Friday, 23 December 2011

Getting A Credit Card With No Credit History

Getting a credit card with no credit history can seem like a daunting task, especially with all of the focus that lenders are putting on good credit ratings. However, it is important to understand that there are still credit cards that you can obtain even if you have no credit history. In fact, there are many companies today that are dedicated to offering credit to people without any credit history, such as young adults and new entries to the country. Here is some advice to keep in mind when you are searching for one of these cards:

A card offered to people with no credit will typically come with a high annual fee and a high interest rate. So when looking for a card, keep in mind that you will not be able to obtain a great card with low rates. In fact, it will be detrimental to your credit rating if you apply for a card that you won't be accepted for, as every application for credit negatively affects your credit rating, especially if you are declined. Therefore it is very important to do your research and only apply for cards that you will be accepted for.

Once you receive a credit card the next thing you need to do is make sure you use it very carefully to build up your credit score. If you currently have no credit because you are new to the country or because you are a young adult it is important to start your financial life off with a good start, and that means building a good credit rating. This is easy to do, all that is required is that you use your new card regularly and repay your account balances by the due date. Not only will this save you in interest charges it will also build a strong credit history.

After building your credit score for a while with your first card, you will find that you now have credit history and it is quite favourable. You can then use your new score to go out and apply for a new credit card that has lower interest rates, better rewards and no annual fee.

If you follow the advice we have given here you will be able to build a strong credit rating, and ultimately get a better card in the future. Don't make the same mistakes other people are making, start you financial life the right way!

For more advice about credit cards for no credit please check out our site. We also have some great advice to help you find a credit card for bad credit if you are suffering with a bad credit rating.

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