Get Credit Card with No Credit History

We all have overhead expenses that may or may not get covered by our salaries and the only way to take care of such lifestyle spends is to get a good credit card with benefits and rewards. But before we think of getting a credit card, it is important to understand the concept of our credit score or CIBIL score that becomes the building block of our credit history.

Credit history is a record of how we manage our financial obligations. It’s used by lenders to assess our creditworthiness. A good credit history reflects responsible financial behaviour, increasing our chances of getting a no credit score credit card. 

Why is it Difficult to Get a Credit Card with No Credit History?

In order to get a credit card or loan on our name, any lender who goes through our credit history will want to check if we have good repaying habits or not. Our credit history is a testament of that. Lenders often hesitate to issue no credit report credit cards to individuals without credit history. This is because they lack a track record to judge whether the individual will repay their debts reliably. However, there are ways around this, which we will explore.

Strategies to Get a Credit Card with No Credit History

There are several strategies to obtain a ‘no credit history’ credit card. Some of these include applying for a secured credit card, using a co-signer, or getting a student or retail credit card. 

If you are planning to get a credit card that requires no collateral and an approval of less than 24 hours then here’s a quick way to apply for a credit card using the Airtel Thanks App.

Also Read: Decoding functionality of Credit Card Settlement Process

Applying for a Credit Card via the Airtel Thanks App

• Start by downloading the Airtel Thanks App from PlayStore or App Store.
• Navigate to the ‘shop’ category and select ‘credit card’ under ‘Financial Services’.
• Complete the form and provide the necessary information for KYC.
• Sit back and relax! Your credit card will be delivered within 24 hours of approval.

This simple, four-step process is a convenient and efficient way to apply for a credit card, even without credit history.

Secured Credit Cards: A Viable Option for Those with No Credit History

A secured credit card is a good option for those starting their credit journey. These cards require a security deposit, which acts as collateral and sets the credit limit. One can also apply in this way if they don’t have a stable income but have funds and bonds that can pledged against the credit card. A lot of housewives and homemakers opt for this option. 

Student Credit Cards: Building Credit as a Student

Most banks offer student credit cards to college students with little to no credit history. These cards usually have lower credit limits and higher interest rates, but they’re a good way to start building credit. Students can also opt for an add on card that gets billed to someone with a regular income. 

Retail Credit Cards: An Alternative Path to Building Credit

Retail credit cards are another option. These cards are easier to get approved for and can help build credit history, but they often come with higher interest rates.

Also Read: APR on Credit Card – Complete Guide

Using a Co-Signer to Obtain a Credit Card

Having a co-signer with good credit can increase your chances of getting a credit card. The co-signer essentially agrees to be responsible if you’re unable to repay your debts. In most cases, either the parents, guardians or spouses become the co-signers for us and one can then have their own card. 

Credit Builder Loans

Credit builder loans are small loans designed to help individuals build credit. The money borrowed is held by the lender until the loan is repaid in full, helping build a positive credit history. 

Tips for Maintaining Good Credit Once You Have It

Once you’ve obtained a credit card, it’s crucial to use it responsibly to maintain good credit. This includes making payments on time, keeping credit utilization low, and regularly checking your credit report for errors.

Responsibility in Building Credit History

Getting a credit card with no credit history is not an impossible task. It requires patience, research, and responsible financial behaviour. By exploring various options and using credit responsibly, we can build a solid credit history, opening doors to financial opportunities in the future.