Not having a credit history is not that bad. After all, if you don’t have any credit history, you most likely have no debt! The conservative use of a credit card, however, is one of the easiest ways to build the credit needed to take a car loan, a mortgage loan or achieve many financial milestones. While not having a credit history almost certainly will make it more difficult to obtain a credit card, there are still many ways to get a card that is right for you.
One way to get a card is to contact a co-signer for credit cards. If you don’t have a credit history but a family member or close friend with good credit, someone who trusts you, check to see if they’re ready to sign a credit card with you. It is likely that many banks and financial institutions that would otherwise reject your credit card application due to insufficient creditworthiness will consider you for a card if you have a credit card co-signer with a high score. Note that your co-signer’s creditworthiness will be affected if you don’t pay the balance by the end of the month.
Another way to get a credit card when you don’t have a credit history is to consider a high-interest card. Some financial institutions will still issue you a card with a very high-interest rate because they consider you a high-risk customer. If you do not plan to carry a balance and wish to pay your bill in full at the end of each month, a credit card with relatively high APR may not be a bad bet. Building a good credit score by using the card will soon allow you to obtain a card with a better rate.
Even if you don’t have a credit history, getting a card can also be as easy as checking with your bank. Some banks and credit unions offer lines of credit to people who already have relationships with those institutions, and it may not even matter if they have bad credit or not.
Although proper use of a credit card can reward you financially, credit cards also borrow from many people. Although there is no credit rating, it means that you are not afraid to call collection agencies, but also that you cannot take advantage of good credit ratings. Credit Fortunately, a credit card is out of the question in this situation.