How To Apply For A Credit Card With No Credit History?

If you’re new to credit, or you have a limited credit history, applying for a credit card can be a challenge. Many credit card companies require a good credit score, which can be difficult to achieve if you don’t have a credit history. However, there are ways to apply for a credit card with no credit history.

Step 1: Submit an application for a secured credit card

One option for people with no credit history is to apply for a secured credit card. A secured credit card requires you to make a deposit, which serves as collateral for the credit card company. Most of the time, the deposit is in line with the card’s credit limit. For example, if you make a Rs. 30,000 deposit, you'll have Rs. 30,000 credit limit. This type of credit card is often easier to get approved for because the credit card company has some security in the form of a deposit.

Step 2: Become an Authorized User on Someone Else's Credit Card

Another way to establish credit is by becoming an authorized user on someone else’s credit card. This means that you're allowed to use the credit card, but you're not responsible for paying the bill. If the primary cardholder has good credit and uses the card responsibly, it can help build your credit history. However, if the primary cardholder doesn't use the card responsibly, it can hurt your credit score.

Step 3: Submit an application for a student credit card

You might be qualified for a student credit card if you're a student. These credit cards are designed for students who don't have a credit history. They often have lower credit limits and higher interest rates than regular credit cards, but they can be a good way to start building credit.

Step 4: Apply for a credit-building loan.

A credit builder loan is a type of loan that's designed to help people build credit. The loan is usually for a small amount, and you make payments on the loan over a set period. The payments are reported to the credit bureaus, which can help build your credit history. Once you've paid off the loan, you'll have a better chance of getting approved for a credit card.

Step 5: Apply for a Store Credit Card

Another option for people with no credit history is to apply for a store credit card. Many businesses provide a credit card that can only be used in their establishments. These credit cards often have lower credit limits than regular credit cards, but they can be easier to get approved for because the credit card company knows you'll be using the card at their store.

Step 6: Consider a Cosigner

If you're still having trouble getting approved for a credit card, you may want to consider getting a cosigner. A cosigner is someone who agrees to take responsibility for the debt if you don't pay it. This can be a family member or friend who has good credit and is willing to vouch for you.

Conclusion

Applying for a credit card with no credit history can be a challenge, but it's not impossible. You can apply for a secured credit card, become an authorized user on someone else's credit card, apply for a student credit card, apply for a credit builder loan, apply for a store credit card, or consider getting a cosigner. Once you have a credit card, make sure you use it responsibly and pay your bills on time to build a good credit score.

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