Having no credit history isn’t all bad. After all, if you don’t have any credit history, chances are you have no debt! The conservative use of a credit card, however, is one of the easiest ways to build the credit needed to take out a car loan, a home loan, or achieve many financial milestones. While not having credit history will almost certainly make it more difficult to get a credit card, there are still many ways to obtain a card that’s right for you.
One way to get a card is through a credit card cosigner. If you have no credit history but have a family member or close friend with good credit–someone who trusts you–see if he or she is willing to cosign with you on a credit card. Many banks and financial institutions that would otherwise decline your credit card application due to insufficient credit history will be more likely to consider you for a card if you have a credit card cosigner with a high score. Keep in mind that your cosigner’s credit score will suffer if you don’t pay off the balance at the end of the month.
Another way to get a credit card when you have no credit history is to consider a high-interest card. Some financial institutions will still issue you a card with a very high-interest rate because they consider you a high-risk customer. If you don’t plan to carry a balance and want to pay your bill in full at the end of each month, a credit card with relatively high APR may not be a bad bet. Building a good credit score through the use of the card will soon allow you to obtain a card with a better rate.
Even if you have no credit history, getting a card may also be as easy as checking with your bank. Some banks and credit unions offer lines of credit to people who already have relationships with those institutions, and it may not even matter if you have bad credit or no credit.
Although the proper use of a credit card allows you to reap financial rewards, credit cards also put many people into debt. While no credit history means you don’t live in fear of phone calls from debt collectors, it also means you can’t enjoy the benefits a good credit score brings. Thankfully, getting a credit card isn’t completely out of the question for anyone in this situation.