit card are your income, employment history, and having a good checking and savings account. These important factors can show the credit card issuers that you are trustworthy enough to pay your bills and do have experience in handling your money.

If you do get approved for a credit card while having no credit history, the terms of the credit card might not always be to your liking. This means that you might have a lower credit limit at first or even a higher annual percentage rate. On the bright side, paying your bill on time every time could lead to getting an increase in your credit limit. You might also be able to request a higher credit line once you have maintained a good payment history. You should be ready to give your credit card issuer your updated income information, since that will weigh in the balance for card limit increases. Taking all this into account, you definitely can get a credit card with no credit history.