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Research which type of credit card is best for you
When you have no credit history, it can be hard to get approved for a credit card. But there are a few things you can do to increase your chances of being approved.
First, research which type of credit card is best for you. Some cards are geared toward people with no credit, while others require a good or excellent credit score. If you’re not sure which type of card you should apply for, ask a family member or friend with good credit to help you out.
Once you’ve chosen a card, make sure you fill out the application completely and accurately. Incorrect information could result in your application being denied.
If you have a limited income or no job, some issuers may still approve your application if you have a cosigner with good credit. A cosigner agrees to repay the debt if you can’t, so this is a big responsibility. Make sure you can afford the monthly payments before agreeing to this arrangement.
Once you’ve been approved for a card, use it wisely. Make all of your payments on time and keep your balance low. If you use your credit card responsibly, you’ll eventually build up enough history to qualify for a better card with more perks and rewards.
Find a credit card issuer that doesn’t require a credit history
It may be easier than you think to get your first credit card, even if you don’t have a credit history. There are a number of credit card issuers that are willing to approve you for a credit card with no credit history, as long as you have a steady income.
Here are some issuers that you may want to consider:
Capital One: Capital One offers a number of credit cards for people with no credit history. The Platinum Card from Capital One has no annual fee and offers a 0% intro APR on purchases for the first 15 months (after that, the APR is 17.24% – 25.24% variable). You’ll also earn 1% cash back on every purchase.
Discover: Discover offers the Discover it Secured Credit Card, which is specifically designed for people with no credit history. The annual fee is $0, and there is no foreign transaction fee. You’ll also get 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, plus 1% cash back on all other purchases.
Wells Fargo: Wells Fargo offers the Secured Visa® Credit Card for people with no credit history. The annual fee is $25, and there is no foreign transaction fee. You can also get up to $600 protection on your cell phone (subject to a $25 deductible) if it’s accidentally damaged or stolen when you pay your monthly cell phone bill with your Wells Fargo Credit Card.
Apply for the credit card online or in person
One way to get a credit card with no credit is to apply for the credit card online or in person. You will need to provide some personal information, such as your name, address, Social Security number, and date of birth. You may also be asked to provide income information and employment history. Once you have submitted your application, the credit card company will review your information and decide whether or not to approve you for the credit card.
Use your credit card responsibly to build credit
If you have no credit history, it can be difficult to get approved for a credit card. One thing you can do is try to get a secured credit card. A secured credit card is one that is backed by a deposit you make with the issuer, typically in the amount of your credit limit. This deposit reduces the issuer’s risk if you don’t pay your bill, but it also means that you’re essentially borrowing money from yourself.
Another option is to become an authorized user on another person’s credit card account. This means that person will be responsible for the bill, but you will benefit from their good credit history. Be careful with this option, however, as it can negatively affect both people’s credit scores if mis managed.
If you have a job, you may also be able to get a credit card through your employer. Some employers offer products like payroll cards that can help you build credit without having to carry around cash or worry about accruing debt.
The best way to build credit is by using your credit card responsibly and paying your bill on time every month. If you’re not sure where to start, there are plenty of resources online that can help you create a budget and stick to it. Just remember: building good credit takes time, so be patient and stay disciplined.
Monitor your credit score to see your progress
If you have no credit or bad credit, the best way to improve your credit score is to use a credit card responsibly and make all of your payments on time. You can also make a payment plan with your lender or creditor to help you stay on track with your payments. Another way to improve your credit score is to monitoring your credit report for any inaccuracies and dispute any errors that you find.