Applying for a Credit card with or without credit

Everything runs on ‘credit history’ in the US from securing loans to buying car on loan to getting mortgage, and secretly – your future employers run your ‘background check’ which includes your credit history check. And how do you build your credit history?  Stay current on your bills, pay your loans on time and get a credit card.

Credit card helps you build a consistent credit history when you make purchases and stay current on your balance.

apply for credit card

What to look for when choosing a credit card?

There are 100s if not 1000s of choices when it comes to credit cards.  How then do you pick a card that’s right for you?  We cannot define what is right for you but you can check below features to see if the card you want to get is ideal for your situation.

1) Transaction protection: What kind of protection does your card offer? If an unauthorized transaction happens on your card how many days do you have before you can get it reversed.  Is there a dollar limit on how much you are protected for?

2) Cash back:  Cash back these days ranges from 1% to 3% depending on the type of transaction involved.  On a 1% cash back for every $100 you spend you get a $1 back, the $1 that you otherwise would have lost.  So it would be important to know.

3) Annual fees: see if your credit card comes with a hefty annual fees or if it is free.  Usual annual fees range from $0 to $95 (or more).

4) Auto rental collision damage coverage: Some credit cards cover collision damages on your rental card when you book your rental car on your credit card.  Make sure this is covered if you are an avid traveler.

5) Interest rate: You may be confident that you will always be current on your credit card account but its always good to choose a card that offers lowest (and long term) annual percentage rate and re-payment options.

 

How to compare the cards?

There are many sites where you can compare different credit cards and see if the cards offer the options that you are looking for.

Nerd wallet:One of the better sites that features multiple card comparison

Bank rate: This site has tons of information including the credit comparison page.

Credit Karma: This site offers truly free credit check account and also has a credit card comparison page.


Steps in applying for the credit card:

Step 1: Decide on the features: Using the pointers above decide on what is THE most important thing for you in a credit card.

Step 2: Find the right card: Compare the various cards at the sites provided above.

Step 3: Apply.  Most sites let you apply for credit card online.  Provide the information and click submit and wait for the decision to pop up on screen.  If you are approved – wait for the card to arrive in the mail and use it sensibly.


Apply for credit card with no credit (or bad credit)

It is easy to get a credit card when you have good credit history under your belt but how to get a credit card when your credit history is bad to nothing?  Consider following options:

i) Credit union credit cards:  Credit unions are much more flexible in giving you a shot with a credit card than big name banks/credit card companies.  You may have to ‘deposit’ security money for few months to begin with but once that time passes and you stay good on your credits – you will no longer need to keep any security for your credit card. Consult your local credit union or apply for an online credit union credit card.

ii) Apply for a no-credit or bad credit cards: There are some credit cards specifically designed for people who do not have credit in US.  The interest rates are usually high and the features you get maybe limited but used cautiously – these cards will help you establish credit worthiness and apply for better cards in no time.

iii) Co-signer based credit card: If you have someone with decent credit history in US that can be your co-signer – you may be able to get a decent credit card without a great credit history of your own.

With all the information in this article – we hope you find the right card that fits your needs.

Disclaimer: The information provided in this article is for informational purposes only and
not an advice.  Please seek a professional if you need help.

How to Get a Credit Card with No Credit? Read Helpful Tips

If you have just migrated into the country, you certainly do not have any credit history to your name yet. As a result, getting approval for a credit card will pose a big challenge. And, you can only get a credit history (credit score) if you have nothing less than one active account for 6 months on your credit report.

But, not to worry, getting a credit card without a credit history is possible. Some of the credit card companies are aware of the hassles that new immigrants go through to obtain a credit card. Therefore, they have designed credit cards that would work for individuals without credit.

Here are top tips that would enhance your chances of getting a credit card without a credit history.

Get a Job as Soon as Possible

If you are an immigrant, your first concern as soon as you arrive is to find a job. You need steady income in order to fund your credit card balance. You are not allowed to use another person’s income info (whether your parents, spouse, friend or relatives) to fill out the credit card application form. So, you need a job immediatly or other legal means of earning income in order to qualify for a credit card.

Credit Card Pre-Qualification Could be Helpful

The renowned credit card companies offer online pre-qualification that reveals whether an available credit card matches your credit profile. This option is somewhat known as soft credit checks. In essence, your credit score won’t be affected. Also, when someone performs a search on your report, the soft credit checks will not appear on your credit report. However, pre-qualification does not guarantee a credit card approval.

Also, other ways you can get a credit card without credit history include the following:

• Consider getting a student credit card – this applies only to students

• Consider a secured credit card – this is a typical alternative to the traditional credit cards.

• Get a co-signer

• Apply for a store credit card