Obtaining a credit card can sometimes be a challenging and lengthy process. Most of the financial institutions offering the service have strict guidelines that they use to decide whether you deserve the cards. What they usually look out for is your credit score and credit history, which they use to determine whether you are a risk.
Thus, without the two and the required rating, it might be challenging to secure a credit card. But, you don’t need to worry if you don’t have the records as required by many financial institutions.
Unlike in the early years, you can now secure a credit card from a reliable and trusted provider when you don’t have a credit score or history. What makes the deal more interesting is that you have the option of choosing between a non-secured and a secured credit card.
Non-Secured Credit Cards
Many financial institutions have a system in place designed for people without a credit history. Therefore, if you want a non-secured card, then you should consider applying for one in these organizations.
But how do the institutions determine whether you qualify for a card without having to review your credit score?
They usually use alternative methods when reviewing applications for credit cards by persons without a credit history. For instance, they can decide to analyze your job or bank account transactions. They then use this information to determine whether you qualify for a non-secured card and also the limit that you deserve.
An example of the best non-secured credit cards for people with no credit score include Petal Cash Back Visa Card, Deserve Classic, and Deserve Edu.
Secured Credit Cards
A secured card is a good option for persons who have recently moved into the country, and who are yet to build a credit history. This is because when applying for a secured card, financial institutions are usually not interested in your credit records.
How does a secured credit card work?
The applicant is required to make a deposit to obtain a credit card. Some organizations have a minimum limit, while others allow you to deposit whatever you can manage. The amount of money you can raise becomes your credit limit.
The deposit is refundable, which means that should you upgrade to a non-secured card, then you can always claim your money. However, if you are unable to pay back after using the credit card, the institution can use the deposit to recover their money.
Among the best-secured cards in the market include the OpenSky Secured Visa Credit Card, Green Dot primo MasterCard Classic Secured Card, and Discover it secured.
Credit cards for people with no credit history are the best option if you are yet to build a profile. Institutions offering the services use alternative methods that allow you to obtain either a non-secured or secured card. Therefore, the lack of a credit score or history should not prevent you from applying for and getting a credit card.