Are you trying to build your credit which appears to be most daunting for you? No worries, you should try establishing your credit first. But before that, you should not feel offended about it. There are a variety of credit cards available for those who have no credit history where obtaining a credit card can be considered to be the most significant step in establishing your own credit. People with either no credit history or low credit history can still avail credit cards. Let’s find out the essential criteria while examining for having no credit cards instant approval.
What To Avoid When Applying for a Credit Card?
There are some credit cards which provide you poor terms and conditions along with interest rates. For example: some credit cards charge a monthly fee instead of charging an annual fee which generally adds up to be more costly. However, there are some credit cards which have interest rates above 30% while the others have no grace time period. Credit cards for people with no credit that provide you a grace period permit you to avoid interest charges by paying your remaining balance in full amount.
What To Look For When Applying for a Credit Card?
If an applicant doesn’t have any credit history and looks for a credit card, in such a case it becomes the foremost priority to find a card which you can approve of. One type of credit card which is worth suitable is a secured credit card. These products necessitate that you submit a security deposit, but in other respects work like any other credit card. Cardholders are required to make their payment each month so that interest charges can be incurred whenever you are required to carry a balance. There are other types of credit cards which are worth consideration for students that have been targeted at young adults. On the other hand such types of credit cards are also targeted at recent immigrants. Lastly, you might also look applying for a store charge card.
Should you apply for more than one credit card at a time?
Whenever you are about to get credit cards, it’s worth consideration getting started with a single account and thereby manage it wisely. The moment you have a track record of using a single account attentively, then you can choose to open multiple accounts which is appropriate for you. Moreover, you are required to submit consecutive inquiries for credit which can be seen as a requirement to borrow more and is not an ideal way in order to start your credit history. Once you successfully manage your new account for some time and try to build a reputation of good credit history of on-time payments which is suitably a low balance, then consider opening additional accounts.
Banks offering Secured Credit Cards
The following are the banks which offer secured credit cards inspite of having no credit history:
- Axis Bank – Axis Bank offers Insta Easy Credit Card with a minimum fixed deposit amount of ₹ 20,000 and a maximum of ₹ 25 lakhs.
- SBI Dena Bank Secured Card-This card requires an applicant to have an FD account at Dena Bank with a minimum deposit of ₹ 30,000.
Benefits of Having a Secured Credit Card
- The prime benefit worth considering is that it helps the applicant to build a credit history. This in turn becomes the eligibility criteria when someone applies for either the card or a loan in the near future. Because every bank needs to assess the applicant’s credit history, calculate repayment capability and then ascertain whether to accept or reject the credit card application. The higher the credit score, higher will be the card approval rate and definitely higher would be the credit limit.
- The second most significant advantage is that for obtaining a secured credit card income proof is not required. This perhaps becomes a significant factor whenever you apply for any card type. However, there are several banks which provide the credit card for low-income to individuals in India.
- There are various banks which provide flexibility to the user for the deposit amount i.e. they do not have any prescribed minimum deposit criteria. However, you should go for putting your higher deposit so that your credit limit goes high and it depends on more you wish to spend, better will be your credit history.
- The user can also earn interest on the deposit which again becomes a fair way of generating returns.
- Higher the use of this card, the reward points would be higher. However, this is not applicable on any credit card you have.
- Add-on card can also be applicable in a very good way for the other person in your family for getting a credit card. Let’s say if a husband possesses a credit card then definitely the wife can also obtain an add-on-card which can help her establishing a credit history.
- There is no requirement for an ID card or address proof which becomes a very common problem faced by the users particularly when they move from some city which does not have any fixed address.
- Fuel surcharge becomes forgone when it is used at petrol pumps throughout the country where the minimum amount is spent. However, this is provided by many credit card issuers.