Is it possible to get a no fee credit card for someone with no credit?

[highland145]

Its probably a good idea to buy items on credit now and then just to maintain or build up your score.

To keep the line open but not pay interest charges. I have a BoA card since 1988. I use it every few months so they don't close it. It's a large line of unused credit. See below:
Payment History – 35%
As you might expect, the repayment of past debt is a major factor in the calculation of credit scores. It helps determine future long-term payment behavior. Both revolving credit (i.e. credit cards) and installment loans (i.e. mortgage) are included in payment history calculations. Although installment loans take a bit more precedence over revolving credit. That’s why one of the best ways to improve or maintain a good score is to make consistent, on-time payments.
Amounts Owed – 30%
This category is basically credit utilization or the percentage of available credit being used/borrowed. Credit score formulas “see” borrowers who constantly reach or exceed their credit limit as a potential risk. That is why it’s a good idea to keep low credit card balances and not overextend your credit utilization ratio.
Length of Credit History – 15%
This factor is based on the length of time all credit accounts have been open. It also includes the timeframe since an account’s most recent transaction. Newer credit users could have a more difficult time achieving a high score than those who have a credit history. Since those with a longer credit history have more data on which to base their payment history.
Credit Mix – 10%
FICO® Scores consider the combination of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Credit mix is not a crucial factor in determining your FICO Score unless there’s very little other information from which to base a score.
New Credit – 10%
Today’s higher use of credit factors into FICO® Score calculations. Still, opening several new credit accounts in a short period of time can signify greater risk – especially for borrowers with a short credit history. So how one shops for credit and within what timeframe can affect a FICO Score in a number of ways.

 

[OccamsToothbrush]

that's what started the "no interest" part of the conversation.

Highland made a joke about getting the money from a loan shark which would of course not be interest free. He did not say anything about a zero interest card, that was you.

 

[Lost_in_the_HTTP]

For credit building, consider a small unsecured personal loan. $500, maybe $1,000 or something you can be sure you can pay off in less than a year. There will be a loan origination fee and interest, but it can go a long ways to establishing a payment history. That was one thing that was missing from mine and I just did one simply for that issue.

Despite having an 800 plus credit rating and zero missed payments in over 10 years, one (stubborn) bank would not write an unsecured personal loan $5,000 for a piece of property I was considering, simply because there had been no recent loans of that type. Even showing them my balances in other banks made no difference. I could have drawn the money out, but there would have been other issues involved in doing that.

 

[snoopy7548]

that's what started the "no interest" part of the conversation.

Ok, Boomer.

 

[highland145]

Highland made a joke about getting the money from a loan shark which would of course not be interest free.

I wasn't joking. Even my family rate is 30% :colbert;

 

[OccamsToothbrush]

I wasn't joking. Even my family rate is 30% :colbert;

My family rate is lower to encourage them to come to me for a loan. That is solely in the hopes that they can't pay and I get to rough them up. I hate my family.

 

[highland145]

My family rate is lower to encourage them to come to me for a loan. That is solely in the hopes that they can't pay and I get to rough them up. I hate my family.

So you kick their ass and they don't have to pay? Sounds like you and your repeat business have a little S&M thing going on.

 

[OccamsToothbrush]

So you kick their ass and they don't have to pay? Sounds like you and your repeat business have a little S&M thing going on.

No no no. They still have to pay, people in hospital beds have incentive to not piss off the guy standing near their morphine drip.

 

[highland145]

No no no. They still have to pay, people in hospital beds have incentive to not piss off the guy standing near their morphine drip.

It really works better if you start with the loved ones. That way the debtor can still work.

 

[jameny5]

Secured card is one way to go. With a secured card you can get credit even if you've defaulted on loans and are viewed as a bad risk. But for a person with no credit history it's even easier. You can get a no-fee, unsecured card with no credit history, that's how you build credit. It will have a relatively low credit limit and a very high interest rate, but if you pay off your balance every month that won't matter. Charge, pay in full, repeat for a year and you'll have a good enough record to get a real card. Try CapitolOne, they specialize in that kind of thing.

Fees are involved with secured cards. I need to go back to school because I have never heard of a "no" fee credit card. A debit card is a whole different ball game.
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[highland145]

Fees are involved with secured cards. I need to go back to school because I have never heard of a "no" fee credit card. A debit card is a whole different ball game.
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Are we talking about an annual fee just for having the card or an interest free card. Mine don't have annual fees and I doubt the 2nd exists.

edit: secured may well have fees. OP would have to ask.

