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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.
However, aside from credit scores, some issuers also place heavier emphasis on your income. So you may be able to get a regular credit card even if your credit history is limited. If you get turned downed for regular credit cards, then essentially, your choices boil down to getting either a secured credit card, or if you are a college, then a student credit card.
What is a Secured Credit Card?
A secured credit card, unlike an unsecured credit card, requires you to put a deposit with the credit card issuer. You normally have to put in a minimum of $300 and a maximum of $5,000 to $10,000. The amount of money you deposit will become your credit line and act as a collateral. Many secured credit card reports to all three major credit bureaus and even report them as an unsecured credit. This way, you can build a credit history and within a year to 18 months, you will probably receive unsecured credit card offers which you can apply for. (or you can come back to this site!). Secured credit cards normally charge an annual fee which ranges between $20 and $50.
Credit Cards For People With No Credit History
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The Orchard Bank Classic MasterCards is the card we would recommend if your credit history is very new. Orchard Bank is a little different from other credit card issuers. When you apply for a card, you may be approved for either their secured credit card or one of their unsecured credit cards. They have different terms and conditions that will be disclosed to you before the application process. We have compared lots of other credit cards targeted at folks with no credit and we have to say that Orchard Bank has the most reasonable fees and rates among most credit card issuers.
The Public Savings Bank Classic Secured Visa® Credit Card
is another good card to get if you have no credit or poor credit. Because it is a secured credit card and you are almost certain to get the card. This is one of the rare secured credit card with no annual fee (though you have to pay a one-time $79 application fee).
Regardless of the type of card, you get, make sure you use the card responsibly, pay your bills on time. You will build up a credit history over the course of a year or so and then be offered better cards.
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.
Student Credit Card Recommendations
We recommend the Discover® Student Card
 for students who are looking to establish a credit history. In fact, I would say that Discover's Student Cards are the best cash back student credit cards available in the market today. With this card, you can earn:
5% rebates on Airlines, Hotels, Car Rentals and Cruises between Jan and Mar
5% rebates on Home Improvement Stores, Department Stores and Clothing Stores between April and June
5% rebates on Gas Stations, Hotels, Theme Parks, Zoos and Bookstores between July and September
5% rebates on Grocery Stores, Restaurants, Movie Theaters, Movie Rentals between October and November
5% and 20% rebates (I look at them more like discounts) at over 100 online retailers like GAP.com, OldNavy.com, Dell.com, BestBuy.com!
You can also Double the value of rebates that you have earned if you redeem them for select gift cards (over 100 partners). For example, if you have accumulated $40 in rebates, you could get a $80 celebrity cruise, carnival cruise or Universal Orlando Resorts gift card or a $100 Hyatt Hotel and Resorts Gift Card
No other credit card allows you to earn 5% rebates for so many items. Students will find this such a useful card.
 The Citi® mtvu(TM) Platinum Select® Visa® Card for College Students is another cool credit card for students who are looking to build a credit history. It is a reward credit card and you can earn 5 points for every dollar you spend on things like restaurants, video rentals, book stores, record stores and movie theaters.
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