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Are Credit Cards Available for People with No Credit?

Are Credit Cards Available for People with No Credit?

Last Updated : July 29, 2022, 5:21 p.m.

Shopping via credit cards is increasingly becoming the go-to-do-thing in today’s world. Doesn’t matter if it is about doing mobile recharges or purchasing an iPhone, it’s credit cards that most use to ensure the same. A world of discounts, reward points, cashback, surcharge waiver and much more adds to the excitement and, thus a flurry of credit card applications visit the desk of banks on a regular basis. The banks, in turn, check the credit history, income, residence and age of an individual before saying ‘Yes’ to the application. Of these, credit history is something that not all may have. Listening to this, you could question, whether people with no credit history stand a chance to get credit cards? Well, the answer is ‘YES’ subject to certain conditions.

Secured Credit Cards

It is possible that in the absence of credit history, the bank may not offer unsecured credit cards, which are not backed by a collateral or say security in other words. So, what comes as the recourse? Well, secured credit cards can be the ones people with no credit record should apply for. The term may sound little new to you but is in the existence for years. These cards are given against a fixed deposit of specific amount as notified by the bank. Credit limit is set as a certain percentage of the fixed deposit balance you keep with the lender. For example- SBI Unnati Card recently made strong headlines owing to the numerous benefits in terms of reward points, cashback and waivers, at par with most unsecured cards that you can find these days.

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Employees of Top Companies with Healthy Income

If you are working with the established names in the corporate world and earning a substantially higher income, the prospects of getting a credit card even without a record of credit could brighten. This instils confidence among the lenders about your ability to pay off the bills on time and thus plays a big role in getting the application approved.

Salary Account Holders

The corporate salary account holders stand a great chance to get the approval from banks for a credit card even if they do not have the credit history under their belt. They just need to earn high and steadily for a period of say 1-2 years.

So, don’t worry if you do not have a credit record, you can use the above ways and get the credit card in your wallet. But remember one thing, don’t shop beyond your capability to repay. If that happens, you may default and have to bear late payment charges, interest and taxes in the process. You are the best judge of your repayment ability. And so, it is left for you to decide the extent of repayment you would be comfortable with.

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