 

[jameny5]

If there was a no fee credit card - I would assume that it would be based on your credit report and if you were employed. I don't know - I may have to reeducate myself! Last - I remember all credit cards have fees and swipe fees associated with it. Unless you mean a no annual fee card - a non worker with unverifiable income or work would presumably get denied.

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[jameny5]

I'm lost Highland - maybe there are others that can chime in. I was looking at the OP's comment as a whole.

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[OccamsToothbrush]

I'm lost Highland - maybe there are others that can chime in. I was looking at the OP's comment as a whole.

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You are most assuredly lost and one is left to wonder why you would chime in if you have no idea what you're talking about.

Fee = a charge assessed by the issuer simply for the privilege of having the card. It is completely unrelated to the items purchased using the card

Interest = money owed on the balance that is owed for items purchased and that is not paid off every month.

They are two different things. There is no such thing as a zero interest card, they all charge interest on the unpaid balance. But for practical purposes, almost all cards can be used without paying interest. Pay your balance in full, on time every month and you do not pay a penny in interest.

The "fee" is unrelated to the interest or balance. Only the shittiest cards issued to the highest risk candidates carry a fee. A person with no credit history will NOT have to be forced into a card that has a fee for use. Almost anyone can get a no fee card and use it without paying a penny in interest.

My god, why the fuck is this so difficult to understand?

 

[highland145]

I'm lost Highland - maybe there are others that can chime in. I was looking at the OP's comment as a whole.

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He wants a card without fees. I assumed yearly "Eff you" fees but he could just as well meant fees whenever he uses it which is another "Eff you" fee.

Mine don't have fees. If I carry a balance then, yes, interest charges but no fees when I use it. The merchant is already paying visa a fee to visa for the pleasure of letting card holders use the card.

edit: What Occam said.

 

[balloonshark]

By fee I meant annual fee. I went ahead and applied through my bank's website. I had to create an account but that made the application simple since they already had most of the info they needed.

Not sure if the card I applied to has any fees to use the card. The only thing I see is balance transfer, cash advance and a late fee. No idea if they charge a fee to use it to purchase online or in store. https://www.huntington.com/Personal/voice-credit-card

 

[Lost_in_the_HTTP]

No idea if they charge a fee to use it to purchase online or in store.

I don't know of any card that does other than the 'prepaid' cards you get in convenience stores.

 

[jameny5]

You are most assuredly lost and one is left to wonder why you would chime in if you have no idea what you're talking about.

Fee = a charge assessed by the issuer simply for the privilege of having the card. It is completely unrelated to the items purchased using the card

Interest = money owed on the balance that is owed for items purchased and that is not paid off every month.

They are two different things. There is no such thing as a zero interest card, they all charge interest on the unpaid balance. But for practical purposes, almost all cards can be used without paying interest. Pay your balance in full, on time every month and you do not pay a penny in interest.

The "fee" is unrelated to the interest or balance. Only the shittiest cards issued to the highest risk candidates carry a fee. A person with no credit history will NOT have to be forced into a card that has a fee for use. Almost anyone can get a no fee card and use it without paying a penny in interest.

My god, why the fuck is this so difficult to understand?

Don't be so rude. I'm glad you know it all. All you had to do is post your remark. Wiseguy!

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[jameny5]

I don't know of any card that does other than the 'prepaid' cards you get in convenience stores.

They are not based on credit or having a job. You need neither to get one.

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[jameny5]

No fee credit = Many of these cards also offer introductory rates as low as 0%, meaning you can have a "free" loan with your free card for an introductory period.

How does a person obtain such a card with no credit or maybe the person has a some credit but not enough history to make a determination. And lastly, what if the person is not employed. This sounds like instant denial to me.

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[Lost_in_the_HTTP]

How 'bout working on killin' that tappytappy spam thing in your posts?

 

[jameny5]

Why don't you tell Tapatalk to delete that Spammy Signature option smart guy? It's their problem not mines. Stick to the topic. How about that?

 

[Muse]

I'm not looking for lectures. I'm just exploring the possibility of getting a credit card without fees to pay bills and shop online so I don't have to use my debit card. I will pay off what is charged to any credit card monthly to keep a zero balance.

Haven't had a loan since 2001 so I have no credit. I have avoided banks until I finally had to get a free checking account at Huntington bank a few years ago to save on money orders. I have Amazon Prime and a Paypal account for shopping if that helps since they have cards.

I want to stress that the card will be paid off monthly and that I only want one because it offers protections that a debit card does not. I find myself having to use my debit card online more and more without paypal.

