- 1 No Credit Credit Cards – Credit Card for People with No Credit #how #can #i
- 2 Credit Cards for People with No Credit History
- 3 Which Credit Cards Are Easily Approved for People With Little to No Credit Scores Revealed
- 4 The 6 Worst Credit Cards For People With Bad Credit
- 5 Credit Cards for People With No Credit Rating
No Credit Credit Cards – Credit Card for People with No Credit #how #can #i
#credit cards for no credit
Find No Credit Credit Cards for People with No Credit
If you have no established credit history, you may know that it can be difficult getting a credit card or securing a car loan. In a world where having good credit history is increasingly important, this can be quite frustrating for most individuals. Luckily, there are many credit cards that are available to people with no credit, including gas rebate credit cards and student credit cards .
These “no credit” credit cards usually offer the following benefits:
- Reports to the three major credit bureaus so you can begin to establish credit.
- No employment required.
- No lengthy application process.
Should you get a “no credit” credit card, be certain to pay off your balance every month. This will help you to establish a good credit history so that you’ll be able to qualify for bank loans or other credit cards in the future.
If you feel that a credit card for people with no credit may not be the right option for you, there is another alternative prepaid debit cards. These cards can be prefilled with a set amount of spending money, so no previous credit history is required. While these cards are a safe option for staying out of debt, they will not help you establish credit history.
Apply for a No Credit Credit Card Online
Secure Online Applications
All credit card applications use Secure SSL Technology to keep your personal data safe.
Credit Cards for People with No Credit History
If you’ve never had a credit card before, you have no credit history, which can make it difficult to get your first credit card — which makes it difficult to build a credit history!
Option #1: Get a catalog credit card
Catalog credit cards are cards tied to a particular shopping catalog or Web site. When you are approved for a credit card with one of these companies, you can only make purchases from that company. However, these companies are much more open to working with no credit or bad credit customers. Some of them report to the major credit bureaus, which could help you improve your credit score if you make your payments on time. Catalog credit cards include:
- Fingerhut Credit Card ++ – Internet/catalog retailer with a long history of working with people who’ve had “credit challenges in the past.” Offers an unsecured credit card to let you finance items from its extensive catalog of clothing, electronics, home furnishings, more. Reports your payment history to credit bureaus.
- Montgomery Ward – Online retailer offers credit specifically for its collection of products. Credit lines may be low at first but there is a possibility of an increased line of credit if you make your payments on time.
Option #2: Get a secured credit card.
Secured credit cards are often difficult for people to understand because they get them confused with debit cards which are totally different.
A secured credit card is a MasterCard or Visa, and it works just like any other credit card except for one thing: you must put down a security deposit to get it. You make a deposit and the card company gives you a credit limit equal to the amount of your deposit. The important thing to understand is that you’ll pay off your credit card balance every month just like you would with any other credit card — the deposit you made is not touched; your payment does NOT come from the deposit.
Then why make the deposit, right? Two reasons:
- The bank has a safeguard if you don’t pay your bill. They will only use your deposit if you fail to pay.
- You need to build credit. So, you give the deposit as collateral in exchange for the opportunity to use the credit card and build a credit history.
The good news is that after you successfully use the secured credit card for a while (usually at least a year), you can often qualify for a regular, unsecured credit card that doesn’t require a deposit. In that case, you can close the secured card and your deposit will be returned to you. Sometimes the bank that gave you the secured card is so happy with you that they simply return your deposit and let you continue to use the credit card — your good payment history has made them trust you!
Many major banks offer secured credit cards, and successfully using your secured card means you’re also building a relationship with a bank that has a strong reputation. We offer a list of secured credit cards here. (Note that some banks charge a small annual fee on their secured cards that is separate from the deposit.)
For no-credit customers, we actually prefer secured credit cards as the best way to build a credit history. We only list them as the second option on this page because many people feel they can’t or won’t put down a deposit to build their credit. If you’re willing, though, it can actually be cheaper in the long run because you more quickly can qualify for a lower-interest credit card. Plus, unlike most store cards, secured credit cards are Visa or MasterCard cards, meaning they are accepted widely.
Whichever route you choose, having no credit is not a permanent roadblock. There are many banks willing to work with you, and soon your no-credit days will be a distant memory.
++ Indicates that this site receives compensation when you are approved for this card.
Credit One Bank® Platinum Visa® for Building Credit - See if you Pre-Qualify without harming your credit score. +This fully unsecured credit card with no deposit requirement can be helpful in growing or building credit. Your account activity will be reported monthly to all three major credit bureaus. +All the features you want in a credit card are included. Get 1% cash back on eligible purchases, take advantage of free online credit score tracking, and enjoy credit line increase opportunities. Terms apply.
Which Credit Cards Are Easily Approved for People With Little to No Credit Scores Revealed
Ideally, credit card companies would only issue cards to those who have long track records repaying their loans. However, not everyone has a lengthy or perfect credit history.
