Applying for a Credit Card with no Credit History
Fairly obviously, if you have a poor credit history you will have trouble securing any form of credit. What seems perverse is that having no credit history at all will also count against you when applying for a credit card. Though this may not seem entirely fair (and it probalby isn't) the problem here is that if you have no credit history whatsoever credit card companies have nothing to go on when judging your credit-worthiness. As a result they cannot determine how reliable (or otherwise) you are likely to be.
This places you in a bizarre catch-22 situation in that you cannot build a credit history without credit and you can't get credit without a credit history. The only way out of this bind is to review all the possible credit options available to you.
Credit options for those without a Credit History
Thoug the larger credit card companies may not be willing to offer you a credit card you may still find that you can gain credit via store cards or credit cards issued by department stores. Find a department store that will issue you a card and apply for it then begin to use this card but make sure that you make all your payments on time. The point of the exercise here is to begin building a good and solid credit history rather than simply getting your hands on any kind of credit card.
There are also credit card companies out there who will review your overall financial situation rather than just your credit history. Such lenders will generally ask you about your employment history, your housing situation, and how often you have moved. If this all checks out then they may approve your application. You may end-up with a higher than normal interest rate on this card, but you are going to use this wisely as it's your first step to establishing a good credit history.
Credit Unions
For someone without a credit history this may be another means whereby a credit card can be obtained. If you are a member of a credit union, or if you are eligible for membership then it may well be worth investigatin what their credit card issuing terms are. It's not that they're entering into a credit agreement with their eyes closed, it's just that their terms are more relaxed for members. In the US you no longer have to work for a specific company to be eligible to join a credit union. This may well be a viable option for you and it's certainly worth checking out.
Secured Credit Cards
These cards behave like a secured loan in that any borrowing on them is secured against a cash deposit that you give the issuer to hold for you. As your experience with the card grows, these lenders will often raise your limit without requiring you to increase your deposit. This will build your credit rating and eventually you will be able to use this to apply for unsecured loans.
Student Credit Cards
This is a type of credit card specifically issued to students. It will generally have a lower spending limit and a higher APR than other credit cards but you can apply for it whith no crediy histroy (after all it is desiigned to be issued to those starting-out on their careers. This can be a great way of building the credit history that you will rely upon after graduation. However, remember to use the card wisely. Pay your card buills on time and try not to rack-up large amounts of credit card debt as such debt could criple your career before it has a chance to properly begin.
Conclusion
If any of the techniques mentioned here do result in your obtaining a credit card remember to use it wisely. The whole point of these approaches is to secure a credit history that will demonstrate to other financial institutions that you are a good financial risk. Above all, don't go crazy with your spending on these cards as this will only lead you into problems in the future.
