Can I Get a Credit Card with No Credit?

Many people think they won’t be able to qualify for any form of credit cards because they don’t have a credit history. However, these days, it may sometimes be possible to obtain a pre-paid credit card that can help you build a good credit history over time – provided that it is used correctly.

Read more: ‘Credit Cards for Low Credit Scores’ »

Special Offers for College Students

In some cases, banks and other lending institutions may provide a range of special offers on credit cards that apply to college students. When this takes place, representatives from the bank will set up a stand at the college in question and provide students with an opportunity to sign up for their first credit card.

When it comes to applying for a first credit card through a special offer like this, college students will need to bear in mind that they will not normally receive a very high credit limit – perhaps $1,000 to $2,000 maximum. However, obtaining a credit card like this will enable them to build a credit history, as long as regular payments are going to be made against the balance owing.

Read more: ‘Major Types of Credit Cards to Choose From’ »

Points to Remember

While it can be exciting to obtain your very first credit card, you will need to ensure that you use the balance on it responsibly. In other words, you need to ensure that you will have the financial capacity to make the monthly repayments on time.

When you fail to make your monthly repayments on time, you will be charged additional interest. Over time, this will end up adding to the point where you may no longer be able to afford to repay what you owe. This will result in your credit rating being downgraded and make it almost impossible for you to obtain any form of credit anywhere else in future.

Once you have obtained your credit card without having a credit history, you will also need to ensure that you keep it in a safe place. If it gets lost or stolen, you will need to inform your credit card company of the situation immediately.

Read more: ‘Credit Cards wih No Credit Checks’ »