If you have a long credit history and excellent credit score, it’s typically easy to secure a credit card.  But what if you’re fresh out of college? What if your credit history is limited? Can you still obtain a credit card? A history of no credit could pose a challenge.

There’s no two ways about it: getting a credit card with no credit can be a challenge. However, with the right approach, you can kickstart the process and find yourself on the right path.

Here are some tips that can work in your favor:

1. You Need a Steady Income

Without this, credit card issuers have no reason to believe that you can repay your balance. So, don’t apply for a credit card until you secure a job that pays you a steady income.

Note: you’re asked to include your income on your credit card application, and doing so accurately is important.

2. Start with a Student Credit Card

If you’re still in college, a student credit card is a great place to start. Here’s why: the issuer doesn’t expect you to have a long credit history or high income.

In most cases, proving that you’re enrolled in college is enough to help you secure a card. Add in a regular source of income, even through a part-time job, and you’re on the right track.

3. Opt for a Secured Credit Card

A secured credit card is designed for consumers with no credit or bad credit. You’re required to make a security deposit to obtain a credit limit.

For example, if your security deposit is $500, your credit limit is typically the same. Even though this is a big difference when compared to unsecured credit cards, the way you use it is exactly the same.

Note: after six to 12 months of responsibly using a secured credit card, see if you can parlay your strong payment history into an unsecured credit card.

4. Find a Co-Signer

If you’re struggling to get a credit card on your own, find someone who is willing to co-sign. This can be anyone from a parent to a sibling to a spouse. By doing this, you take advantage of their credit history and score.

The one thing you need to remember is this: your co-signer is just as responsible for making payments as you, so if you slip up you put their good financial standing at risk.

Final Thoughts

In simple terms, you can absolutely get a credit card with no credit. It’s a bit more challenging than if you have a strong history and high score, but that shouldn’t stop you.

Once you know the type of credit card you’re interested in – such as a student or secured offer – it’s easier to compare your options and make a decision as to what you should do next.

Do you remember applying for a credit card when you didn’t have a long history? What steps did you take? Did your approach work?

Related Posts :