For those of you who want to apply for a credit card with no a credit history and credit score, of course, it will be a little difficult to do by the card provider or the Bank to be able to have a "Standard" credit card that requires a credit score of 600 or higher.
This is because card providers will find it difficult to collect and analyze all your data to help them determine your creditworthiness.
So that banks will be careful to approve or even reject your credit card application.
If you have never had a credit history and first filed a credit card request. The best thing you can do to have a standard credit card is to build your credit first.
If in the past and you have had a loan, instalments, you already have a credit history and credit score
However, that does not mean that without a credit history and with no a credit score you cannot have a credit card. There are several types of credit cards provided by banks for those of you who want to apply for a credit card with no a credit history and credit score.
But let's discuss why credit history and credit scores are very important for implementing a credit card?
Why is credit history and credit scores so important for applying for a credit card?
1. Credit history
if you don't have a credit history, the Bank cannot get information about you, whether you are the person responsible for your credit card.Credit history also greatly helps banks to measure your ability to repay loans. In addition, credit history is used to determine requirements such as interest to be paid, loan duration and credit card limit.
Credit history is recorded in a report consisting of all your past behavior as a borrower:
- When and where you apply for credit
- Do you still have an unfinished loan
- Do you have bad credit
- Do you often pay on time
2. Credit Score
Credit scores are also called risk scores that contain 3 digit numbers. This credit value is to express how you manage your finances. High credit scores tend to show a positive side to credit providers that you are the person responsible for using credit and have experience with credit products for years.Conversely, the smaller the value of your credit score will affect the bank's trust in approving your credit card account.
There are two score credit calculations that are often used, namely FICO and VantageScore.
Card providers have a reason to judge why you don't have a credit score.
- You have never registered in a credit account
- You have never used credit for 6 months
- You have just applied for a credit, so you don't have a credit report
Credit history and credit scores are usually in the form of credit reports issued by credit bureaus such as Experian, Equifax, TransUnion.
Credit history is very influential on credit scores. If you have a good credit history - your credit score will rise, and vice versa.
If you have never used credit or have no credit history before, it does not mean your credit score is 0, and when you start building credit, your credit score does not start from the highest score.
"Not having a credit history indicates that you have never made a mistake that made a loss"
To find out your credit score, you can buy it directly via myfico. Or you can use CreditKarma.com, Quizzle, and CreditSesame.com to get a free version of your score credit.
Apply a credit card with no a credit history and credit score that is easily approved
You do not have to apply for a traditional credit card.Card providers really understand if you will have difficulty getting a credit card if you don't have a credit history or low credit score. And they have provided a special type of credit card that you can submit as a credit card for the first time.
And this credit card can be used to build your credit history and credit score.
1. Secure Credit Card
A secure credit card is a credit card that is supported by a cash deposit as a deposit when you create an account, and this cash deposit will be a credit limit. So when you register and make a $500 cash deposit you will have a credit limit of $500.The purpose of this cash deposit is to reduce the risk for the credit card provider if you fail to pay the bill. They can take your $500 deposit paid during registration.
If you pay bills on time, your deposit of $500 will be returned to you.
Secure credit cards are highly recommended for:
- People without credit
- People who have experienced bad credit / sub-prime credit
- Apply for a credit card after bankruptcy
- And improve a low credit score
How to work a Secure credit card.
The credit card is safe to function for:- You can use it anywhere, including online.
- Secure cards serve to rebuild your credit by being responsible and paying on time.
- You can draw flowers if you bring balance.
2. Apply for Student Credit Card
The next way to apply for a credit card with no credit history and credit score is as your first credit card choice.Student Credit Cards are indeed designed for students who are just starting to build credit from a young age with a low credit limit.
So, to be able to submit this application, at least you must meet the qualifications:
- Students enrolled at a University or University.
- 18-21 years old.Having income such as part-time work (scholarships, work studies, and grants - does not count)
- If you do not have income, ask your parents to make a card on the card. But this means they are also responsible if you cannot pay the loan.
Then what if you are not a student?
student credit cards can be confusing. From its name, this card is provided for students and requires that most ask to provide school information. However, in some cases, to get a student credit card you do not have to be a student to qualify.You can use Capital One Journey.
Or if you are a non-student you can register for a secure credit card.
3. Apply a Store credit card (Like a Walmart credit card)
For those who do not have a credit reputation or who are building credit. The store credit card is the right choice. Taking into account store credit may be very useful if used correctly. Avoid using it for financing, because store cards have high-interest rates.One store that accepts store credit card submissions is Walmart retail stores.
Walmart is one of the largest retail stores in the world at low prices for all food or household needs. Walmart offers two types of cards to their buyers:
- The Regular Walmart Store
- Walmart MasterCard
The Walmart Store
You can use this card only for purchases at Walmart stores. If you have just started credit you can have this card. Or if you have bad credit, you can still qualify to register for a Walmart store card. Because the FICO 550 credit score can still be approved.You can use Walmart Store Cards at: Walmart Store, Walmart(dot)com, Walmart Supercenters, Neighborhood Market, Walmart and Murphy USA Gas Stations and Sam’s Clubs
Walmart Mastercard
Walmart version of the Mastercard credit card can be used anywhere Mastercard is accepted. However, this card requires a FICO credit score of 650 - or higher. If you don't have a credit score, it might be a little more difficult to agree. Because making this credit card is issued by Synchrony Bank.Where to apply for a Walmart credit card?
There are 4 places you can use to sign up for Walmart credit cards quickly:
- At the store in every Walmart list
- In the shop at the Walmart jewelry kiosk
- At Walmart(dot)com
- Through the Walmart mobile application
Tips on applying for a credit card:
Meet the requirements
Before you apply for a credit card, you must ensure that you have fulfilled the requirements and card making policy. Document requirements, age, and income are very important for you to research.
Read the requirements and policies carefully
When you apply for a credit card, it is important to read all the contents of your credit card requirements, starting from interest, fines, annual fees, and what your card cannot do.
Don't submit too many cards
If you are refused, do not register again in the same place for 6 months. You can search for other places and other types of credit cards.
Don't spend your credit balance
Many people press their credit balance to the limit. If you do this, your credit card will give a report to issuers that you are managing your credit card poorly. People who often reduce credit or exceed credit limits will not be approved for a higher limit. Good credit card users will provide the remaining 50% of their balance in the credit card.