How To Get A Card With A Limited Credit History

By Author: Creditcardbalance
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A limited credit history can be a disadvantage when attempting to take out a credit card. This is because much credit card issuing and lending is driven by credit histories.

Credit card providers use credit scores because they are some of the most accurate predictors of future behavior. If the credit card user has a good credit score then it is likely that the debts will be repaid with little urging and the credit card provider can afford to offer lower interest rates or more attractive terms to get these customers. Alternatively if the credit score is poor then the credit card issuer will charge higher rates and offer less attractive terms.

A limited credit history can mean that many standard credit card deals will not be offered as there will be no reliable credit score to help to make the decision. This can affect those with a limited credit history, such as recent immigrants, those who never borrow or those who have recently turned 18.

There are ways for those with limited credit histories to build up a credit history. A number of card providers offer normal ...
... credit cards to people with a limited credit history, although this has been greatly reduced since the credit crunch so you may not necessarily get the best credit card for your needs. If there is an advertisement for student credit cards or an offer that says that it is available to recent immigrants then this is a very good indication that the provider is willing to lend to those with no credit score.

Store cards are also quite a good way to develop a credit score. These tend to have higher rates and less attractive features than standard credit cards, but they tend to be offered in store and often with cursory credit checks, as they are prepared to lend to a wide variety of customers.

Secured credit cards can also be a very good way of building a credit history. These are secured by a deposit of a similar amount to the credit card. There are many secured credit card providers who will not refuse any applications as long as the money can be deposited.

Co-signatories are quite a popular way to build credit for younger people. The co-signatory on the card is usually the parent, who is guaranteeing the debt. The card payment history is credited to the credit histories of both parties.

A prepaid credit card can also build up a credit history, if the right card is chosen. Care needs to be taken as many of these are not actually treated as credit products due to the prepaid nature and they may not show up on credit histories.

Author:
This article is written by www.creditcardbalance.com whose website allows users to compare credit card deals to ensure you get the best credit cards. Although the main focus is credit card balance transfer there are loads of great deals on many types of credit cards whether you are looking for a visa credit card or a reward credit card.