Posts tagged: credit cards with no credit

Credit Cards for People with No Credit

When I was 18 years old I had no credit score and no credit history whatsoever. Without my knowledge, my parents added me to one of their credit card accounts, and as they continued to properly use their credit, my credit automatically improved. I’m not sure most people are as fortunate as I was, and they’re faced with searching for credit cards for people with no credit…and no one to help them out.

The first thing to keep in mind is you have nothing to get discouraged about if you don’t have any credit right now. Credit card companies keep very detailed statistics about how much every new card holder will be worth over their lifetime. It’s in their best interest to extend you credit cards with no credit. Here’s how they’ll do it:

They’ll start you small. Since card providers know what you’re likely to pay in term of fees and interests over the life of your membership with them, they’ll start you out with a limit in the neighborhood of $250 or $300. Enough that you feel like you can actually use your card for day to day living, but no so much that one irresponsible weekend could put you at risk of taking on a balance you have no hope of repaying.  By the way, I’m convinced that every credit card holder will, at some point, mess up and max out his card. It seems to be something we all have to go through just to learn how unpleasant it is.

After you’ve had your card for a while, the card provider will probably bump your limit a little, from maybe $300 to $500, then from $500 to $1,000, then from $1,000 to $3,000… and so on. That’s how I ended up with credit limits in excess of…well, let’s just say I’ve got some high credit limits.

You just want to make sure you’re very careful with your credit cards with no credit. As someone who’s made the occasional stupid mistake with his cards, let me tell you that it’s brutally difficult to get out of credit card debt once you’re in it. Credit cards are best not used at all, but if you have to use them you really want to make sure it’s something you use for convenience and pay off at the end of every single month. That’s a cliche you hear over and over again but it’s painfully true. Credit card debt is literally the devil, and should be avoided at all costs.