Could I Really Get Credit Cards Even Without Credit History?

The answer to the question above is a resounding yes. Credit firms and banks are now improving their programs so they could provide credit lines to people without credit history and even to those with bad credit history. The purpose behind this strategy is to ensure the continuous flow of money all throughout the monetary system, as well as to help individuals build or repair their respective credit history, so that soon, they might be able to apply for unsecured credit cards.

But what are some credit cards offered to people without credit history and to those who have accumulated large debts?

 

Build Credit with Secured Credit Cards

secured credit cardsAmong the most notable credit cards for no credit and bad credit history are secured credit cards.  These credit cards may have low initial limits to give the cardholder a chance to build credit without incurring very large debts. Secured credit cards are specially designed for individuals who are about to establish their credit history.

The main requirement for this card is a minimum cash deposit, which will serve as collateral and an essential credit limit. So, the bigger the cash deposit an individual makes, the higher his or her credit limit.

The credit limit for a secured credit card could range from a minimum of $200 to $500 and above.   The sum available for credit could eventually increase as long as an individual is able to pay his charges on time.

The high rates and fees are perceived to compensate for the risk of providing credit to an individual who has no credit rating yet or who has been battling a bad credit history.

Build Credit with Student Credit Cards

If you are a student, another way to build a credit history is to get a student credit card.  Even though college students do not have reliable credit histories yet student credit cards present themselves as effective means to assist young people in paying for their college education.  (The New Credit Card Law requires a cosigner so if parents have bad credit, they cannot cosign for their kids)

Unlike a secured credit card, credit cards for students do not require the submission of cash deposit.  Nevertheless, college credit cardholders are given an initial low limit until they have proven to be worthy of a higher credit line.

 

A Word of Advice

Before you go out and apply for any credit card for bad credit or no credit, you need to read the terms of payment and other relevant details about a credit card. Or you may call a customer service representative of a bank or a credit firm so that you could be guided in selecting the credit card that will be suitable for your needs.

 

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

1 Comment
  1. It is so important to have good credit. You never know what can curve ball life can through you.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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