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Credit card with no creditIf you do not have a credit history then it can be a difficult task qualifying for a credit card or a loan. Having no credit is treated in similar way as having bad credit. There are many people like students who have just graduated or young people and moreover people from the military who have not got a chance to establish credit. However, there are ways in which you can obtain a credit card despite the fact that you don?t have credit. Let us have a look at what can be your options.
Credit card no credit
The best way in which you can get a credit card with no credit is applying for a secured credit card. When you take a secured credit card the credit card provider would give you a card depending on the cash deposited in your account. With this type of credit card you can have the limit for the card based on the amount that is deposited in your account. However, when you are regular in making the payments the credit card provider would gradually increase your limit and after sometime would also offer you a normal credit card at reasonable interest rates. When you take these credit cards you should have just one aim in mind and that is to establish credit. Once you get the credit card then making payments towards the card on time can result in building your credit score.
Note that all your payments towards the credit card are reported to the credit reporting bureaus and by making regular payments you can establish credit.
Obtaining a credit card with no credit
When you apply for a credit card with no credit then you should try and convince the provider with your employment details, your assets, housing etc whatever can help you make your stand clear. Most of the credit card companies would look into your financial situation and would consider your job status and the housing situation. If they are convinced then they can consider giving you a credit card. Your other option can be by applying through credit unions. They usually do not have strict rules and are quite flexible about their regulations. If you are a member of a credit union then you can easily apply for a credit card with them. If you are not a member then you should consider taking up a membership with any one of these unions. Once you become a member then it can make things simpler for you and you can obtain a line of credit easily.
Where to apply
The first place where you can apply for these credit cards is with your own bank where you have an account. The bank where you have an account would usually give out credit cards after some preliminary investigation about your employment status and financial condition. If the bank authorities are convinced then they would give out the credit card to you against the savings account as the security." However, it is very important that you make efforts from your side to ensure the authorities that you would be able to make the payments on time.
Considerations before you take the credit card with no credit
Before you take the credit card with no credit you should make sure that you have assessed your financial situation that you would be able to pay back the amount that you spend with the credit card. Moreover, you should make sure that you dont use the credit card without any necessity and for luxuries. You should treat the credit card only for building your credit rather than fulfilling your needs. Before you take the credit card with no credit you should make sure that you go through the terms and conditions of the card ; especially the terms that are mentioned in the fine print. It is important that if you do not understand any condition you should consult the credit card provider and make sure that you get it clarified.
Credit card with no credit providers
You can find a number of providers for credit cards with no credit. But before you take these credit cards you should make sure that you compare the interest rates and the terms from different providers. Below are mentioned some of the providers for these cards.
Orchard Bank Gold MasterCard: This card is available to people with no credit. They charge you an APR of 14.90% and you can enjoy a number of benefits with this card. They charge an annual fee of $79 and a late fee of $35. They report your payments to all the 3 credit bureaus.
Orchard Bank Silver MasterCard: People with no credit are eligible to apply for this card. You would have to pay an annual fee of $49 and APR of 14.90%. You would be charged a late fee of $35 and an over limit fee of $30. However, you will have a grace period of 25 days. Your credit limit would increase periodically.
Access Visa Card: This credit card is made available to people with bad credit and no credit. You can apply online and get to know whether you would be eligible for the card instantly. You can also access your account online. They charge an APR of 19.92%.
New Millennium Bank Secured Gold Visa or Mastercard: This card is made available to people of all types of credit. The APR for this card is 19.50% and the annual fee if $59. You would be charged a late fee of $20 and an over limit fee of $20 in case of late payment or exceeding your limit.
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