The importance of obtaining credit in today's society doesn't need any justification. Traditionally, one of the easiest ways to build one’s credit in order to obtain loans was to open a basic credit card through a bank or a credit union. However, in the midst of a financial recession, it can often be extremely difficult to qualify for a new credit card; especially if you have bad credit or no credit.
Even the world’s wealthiest individual's with massive credit lines, needs to start somewhere. While this chore may seem daunting, obtaining a credit card is possible, even for individuals with no credit history.
What are some of the ways to obtain a credit card with bad credit history or no credit history at all?
There are several effective methods and helpful tips for attaining a credit card with no credit history. If you have no credit, it is important to have a source of personal income. Creditors like to see that you will have the means to pay off your credit card bills by presenting your recent pay stubs which prove that you have a steady and substantial source of income. Students can also qualify for student credit cards, which are typically designed for young individuals with little or no credit history.
Retail stores are also often willing to give store credit cards to people with no credit history. In any case, if a bank, retail store, or credit union is unwilling to give you a credit card based on your lack of credit history, many creditors accept a co-signer – whether a parent or a friend with a strong credit history – on your application, who effectively guarantees that if you fail to pay your credit card bills, they incur the responsibility to repay the creditor. This can also be an effective method for obtaining a credit card for an individual with bad credit history. Once you obtain a basic credit card, you will be able to build, or re-build, your credit in order to obtain larger credit limits and loans.
As a baseline step to improving your bad credit, or to prevent your credit from becoming worse than it is; thus thereby improving your chances of being approved for a credit card, it is important to pay your bills on time. Electricity and gas companies are often very quick to report delinquent accounts to credit bureaus. Additionally, you should always pay your unpaid traffic tickets, parking tickets, and taxes in a timely manner.
Another method for obtaining a credit card is to open a secured credit card, which requires that you place a security deposit on the card, much like an apartment rental. The deposit minimizes the burden of risk on the bank and makes it more likely that you will qualify. It is important to remember that it is never too late to improve your credit and that, in any case, bad credit or no credit do not automatically disqualify an applicant for a credit card.
If you have any further input on obtaining a credit card with no credit history, feel free to provide your commentary below!