Credit cards for limited and no credit history are cards created to help consumers who don’t have a credit profile build up that profile and ultimately improve their credit score.
These cards are generally meant to be “stepping stone” cards, allowing consumers to have an option if they have never previously had a credit profile or have a limited credit profile. This is different from cards designed for those with poor or bad credit, as these cards are specifically created for individuals without a credit history.
To get the most benefit out of these cards, they should be used monthly, and we also recommend paying off as much of your balance each month as possible. This will help you keep a low debt-to-credit-limit ratio, which is one of the main factors utilized in determining your credit score. It is also extremely important to make the payments in a timely manner. Using the card each month and then paying it off on time may also help you establish a credit history, which over time will increase your credit score.
Many consumers use these cards until they start to build a credit profile, and then may graduate to a card designed for those with fair or possibly even good credit, depending on how much of a profile they build and how high their credit score becomes.
Choosing the right card for your credit profile is important, as it will maximize the chances of you being approved for the card, while getting you the most benefits. Those with good credit, for example, should not apply for a card designed for limited or no credit as they will be paying more in fees and interest than they have to while losing out on perks and features offered in cards designed for a higher credit profile.
LowCards offers a variety of credit card options designed for those with limited or no credit. We recommend choosing a card which reports to the three major credit bureaus, has the lowest fixed fees possible, and has the lowest interest rate. This will allow you to build up your credit score while keeping costs and fees as low as possible during this time.
Questions & Answers About Credit Cards For No/Limited Credit
How do I apply?
The most secure, fastest, and easiest way to apply is online. Online credit card applications are always securely transmitted and minimize the chance of your personal information or data falling into the wrong hands. LowCards’ website is completely secure, and clicking on the “apply now” button on any of the credit card offers will securely redirect you straight to the credit card issuer’s secure website, where you can easily apply for the card.
How fast will I be approved?
In some cases, you will receive instant notification as to whether you were approved for the card or not. If you provide inaccurate information or if the credit card issuer cannot verify the information provided, the credit card issuer may defer the approval decision and send it to an underwriter for further research. This may take 7-10 business days, and during this time, the credit card company may be further reviewing the information which you provided as well as possibly evaluating your credit report to determine if they would like to approve you for the card.
Can I get one of these credit cards if it is my first ever credit card?
Yes. These credit cards which are specifically designed for no credit or limited credit are a fantastic choice for first time credit card users. If you have never previously had a credit card, this is where you should likely begin. Keep in mind your credit history is more than just credit cards: things like auto loans, mortgages, personal loans, and more report to the major credit bureaus. We always recommend you know your full credit report history and your credit score before applying for a card. If you have never had a credit card before, you may have a high enough credit score and history to apply for a higher category of card. If you truly have no credit history or a very limited credit history, then applying for one of these credit cards is your best chance at approval.
Are the higher fees and interest rates worth it?
If you have limited or not credit profile, then the higher fees and interest rates may be worth it. Banks and credit card issuers are taking a greater chance or financial risk by offering a credit card product to someone with limited or no credit history. Your credit history is how these financial institutions evaluate their risk, and they price their offers accordingly. These cards will help you build a stronger credit profile when used correctly. If you are aware and cautious of the fees and interest rates and pay your card in full each month, you can dramatically reduce the overall cost impact of these cards while building your credit profile. This may open up new offers to you down the road.
I don’t recognize the names of some of these banks. Are these cards legit, safe, and secure?
Many of the offers designed for consumers with limited, poor, bad, or no credit may not be from national banks or issuers that you recognize. Any credit card offer carried on LowCards is a 100% legitimate, safe and secure offer. Most of these cards are part of the Visa or Mastercard network, meaning they can be used anywhere that accepts Visa or Mastercard.