How To Get A Credit Card Without No Credit History
Are you planning to get a credit card? Make sure you can pay monthly payments. But there will be a problem if you do not have a credit history, and previous financial status is called a credit history.
It could be hard to get a credit card if you don’t have a credit history. But it is tough to make a credit history without holding a credit card. Don’t bury it if you do not have a credit history; there is still a possibility of getting a credit card. Read this article about how you can avail a credit card has no credit history.
- What is CIBIL/Credit score?
- What’s the first thing to look for in a credit card?
- Why do Banks And Financial Institutions Look at Cibil Score Ahead of Issuing A Credit Card?
- Credit Cards for Individuals With No Credit
- How To Get A Credit Card Without Cibil Score?
What is CIBIL/Credit score?
Cibil score is also called a credit score. Banks or financial institutions summarise the financial history of a person. Such as payment history of credit and credit cards. A credit score has a 3-digit number range between 300 to 900. A good cibil score makes your finances strong.
What’s the first thing to look for in a credit card?
If you take a credit card for the first time, it will be good if you check the eligibility criteria. For instance, one must be 18 years old before applying for a credit card.
After this, you have to consider what kind of credit card you would like to take. It might support you to inquire about interest rates, annual fees, or other fees.
Why do Banks And Financial Institutions Look at Cibil Score Ahead of Issuing A Credit Card?
Financial institutions and banks look at a person’s credit score ahead of issuing credit cards. Credit cards are like unsecured lending that financial institutions issue to applicants based exclusively on the applicant’s creditworthiness. For one with a bad credit history of loan repayment, banks abstain from giving credit cards.
As such, banks track applicants’ credit history to determine whether they are financially able to pay back the credit bill on time or not. Financial Institutions check the applicant’s history of late payments and details of credit or credit cards and even check that the applicant currently holds any loan or credit card by checking their cibil score.
Credit Cards for Individuals With No Credit
Taking a credit card with no credit record can be challenging, but some kinds of credit cards may be suitable for a person who are without a credit history
How To Get A Credit Card Without Cibil Score?
Getting regular credit is quite tricky without credit history for people who do not have a credit score or have a low cibil score.
Also read: How Do Credit Cards Work
Individuals with no credit score can take other types of credit cards which are given below:
Secured Credit Card
This is a convenient and straightforward procedure for applicants looking for a credit card without a credit score. A secured credit card is the best option to build a credit score. If you want to get a secured credit card, you have to open an FD account in a bank from which one can wish to get a secured credit card for deposits. The bank will provide a credit card with credit limitations between 50 to 100 percent as per total deposit as per banking terms and conditions.
Moreover, you pay security fees to get a secured credit card as well, that security collateral very to very banks. If you use it responsibly, you can build your credit card for the future and get your security amount back.
Add-on Credit Card:
Getting an add-on credit card is also another path for a person to make a credit score. One with a primary credit card family member can get the same features and advantages in an add-on credit card. However, your family member’s primary credit card limit can now share with the add-on credit card. One can still enjoy the features and benefits of an add-on credit card and use it when your dire need of a financial emergency.
Credit card against savings account:
One can also get a credit card against a savings account, which many banks offer in the country. This is another way of getting a credit card without a credit or cibil score. There could be a mandatory deposit of some amount into a savings account to get a credit card—giving these types of credit cards to very banks.
Prepaid credit card:
Prepaid credit cards are also suitable for availing a credit card with no credit history. It is the best option for one who has a bad or zero credit record. Many banks provide prepaid credit cards for those individuals who lead bad credit scores. In a prepaid credit card, a person has to put specific money and use it as a prepaid mobile connection.
1. How to grow a Cibil score from 0 without a credit card?
Ans: One can make their credit score by taking a regular credit card by getting a secured credit card, add-on card, prepaid credit card, and using it responsibly.
2. Does credit card utilization affect Credit/Cibil score?
Ans: Yeah, using credit cards possesses the credit score of a person. If a person uses the credit card responsibly, the credit score will increase, but it might hurt the credit score if not used properly.
3. How to increase the limit of my credit card?
Ans: Pay the bill on time if you want to raise the credit card limit and contact the card issuer.
4. Will taking my first credit card change my credit score?
Ans: Yeah, you can build up your credit score after getting your first credit card; you use it responsibly and use half credit of the limit.