Whether you are new to the country, just turned 18 or have never had a credit product before reality is you likely do not have sufficient or any credit history. If you are looking to apply for your first credit card there are still ways to obtain one without a personal credit score. Let’s face it, you’re going to need the credit history eventually when you buy a house, a car, apply for a student loan and in other significant life moments.
Some banks offer credit cards with no credit history, with the branch manager’s approval. To be approved, some of the requirements are:
- employment with a steady flow of income
- an existing banking relationship with that particular bank
- no outstanding fees or past non sufficient funds (NSF) owing on your current bank account
Once the above requirements are met, your chances of getting approved for a credit card with no credit history are much higher. The requirements are there to ensure you are financially responsible, have not had poor history with paying fees, and can be relied on when it comes to covering your credit card debt.
Additional steps you can take to get approved for your first credit card.
Do you have a savings plan?
Everyone starts out with their first credit card and no credit history at some point, but there are other ways to show that you are credit worthy. Having a good savings plan is one of them. If you consistently set money aside to your savings account, the bank will see you are thinking about the future and have money set aside for a rainy day. There are different types of bank accounts, ensure to take the time to pick the right ones for your financial plan.
Having a steady income with good job stability
Having a steady paycheque deposited to your bank account and job stability of 2 years+ shows the bank you have consistent income and will be able to support the monthly credit card payments. The longer you’ve been at the job, the higher your chances of getting a credit card with no credit history. There are other factors involved when you fill out the application, however job stability and length of time employed play an important role.
A cell phone bill is credit history
People may be surprised to find out their phone bill is part of their credit history. The cell phone company may report late payment to the credit bureau which can in turn affect your credit score. As long as your monthly payments are up to date and your account is in good status then your phone bill will help you get approved!