People can have troubles when applying for a credit card, especially when they don’t have a credit history. You may be asking whether these people will ever get a chance to build a new credit history. And yes, they will. Take note that existing credit card holders have already established their own credit card history and have all started in a scratch. Since they have made it through, it would be possible for people with no credit history to have their own credit card.
So what are the appropriate credit cards for people with no credit history?
One is the secured credit card. It requires you to deposit an amount with the credit card issuer. Normally the minimum deposit is $300 and the maximum could reach $5,000 to $10,000. Some card issuers allow credit limit only up to the amount you deposited. This amount will serve as your collateral in case you made a default in one of your payments. The card issuers will report to the three main credit bureaus – Experian, Equifax and TransUnion – on your application and your payments. Within 18 months to two years, you will have created a credit history already and if you have proven yourself credit worthy, the card issuer may be giving you unsecured credit card offers where you can convert your secured credit card to an unsecured one. The benefit of an unsecured card is that you’ll be paying lesser interest and fees. Another benefit of unsecured card? The credit card company has officially trusted you.
Another card for people with no credit history and which is aimed to students is the college student credit card. Almost all of the student cards do not require annual fees. Students still have to be careful, though. If they graduate with a lousy credit history, it will be hard for them to search for employment and even for a place to stay. But with a clean credit history, even with just the student credit card alone, it will be easy for them to be approved for a new credit and even get jobs.
These cards require a careful research. Not all card issuers are really issuers. Be careful of fake credit card issuers. They can take your money without you knowing it. So be careful with websites requesting for your security card number, bank details and other personal details. Remember that phishing and other identity theft scams are still rampant in the internet nowadays. Visit credit card comparison websites and read through. Take note of the comments and feedback of experienced customers.
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