Getting Approved For A Credit Card With No Credit History

We all know how crucial building credit is once we reach a certain age. And in today’s world, the benefits of having a good credit score, including eligibility for credit cards, are endless. Wondering how to get a credit card if you do not have any credit history or if you are concerned about the minimum amount due in credit card payments? There are so many ways out! All you need to do is learn the strategies and use them wisely. Consider this article your comprehensive guide to getting credit card approval without a credit history while also understanding the importance of managing the minimum amount due in credit card payments.

Why Do Banks Verify Credit History?

 

A hiring manager doesn’t promise you a position just because you apply for one by looking at you. They evaluate your credentials, experience, and skills to determine whether you are a good fit for the position. Similar principles govern the system of credit evaluation. 

Banks must assess your dependability and creditworthiness. Banks only assess your credit behaviour based on your credit history before deciding whether or not to extend your credit. The absence of a credit history does not necessarily indicate financial irresponsibility.

However, lenders lack the data they need to assess an individual’s credit risk if there’s no established credit history.

How You Can Get a Credit Card With No Credit History

 

As previously discussed, getting your hands on a credit card without a credit history is not impossible. For first-time borrowers, lenders have used a variety of methods to assess creditworthiness. To obtain a credit card without a credit history, take the following actions:

Student Credit Card

Student credit cards are a great way to build credit while still a student, as they are easier to qualify for. Sometimes you don’t even have to be a student to get approval for a student credit card. Many banks charge very little to no annual fees, along with other benefits for student credit card holders. 

Secured Credit Cards

So many credit unions and banks now offer secured credit cards to customers. These cards can be of great help when it comes to building credit as a newbie. 

Your issuer holds a sum of money you deposit—sometimes called a security deposit—as collateral. If your application gets approved, you can use it to make purchases just like you would with regular credit cards. You can also increase the credit limit on this card. 

In this regard, by repaying the borrowed money on time and using this card responsibly, you can build a great credit score in the long run. 

Add-on Credit Cards

Another great option for obtaining a credit card with no credit history is to apply for an add-on credit card. You can only apply for this credit card if someone in your family already has one. Similar features and benefits to those on the primary card are also available on the add-on card. However, keep in mind that both cards will now share the credit limit. The add-on cardholder must also pay the debts they have timely and in full to avoid harming their credit score. 

Application Process for Credit Card With No Credit History

 

Make sure to compare credit cards to find the right one for yourself. Following your choice of a first-time credit card, you might want to take the following actions:

Step-1: Choose Your Card Issuer

Not all banks offer the benefits you are in search of – it’s crucial that you do your research well. Read the terms and conditions and consult with an expert to have a better understanding. 

Step-2: Gather Information

Once you have made up your mind about the issuer, gather all the information you will be required to submit. Make sure that you include the following:

Full Name

Date of Birth Full Address

Income Statement

Social Security Number

Depending on the bank and your situation, you might also be asked for some additional information.

Step-3: Keep Track of Your Credit

It’s crucial to keep an eye on your credit once you’ve received approval for a credit card. Regularly check your credit reports, repay debts on time, and use your card responsibly. 

Also Read: How OTPs are Securing Credit Card Transactions In India?

Conclusion

 

Banks are starting to rely less on the conventional scoring system. The focus is now more on alternative data sources and indicators of credit behaviour when making credit decisions- this has given numerous first-time borrowers new opportunities. 

 

It’s time to take the leap towards financial freedom by getting your hands on a credit card. Keep in mind that getting approval is only the first step – the goal is to maintain good financial behaviour throughout.

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