Credit Questions: How Do You Get a Credit Card if You Have No Credit?

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Did you know over 120 million Americans have a credit card?

Although credit cards get a bad reputation, they can help you establish a credit history and help you in case of an emergency. In addition, if you believe you don’t qualify for a credit card, we can help answer some of your credit questions.

How do you get a credit card with no credit? Read on to learn how.

Consider a Student Credit Card

If you’ve never had a credit card and you’re a student, then you should consider applying for a student credit card. Student credit cards are specially created for students who don’t earn a lot of money or have a long-established credit history.

Credit card companies approve students and allow them to have a low credit limit to pay for their unexpected expenses.

The great thing about student credit cards is that there are several on the market so that you can compare benefits, interest rates, and fees. In addition, getting a student credit card if you qualify is one of the best ways to start building your credit.

Do You Qualify for a Store Credit Card

Unlike other credit cards with the MasterCard or Visa logos, store credit cards are a lot easier to obtain. With a store credit card, you won’t be able to pay for purchases outside that retailer.

If you have a limited credit history or low credit score, you might still qualify for a store credit card. Keep in mind; you might start with a low credit limit until you can establish on-time paying patterns.

Although you can qualify for store credit cards, you should keep in mind they often have high-interest rates.

Apply for a Secured Credit Card

If you don’t qualify for a student credit card, you should consider getting a secured credit card. Secured credit cards allow you to qualify for credit and establish a positive history.

You will have to put down a deposit if you want to get a secured credit card. For example, if you can put down a $500, that will give you a credit limit of $500.

You can put down as little as $50 for a deposit with certain credit cards. If you make your payments on time, you can establish a positive credit history when you use a secure credit card.

Learn About Credit-Builder Loans

Another way to obtain a credit card in the future is by taking out a credit-builder loan. The purpose of this loan is to help you build your credit over a short period of time.

Once you get approved for the small loan, you take the funds and put them in a locked savings account. You won’t be able to touch the funds until you pay off the loan.

During the term of the loan, you will make manageable payments that will help you build your credit. Keep in mind, however, that you will still have to pay interest on the loan.

The bright side is that once you pay off the loan, your credit score will improve.

Start Building Your Credit

If you have trouble obtaining a credit card with your low credit score or lack thereof, there are a few things you can do to improve it. While it might take a little time, taking steps to improve your credit will bring you a lot of benefits.

Get a Co-Signer

One of the best ways to get a credit card fast if you don’t have an established credit history is getting a co-signer. If you’re young, your parents might be able to co-sign your first credit card.

Anyone that trusts you can co-sign for a credit card, and they will be responsible for ensuring you pay the credit card every month. The co-signer has to be a credit-worthy individual with a steady income.

The downside when having a co-signer is that they will track your every purchase and stay involved with your account.

Consider Becoming an Authorized User

Another way to build your credit is by becoming an authorized user on someone else’s credit card. For example, your parents or spouse can add you as an authorized user to their credit card.

You will get a credit card with your name on it, but the principal will be responsible for paying the account. The bright side is that the history of the account will be sent to the credit reports.

This is a great way to build your credit and a low-risk way to use a credit card.

Additional Credit Card Questions

If you have been denied a credit card, it’s easy to give up after you have been denied. However, you mustn’t give up right away.

Rather than applying for every credit card on the market, narrow down the ones you might qualify for based on your credit.

You should avoid submitting a lot of credit card applications at once. If you keep applying for credit cards for a short period of time, it can hurt your chances.

How Do Credit Companies Calculate Your Credit?

Many people have questions about credit and how it is calculated. Before getting your first credit card, you must learn how creditors determine your eligibility.

The major credit bureaus evaluate your credit based on the amount you owe, payment history, length of the account, credit mix, and new credit.

Because they consider many different factors, it’s important you don’t focus on just improving one thing. So, for example, while you can’t do anything about the length of your credit history, you can focus on keeping your balances low and paying on time.

How Do You Get a Credit Card? Now You Have the Answer

How do you get a credit card, and if you have no credit? After reading this article, now you have the answer.

Remember, the best way to obtain a credit card when you have no credit is to apply for a student credit card, get a secure credit card, and apply with a co-signer.

Did you find this article useful? We have more where this came from. Check out the rest of our article for more useful tips.

 

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