Indeed, those with no credit are getting a hard time to have the approval for a credit card. This is because the majority of the credit card issuers require applicants to have a credit history which includes a credit score. This is needed for a new credit card application.
But you can’t have a credit score until you have one active account on your credit report for six months. There are credit card issuers who realize that their clients have a hard time getting a credit card for the first time. Thus, they made credit cards for no credit.
In this article, you will know of several ways on how you can improve your odds of having your credit card and starting your credit card history.
Find a Job and Get Employed
You must have sufficient income for you to pay your credit card balance. This is true if you are under 21 years old. The income to indicate in your credit card application must be your own. You cannot indicate the income of your parents, lover, or other members of the family so you can qualify for a credit card. Unless you have reasonable access to that money.
The income limits may differ depending on the credit card. However, you must earn enough money to repay your credit card balance every month. The higher your income, the higher the chance you can have at getting approved for the credit card although you don’t have a credit score.
Have a Student Credit Card
If you are still a student, you may qualify for a student credit card. These are compatible with college students who might not have enough income to qualify them for a card.
To qualify, you have to prove that you are enrolled in a university or college. Make sure to decide carefully. There are student credit cards with high-interest rates and they impose lots of fees.
Make a Small Purchase
If you have credit in the past and still have open credit accounts that you haven’t used in a while, then you might consider buying a small purchase. Even good credit activity may fall off on your report after 10 years from the beginning of the closing of the account. Thus, you may want to start using an existing credit card to start your credit history again to be qualified for a new credit account.
Prequalify for a Credit Card
Some credit cards for no credit issuers have online prequalification which enables you to see if there is a credit card available for your credit. These prequalifications can be considered as soft credit cards. This means that it will not hurt your credit score whenever someone checks on your report.
If you applied for a credit card, that inquiry will now show up on your credit report and lower your credit score.
You must remember that prequalifying for a credit card will not automatically guarantee its approval. There are other factors to consider such as your income. It can cause you to be denied for your credit card in which you have been prequalified.
If ever you have been denied, you will receive a letter in the mail that will tell the reasons why. Use this information in deciding the next steps.