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Credit Cards for People with No Credit Details
13 May 2019

Secured and Unsecured Credit Cards for People with No Credit

If you have never had a great card or only have a short credit history, it’s a little more difficult to find a credit card. Fortunately, there are several great options for credit cards for people with no credit. Once you check that you are eligible and go on to apply for these cards, you are on your way to building your credit score. You may want to consider two specific types of credit card—secured ones and unsecured ones.

Unsecured Credit Cards

If you have no credit card, a low score, or a short credit history, qualifying for a card can present a challenge, but not an insurmountable one. There are many credit cards for people with no credit available, so it is just a matter of paying attention to the finer details of each offer. The best options may have a combination of attractive offers for the newbie such as low or no annual fees, attractive interest, sign-up benefits, cashback rewards, and interest-free periods.  It’s up to you to compare these different offers and see what works best.

If you want a card with limited fees, the DCU Visa Platinum Secured Credit Card is good. If you prefer a card with no annual fees, the Capital One Platinum is a good option. If you do not get approved for an unsecured credit card, all hope is not lost. There are still other options, including a secured card.

Secured Credit Cards for People with No Credit

A secured credit card makes it easier for you to qualify for a credit card even without a credit history. These cards are only a small fraction of the credit card market but are useful for building credit, especially when other channels of getting a credit card have failed. With a secured credit card, you must put down a cash deposit of your own money, which is usually the amount of the credit card on that particular card. This provides a guarantee.

There are many places for you to find a secured credit card. You can consider the Citi Secured MasterCard or the Discover it® Secured card. Other great options can be found here. When you are choosing a secured card, make sure you understand all the terms and charges associated with the account. Make sure that the opening deposit is money that you are not going to need because you are not going to be able to access this easily. Find out what the monthly payments are and how best you can use this card to build your credit faster. Above all, you must understand that using a secured credit card is a long-term play.

Besides helping you build your credit, the other benefits of secure credit cards include low fees, ease of approval, and refundable deposits when you eventually close the account and are in good standing. Naturally, there are a number of disadvantages that come with a secured credit card compared to the more common unsecured option. The main one is that you can only borrow against your initial deposit, which requires an upfront payment and also limits your credit limit. With some patience and the deposit amount to spare, the secured credit card option can be a gateway to the world of credit. Once you have built your credit up sufficiently, you can apply and qualify for unsecured credit cards with more perks and greater credit limits.

Looking for credit cards for people with no credit doesn’t have to be difficult. Once you know what’s available and compare that to your requirements and current financial status, you can find the ideal card.

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Packing Up and Moving Out: When Moving Loans Are a Good Idea for Bad Credit