Building your independence is a crucial thing, whether you are a recent graduate, an immigrant, or someone who has never learned about credit scores. Establishing a credit history by owning a credit card without a good credit score can be challenging but possible. Your credit history is a statement to lenders such as banks, and credit card companies. A high credit card score ensures you a loan approval with better interest rates and more favorable terms. 

• Secured credit card

If you are an individual with no credit score history looking to obtain a credit card, the best way is to secure a credit card. Unsecured credit cards come with better terms and conditions but for it, you will need a history of responsible financial behaviour. If you don’t have that, offering a deposit equal to the credit card limit you want will secure you a credit card. That deposit acts as collateral for the issuer, minimizing the risk of the credit card company and making it more possible for you to obtain a card. 

Don’t forget to research and compare secured credit cards as not all are made the same. Look for cards with reasonable annual fees, low-interest rates, and a clear path to having an unsecured credit card.

• Utilize credit-builder loans

Another way to make some credit score history is to borrow a loan from the lending institution. The borrowed amount will stay in the account as you make monthly payments until you pay it out. Once you have done that, the borrowed amount will be available to use and your credit score will increase.

• Seek credit cards specifically for beginners

Some banks may have specialized programs for beginners. You will need to research carefully as many of these deals have a small card limit and high interest rates. It will inevitably improve your credit score but it will cost you more.

• Build a positive relationship with the bank

Having a savings or checking account in a bank may be a good foundation for your credit card path. Banks are more inclined to help out existing clientele and if you ask they may offer you some credit card options for beginners designed specifically for you.

• Provide proof of income stability

In the case of no credit score history, but a stable income, many options will be presented to you. Proof of a steady income is more than enough for most banks and lenders to offer you good annual fees and interest rates. The only important thing for them is your credibility in paying back your fees on time. Have proof of stable income in the past year or so and try to apply for a credit card.

• Be financially responsible without a credit card

Another way to show lenders how responsible you are with your money is to have bills that are paid on time. If you can budget responsibly, you can showcase responsible financial behavior. This can highly impact the lender’s decision when evaluating your history. 

• Track your credit score regularly

As you begin building up your credit score, tracking it is essential in identifying problems. To keep your score up, you can use many online tracking platforms. Recognizing areas of improvement will help you stay on the right path to a good credit score.

• Be patient and persistent

Building a good credit score takes time, commitment, and persistence. Don’t be discouraged by any stepbacks. While the initial steps might feel challenging, consistently practicing responsible financial habits will yield positive results over time.

Conclusion:

By combining the right strategies, proactive measures, and responsible financial behavior, you can successfully obtain a credit card without a credit score. This journey, marked by patience, persistence, and well-informed decision-making, not only builds a positive credit history but also unlocks doors to financial opportunities, forming a basis for a secure and empowered financial future.