How Do You Get A Credit Score Without Credit History?

Banks Editorial Team · November 1, 2018

Building a credit score without credit history is not as hard as it sounds. It is easier to build your credit card score by paying off your credit to avoid being penalized by your bank. It is important to know how you can build your credit history and act on it before it is too late. This report illustrates how you can get your credit card if you have already started that journey. Not sure what your credit score is? Check it now: 

 

 

Grow Your Credit Score Without Credit History Through Family Members

Customers without a good credit card history can have their family members add them as authorized users on their cards. The financial institutions that offer credit card services to customers around the world include Capital One and Citi Bank. Customers wishing to partner with any one of these financial institutions should investigate what they are offering such as their charges, benefits, restrictions, and bonuses as listed in this report.

You can build credit by becoming an authorized user and this can enable you to get loans if need be. This means that you should have an account that has been active for more than six months in addition to having at least one creditor who has been checking your activity to the bureaus during the same period. You can only withdraw the amount of money that you had deposited using your credit card if you had deposited $200, then you can only withdraw $200.

Build Credit With Secured and Unsecured Credit Cards

To enjoy the benefits of having a credit card, it is important to pay off the balance to avoid being penalized by the financial institution. You can also build your credit score without credit history by applying for a secured credit card. Secured credit cards are synonymous with applicants who don’t have good credit history. Therefore, you can improve your credit score and then apply for an unsecured credit card from your bank. The bank can also refund you the money that you had deposited if they decline to accept your application to open an unsecured credit card in case you want to close your account. Before applying for a credit card, check your credit score:

 

 

For secured credit cards, applicants must have some money in their banks which acts as collateral in the event that they fail to pay the required payment. It is vital to partner with banks that do not charge the so-called annual fees and ensure that they report to the three credit bureaus. This can help the credit applicants to build their credit responsibly. Also, Capital One and Citibank are the popular cards that can help you to rebuild your credit. You should avoid using more than 30% of your credit. It will work well for your credit score by not using more credit on your cards.

Customers are required to contact any of the three reporting agencies including Equifax, Experian, and TransUnion every year.

Credit Cards and Credit Reporting

Capital One specializes in credit cards by helping applicants to rebuild their credit responsibly. These applicants are required to deposit $49 to $200 which can be refunded. They are assured of getting a higher credit line by depositing more money into their accounts. Most travelers do not like paying an annual fee; therefore Capital would be the better option given that they would not be required to pay a single dollar. Credit Card companies such as Capital One usually report their customers’ credit standing to the three credit bureaus.

Citi Bank reports to the three credit bureaus such as Equifax, Experian, and TransUnion at least once a month. Citi Bank customers are not required to pay any money to enjoy their services. It is also one of the leading global blanks which means that their customers can access their services from anywhere in the world. Customers must deposit (security) a minimum of $200 for opening a Citi Bank account.

Building Credit for Individuals Under 21 Years Old

Customers can build their credit score without credit history by having their family members with good credit history to add them as authorized users on their cards. Those under the age of 21 years can also use this approach given that they might not have a good credit as well. In addition to this, they are mandated by law, Credit Card Accountability Responsibility and Disclosure (CARD) Act, to have an adult sign on their behalf or prove that they can repay the money borrowed from the bank on their own. It is important to choose those you trust as your co-signer such as relatives as opposed to friends who you are not familiar with. The co-signer is responsible for paying the money borrowed from the bank if you fail to do so within the set time frame. Customers can become “authorized users” by having their family members (trusted people) with a good credit to add them as authorized users on their cards. Then, it would be easier for them to get a loan from the bank and enjoy other benefits. However, authorized users are not required to pay the charges associated with credit cards and so, it is vital to confirm this with the cardholder to avoid problems in the future. As the primary account holder, you can earn points by adding authorized users to your credit card account. Know your credit score before you add a user to your account:

Anyone can apply for a credit card as long as they know what they would be required to do in order to partner with the respective bank. Using the tools below, you will know some of these requirements which include having to pay a loan within a set time frame, a minimum deposit of $49 to $200 and many more depending on the financial institution.

 

 

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