Credit Card Guides for Beginners: How to Apply For A Credit Card With No Credit

Fullscreen capture 2122013 100125 PMCredit cards are a symbol of convenience these days. People do not need bundles of cash to shop, pay bills and do their groceries. A swipe of this powerful plastic thing can mean a lot of ease and practicality. However, not all individuals these days would know how to handle the use of credit cards. Most of them would eventually over spend or make unnecessary purchases. This would definitely create a lot of problems in the future if they are contemplating on making future investments on homes and cars.

Credit card companies would do a lot of investigation on an applicant’s ability to take care of their responsibilities in terms of their dues and bills. A lot of these financial firms would refer to an applicant’s credit report. This credit file or report will contain all the data needed to establish creditworthiness of an applicant. Bad and good credits are stated in this financial document.

Bad credit is a result of mismanagement of debts and dues. This will include delayed settlements and default payments of credit card bills. When an applicant has a bad credit score, any credit card or loan application can be rejected by the financial institution.

On the other hand, there are people who do not have credit accounts yet. Applying for a credit card can be a more difficult process for them. Credit card companies cannot establish how an applicant can handle their debts without any previous credit card record to refer to. However, for those who would want to apply for a credit card with no credit history to be verified, there are options for them as well.

The alternatives for a regular type of credit card would include the use of prepaid credit cards and secured cards.

Prepaid credit cards are perfect fit for those who would want shop and splurge without going through the mind-numbing process of credit verification.  This type of credit card will only require a specific amount of money to serve as upfront payment. All of this prepaid credit card will require a deposit to set a credit limit. This can be found in malls and even through the internet. It will only require a credit card holder to purchase it. Once the payment has been made, the prepaid credit card can make necessary purchases immediately.

Secured credit cards are also available in the market these days. There is absolutely no need to for submission of documents. This is a nice alternative to apply for a credit card with no credit check needed. Just like a prepaid credit card, it will only need a certain amount of money as deposit. Once the credit limit is set, it can be used similar to the regular type of credit card.

Explore these two options. Both of these credit card alternatives can give freebies and perks as an added feature. The main advantage of these credit card types is the convenience of getting upfront approval.

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