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If you have no credit or have a relative new credit history, chances are that you will be turned down for most credit card applications. You have to apply for credit cards that are specifically targeted at those with no credit history. This article highlight the limited choices that are available to those with no credit history or very limited credit history.
Editor's Choice - Our Recommended Credit Card if you have No Credit or Limited Credit History
If you have no credit, the best type of credit card to apply for is a secured credit card. But before you do that, you may want to try applying for the HSBC MasterCard®. This card has no annual fee and gives you a choice of either cash rebate or rewards to earn with the card. If you are not approved for this card, you are likely to be either approved for their secured credit card or one of Orchard Bank's Mastercard. (HSBC owns Orchard Bank).
When you have no credit history, getting a regular unsecured credit card can be difficult. Though there are sub prime credit cards that will easily give you a credit card, these cards come with high fees and rates because they are targeted at those with bad credit. The easiest and most cost effective way is to get a secured credit card. A secured credit card is a card that requires you to deposit a minimum amount with a bank. This deposit acts as a collateral and is your credit limit. Because it is a secured credit card, you will be easily approved. Make sure the secured credit card reports to all three credit bureaus as an unsecured card. Check how long before you can be approved for a regular unsecured credit card. Also make sure the annual fee is reasonable (anything over $100 is a no go). Also make sure you are not charged any application or processing fees. The card that we recommend is the Orchard Bank Secured MasterCard®. Orchard Bank is owned by HSBC Bank, one of the largest and most reputable bank in the world. This card has a very reasonable annual fee of $35 and also a reasonable interest rate.
If you are a student
The best time to get a credit card is when you are a student because almost all student credit cards have no annual fee. This is perhaps the only time when you have a wide variety of no annual fee credit cards to choose from even if you have no credit. Use your card responsibly and you will have a much easier time after graduation when you are looking for an apartment or an auto loan. Check our college student credit cards section for a suitable card for yourself.
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