Having no credit doesn’t have to keep consumers from getting a credit card. There are several options for consumers with no credit to get a credit card.
It’s becoming increasingly difficult to function in today’s society without having credit. However, when you don’t have credit it can also be complicated to obtain a credit card. Credit card companies need to check your credit history to determine whether they should extend credit to you. When you do not have a credit history, the credit card companies have no way of knowing if you are a credit risk. Even when you don’t have a credit history, there are some ways you can obtain a credit card.
The bank or credit union where you have your savings or checking account is a good place to go to apply for a credit card when you do not have established credit. If you have income and have not bounced any checks, you have an excellent chance at getting a credit card from your bank. Since you do not have credit history, you will most likely start out with a low credit limit. Once you begin to make purchases with your credit card and make timely monthly payments, you can negotiate a credit limit increase if your card issuer does not give you one automatically.
If you are not able to get a credit card from your bank, you have other options. Store credit cards and gas credit cards are much easier to obtain than some other credit cards. Again, you will not start out with a very high credit limit, but if you make your payments on time, card issuers will increase your credit limit.
Many credit card issuers offer the option to upgrade a secured credit card to an unsecured one after a certain period of time. If you go the route of a secured credit card, one that can be upgraded is a better choice than one that cannot. You should also find out how the credit card is reported to credit bureaus. Some secured credit card issuers report the credit card as being a secured credit card which can raise a red flag in the eyes of future credit. When you choose a secured credit card make sure it is one that reports as if it were an unsecured credit card.
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