Is A Business Credit Card With No Credit Possible?

Obtaining a business credit card with no credit is possible. It can be difficult to obtain a credit card if you have no credit. There are certain types of cards that are available just for people with no credit. If you do end up getting a regular credit card then you should be aware that you will not have the same benefits as someone with credit.

Secured Credit Card

A secured credit card is what is normally given to people that are just starting out and have very little or no credit to their name. A secured credit card will use your bank account as collateral. Because of this you will not be paying as high of an interest rate as you would with an unsecured credit card. You can rest assured knowing that as long as you are faithful to paying your monthly bill you are slowly building your credit up to where it needs to be. A secured credit card is a credit card with training wheels. This card is given to you so that you can prove yourself as someone that can be trusted to make a payment on time.

Unsecured Credit Card

Obtaining an unsecured credit card with no credit can be a little trickier. You will probably have to end up paying a very high interest rate. You will be charged several fees as well. This is inevitable until you are able to establish your credit. As long as you are able to make payments on time you will slowly be able to wear down the interest rate until it is something that is more manageable. It is important that you use your unsecured credit card wisely. If you are late on a payment when you are just starting out this could do bad things to your credit. Prove yourself as someone that can handle a credit card and you will be rewarded with affordable interest rates and fewer fees.

Tips to Obtain Credit Cards

Another way to get credit cards with no credit is to check with your bank that you use. A lot of the time they will offer special deals to customers that have been banking with them. If you have a good history with your bank, this means very few if any over drafts or any other issues, then you may be able to get a good deal. The longer you have been with your bank the better.

If you know someone that has good credit then you may want to talk to them about cosigning for a credit card with you. Someone with established credit vouching for you will make you a more attractive candidate for the credit card companies. You will need to keep in mind that when you do this that it’s not just you that will get into trouble if you do not make your payments on time or at all. The person that cosigned is also held responsible for any issues that may come up.