How to Apply for a Credit Card with No Credit History Essay

How to Apply for a Credit Card with No Credit History, 493 words essay example

Essay Topic: credit card, how to, history

How to Apply for a Credit Card with No Credit History
The money doesn't need its physical presence these days, but instead it introduces itself as a card, a magic card which can make wishes come true. The Credit Card has modernized money, going beyond physical boundaries and allowing multiple new possibilities. There are many situations where the only thing we need is our credit card and the idea of carrying money has changed completely.
Who are the individuals with no credit history?
Credit History is connected with anyone who has used a credit card for any shopping. The individuals with no credit history are generally students and new travelers in a country, the individuals who have not taken any loans.
Following are some options which can improve the chances of getting a credit card with no credit history
Student Card
Many financial institutions and banks offer student cards dedicated towards students. These cards don't require a person to have a credit history and are easier to obtain if the person meets specific standards. A student with a job has a higher chance of getting the card approved because banks choose to offer the credit card to a person with a certain source of income.
Prequalification Test
Some banks allow people without a credit history to take their prequalification test on the web. This test tells them whether they can get a credit card approved and the reasons why their application for credit card was denied, if its rejected. This test could assist one with preparing better the next time they apply for a card.
Store Credit Card
Some specific countries have the concept of store credit cards, which are quite easier to obtain and require no credit history. Store credit cards have higher interest rates and lower credit limits.
Prepaid Cards
An individual with disposable income and with no credit history can obtain prepaid credit cards. Prepaid cards are similar to normal credit cards but the maximum credit limit is up to a certain prepaid amount.
Cosigned Cards
Cosigned cards are offered to the people with no credit history. Cosigned cards require a person with a good credit amount to cosign for you. Your chance of getting a card approved increases with the financial backing of your cosigner.
Secured Credit Card
These cards are like normal credit cards in many perspectives, aside from the fact that a person needs to make a security deposit in order to be qualified for a credit limit. People with suitable security deposits but no credit history can choose this card because their security deposits can guarantee the approval of a credit card.
Applying for a credit card with no credit history can be a tiresome and long drawn matter but one has to keep in mind that applying with any banks is not a smart move. Rejection is a part of this procedure and one must select the alternative credit cards mentioned above in case of rejection.

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