Credit Cards For No Credit History Applicants: A Good Deal?

If your credit history is not so terrific but you are tired of living without having the convenience of owning a credit card, there is hope for you. There are many credit cards for no credit history applicants available. The real question is, are these credit cards a good deal for the average consumer.

The average consumer can benefit from having credit cards for no credit history if they are able to pay their balance in full each month. That is the only way they will be able to influence their credit score.

The credit bureaus determine a person's credit score by keeping track of their monthly payments to debtors. If you are in the habit of making your monthly payments late or not at all, your debtors will pass this information along to the credit bureau each month and your credit score will be affected more quickly than you would ever think. That is why it is so vitally important to always pay all your bills on time each month, preferably in full.

The only bills you can reasonably not pay in full are bills to credit card companies but then you will have to contend with paying interest on any balances that have accumulated. You will soon find that you have entered into a perpetuating cycle because your balance will begin to increase monthly as interest accumulates and you will find it more and more difficult to pay the balance off.

People who do not have a strong credit history are able to get credit cards but they should always be very careful about doing so. Credit cards for no credit history applicants will always charge a very high interest rate and this is something you will want to avoid completely.

If you are someone who is just starting out, however and do not have a credit history because you have never been in a position to have monthly bills then credit cards for no credit history can be the ideal place to start. Having one of these credit cards will allow you to gradually build up a credit history. You will usually only need a checking or saving account and your completed application.

By signing on the application, you are giving the credit card company the right to check with the credit bureau to obtain your credit history and credit score. Do not worry if you do not have a credit history because credit card companies that provide credit cards for no credit history are accustomed to people without a credit history applying. They will make their decision about whether to issue you a credit card based on other criteria such as your employment situation.

If you have been gainfully employed for a year or more with the same employer, it will be much easier for you to obtain one of these credit cards.

If you are not able to obtain a credit card this way, you can always apply for something called a secured credit card. Another option is to apply for a prepaid credit card. A prepaid credit card will not allow you to build a credit history, however.