Therefore, lenders understand that they have to offer products to those who are looking to establish a track record or reaffirm that they can use credit responsibly. So this leaves us with the obvious question here that opens the doors to your credit building process, how do you find credit cards for people who currently have little to no existing credit history?
Many Lenders Offer Credit Cards for Students
Many reputable credit card providers such as Discover have credit cards that are designed for college students. Balances are kept low enough that a borrower can’t become overwhelmed with debt or use it for much more than buying gas or groceries for his or her dorm room. The goal is to keep monthly payments at a level that can be repaid on time each month, which allows a younger borrower to establish his or her credit history.
Ask Your Local Credit Union for a Credit Card
If you have no credit history or a limited credit history, you may not want to get a credit card through a traditional lender or a big bank. While you may get a higher balance, your card may also come with a higher interest rate and penalty fees for making a late payment. However, if you belong to a credit union, you may want to inquire about getting a credit card through that organization. As they are a nonprofit organization, they have less incentive to make a profit, which means they charge lower interest rates as well as have fewer penalties for late payments. Credit unions also tend to offer lower balances based on what you can afford to pay back as opposed to what you may qualify for. If you have no credit history or a limited credit history, you may not want to get a credit card through a traditional lender or a big bank. While you may get a higher balance, your card may also come with a higher interest rate and penalty fees for making a late payment. However, if you belong to a credit union, you may want to inquire about getting a credit card through that organization. As they are a nonprofit organization, they have less incentive to make a profit, which means they charge lower interest rates as well as have fewer penalties for late payments. Credit unions also tend to offer lower balances based on what you can afford to pay back as opposed to what you may qualify for.
Do You Have Any Experience With Credit?
If you have no experience with credit, a beginner credit card or a secured credit card may be all that you can get. However, if you have taken out an auto loan or perhaps a student loan in the past, you may have a credit score and history. As limited as it may be, it may be enough to get an unsecured line of credit with reasonable rates and terms if you have made your payments on time.
In fact, you don’t even need to get a loan through a traditional lender to have a credit history. Technically, any creditor can report the payment history on a loan whether you borrowed money from a bank to buy a car or just borrowed some money from a family member to buy books for school.
Could a Secured Credit Card Be Worth It?
If you have a limited credit history littered with late payments, repossessions or a bankruptcy, most lenders won’t give you an unsecured loan. However, that may not be a bad thing. With a secured credit card, you are required to put you own money down to get a line of credit. This forces you to be more responsible because you don’t want to lose that money.
Therefore, it can get you into the habit of making payments on time and being smarter with your money in general. Over time, your secured line of credit may convert to an unsecured line, and by then, you should be ready to responsibly handle that debt.
Limited Options But Still Doable!
While there may be limited options as it relates to credit cards for people with little to no credit history, it doesn’t mean that getting a card is impossible. Instead, it means that a borrower will have to do some research, spend some time shopping around and then make sure that he or she is working with a lender that can meet their needs now and in the future.
The 6 Worst Credit Cards For People With Bad Credit
If you have a FICO score of lower than 600, you are considered to be someone with bad credit. One way to rebuild your credit is by getting a credit card and using it wisely. Knowing this, various credit card providers offer cards designed specifically for people with bad credit. While most of these cards come with high fees, interest rates, or restrictions, some are still recognizably better than others. Instead of helping people to rebuild their financial lives, some cards do more harm than good by charging exorbitant interest rates and hidden fees. See the following list of the worst offenders.
On its website, First Premier Bank clearly shows who it is marketing its credit cards to with this line over its link to credit card offers: “Less than perfect credit?” Upon examining the “Fees, Rates, Costs, and Limitations” page for the basic unsecured Premier Bank MasterCard, the first thing that stands out is the APR: 36 percent! On top of that, it comes with a one-time $95 processing fee and a $75 annual fee that is immediately assessed against the card’s credit limit – taking the meager $300 limit down to $225 before you have even bought anything. After the first year, the annual fee drops down to $45. On top of these fees, there is a monthly “servicing fee” of $6.25. (Thankfully, this does not apply for the first year.) Cash advances each cost $6 or 5 percent - whichever is the greater of the two. The card also charges a $35 penalty for every late payment and $35 for returning items you have purchased with the card.
The Centennial Secured MasterCard is also provided by First Premier Bank. As the name implies, it is a secured card – meaning that applicants must initially submit a security deposit. If the card holder later fails to make payments on the card, the provider may keep the security deposit. This card comes with an APR of 19.9 percent and an annual fee of $50. This annual fee is taken out of the initial credit limit, which is based on the security deposit. Therefore, by paying the minimum security deposit of $200, after the $50 annual fee has been taken out, you get an initial credit limit of $150. Like the unsecured First Premier Bank MasterCard, this card charges the greater of $6 or 5 percent for cash advances and levies $35 penalties for late payments and returned items.
