No Credit History Credit Cards

[Julia]

What are the best no credit history credit cards to start building credit?

[Tracy Winters]

Secured credit cards, Store credit cards, Gas cards…

Without a credit history you stand no chance of getting a standard credit card. Especially if you’re under 21.

The following credit cards are much easier to get, and even people with no credit history usually get approved:

• Secured Credit Cards – These are offered by many banks. Capital one has a good card, as well as US Bank and Ammax. Secured cards are easy to get because the bank has your deposit, and so it incurs no risk in case you default on the card.
  After a year or so you can change the card to a regular card.
• Store Credit Cards – These are also relatively easy to get even without credit history. They usually come with low limit, and because they can be used for purchases made only in the store, the issuers tend to be less picky.
  Almost every major retailer has its own credit card: Mays’s, Best Buy, Target, Wall-Mart, Sears, Khols…
• Gas Credit Cards – These are also relatively easy to get approved for.

Besides this, there are two more options very popular option with young people:

• Co-Signing – You can ask anyone (parents, brothers, spouse etc) that doesn’t have a credit history to co-sign for you. If they have good enough credit, you will get approved
• Authorized User – You can be added as an authorized user on your parents, brothers or spouse as an authorized user. You will get your own card, but the statement will still be on the main account user’s name

Either way the card will be reported on your credit report and will build credit for you. After a year or two you will have sufficient credit to apply for a new account of your own.

See ../best-no-credit-history-credit-cards/ for more information on no credit history credit cards.

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