Having a credit card is the latest substitute to cash money
. The issuer of the credit card gives credit to the customer. In return the customer pays interest, and some other prescribed charges. Credit cards cannot be issued by the credit card company to everyone, depending on their financial background. One can easily cheat the credit card company if he was issued a card without verifying his credit history. Credit card companies have to be extra careful regarding the criteria to issue the credit cards. One mistake can cause huge loss. Credit cards with no credit history required are issued people who dont have good credit records or have no credit records.
Bad credit history refers to people who have defaulted in payment of dues, pertaining to any previous credit cards or other bills. People who have failed to pay the dues to the issuer of credit cards or loans taken are people with a bad credit history. Some people have never used a credit card in the past and have never taken loans from any financial institutions. They are said to have no credit history. Credit card companies world wide have started issuing credit cards to such people. Credit cards with no credit history required as criteria for getting the card have some different charges and different interest rates as compared to normal credit cards.
Credit cards for those with no credit history can be instrumental in shaping or building ones credit record. It can improve a persons goodwill, if the user complies with the conditions and pays off his dues on time. Initially, the credit limit enjoyed by such people is less. The interest rates are high in case of default. This can be money made up for the risk taken by the credit card company.
Such cards are common and attract lots of people around the world. They can be very instrumental for people who want to increase their credit worthiness.