Took me quite a while to get my first CC. I had a steady full time job at the time, but, as they noted, no credit. It was suggested to me that I get an account with some retailer and make no mistakes, and that would give me some credence as being credit worthy. I don't remember doing that. I did kind of argue with those people and finally I got a CC. Once I had one, others were easy to get and after a while I need a fly swatter to keep the offers at bay. I now have several CCs, I use around 3 with any regularity. Citi Mastercard Double Cash effectively give me a 2% discount. My Costco Visa card has 3% cash back on applicable travel and restaurants, 2% at Costco, a gas discount (I always fill at Costco).

My advice: Keep trying! Don't give up! Once you have a sliver of credit, and you don't blow it, you'll be considered a decent risk and get a CC.

Tip: Set up autopay immediately on any account you can, i.e. as soon as they'll let you, against your checking account. That way you'll never miss a payment and your credit score will get better and better! I have autopay on every expense I can get it on, including all my CCs, all my utility bills, everything! Of course, you have to make sure you always have enough funds in your checking account to cover the automatic payments. I always manage to keep my checking free, too. I never carry a balance on my CCs, my autopay is set up to pay the full balance each month automatically. I also have the bills sent to me USPS and I don't forget to look over all charges to make sure they're legit. My credit score reflects these things!

Good luck!

 

[balloonshark]

Took me quite a while to get my first CC. I had a steady full time job at the time, but, as they noted, no credit. It was suggested to me that I get an account with some retailer and make no mistakes, and that would give me some credence as being credit worthy. I don't remember doing that. I did kind of argue with those people and finally I got a CC. Once I had one, others were easy to get and after a while I need a fly swatter to keep the offers at bay. I now have several CCs, I use around 3 with any regularity. Citi Mastercard Double Cash effectively give me a 2% discount. My Costco Visa card has 3% cash back on applicable travel and restaurants, 2% at Costco, a gas discount (I always fill at Costco).

My advice: Keep trying! Don't give up! Once you have a sliver of credit, and you don't blow it, you'll be considered a decent risk and get a CC.

Tip: Set up autopay immediately on any account you can, i.e. as soon as they'll let you, against your checking account. That way you'll never miss a payment and your credit score will get better and better! I have autopay on every expense I can get it on, including all my CCs, all my utility bills, everything! Of course, you have to make sure you always have enough funds in your checking account to cover the automatic payments. I always manage to keep my checking free, too. I never carry a balance on my CCs, my autopay is set up to pay the full balance each month automatically. I also have the bills sent to me USPS and I don't forget to look over all charges to make sure they're legit. My credit score reflects these things!

Good luck!

Thanks for the tips Muse. I did apply for a CC where I have my checking account but was declined because of "Limited credit experience". I then tried at Capital One as suggested in this topic and they gave me a card. I only have a $300 credit limit but I can get a credit bump after my first 5 on-time monthly payments. I can use this card for a year and then look for something better.

I'll also look into setting up auto payments. I believe they have the option but I will have to change how I receive my check. This was something that I didn't really want to do but it looks like I may not have a choice.

 

[Steltek]

Thanks for the tips Muse. I did apply for a CC where I have my checking account but was declined because of "Limited credit experience". I then tried at Capital One as suggested in this topic and they gave me a card. I only have a $300 credit limit but I can get a credit bump after my first 5 on-time monthly payments. I can use this card for a year and then look for something better.

I'll also look into setting up auto payments. I believe they have the option but I will have to change how I receive my check. This was something that I didn't really want to do but it looks like I may not have a choice.

One of the fast rules I live by is that I don't buy anything on my cards that I can't afford to pay cash for now. So, do what you have to in order to ensure you can do this. If you need to, you may also be able to get the credit card company to change the payment due date each month to a date that works better with your pay dates.

The card companies WANT you to buy things against yet-to-be-realized future income as they know it is a statistical certainty something (i.e. unexpected repair, utility, or medical bills, being laid off work or demoted, having to help family, etc.) will come up that will force you to make a partial payment. And, once you start paying interest to them, it is a very slippery slope. The balances expand very rapidly at 20-30% interest, and they know once you begin making partial payments eventually your payments will tend to trend more towards minimum payments which makes them more money.

When it comes time to start looking for a better card than the one you have, since your current card is Capital One look at Capital One's offerings first. Closing a card account will hurt your newly built credit, but Capital One may let you "upgrade" to a better card without showing an account closure on your newly built credit history. In a few years, this won't matter as much, but for now it is something you have to consider.