Oddly enough, not only will bad credit work against you when applying for a loan or a credit card, but so will NO credit. Even though this doesn't look fair, its the manner things work in the complicated human race of consumer credit. Lenders are mistrustful about gap accounts for people with no credit history, simply because they have got nil by which to judge your reliability.
If you can't construct a credit history without credit, and you can't get credit without a credit history, what can you do? It's nearly impossible to lease a car, stay in a hotel, or store online without a credit card.
Let's research a few ways to work around this "Catch-22."
Getting Started in Credit
Although many of the major credit card companies won't give you a card without a credit history, some smaller 1s will. Department supplies are likely candidates. Gas station cards are also easier to get.
Also you can look for a credit card company that volition reappraisal your overall financial situation, not just your credit history. Some lenders will look at your employment history, your lodging situation, and how often you have got moved. If all this rans into their standards, they may O.K. your application.
If you are a credit union member, or are eligible for membership, see what their card issuing terms are. They often have got more than relaxed statuses for members. You no longer have got to work for a specific company to be eligible to fall in a credit union. So, it's swell deserving checking to happen out if there's one in your area.
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 manner of edifice the credit history you will need after graduation. Many banks will publish college students a credit card, especially banks that are located in college or university cities and towns.
Secured Credit Cards
As a last resort, because of their high interest rates, secured credit cards are available. They are offered by lenders who will give you a line of credit either equal to, or slightly higher than, a cash sedimentation that you give them to hold. As your experience with the card grows, these lenders will often raise your bounds without requiring you to increase your deposit. Eventually, you can utilize your experience with this lender to apply for cards that are not secured.
When you make manage to get a credit card, don't travel on a disbursement fling -- you will repent it in the very near future. Use your card wisely, and above all be certain to do all payments on time. Your end is to construct a good credit history, not just get a single credit card. Soon you'll be complaining about all the credit cards being offered to you in the mail.