Getting a credit card with no credit history can seem like a laborious task. But, you don’t need to worry as I am going to discuss some of the best ways you can have a credit card even if you have no credit history.
Make Sure You Qualify
You need to have sufficient income so you are able to pay off your credit balance and to get a hold on credit card as well. The amount you will be signing in for your credit card application should be contributed solely by you. You cannot borrow some amount from any random member of your family to meet the criteria for the credit card.
The age limit to own a credit card in India is 18 years. Most of the credit card companies have also placed an upper limit for the people who are aging between 65-70 years.
Some credit companies require pre-online qualification that checks whether you are eligible for the credit profile. Pre-qualification can also be termed as soft checks, signifying they won’t do any damage to your credit score in case your report is examined.
Remember, this evaluation is not an assurance or approval to get a hold off a credit card. There are various other elements including your background, income, and occupation on the basis of which your application for a credit card can be rejected. In the event your application gets rejected, you will be notified the reason of rejection via email.
Seek A Co-signer
After making your best efforts, if you are not able to get a hold on a credit card, then make sure you get a hold of someone with an impressive credit account. Make sure you bring in someone who is having good credit and can sanction the credit card for you. One of the key disadvantages of having a co-signer is that he/she will be having access to all the information about your limits, purchases, and finances. It is important you use your credit card responsibly as the credit of the co-signer also gets affected. You have to be extra cautious while using a joint credit card.
Choose A Card As Per Your Segment
In India, the popularity of credit cards is surging day-by-day. Every month some bank comes out with a new card catering to a particular segment of the society. Currently, there are credit cards that cater mainly professionals, women, and doctors. For instance –
- HDFC Bank- Woman’s Gold Credit Card
- ICICI Travel and Holiday Card
- HSBC Premium Woman Card
- Student Credit Card
Student credit card is also one of the popular segments but it is yet to gain popularity in India. If we look at the Western nations, the concept of student credit card is quite popular. If you are a student, you can apply for a student credit card. These cards are made especially for the college going students, who don’t have a fixed source of earning. Like I just mentioned, there is still no credit card for the students. However, some banks are considering to come up with a credit card for the students.
For instance, here the students are required to open a fixed deposit account in their respective bank. And the fixed deposit is being used for issuing the card. The credit limit is set as per the fixed amount in the bank.
SBI Advantage Plus Card that allows a credit limit of up to 85% of the total fixed deposit amount. In addition, it also comes with a low-interest rate i.e. 1.99% per month. Make sure you have done the right amount of research work before you choose a credit card as some of them include high-interest rates.
When it comes to credit card companies more or less they have identical eligibility standards for the credit card holders. Whether you are self-employed or salaried, the minimum requirement you need to fulfill to have a basic credit card, i.e. gold or silver, is Rs. 1, 50, 000 – 1, 80, 000 per year. However, if you are self-employed, the credit card company can set high eligibility standards if you owe high rate of income.
Go For A Safe Credit Card
If you are not able to get hold off a traditional credit card, then safe credit cards are the best available option for you. Choose a card with low fees and make sure that the card has leading credit bureaus. One thing that stands out about the secured credit cards is that they will make you deposit a certain amount of security as a credit limit.
As far as the fees for the secured credit cards is concerned, it tends to vary. Some will charge a high fee while others charge a low fee. In the event you don’t have enough amount of security credentials, you can save some money for the next few months. You get to choose your credit limit as per your pocket.
Hi, my name is Ankita Dixit, I am 27 and I am a professional writer. I started writing from a young age and most of my writing skills and knowledge are self-taught. Currently, I am working for Paisa.co as a professional writer. I have written on various topics including motivation, finance, technology, credit cards, insurance, personal loans and entrepreneurship etc.