Credit Cards for People with No Credit to Build Credit History
There are so many similarities between getting credit cards for people with no credit or bad credit. In both cases, you have to start from the scratch and build an all new clean and healthy credit rating to enjoy maximum credit limits at lowest interest rates.
It will be easier to understand that your credit history is the primary reason for acceptance or rejection of your application for any financial need. A bad credit or no credit history means that there is a very high risk attached to you. Since you do not have credibility on your back, most credit companies become hesitant to lend you money. On the contrary, if you have a healthy and a good credit record, you can get a mortgage, automobile or cash loan for meeting your needs. So, you must have an excellent credit record to enjoy several benefits of the credit world.
Therefore, here are a few important tips for improving or creating a good credit rating:
• There are a lot of people who start their credit life by getting a secured credit card. Secured credit cards are equally credit cards for people with no credit or people having a terrible credit record. In these types of credit cards, there is a certain amount of money decided by the credit company that you have to put in your bank account as a security deposit. Thus, it lowers the amount of risk that the credit company is taking after considering your bad or no credit record. Call it compensation or a fee, but it seems like a fair deal for people already suffering from the credit or trying to make the new credit rating.
However, you must keep this in mind that you can only enjoy a limited credit limit on your secured credit card. The amount of money you put in your account as a security deposit usually determines your allotted credit limit.
• If you are too hesitant to keep a security deposit in your account, you can opt for an unsecured credit card. Unsecured credit card will not ask you to deposit any kind of security deposit in your account. However, the compensation is made in terms of higher interest rates. So, if you are considering getting an unsecured credit card to build a great credit rating, get ready to pay higher interest rates for your expenses. Nevertheless, it is extremely difficult to get hold of a popular credit card company that may offer you an unsecured credit card with bad or no credit history.
You can also use a balance transfer credit card to transfer the existing balance of your bad credit card into the new card and save significant amount of money by paying a lower interest rate.
• Student credit cards are perfect for people just starting to use credit cards. However, they are available only to the students getting education at any level of their career. These credit cards do not require a credit history. Thus, they are the perfect for people having no previous record. You can also use it to save extra money because student credit cards mostly have a lower interest rate than a traditional credit card. However, you cannot use them as a balance transfer credit card.
• You may not consider a prepaid card a credit card, but they come in handy for building a positive credit. You can use these cards at almost all the places, but you need to transfer the balance first into this card before making a purchase. Thus, that is why it is called a prepaid card.
You can see that there are quite a few options for people trying to build a good credit record. However, you must consider every aspect of a card before settling for an offer.
Elissa Joyce - About Author:
credit-land.com has several credit cards for people with no credit or bad credit. They are one of the most reliable best balance transfer credit cards websites on the internet. For More Information credit-land.com
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