How to Get a Visa or Mastercard Credit Card With No Credit

Join a credit union. A wide range of financial institutions offers credit cards, from commercial banks like the Bank of America to credit unions. CU members are bound by affiliation, so the officers seem more receptive to people just starting out. Also credit union savings account offer higher interest than commercial banks.

Deposit at least $500 in a savings account. This is the minimum credit line that you'll need in many cases to rent a car. If you can afford to do so, double that amount. It's always great to have access to an emergency credit line.

Take your receipt or bank book and see a bank officer. Ask for either a Master Card or Visa secured credit backed by the funds in your savings account as security. You'll still have to submit to a credit check, but because you're borrowing your own money, your rate will be a lot lower than interest from other sources that can run as high as 30%. It's also a good idea to use this credit card as overdraft protection for your checking account. If you bounce a check in most states you are liable for statutory fees.

Pay your credit card bill promptly. If possible pay it off in full every month. By using the grace period, you'll get a free loan while still collecting interest on your deposited savings.

Keep your actual utilization of your credit to below half of your credit line. Your credit is rated not only on how methodically you pay your bills, but on whether you are fully using your credit line . One warning sign to lenders is that you are simply making minimum payments which do nothing more than keep you treading water.

Use your secured credit card for a year. Maintain a good track record of usage and apply at your bank for an increase in your credit line or an upgrade to an unsecured card.