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Oddly
enough, not only will bad credit work against you when
applying for a loan or a credit card, but no credit will
too. Even though this doesn't seem fair, it is the way
things work in the complicated world of consumer credit.
Lenders are leery about opening accounts for people with no
credit history because they simply have nothing to base your
reliability on.
So, if you can't build a credit history without credit and
you can't get credit without a credit history, just what has
a person to do? It's nearly impossible to rent a car, stay
in a hotel, or shop online without a credit card, so let's
explore a few of the options that can eliminate this
Catch-22.
Available Credit Options
Although many of the major credit card companies won't give
you a card without a credit history, some smaller ones, like
department stores, will. Find a department store that will
issue you a card and apply for it. You can try getting a gas
station card also. Either way, use your card but be sure to
make all payments on time. Your goal is to build a good
credit history, not just get a credit card.
Find a credit card company that will review your overall
financial situation and not just your credit history. Some
lenders will look at your employment history, your housing
situation, and how often you have moved. If this is all on
the up and up, they may approve your application. Again, use
this card wisely.
Credit Unions
If you are a credit union member, or are eligible for
membership, see what their card issuing terms are. Although
they are no giving out cards with their eyes closed, they
will often have more relaxed conditions for members. You no
longer have to work for a specific company to be eligible to
join a credit union. So it's well worth checking if there's
one in your area.
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Credit Card Information
»Credit Card
Information
»Types
of Credit Cards I
»Types
of Credit Cards II
»Various
Features
»APR
Explained
»Choosing
a Credit Card
»Credit History
»What
is a Credit Report
»Credit
Card Numbers
»Expiration
Date
»Application
Process
What to do When...
»Your
Credit Card is Stolen
»Your
Application was rejected
»You
Have no Credit History
»You have Credit
Card Debt
»You have to pay your bill
Business Owners Section
»How
Credit Cards are Processed
»Accepting
payments online
»Accepting
payments offline
»Protecting
Your Business From Fraud |
Secured Credit Cards
Secured credit cards are offered by lenders who will give
you a line of credit that either matches, or is slightly
higher than, a cash deposit that you give them to hold. As
your experience with the card grows, these lenders will
often raise your limit without requiring you to increase
your deposit. Eventually, you can use your experience with
this lender to apply for cards that are not secured.
Student Credit Cards
If you are a student, then you'll be best off with a student
credit card. Student credit cards can be a great way of
building the credit history that you will need to depend
upon after graduation. The important thing here is to
remember to use that opportunity wisely. Many banks will
issue college students a credit card, especially banks that
are located in college or university cities and towns.
When you do manage to get a credit card, remember that you
are establishing a credit history. Show that you are a good
financial risk by paying the bill on time. Don't go crazy
with the spending. It will only cause you problems in the
future.♦
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