A credit card is a financial tool that enables you to make purchases and transactions using borrowed funds that you will need to repay at some point in the future. Your credit score, however, plays a critical role in determining whether you are eligible for a credit card or not. In case you have no credit history, you might be wondering if you can still get a credit card. Fortunately, there are credit cards available that are suitable for people with no credit history, commonly referred to as no credit score credit cards or credit cards without credit history.
What is credit history?
Credit history is a record of an individual's borrowing and repayment activities. It encompasses details such as credit accounts, outstanding balances, and payment history. A positive credit history is crucial when applying for credit cards, loans, or mortgages, as it reflects your financial responsibility.
What does no credit history credit card mean?
A no-credit history credit card is tailored for individuals who lack a credit history or have a limited credit record. These specialised credit cards serve as a starting point for those looking to build their credit from scratch. They offer an opportunity for financial newcomers to demonstrate their creditworthiness and gradually enter the mainstream credit market.
Do you get credit cards without a credit history?
Yes, it is possible to obtain a credit card without an established credit history. No credit history credit cards are designed precisely for this purpose, offering a gateway for individuals who are new to the world of credit.
How can you move from no credit score to a good credit score?
Building a credit history from scratch requires patience and strategic financial decisions. Here are some pointers to guide you on this journey:
Get a secured credit card: Consider applying for a secured credit card, where you provide a security deposit as collateral. Responsible use of a secured credit card can help you establish a positive credit history.
Become an authorised user: Ask a family member or friend with a good credit history if you can be added as an authorised user on their credit card. This allows you to piggyback on their positive credit history, boosting your credit score.
Explore credit-builder loans: These are designed to help individuals build or rebuild credit. These loans typically have lower approval requirements and can positively impact your credit score over time.
Pay your bills on time: Consistently pay all your bills on time, including utility bills and rent. Timely payments contribute significantly to a positive credit history.
Track your credit: Keep a close eye on your credit report to track your progress. Identify and rectify any errors promptly to maintain the accuracy of your credit history.
How to apply for a credit card with no credit score?
When applying for a no credit history credit card, follow these pointers:
Research and compare: Research different credit card options catering to individuals with no credit history. Compare interest rates, annual fees, and other terms to find the most suitable option.
Apply for starter cards: Consider applying for starter credit cards or those specifically designed for individuals with limited or no credit history. These cards often have more lenient approval criteria.
Provide accurate information: Ensure that all information provided in your credit card application is accurate and up to date. Inaccuracies may lead to delays or denials.
Consider a co-signer: If possible, involve a co-signer with a good credit history to increase your chances of approval. A co-signer assumes responsibility for the debt if you fail to make payments.
What are the eligibility criteria to get credit cards with no credit scores?
When seeking a credit card without a credit history, consider the following eligibility criteria:
Minimum age requirement: Applicants are typically required to be at least 18 years old.
Proof of income: Provide proof of a stable income source to demonstrate your ability to repay debts.
Residential stability: Some credit card issuers may prefer applicants with a stable residential history.
Identification documents: Furnish valid identification documents, such as a passport or driver's licence.
Getting a credit card without a credit history can be challenging, but it is possible. With proper research of available options, you can find a credit card that suits your needs without impacting your budget. Furthermore, once you get a credit card, it is essential to manage it responsibly by paying your bills on time and monitoring your credit scores. By doing this, you will move from having no credit score to having a good credit score in no time.
