Building a good credit card history is quite essential as it determines your interest rates and security deposits. Good credit history is all about how consumers can repay their debts responsibly. Credit history is the record of how a person has been able to manage his or her credit in the past, plus the complete debt load, number of credit lines, and suitability of payment.
Moneylenders look at a possible customer’s credit history to choose whether or not to bid a new line of credit and to aid set the terms of the loan.
The best credit cards for people with no credit aid people who have never had a credit card or loan build their credit without costing or spending a lot. When you have no credit, finding a credit card that you qualify for but is not wholly appalling can be tricky. It is essential to build a good credit history and here are some reasons why.
1] Establish good credit value
Establishing a good credit record is very essential as lenders often consider those without good credit value as credit risk. It also aids in having a loan quickly approved and a responsible and clear record helps in making lenders take that decision.
2] Receive the best interest rates
Loyalty reward is everything and those who usually 0% interest or low-interest rates have been able to consistently prove their creditworthiness to lenders not just by having high credit scores but also having a good credit card record.
3] Comes in handy for huge purchases
Purchasing a house or a car needs some established record for a lender to consider the application and having a good record plays a great role.
Here are some of the best credit cards for people with no credit.
4] Green Dot primor® Visa® Gold Secured Credit Card
It has one of the best and lowest APR with a fixed regular APR of 9.99%. It has an annual fee of $49 and the required minimum deposit to activate the card stands at $200. The recommended credit score is 350 – 800 with 350 being poor and 800 excellent.
5] Apple credit card
It is best for those avoiding fees and falls under the category of an unsecured card. There is no annual charge fee or late payment charges with this card though its regular APR fluctuates and is usually between 12.74% – 23.74%.
It also has several reward rates and users can earn up to 3% cash back at Apple and choose Apple to pay partners, there is also a 2% on other Apple pay purchases, and 1% on everything else. There is also no charge on foreign transactions and the recommended credit score starts from 580 to 850.
6] Wells Fargo Cash Back College℠
This credit card is generally best for students and users are required to have an existing account with Fargo West to apply. There is a 0% introductory offer on purchases and balance transfers for the first 6 months, no annual fee, and rewards.
But the regular APR is 12.65% – 22.65% which varies and there is a 3% foreign transaction fee. A 3% cash rewards are earned for up to $2,500 spent on gas, grocery, and drugstore purchases for the first 6 months while 1% cash rewards for each $1 spent on almost all other purchases with the card.
To build a good credit card history, it is recommended to apply for a gas card and also use a co-signer for the credit which will be someone with a good credit history.
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- Common Credit Card Pitfalls to Avoid.
- Tips to Help You Choose a Credit Card.
- How to Pick the Best Credit Card.