The credit card catch-22: how to build credit if you don’t have it

People can establish good credit when they properly manage their loans and credit cards, but it can be difficult to get a loan or a credit card if you don’t have credit or your credit is bad. So how is that supposed to work? How can you build credit when no one will approve you for a credit card?
Here are the strategies that may work for you.
Becoming an authorized user
If you have a relative with good credit and he or she is agree to add you as an authorized user on a credit card, you are lucky. Being an authorized user means that this account will be added to your credit report. This can benefit your credit score as long as the payment history on the account is good. So, make sure you are added to an account with good payment history and low balance. Remember, a person who adds you as an authorized user is putting his or her credit at risk to help you. If you max out your balance and do not pay the bills, you will impact the credit score and that person will have to cover the costs.
Think big. Start small. Scale fast
Secured credit cards are often the best way for people with bad credit to improve their credit history and for people with no credit to establish a credit history. There are secured credit cards that are easy to get. They work by requiring you to put at least a minimum deposit before getting the card. That deposit (say it’s $200) is your credit imit. You use the card and make due payments just like you would with an unsecured credit card. This allows you to build a payment history and understand how credit card use impacts your credit score. The deposit is usually fully refundable, but if you don’t make payments, the card issuer will take your deposit. Shop around to find a secured credit card with the best terms.
The above strategies can work for someone trying to improve from no credit or bad credit. However, if you are dealing with bad credit, make sure you’ve considered the issues that hurt your credit.
Say you can’t get a credit card because of defaulted loans. The loans should be paid; you should make at least minimum payments. That undoubtedly destroyed your credit score. And getting a secured credit card won’t do much for your credit while you continue defaulting on your loans. When you start paying down your loans and making payments on your secured credit card on time, you will be able to move from dead point.
Latest No / Limited Credit Card News

In the run-up to the new academic year, Capital One recently added two decent products to their line-up of student credit cards, giving college students more opportunities to build credit and earn valuable rewards at the same time: the Capital One Savor Student Cash Rewards Credit Card and the Capital One Quicksilver Student Cash Rewards Credit Card. Two new cards are student versions of their rewards counterparts: the Capital […]

So far, no one can say for sure when the coronavirus pandemic will end. To assess the current financial situation of Americans, CreditCards.com has recently conducted two surveys of credit card debt during the COVID-19 outbreak. The surveys were conducted in March and April with over 2,000 U.S. adult respondents. Here are the key findings: […]

A recent CreditCards.com poll showed that 6 million or 8% of parents in the U.S. have at least one child using a credit card. Of course, children can’t apply for their own credit card until they turn at least 18, but most issuers allow to add them to their parents’ card accounts as authorized users.

The wedding season is coming up—meaning brides and grooms-to-be are busy tasting wedding cakes, refining guest lists, and booking photographers. But there’s something else they should add to their to-do list, financial advisors warn.

Webbank, a state-chartered industrial bank headquartered in Salt Lake City, Utah, has just introduced the enhanced cash back for its . Starting December 19, all Petal cardholders who use the Petal mobile app can notice new special offers. These deals are supposed to give cardmembers access to up to 10% cash back with eligible merchants […]