It’s not so bad if you don’t have a credit history. After all, if you don’t have a credit history, you probably don’t have debts! However, using a credit card with caution is one of the easiest ways to get the credit you need to get a car or home loan, or to achieve many financial goals. While a lack of credit history almost certainly makes it difficult to get a credit card, there are still many ways to get a card that is right for you.
One way to get a card is through a credit card co-author. If you do not have a credit history, but have a family member or close friend with a good credit history – someone you trust – see if they are willing to sign a credit card with you. Many banks and financial institutions that would otherwise reject your credit card application because your credit history is poor will most likely consider it a card if you have a co-owner with a high credit rating. Keep in mind that the creditworthiness of your co-owner will suffer if you do not pay the balance at the end of the month.
Another way to get a credit card if you do not have a credit card history is to consider a card with a high interest rate. Some financial institutions still issue you cards with a very high interest rate because they consider you a customer with a high level of risk. If you do not expect a balance and want to pay the full bill at the end of each month, a credit card with a relatively high annual interest rate is a good choice. Using a card creates good creditworthiness, so you will soon be able to get a card with a better rate.
Even if you do not have a credit history, getting a card is as easy as checking the bank. Some banks and credit unions offer credit lines to people who already have relationships with these institutions, and it may not even matter if you have bad credit or no credit at all.
While the correct use of a credit card allows you to get financial rewards, credit cards also allow many people with debts. While lack of credit history means that you do not live in fear of calls from payers, it also means that you do not take advantage of a good credit rating. Fortunately, it is not entirely impossible to get a credit card in this situation.