The financial crisis of 2008 and the recession that followed had a major impact on the world’s economy. Much of the banking crisis was caused because credit, in the form of sub-prime mortgages was given out to people who should have never qualified for a mortgage. Because of this it is very tough to gain access to credit of any kind, whether it be a mortgage, auto loan, personal loan or credit card without a strong credit score. If you have no credit history you have few options, but you do have options.
One of the best things you can do to improve your chances of landing a decent credit card is to have someone with a good credit score co-sign your application. Co-signers accept responsibility for your debt if you cannot make your payments, so you will want to look for someone who truly loves and cares about you like a parent or significant other. Credit card companies feel that they are making a better decision extending a thousand dollar line of credit or more to someone who has a co-signer compared to someone who is on their own. This is a lose-lose situation for co-signers, but they are the difference between getting a credit card and getting a rejection more often than not.
One of my favorite sayings is: “Beggars can’t be choosers”. This means that someone with no to limited options cannot afford to be picky. As someone with no credit history you cannot afford to sit around and wait for the perfect credit card, if you find a credit card that may accept someone with no credit history go ahead and apply for it, what is the worst that could happen? You might end up with a card that has an APR of 18% instead of 14% or a slightly higher annual fee, but that is the price that you have to pay seeing as you have no credit history. If you “pay your dues” for a couple of years and build up your credit score into the 700’s you will find that credit cards will be begging you to accept one of their cards instead of the other way around.
Here are three credit cards that accept applications from people with no credit history that also have pretty lucrative terms:
Capital One Cash Rewards for Newcomers
This card from Capital One is designed for people with no credit history! You will pay a steep APR of 25%, but remember that you will pay no interest on any of your purchases as long as you pay off your purchases during the grace period every credit card offers. If you are serious about paying off your purchases as soon as you make them APR should not matter. There is no annual fee and you will receive 1% cash back on all of your purchases! This card automatically reports to all three major credit bureaus so you will see your credit score rise considerably as long as you act responsible with your card!
Journey Student Rewards Card
This is an excellent credit card for college students with no credit history. You will pay an APR of 19.8%, which is about as good as you can ask for seeing as you have no credit history. There is no annual fee and you will receive 1% cashback on all of your purchases. There are plenty of popular credit cards for people with good credit that do not have terms that are this lucrative. You will also receive an extra 25% bonus on the cash back you get each month as long as you pay your bill on time so you should end up receiving 1.25% cash back. You can opt for E-mail and text messages to remind you when payments are due which is a nice touch. This is one of, if not the best credit card for college students with no credit history.
Orchard Bank Classic Mastercard
This is an excellent card for people with poor credit or no credit history. This card reports to all 3 credit bureaus monthly, which means it will not take you long to build up your credit score as long as you act responsibly with your card by paying off your balance each month. You will pay an annual fee of up to 60 dollars and APR of up to 20% which is actually fairly reasonable. I usually do not like to recommend cards with an annual fee, but this card represents a great opportunity for everyone who has poor credit and is serious about raising their credit score. You can also opt to receive E-mails/ text messages to remind you when payments are due, which is awesome!