No credit cards worth a consideration
Consumers without a credit history to their backing will find it tough to find the right credit cards that can help them create the credit history from scratch. The only way to obtain good no credit cards is by proving to the banks the financial potential and the repayment capability before availing the cards offered by them. However, there is no need to fret too much over it! There are no credit cards worth considering.
The most easily no credit cards available are the secured credit cards. Most banks offer these credit cards to students just out of college looking to create a good credit history. These cards are easily available because the applicant will have to pay some amount upfront to avail the card. The amount that needs to be paid beforehand is dependent on the credit limit the applicant is looking forward to. While some banks and financial institutions levy some amount of commission, there are a few banks that credit the entire amount to the card. The best way to steer clear of high interest rates on these cards is by repaying the amount utilized in full each month. Look out for secured credit cards from banks, which report the transactions on the card to one of the three credit bureaus in order to generate the credit report. Though these are the best no credit cards that one can opt for, the interest rate on these cards are on the higher side and range between 15 percent and 20 percent. Hence, making payments on time towards these cards is critical.
There are credit card lenders that do offer certain unsecured cards to people with no credit. But that has become a rarity these days. Before the economy took a downturn the number of lenders offering such cards to consumers was high. However, the volatile economic situation has put them on guard and very few credit card issuers are willing to take the risk of issuing such cards to consumers.
Banks that do issue unsecured no credit cards do so at a price. The risk they take is covered by the fact that these cards have high annual fees and rate of interest associated to them. This leaves borrowers of such cards with no choice but to repay their dues on time each month to avoid getting into the debt trap. If used wisely, these cards will surely help come up with a good credit history that can work wonders in future.