On the very first date you try to get credit from a financial institution, the situation is quite different from other subsequent attempts at acquiring credit. This is because the conventional method of using credit scores to gauge your credit worthiness would not be applicable since your records would not even be available at the credit report bureaus. All the same, the financial institution must device a method of trying to evaluate your credit worthiness before indulging any further into the risk of giving you credit. There are several methods that the financial institutions would use to come up with a report on your credit situation even if you have never applied for credit in your earlier life.
Among the first things that would be used to gauge your credit worthiness are your bank accounts. The way you conduct business from your bank accounts will give the lender a brief clue on what to expect. If you have maintained a clean record devoid of bouncing checks and defaults or delays in payments. You are a step closer to getting credit. It is however worth noting that your income too will pay a major role in this decision. It is always significant that the credit card you get should be falling within your income range to avoid cases of late or no payments at all.
Another significant feature that would help you in getting your first credit even if you have no credit history is your employment history. Most lenders would feel more confident to give you credit if they realize that you have a consistent employment history. As far as they are concerned, your ability to stick to a job over a long time signals your ability to repay the loan as well. The residence history is also crucial in this matter. Having a long term tenancy or more preferably owning your own residence gives the credit service provider more confidence on your credit worthiness. Away from your income and residence, lets have a look at another positive signal that would earn you credit from a financial institution even in the absence of a credit history. Day to day responsibilities in life may sometimes be taken for granted by the individuals who bare responsibility for the same.
The truth is that most financial institutions consider the amount of responsibilities under your name as a clear signal of your credit worthiness. Having utility bills such as electricity, telephone bills or even student fees payments can go along way in depicting you as a potential client since it shows that you have been taking care of monetary issues ad hence the proof that you can handle your financial obligations well. Maintaining a clean payment record of all these responsibility is a clear plus towards your new credit card, after all; even the credit scores we get once we are in the credit circle are compiled from these very same statistics.