Having no credit history can be a hurdle when applying for a credit card. A good credit score is often one of the most important factors in obtaining credit, and without a credit history, it can be difficult to prove creditworthiness. However, this doesn’t mean you can’t apply for a credit card. In this article, we will explore how to apply for a credit card with no credit history and what you can do to improve your chances of getting approved.

Part 1: Understand why credit history is important

Before we delve into how to apply for a credit card with no credit history, let’s first understand why credit history is so important. Credit history is a record of a person’s borrowing and repayment activities. Creditors use credit history to determine if an individual is creditworthy and can repay their debts on time.

A good credit history can help you secure better interest rates, get approved for loans and credit cards, and even rent an apartment. On the other hand, a bad credit history can negatively impact your credit score, making it more difficult to obtain credit in the future.

Part 2: Look for credit cards designed for people with no credit history

The first step in applying for a credit card with no credit history is to look for credit cards designed for people with limited or no credit history. These cards are typically referred to as “starter” or “secured” credit cards.

Starter credit cards are designed for individuals with little to no credit history. These credit cards usually have lower credit limits and higher interest rates, but they’re an excellent way to start building credit. Some popular starter credit cards include the Discover it® Student Cash Back and the Capital One Platinum Credit Card.

Secured credit cards are also designed for people with limited or no credit history. These credit cards require a security deposit, which serves as collateral in case the cardholder defaults on payments. Secured credit cards also have lower credit limits and higher interest rates, but they’re a great way to build credit. Some popular secured credit cards include the Capital One Secured Mastercard and the Citi Secured Mastercard.

Part 3: Consider becoming an authorized user

If you’re struggling to get approved for a credit card on your own, you may want to consider becoming an authorized user on someone else’s credit card. An authorized user is someone who has permission to use someone else’s credit card but isn’t responsible for making payments.

By becoming an authorized user, you’ll be able to piggyback off the credit history of the primary cardholder. This can help you establish credit history, and as long as the primary cardholder makes timely payments, your credit score will benefit. However, it’s important to note that if the primary cardholder misses payments or carries a high balance, it can negatively impact your credit score.

Part 4: Build credit with responsible habits

If you’re looking to establish credit history, it’s essential to build credit with responsible habits. This means making payments on time, keeping your credit utilization low, and monitoring your credit report for errors.

Making payments on time is one of the most critical factors in building good credit. Late payments can negatively impact your credit score, so it’s essential to make payments on time each month. Keeping your credit utilization low is also important. Credit utilization is the amount of credit you’re using compared to the total amount of credit you have available. Keeping your credit utilization below 30% can help you establish good credit.

Finally, it’s important to monitor your credit report for errors. Mistakes on your credit report can negatively impact your credit score, so it’s essential to check your credit report regularly and dispute any errors you find.

Part 5: Apply for a credit card

Once you’ve established credit history and improved your credit score, it