Getting a credit card without a credit history can be as challenging as having a bad credit score. Because you haven’t established your credit score yet, the lenders are usually skeptical about issuing a credit card. But we all started from somewhere and there are surely some ways to get a credit card. In this article, you’ll know how to get a credit card without a credit history.
Secured Credit Cards for No Credit
Secured credit cards are the most common method to establish a credit account. Because you will put in a security deposit you are almost guaranteed to get the credit card. The security deposits for secured credit cards can be anywhere from $300 to $3,000.
While some credit card companies are going to refund you the security deposit once you are creditworthy, some do not. To get the security deposit back, you will have to close the credit account open up a new one. Since you already have an established credit score, it shouldn’t be a problem that way.
Best Secured Credit Card for No Credit – Editor’s Pick
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Unsecured Credit Cards for No Credit
It is normal to not pay for a credit card as you are making an upfront payment. Although you surely can get unsecured credit cards without an established credit history, we don’t recommend it.
There are many reasons for this. For one, you won’t get many benefits. For example, while the Discover it® Student Chrome above gives you cash back, it will be hard to find an unsecured credit card that is issued to people with no credit. Therefore, since you’re going to get a credit card, why not get one that will benefit you when you make purchases.
Another reason why we do not recommend unsecured credit cards is they usually have a very low credit line. So even if you max out, it will take considerably longer to establish a credit score compared to secured ones.
For starters, we recommend saving up at least $500 towards your first credit card. $500 is easy enough to spend in a month and you should always try to make purchases with the credit card but do not miss any payments though. Any late payments will have a bad impact on your credit score. So do not overspend if you don’t think your cash flow is enough to pay it back.