How To Get a Credit Card With No Credit History

What do you do when you need to establish your own credit history, but no one wants to give you a credit card or loan you money…because you have no credit history?  Sounds like fun, right?  It can feel like you are chasing your tail when you first enter the world of “Credit.”  It helps, however, if you understand what the credit card companies are looking for when making a decision about you as a credit risk.

Other Credit Card Criteria

The credit card companies can look at additional factors before they decide to issue you a credit card.  You will want to take a look at the way you handle some of these things in order to show that you are a responsible person and able to repay the monies owed.

1. A Bank Account – You should already have a bank account, as it is fairly easy to open one and you only usually need a driver’s license or state issued ID.  In this case, it’s your account history that will be looked at:  have you had any overdrafts or periods with a negative balance?  How long have you had the account? Do you have any money in savings?  That sort of thing.
2. Your Employment History – Hopefully you have been working for a fair amount of time and have not had any significant periods of unemployment.  If you can hold a steady job, it just may be very helpful in getting you approved.
3. Your Residence – If you can show that you have a stable residence as well, it can certainly look good for you as a credit risk.  The lenders will look to see if you are renting or if you own your home.  Again, this is an indication of your overall reliability.
4. Other Bills – Bills, such as those for your utilities, will also be helpful in showing a credit company that you are responsible.  When you have the gas bill, telephone, water or cable etc. in your name, this can help when you are trying to get a credit card for the first time.

Where to Start Looking For a Credit Card?

One of the best ways to get started is by opening an account and maintaining a good relationship with your bank.  As mentioned above, any lender is going to want to know – first and foremost – if you are a good credit risk or not.  If you can show that you know how to handle your money and have kept your checking account in good standing the entire time, then you may be ready to ask for a credit card.

Many banks have their own credit card departments and are able to issue you a card in house.  Banks want to be your “one-stop-shop” for everything financial, so it is in their best interest to help you AND get your business at the same time.

Another great place to look when you are trying to establish your credit history is at department store cards.  First, be sure that the department store card is reported to the credit bureau and is not just handled by the store.  You need the card to be a real credit card that is going to help you get the credit history you are looking for.

Look at all of the information for the card, such as a yearly fee, how and where you can make payments and what the interest rate is.  Know what you are getting into and be sure it is something you can handle. If you get approved for a department store card, carefully make a purchase and then pay off the balance.

As soon as any credit card is active, it should start being reported to the credit bureaus.  Now you just need to be thoughtful in establishing your credit history by making purchases and then paying your balance in full.  It will take some time, so be patient!

Cards for Limited or No Credit History

The following cards are tailored for people who have very little credit history or don’t have any credit history at all.