Amid the financial dealings with respect to the shopping in online or offline is concerned, sometimes you have to go without buying your desired products. Choosing credit as the option for purchasing is an easier and accessible option; the card caters in resolving the payment issues be it in the stores or the online retail shopping. What is a credit card? Is it possible to get the credit cards for people with no credit history and many such questions take ground in minds of people who have prior experience with a credit card or an account. The credit card is an additional payment option that helps in buying the items with the assurance of paying for the same in future. Getting the credit card was a difficult job previously for the people with no credit score on their account, but now it is very easy. And that is because of the emergence of several credit card issuers coming front to exploit the business of the credit cards by making it available to the potential as well as non-potential users (people with no credit card). The basic requirement to get credit cards with no credit is the presence of an active account. On the other side, recent changes in the legislation have opened the new ways and options in the credit card payment system while offering multiple options. With the increased number of people’s dependence on the credit cards for all the purposes, the credit cards have gained vitality in the recent times.

Credit Cards For People With No Credit History

Credit Cards For People With No Credit History

Credit Cards For People With No Credit – Moving Forward To Get A Card By Thorough Understanding Of The Facts, Terms, Conditions And Legislation

The students and immigrants are the ones who do not own the credit cards because of their low experience with the bank accounts, as well as credit cards. In this category, no one is good everyone exploits the credit card option to his best but eventually fail to repay the amount within time. However, it is possible to repay the bad loans raised for a whatsoever reason through regular and in time payments. Therefore, the financial institutions face critical situations when it comes to giving credit cards to the people with no good credit history. Some of the people might have received their first credit card during college days due to the marketing efforts of credit card issuers and financial institutions. With the aim of creating a large credit card customer base, the credit cards come along with the umpteen numbers of favorable gifts like rewards, offers, lower rates of interest, electronic gadgets. Succumbed to this, many of the people have chosen to opt for a credit card. More importantly, one of the government acts called the CARD Act – 2009 has blocked the issuance of credit cards to younger people. Now, the legislation has made it mandatory for a person under the age of 21 needs to submit the required credentials and details with respect to the means of repayment or the witness of a co-signer. However, some of the students or immigrants may get cards with higher rates of interest as well as fees.

Application for the store credit card is more likely to qualify for approval, but be aware of a fact that the store credit cards have low limits for credits and higher interest rates, which will wipe out your money in excess, if the payment crosses the set up deadline or date. The secured cards are the best available option for the people who are not able to get the credit card from the already established credit card issuers. However, you need to maintain a security deposit in order to get a secured card by paying the fees fixed for the service. Suppose, there is no money in your account for a security deposit, and then you can choose to store or increase the security deposit by saving money in the account. Some of the banks charge minimum fees for issuing the credit cards whereas some take variable charges for their services.

Check Your Credibility Of Paying Back The Amount Credited

Firstly, make sure that you have a regular income either from a job or other sources, and then apply for the credit card. Now, it is essential to reveal the means to repay the credit amount. The income what you are highlighting on the credit card application should be from your earnings because the income of either of your parents will disqualify you from getting a credit card. The majority of the credit card issuers have the option of pre-qualification checks online for your profile. These checks will not bring any setbacks to your credit card score and the report, do not worry your name in the report will not cause a disadvantage to you. The reports will highlight your credit card scores, depending on your actions related to your account and credit card, and this may increase or decrease your ratings. However, just by qualifying in the pre-qualification test will not approve you a credit card. Your email-id receives an email containing the reason for rejecting your application and then using that email and the contents you can plan your next course of action.

Some of the prequalifying tests of the credit card issuers are as given below:

a. Get a Student Credit Card
b. HSBC Pre-Qualify
c. Capital One Pre-Qualify
d. Citi Pre-Qualify

The new rules and regulations blocked the finance companies from targeting the immature and young people, and this resulted in reducing the number of credit card takers. According to the study by the Federal Reserve as widely reported by the credit.com, it is openly revealed that the number of credit card holders got reduced by 17 percent especially students in 2009 and subsequently in 2010. The legislation struck the chord and was mostly successful in all its endeavors. The credit.com offers credit cards to the people with no prior history of credit score, along with this credit.com verifies and checks the terms and conditions of the cards in the surveyed banks.

Prepaid And Secured Cards – Exploiting The Available Opportunity To Secure A Credit Card

The best way to increase the credit score and utilize the advantages of the credit card is by getting a prepaid card. Prepaid cards do function just like normal credit cards for shopping online or for purchasing in offline mode because credit history is not required for these of cards. While being free from the tensions of the credit card limits or delayed payment fees, the users can avail the benefits of incentives like offers related to cash back and others. Make sure that your prepaid card is a witness to all of your credits while reporting. Take for example Capital One Prepaid MasterCard and on comparing it with a Bancorp Prepaid Visa RushCard, you will find that the latter will charge zero or no fees for overdraft , activation and credit check but the former demands fees for the activation while helping you to organize the credits. With the fascinating inbuilt features, many of the credit card issuers are now trying out their best to attract the customers by multiple offers. For example consider the Capital One’s student card comes with 1.25 percent cash back offer for shopping, this facility will apply to the one who makes the payment within the time.