Getting approved for a credit card with no credit history can seem difficult, but it is not impossible. Many individuals, especially students or young adults, face this challenge when applying for their first credit card. Fortunately, there are several ways to improve your chances of approval, even without a prior credit record.
Tips to Get Approved for a Credit Card with No Credit History
If you are applying for your first credit card, here are some effective ways to increase your chances of approval:
Apply for a Secured Credit Card
One of the easiest ways to get approved for a credit card with no credit history is by applying for a secured credit card. These cards require a refundable security deposit, which acts as your credit limit. Since secured cards carry minimal risk for banks, they are easier to get approved for.
For example, HDFC Bank offers secured credit cards against fixed deposits. This can be a good way to start building your credit history.
Become an Authorized User
If you are unable to get approved for a credit card with no credit history on your own, consider becoming an authorized user on a family member’s card. This allows you to use their card and build a credit history. The primary cardholder is responsible for payments, but your credit activity will also be reflected in your credit report.
Apply for a Student Credit Card
Many banks offer student credit cards, which are designed for individuals with little to no credit history. These cards typically have lower credit limits and fewer eligibility requirements. They can help you build a credit profile over time.
If you are a student looking to get approved for a credit card with no credit history, consider applying for an entry-level card specifically meant for students.
Use a Co-Signer
Another way to get approved for a credit card with no credit history is by applying with a co-signer. A co-signer is someone with a good credit history who agrees to take responsibility for the payments if you default. This reduces the risk for the bank, increasing your chances of approval.
However, it is important to maintain timely payments, as late payments can impact both your and the co-signer’s credit scores.
Open a Savings or Fixed Deposit Account with the Bank
If you want to get approved for a credit card with no credit history, consider opening a savings or fixed deposit account with the bank. Banks often approve credit card applications from existing customers with good account activity. This strategy helps build trust with the bank.
Apply for Entry-Level Credit Cards
Many banks offer entry-level or basic credit cards designed for people with limited or no credit history. These cards usually have lower income requirements and easier approval criteria.
For example, MoneyBack Credit Card from HDFC Bank is a good option for first-time applicants. If you are looking to get approved for a credit card with no credit history, such entry-level cards can be a great starting point.
Maintain a Steady Income Source
Having a steady source of income increases your chances of getting approved for a credit card with no credit history. Banks consider your income to assess your repayment capacity. Even if you do not have a credit score, showing proof of regular income can improve your chances of approval.
Improve Your Creditworthiness with Timely Bill Payments
If you are struggling to get approved for a credit card with no credit history, start by building a payment record. Paying utility bills, mobile bills, or rent on time can help you establish a positive financial profile. Some banks consider such factors when approving credit card applications.
Avoid Multiple Credit Card Applications
When you apply for multiple credit cards at once, it can lower your chances of approval. Each application results in a hard inquiry, which can temporarily impact your credit profile. If you have no credit history, this may reduce your chances of getting approved.
It is better to apply for one card at a time and wait for the bank’s decision before applying for another.
Use Credit Builder Loans
If you are unable to get approved for a credit card with no credit history, consider applying for a credit builder loan. These loans are designed to help individuals build credit. Once you have a positive payment record, you can easily qualify for a regular credit card.
Things to Keep in Mind When Applying for Your First Credit Card
When applying for a credit card with no credit history, it is important to keep the following tips in mind:
- Check the eligibility criteria before applying to avoid rejection.
- Start with a secured or student card to build your credit profile gradually.
- Make timely payments to maintain a good credit score once you get a card.
- Use your credit card responsibly to avoid falling into debt.
Also Read:- The Best Credit Cards for Health and Wellness Benefits
Conclusion
Getting approved for a credit card with no credit history may seem challenging, but it is achievable with the right approach. Applying for secured or student cards, becoming an authorized user, or using a co-signer are some effective ways to get started. Once you have a credit card, make sure to use it responsibly and pay your bills on time to build a strong credit history.
