Credit Card For Newbie: Tips on How To Apply For A Credit Card Without Credit History

Fullscreen capture 2122013 100110 PMIt is credit card which makes the world go round in terms of finances and money. This is a fact for a lot of people who would want to own a house and college students starting out to live dreams. One of the most frequent queries people have is on how to apply for a credit card without credit track record?

Before a credit card newbie would make an application, it is important to understand that there is a need for credit companies to establish your credibility as their clientele. This can be done by checking on the credit history of each and every single credit card applicant they have. Unfortunately, for those who are applying for an account for the first time, it would be a bit tedious. In short, credit reports do matter to these financial institutions as they base their decisions on the scores you have from previous loans. The amount to be approved, credit limits as well as the interest rates. Bad credit scores have higher interest rates. It is logical to say that a no credit history will mean worst interest fees to consider.

The reliability of the credit profile will determine of an applicant s to be granted for an approved account, home or car loan. If a credit card holder has been paying dues on a timely manner and maintained ample balance in the credit card accounts, then it would only mean better credit score. The mantra in the financial world is this – higher credit scores , the more likely a credit card applicant might receive an approval.

If you are wondering how to apply for a credit card without credit verification, then there are options to explore. A lot of people who are applying for a credit card for the first time would consider two types of credit cards – the prepaid and the sure card. The common denominator for these two credit card varieties is that there is absolutely no need to establish credit reliability through a verification process.

Nevertheless, for new account applicant it will be a challenge. The remedy for accounts credit cards with no credit check are prepaid cards and secured credit cards. These two options will not require credit history checks.

Prepaid credit cards can establish good credit reliability. All it takes is a specific amount to be deposited into the account. As soon as the fund is available, the prepaid card can be used similar to the usual type of credit card we have these days. The deposit will determine the credit limit for this type of credit card. As soon the limit has been reached, a new deposit can reset it back to corresponding credit limit.

A secured credit cards works well for those who are starting to build their credit reputation. This is credit card type which would require a “bond” or cash deposit. There will be a pre-determined credit limit and would expire once the amount has been consumed. Generally, it serves like a gift card.

These are just some tips on how to apply for a credit card without credit. Newbies, kick off your financial freedom right. Managing finances are effective once started at a very young age.

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