No wonder, credit cards are an essential part of our everyday lives. Whether you have a good credit history or bad, you look for the card provides immense levels of help in your daily life. The plastic money gives a kind of assurance that you can buy anything without disturbing your monthly budget. The scheme enables us to pay fast cash with one swipe has made these cards a perfect companion during your shopping and travelling.

Credit cards are categorized into two but the financial firms have divided them into - Secured and Unsecured for consumer assistance. People with good credit history don’t find difficulties in getting lower interest secured or unsecured credit cards but a bad credit history holder needs to move one firm to others to get favorable deals on their cards. The same case is with no credit people. Like bad credit history loans, no bank and financial firm are ready to provide remarkable deals to them.

Although, having bad credit history or no credit doesn’t stop you to get a credit card, but it can make your larger purchases much-more difficult.

Unsecured Card

Let’s know about unsecured credit cards for people with no credit. A decade back, it’s tough to apply for a credit card to people with no credit. Now, there are various financial firms ready to provide unsecured credit cards to them. Each credit card follows revolving structure that includes pay a minimum amount every month and the remaining is paid when it is calculated using an annual percentage rate which is commonly known as APR. Generally, the issue of no or less credit history is faced by workers on non-immigrant visa, college students and undocumented immigrants.

Students applying for credit cards need to submit address proof and their Social Security Number as it helps the credit card firm to keep a track of all important details from the three agencies. Most of the students have nil credit history so there is certain credit limit for them. But with times they build up a credit history, there is an increase in their credit limit.

Immigrants with undocumented paper need to obtain ITIN which stands for Individual Taxpayer Identification Number. Even for the workers on non-immigrant visa need to gain that to make them eligible for credit card. ITIN helps the credit bureaus to evaluate the risk according to their credit limit.

Pros

Applying for unsecured credit cards is not that easy as they don’t require any security or deposit. Also, there are firms specializes in issuing cards to people with no or bad credit. An unsecured credit card provides enough space to build good credit history. In other words, it helps to raise FICCO rates in quick time if you pay your bill on time.

Cons

It’s easy to get unsecured credit cards but you may pay higher interest rate as these cards impose a high risk to the issuing company where secured credit cards are free from any processing charge and sudden changes. Apart from that you may charge an extra $5 to $10 in the name of monthly fees.

A balance transfer credit card appears as a boon for people with no credit. If you find uncomfortable from your existing card, you can transfer its remaining amount to your new credit card. Only a balance transfer fee cuts for the transaction. There are companies offer interest-free introductory rate on balance transfer to attract customers. Although, the lower interest or interest-free offers for a limited period and then reverts to a higher interest rate.

A no credit person should give adequate time to themselves to look for pocket-friendly deal on their cards.

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