Apply for a credit card or loan without a credit history and you’re likely to get turned down. Getting approved for a credit card is a Catch-22. You need credit to establish credit, but you can’t establish credit if companies won’t approve your application. This is a problem that’s plagued young adults for years. But while it’s frustrating and discouraging, rest assured that you can get a credit card with no credit history.
Retail and Department Store Credit Cards
It’s not a major credit card and you can’t book a flight with a retail or department store card. But if you’re looking to establish credit and get your foot in the door with credit card companies, this is an excellent place to start. It’s easier to get approved for a retail or department store card with no credit history. These credit card issuers typically only require a steady source of income and perhaps a bank account. You can apply for an account in-store or online and receive an instant approval.
Student Credit Cards
The college years are the best times to establish a credit history. By the time that you’re ready to graduate and buy your first place, you can have the credit score to qualify for a purchase. But getting a credit card in college isn’t easy, especially since some college students don’t earn a lot of money.
With student credit cards, getting a credit card with no credit has never been easier. These credit card issuers target college students and they strive to help students jump start their credit. The application process is simple, and as long as you meet the basic requirements, you’re approved for credit. The application will request your Social Security number, your address, your place of employment and your monthly income. Understand, however, student credit cards do require some type of income. If you don’t have an income source, you can ask your parents to cosign the credit card application.
Gaining access to someone’s credit card by becoming an authorized user is another fast way to get a credit card with no credit. As an authorized user you don’t apply for the credit card account, yet you can enjoy the benefits of having a card in your name. Here’s how it works.
You approach someone with a credit card account, perhaps a parent, your spouse or a sibling. You then ask this person to add your name to one of their accounts. This person contacts their credit card company, adds your name and Social Security number and the credit card company mails a card in your name. It’s that simple. You’re not responsible for the account or the monthly payments, yet the account appears on your credit report. Your credit score gradually increases each time the primary accountholder pays his bills on time or pays off the account. In time, your score will be high enough to qualify for your own credit card.
Secured Credit Card
If you have a savings or checking account with a bank or credit union, visit the nearest branch and ask about first-time credit cards. These types of credit cards are typically secured accounts that require a security deposit and other fees. You don’t need a credit score or credit history to qualify. In fact, you can get a secured credit card for no credit. Credit limits are modest with secured credit cards, but they can increase as you prove your creditworthiness.