How To Qualify For New Credit With No Credit Score.

6 ways to improve your chances of qualifying for credit

People often have some really difficult experiences when it comes to obtaining credit or applying for a loan for the first time. It’s common for individuals with no credit history to have quite a frustrating time before being approved for a loan or credit account.

Banks are well aware of this situation, however, which is why some are now offering special cards just for new customers that may not have any prior credit history. There are other options to improve your chances of qualifying for credit.

Your credit report

Even if you have good credit, you should stay on top of your credit report because you never know what could happen. Failing to pay off a loan could mean that, when you're ready to settle down, you won't qualify for a bond. Always check your credit report for any inaccuracies, and to ensure you have a good credit score.

Get your dream job

In order to pay back a loan or credit card, you will need a steady source of income. You may not use someone else’s income as a substitute for your own, such as using your spouse or parent's income instead of yours. Your ability to qualify for a loan or credit is partly determined by the income you earn. If you earn a higher income, then it stands to reason that you could qualify for a larger credit limit on your loans and credit cards compared to the same sized loan offered to a lower salary range applicant.

Apply for store cards

Retail stores are known for offering store credit to people with no credit history. This is incentive enough for many individuals who can’t get approved by major banks because of past mistakes, but it should be noted that this type of credit does come with a catch. Store credit cards tend to have higher interest rates and lower limits than bank-issued cards. While they may not be the perfect option if you’re looking to build your credit history, retail store credit cards are great for starting out if you don’t have any prior personal loan activity on your report.

Prequalification for credit cards

Prequalifying for a credit card is a good way to see whether you are eligible for the cards that are currently on offer. Applying for a credit card can be quite complicated though, as there are significant checks run on your financial past. Many people find they are turned down for credit cards once they apply. A pre-approval however will not affect your credit score in the same way as an actual application so it allows you to still think about getting one without any risk of hurting your financial profile in the future.

Student credit cards

Starting a credit history may seem like a difficult task, but it can be easy to do when you are a student. Credit cards are a fantastic way to begin building your credit score. Student credit cards allow you to build up your credit without any issues. Many offer a 0% interest rate if you pay it off each month.

Get a second signatory

If you're not in a place to get credit on your own and know someone that has good credit that's willing to help you, you can go the route of adding them on to your credit accounts. What this means is that you can make joint applications for things like credit cards together, and if anything happens with payments or paying off the debt, they'll be responsible too.

There are various ways to qualify for new credit when you don’t have a credit history. For guidance on how to apply for credit, contact Credit Health.