We help you in Consolidating your Debts

Do you need to take out a loan even when you dont have a credit history? Well, it is quite difficult to take out a no credit loan; your creditors will check your creditworthiness in order to approve your loan request when apply for one. So, you need to establish a credit history at some point of time. One of the best ways to do it is to obtain a secured credit card by depositing an amount of money equal to the credit limit on your card. Check the following sections to look for options that you may use to build up a credit record.

Legacy Visa credit card

If you’re looking for a no credit loan, then you can go for a Legacy Visa credit card, which is issued by First National Bank to help people with poor no credit record. However, it is only available by invitation. When you receive invitation in the mail, you can simply apply online by visiting the website.

A Legacy Visa credit card offers a number of advantages. First of all, it can help you to build a credit history when no other financial institution will offer you a card. Moreover, Legacy regularly reports to all the 3 major credit bureaus. However, you need to make your monthly payments right on time as otherwise you’ll ruin your credit history even before establishing it properly. Legacy usually offers a maximum of $250 as your initial credit line. However, it usually increases your credit limit if you’re able to establish a positive payment record.

Legacy charges a fee when you accept your card. It is applicable even if you do not use your card. However, you’ll get a 30-day trial period; if you dont want to use it, then you can return your card and the company will refund you the acceptance fee.

How to build a credit history

Instead of looking for a no credit loan, it is always better to establish a credit history that can help you to take out loans at favorable terms and conditions. However, it usually takes 2-3 years to build a positive credit history.

You can follow these steps to build a credit history right from scratch.

• Open bank account: Try to establish a financial history by opening a bank account.
• Get store credit cards: Obtain departmental store credit cards; however, do not get more than 2 such cards.
• Obtain a secured credit card: You can get a secured credit card by depositing a certain amount as the security. Your available credit limit will be equal to the deposit amount.
• Take out an installment loan: After establishing your revolving accounts (such as, credit cards), try to take out an installment loan, such as, a car loan or a small amount of personal loan.

Instead of searching for a no credit loan, it is always better to establish a credit record right from young age. It will help you to establish a long credit history, which in turn, will help you to establish a good credit score.