Net First Platinum Merchandise Card
The Net First Platinum Merchandise Card purports to be a credit card with no credit check and guaranteed approval. It offers a $500 line of credit. However, it cannot be compared to other credit cards for two reasons. First, it can only be used to make online purchases at thehorizonoutlet.com, making it useless for those who want a credit card they can use at most stores. Second, while it does extend a line of unsecured credit, it does not report to the major credit bureaus. The Net First site explicitly says that Horizon Card Services – the provider of the card – is not a credit services or banking organization and that the card does not work through a major credit card company. Those who use it often complain of hidden fees and say that it is difficult to get rid of.
Many retailers offer credit cards specifically for use at their stores. They may offer special perks such as discounts on specific products, but in general, such cards are some of the worst in the industry. The Shack Card from Radio Shack has notoriously high interest rates – varying 26.99 to 28.99 percent in normal situations and going up to 29.99 percent as a penalty rate. To be fair, Radio Shack does offer zero interest for the first six months if you make a minimum purchase of $150. The card also gives you a 15 percent discount on in-store battery purchases.
Office supply store Staples also offers an in-store credit card. The interest rate for this card is about the same as that of the Shack Card at a variable 27.99 percent. Like the Shack Card, this card does come with a number of benefits for the frequent Staples shopper, such as free delivery on all orders and automatic enrollment in the Staples Rewards program. This program allows you to receive a number of discounts – such as a 10 percent discount on toner and printer/copier-related purchases. However, it is difficult to pay attention to these benefits with that interest rate hanging over them. Unlike the Shack Card, the Staples Card does not offer an introductory zero-interest period.
The Black Card is a Visa card marketed as an exclusive credit tool for those who spend a lot on luxury items. One way by which the Black Card maintains its supposed exclusivity is with its annual fee of $495. No, that is not the line of credit. That is the annual fee. To this, add an annual fee of $195 for each additional authorized user added to the account. However, despite the card’s claims of exclusivity, consumer reports have found that it is not all that exclusive. It is marketed to the general public, and people with poor credit and even low income sometimes get the card because they see it as a status symbol. It does come with a 0 percent introductory APR which is attractive. However, after the introductory term ends, the APR shoots up to 14.99 percent. If you miss a payment, the penalty APR is 30.24 percent.
If you are trying to rebuild your credit score, stay away from these credit cards. They could end up doing more harm than good to your credit profile.
Credit Cards for People With No Credit Rating
Credit Cards for People With No Credit Rating – It may be difficult if you have absolutely no credit history for you to be eligible for a mortgage, obtain a car or even rent a flat. History of credit is actually key point in the credit standing, nevertheless the record should begin somewhere. Thankfully, particular types of cards might help people without credit history set up credit ratings.
A single kind of bank card that people without credit ratings can acquire is really a card that may be secured by way of a dollars put in. Another kind of bank card open to people without credit history can be an credit card items card. Merchandise credit cards usually are technically store credit cards, nonetheless they differ from department store credit cards by the fee construction. Fuel as well as store cards usually are additional choices, but these kinds of credit cards usually are intended for in-house purchases merely, and quite often have got excessive mortgage rates as well as minimal primary credit lines.
Finance institutions as well as other loan providers exactly who present secured cards will not refute a free account for you to folks simply because they don’t have any credit history. Customers may charge merely a quantity adequate to the bucks assets placed while using the bank, helping to make default extremely hard. Merchandise credit cards usually are supplied by vendors intended for the variety of products on their web sites or even inside their retailers. Gas stations as well as retailers present cards by means of financial institutions instead of big financial institutions, producing these people simpler if you have absolutely no credit ratings to have.
Secured cards usually are risk-free to the bank but is usually fee-intensive intended for people. Loan companies providing secured cards generally charge a software fee, a monthly program fee as well as a once-a-year fee. Charges change considerably; make sure you browse the manual about the bank account beginning docs. Program costs are standard with items credit cards, since usually are monthly as well as once-a-year costs. Retail store as well as petrol credit cards may have a software fee, nevertheless the main fee things to consider intended for these kind of credit cards is based on your excessive mortgage rates.
Secured cards statement transaction action to all or any several credit scoring organizations, which supports begin a credit history those of you that have got it’s unlikely that any. The majority of items cards distribute reports to all or any several credit scoring organizations, but it’s a wise decision to test their confirming plans just before triggering a free account. A number of petrol credit cards need transaction completely on a monthly basis and statement your bank account action for the credit scoring organizations. The actual credit reporting agencies take into account petrol as well as store cards which might be described to get much like credit card, turning credit lines.
Pupils without credit history be eligible for credit card cards simpler when compared with other folks. Stop by almost any campus in the united kingdom and you might see bank card kiosks providing offers that include absolutely no app fee, minimal for you to absolutely no fascination for the particular time period as well as free gifts. When the kiosks usually are not current, creditors focus on pupils with emails as well as one on one mailings.
In addition to knowing the above information, it will be very less references do you have if you do not know about the Criteria for a Credit Card. It even is fundamental that must be known by every user.