Credit history is useful for big purchases. You will have a better chance of loan approval if you have a good credit history. Similarly, it will make you financially trustworthy. Most of the sellers run credit checks. Credit history also makes it easy to get credit cards. So, whatever you are thinking, credit history is crucial. You can buy homes, look for a new car. All you want is a good credit score. You will have to pay a security deposit if you don’t have a credit score. Good credit history also improves your chances of suitable work.
It is challenging to get credit cards approved without any credit history, as well. Here we will discuss some tips that will help you in making credit history. Follow these steps to have a better chance of credit card approval.
1. Job
First, you need a Job. A good job will mean that you have an income. This income will mean that you can pay your credit card balance. You must put your income on credit card application. You cannot use the income source of your family members or relatives. There are also income limits on specific credit cards. All you need is enough money to pay for your credit balance. Higher-income increases your chance of credit card approval.
2. Student Credit Card
There are student credit cards, as well. These cards are for students that do not have much credit history. To qualify for student cards, you only need to show proof of your enrollment in college or university. However, some student cards have high fees.
3. Get a Co-Signer
There is another way to get a credit card. A co-signer gives you better chances of credit card approval. You can get a credit card by teaming with someone else. The co-signer must have a good credit score. Make sure the person applies with you have a good credit history as well. However, it has certain drawbacks as well. If you are irresponsible with your credit, it can affect the other person’s credit score, as well.
Co-signer is useful when you are building your credit history. Once you make a good credit score, you don’t need to rely on someone else.
4. Get a Credit-Builder Loan
A credit builder is another good option. You get a small loan from the bank. This loan is used to purchase a certificate of deposit. Then you make payment to the bank to pay this loan. When you pay the amount of investment, you have the certification. It helps to build your credit. However, this loan comes with interest.
5. How Long Will It Take
Building a good credit history can take time. Your first account needs to stay open and stay active for six months. After six months, your credit score starts to develop. Just keep making actual payments to boost your credit score. Building a sound financial portfolio can take time, so stay patient.
See also: Denied Credit Card Application? Here Are 3 Common Reasons Why This Happens
Conclusion
Getting a credit card the first time is hard. You can apply for those credit cards that do not need a previous credit history. They specifically are designed for people who have no credit history.
