How to Get a Credit Card With No Credit

By Tonya Nash

Overview

Developing a good credit history is important. Having credit allows you to purchase things that would normally take years of savings to buy. But what if you have no credit history? Many desirable purchases, such as a home or car, require a good credit history in order to get a loan and a decent interest rate. There are several different ways to establish credit. However, it is imperative that you use credit responsibility so that the credit history you build is good and solid.

How to Get a Credit Card With No Credit

Step 1

Maintain a measure of stability in your life. Get a steady job. Persons considering you for credit will look at your employment history to determine if you have the financial resources available to repay your loans. Your residence history will also be reviewed. Put your residence and utilities in your name to establish a payment history. Lenders will consider how often you move, if you rent, or if you own your home.
Step 2

Open a bank account and be responsible with it. Be sure that you keep accurate records as to how much money is in the account. Do not spend more money than you have in the account, which can cause overdraft fees. It is possible that you can get a credit card through your bank, upon showing that you have been fiscally responsible with your own bank account.

Step 3

Apply for a department store or gas credit card. It is easier to get this type of credit card than it is to get a Mastercard or Visa. Be sure that you understand the terms of the credit card when applying.
Step 4

Look into getting a secured credit card. For secured credit cards, you must deposit a set amount of money into a bank account with the creditor. The money that you deposit is used as collateral for your debt. Some banks also use property as collateral, such as a vehicle.
Step 5

Ask a family member or friend with good credit to co-sign on a loan with you. This can help you build a credit history. If you choose this method, be sure to be honorable and make all the payments. If you do not make the payments, your family member or friend will be held responsible for the debt.

Skill: Moderate
Tip: Be patient because it takes time to build up a credit history.
Tip: Only apply for credit cards that report to the credit bureau.
Tip: If you are denied a credit card, ask why. This can help you work on any areas of concern to creditors.
Warning:
Do not charge more on your credit card than you can afford to pay back.
Do not let anyone else use your credit card. You are the one responsible for the repayment of the loan, regardless of who makes the expenses.

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