Get a No Credit Score Credit Card – The Ultimate How-To Guide

Is a low credit score preventing you from accessing the benefits of a credit card? Well, not anymore. Credit cards have become an almost indispensable aspect of today’s life, allowing you to make purchases conveniently and avail of various benefits. However, most credit card issuers require a credit history to approve applications, making it hard to establish your creditworthiness. Fortunately, there are steps you can take to secure a no-credit score credit card and begin building your credit history. This blog covers how.

Why Do Banks Check Credit Score Before Issuing a Credit Card?

When you apply for a credit card, banks will review your credit report and credit score to assess your creditworthiness. Moreover, as credit cards don’t require collateral, the banks rely on your credit score, an indicator of your financial responsibility and ability to repay the borrowed amount. Your credit score also helps the banks determine the terms of your credit card, such as the interest rate and credit limit. Thus, to reduce the risk of default and possible losses, banks are wary of issuing credit cards to individuals with no credit or a low credit history.

Steps to Apply for a No Credit Score Credit Card

Several options on the market cater specifically to individuals with a low or no credit history. Each of these credit cards has its own set of terms, benefits, and requirements. So let’s dive into how you can apply for a no credit score credit card:

1. Get a Credit Card Against Your Savings Account

Some banks offer credit cards against savings accounts. To get a credit card based on a savings account, you have to deposit a certain amount of money into the account so the bank can provide you with a credit card.

2. Get a Prepaid Credit Card

Almost all major banks in India offer prepaid credit cards to individuals with low credit scores or no credit history. With a prepaid credit card, you must preload money onto the card before making purchases, just like you would top up a prepaid mobile connection. While these cards provide discounts at partner stores just like credit cards, they do not help build your credit history since your transactions are not reported to credit bureaus. Therefore, if your goal is also to build your credit score, this may not be the right choice for you.

3. Apply for a Secured Credit Card

Secured credit cards are an excellent option for anyone with a low or no credit score. Unlike traditional credit cards, a secured card requires cash deposits as security, which typically determines your spending limit. Although secured cards may lack rewards or cashback programs, they are arguably the best way to build your credit score. As you gradually develop a positive credit history with a secured card, you can eventually transition to a new credit card once you have built a strong financial track record.

4. Get a Credit Card Based on Your Salary Statement

For salaried employees, credit score is not the only factor in securing a credit card. If you can show proof of a minimum of six months of fixed income, you can get approval for a traditional credit card. If approved, you are unlikely to get a credit card that someone in a high-income bracket could. Regardless, it can serve as a good starting point.

5. Get a Co-Signer

Another route to securing a credit card is to get a co-signer for your account. A co-signer can be anyone, from family to close friends. The only catch is that they must not only have a high credit score and fixed income. However, only a few issuers provide this option.

6. Get the OneCard Add-On Card

One Credit Card’s FD+ credit card combo is a great secured credit card option. You can apply for it by creating an FD in the One Credit Card app between ₹2000 and ₹1 lac. Your FD acts as a refundable security deposit, which backs your One Credit Card and earns you a high interest rate.

ALSO READ: Everything you need to know about FD-Backed OneCard

Obtaining a no-credit score credit card is challenging, but with the right strategy, you can make it happen. Explore your options and leverage alternative data, such as your employment history. Last but not least, practice responsible credit habits to unlock the doors to a brighter financial future.