No Credit History? Here Are 5 Smart Ways To Get A Credit Card
Getting your first credit card without a credit history is tough. However there are several beginner-friendly routes that can help one get started
Securing a credit card without an established credit score can be challenging, as most banks or companies assess creditworthiness before issuing a card.
Creditworthiness refers to the financial capacity to repay loans. Applications may be rejected if there is no credit history. However, there are five ways to obtain a credit card without having a credit history:
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Secured Credit Card: A secured credit card is offered by banks to individuals without a credit history or score. This card is available in exchange for a collateral deposit, typically a fixed deposit, with the card limit usually up to 90 percent of the fixed deposit.
Credit Card Against Savings Account: Some banks issue credit cards to customers with long-standing savings or salary accounts. The card limit depends on the account balance and the customer’s relationship with the bank. Those with higher average balances or regular transactions often receive better terms.
Add-on Credit Cards: These cards are available to family members of existing credit cardholders, sharing the credit limit of the primary cardholder. Starting with an add-on credit card can help build credit history, even without an initial credit score.
Prepaid and Virtual Credit Cards: Prepaid and virtual credit cards do not require a credit history but also do not help improve a credit score. They offer a way to manage finances without impacting creditworthiness.
Special Beginner Credit Cards: Banks offer entry-level credit cards for students and first-time users. These cards usually have a small credit limit and minimum eligibility criteria, making them easier to obtain and ideal for building a credit history.
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