How can I get a credit card with no deposit?

Many people will, at one time, need credit to help cover the cost of something. However, what if you want to apply for a credit card but don't meet the requirements? 

A traditional secured credit card can help you build your credit history, but it requires a deposit that is used as collateral. However, you must be wondering how to get a no deposit credit card. 

Fortunately, there are other options -- such as becoming an authorized user on an existing card available to help those who need to obtain credit.

Be an authorized user on someone else's credit card.

Becoming an authorized user on a credit card account allows people to use someone else's credit card who may not be able to qualify for the card themselves as if it were their own. Authorized users do not have all the same account capabilities as the primary account holder, but the card appears to be theirs as far as general usage is concerned.

Advantages

One of the main advantages of being an authorized user is that if the primary account holder has a good usage history with the card, the authorized user can get some rewards on his credit. Many -- but not all -- issuers report authorized user activity to credit bureaus, which means you can essentially close the primary account holder's credit history for a given card.

Disadvantages

On the other hand, if the primary account holder has missed payments on the card or is holding a high balance – negative impact on credit – a person runs the risk of damaging his score by becoming an authorized user.

Similarly, if an authorized user mishandles the credit card so they cannot pay off the larger balance, the primary account holder will be held responsible. This responsibility can make it difficult to find someone who trusts you as an authorized user on their account.

Establishing good habits.

To improve your credit score, becoming an authorized user on another credit card only works if you have good habits.

Most importantly, always remember to pay your credit card bill on time and in full every month. (Payment history can make up 35% of your credit score.)

Other key factors in credit scoring include minimizing the balance you hold on cards and maximizing the average age of accounts by not closing old credit accounts.

The mix of accounts (auto loan versus credit card versus mortgage) can also affect your score.

Before completing any application, you should educate yourself about what types of behaviour lead to a high credit score. With a little preparation and a commitment to good habits, you can find a no deposit credit card that can help you build a brighter financial future.

Also read: What are Common Charges in Credit Cards in India 

Also read: What happens if credit card bill is not paid in India 

Also read: Bad credit credit cards guaranteed approval in India 

Also read: Bad credit credit cards guaranteed approval in India 

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