Having no credit history can make it difficult to obtain credit since lenders view the applicant as riskier. This can result in a credit application being declined, or the borrower receiving credit with lower limits and higher interest rates. To avoid this situation, it is important to build a credit profile strategically to establish a high credit score, which is crucial for various purposes such as leasing, purchasing insurance, and opening local utility accounts.

securing credit cards:

Due to the requirement of a security deposit, which serves as collateral for the credit limit, secured credit cards are frequently simpler to obtain than conventional unsecured credit cards. Because of the lower risk, it is simpler for the lender to approve the application.

Cards for use in stores:

Customers with bad credit scores or little credit history are frequently given credit cards by retailers. Even while these credit cards may have lower credit limits and higher interest rates, they might also offer incentives or retailer discounts. 

Online personal loans from lenders:

In comparison to traditional banks and credit unions, online lenders frequently offer more lenient lending rules, which might make it simpler to obtain authorized for a personal loan. These loans could, however, have higher fees and interest rates. 

Loans that help build credit

Credit-builder loans are intended to assist borrowers in establishing or raising their credit scores. They operate by placing the borrowed amount in a savings account, which you later repay in equal monthly payments. You have access to the savings account and the money you deposited once the loan is repaid, which might raise your credit score.

Loans with cosigners:

You might be able to get a loan with their co-signature if you have family or friends with good credit. In essence, this indicates that they are consenting to assume debt repayment responsibilities in the event that you are unable to do so. However, if the loan is not repaid on time, it may strain relationships, therefore it should be considered carefully.

Unions of credit

Financial institutions owned by their members, credit unions may have softer lending requirements than conventional banks. Also, they might provide lower costs and interest rates, which would make it simpler to get credit.