Credit Cards for People with No Credit

A guide to credit cards that help build your credit

The road to good credit is long and sometimes winding. Think of your credit card as the GPS that gets you there.

Comparing the best credit cards for people with no credit

Editor’s picks: The best credit cards for people with no credit

Discover it® Student Cash Back: Best cash back card for people with no credit

Why we picked it: The ongoing interest rate is 12.99%-21.99% variable, which is competitive for a card that caters to students and those with limited credit history.

Pros: Even if you’re just learning the ropes of credit, you don’t have to wait to start earning rewards. Cardholders earn 5% cash back on rotating quarterly bonus categories, up to $1,500 per quarter, then 1% (activation required). Plus, Discover will match all of the cash back you’ve earned at the end of your first year. With no annual fee and plenty of perks, this is an excellent choice for a starter credit card.

Cons: Some new cardholders might be overwhelmed by bonus categories that change each quarter. If that’s the case, a flat-rate card is likely a better choice.

Who should apply? Students eager to rack up rewards will find this to be a great first-card so long as they’re comfortable keeping up with rotating bonus categories.

Read our Discover it® Student Cash Back review

Capital One Platinum Credit Card: Best no-annual-fee card for people with no credit

Why we picked it: This credit-builder card is top-notch – in addition to no hidden fees (you’ll often see hidden fees with these kinds of cards), there’s also no annual fee.

Pros: With the Capital One Platinum, you can pay by check, online or at a local branch without paying a fee. Also, you can pick your monthly due date.

Cons: Unfortunately, this card has no sign-up bonus or ongoing rewards, making it a tough choice if you are looking for a multi-purpose card for the long haul.

Who should apply? If your main objective is to build credit while keeping costs to a minimum, this pared-down no-annual-fee card checks off all the boxes.

Read our Capital One Platinum Credit Card review

Self – Credit Builder Account + Secured Visa® Credit Card: Best low APR card for people with no credit

Why we picked it: This hybrid financial product, which starts off as a credit-builder loan and could transition into a secured credit card (with at least three monthly payments on time, $100 or more in savings in your credit-builder account, and an account in good standing), touts a low APR (variable 15.92%) for the no credit category.

Pros: You can avoid having to put down the upfront security deposit required of most traditional secured credit cards, as you’ll be making three monthly installments payments instead.

Cons: You’ll pay a one-time account fee of $9 to $15, which varies by the product. Plus, you’ll have to wait at least three months to have access to your secured credit card.

Who should apply? Thanks to its relatively low APR, this non-traditional credit-building loan/secured card could be a good fit for someone who may carry a balance.

Read our Self – Credit Builder Account + Secured Visa® Credit Card review

Citi® Secured Mastercard®: Best credit-building card for people with no credit

Why we picked it: Your security deposit is refundable if you upgrade to an unsecured card within the first 18 months.

Pros: There’s no annual fee and you can choose your credit limit based on what you can afford to provide as a security deposit. You can put down as little as $200 to start and earn your deposit back by demonstrating the right habits.

Cons: This card offers no rewards. If that’s important to you, there are secured cards that do offer rewards programs.

Who should apply? For someone rebuilding their credit, this card charges no annual fee and offers the opportunity to graduate to an unsecured card after 18 months of responsible use.

Read our Citi® Secured Mastercard® review

Capital One Platinum Secured Credit Card: Best credit line growth for people with no credit

Why we picked it: With the Capital One Platinum Secured Credit Card, you have the opportunity to raise your credit limit after your first 6 months of on-time payments and responsible use, which is a solid feature for a credit-builder card.

Pros: As a Mastercard, this product is widely accepted worldwide, making it extraordinarily convenient when traveling.

Cons: There’s no sign-up bonus, no ongoing rewards, and the regular APR is a super high 26.99% (Variable), making it a poor option for carrying a balance.

Who should apply? If you can avoid carrying a balance month-to-month, this card makes for a strong starter card with the possibility of a higher credit line down the road.

Read our Capital One Platinum Secured Credit Card review

Discover it® Student chrome: Best student credit card for people with no credit

Why we picked it: The Discover it Student chrome has no annual fee and no foreign transaction fees as well as no categories to activate each quarter.

Pros: The ongoing rewards on this card are excellent, with 2% back at gas stations and restaurants up to $1,000 a quarter on combined spending (then 1% thereafter), as well as Discover matching all the cash back you earn at the end of your first year.

Cons: The regular APR is 12.99% - 21.99% Variable, which makes it not the best choice for carrying a balance, although you can get a 0% for 6 months intro APR on purchases.

Who should apply? This card is an excellent choice for college students looking to earn rewards while building good credit.

Read our Discover it® Student chrome review

Capital One QuicksilverOne Cash Rewards Credit Card: Best flat-rate rewards card for people with no credit

Why we picked it: The QuicksilverOne immediately delivers you 1.5% cash back for every purchase, every day, making it competitive with other cash back cards, such as the Capital One Quicksilver Cash Rewards Credit Card.

Pros: Because this card’s cash back rate is flat, there is no required quarterly signup or maximum allowed spend. Also, your cash back doesn’t expire for the life of the card.

Cons: This card doesn’t have a sign-up bonus, unlike the Quicksilver. Also, there’s an annual fee of $39, which isn’t waived the first year, and the regular APR is incredibly high at 26.99% (Variable).

Who should apply? This card is a solid choice for those with less than perfect credit who hope to earn rewards while rebuilding their score.

Read our Capital One QuicksilverOne Cash Rewards Credit Card review

Chase Freedom® Student credit card: Best sign-up bonus for people with no credit

Why we picked it: This student credit card from Chase offers new cardholders a $50 bonus after they make their first purchase within the first 3 months from account opening.

Pros: The card features a good base rewards program: Cardholders receive 1% cash back on all purchases and an additional 4% cash back on Lyft rides (through March 2022). They also receive a $20 bonus (or 2,000 points) each account anniversary that their account is still open and in good standing (meaning they’re making minimum payments on time) for up to the first 5 years of card ownership.

Cons: This card is designed for student credit cardholders, so if you’re outside that demographic, you might want to consider other credit cards for no credit. (Learn more about the best student credit cards.)

Who should apply? With a decent sign up bonus and solid rewards rate, this is a good fit for students who want to build up their credit. For more credit cards tailored to college students or recent graduates with a short or no credit history, see our student credit cards.

Read our Chase Freedom® Student credit card review

Discover it® Secured Credit Card: Best credit card for people with no credit

Why we picked it: While negative items like a pending bankruptcy may decrease your approval odds for this card, having no credit history will not. Cardholders get 2% cash back at gas stations and at restaurants (up to $1,000 in combined purchases per quarter, then 1%).

Pros: The credit limit ranges from $200 to $2,500 depending on what you’re comfortable putting down. Accounts are reviewed for credit line increases after eight months. Accounts are reviewed for credit line increases after eight months and Discover’s first year Cashback Match is another added bonus.

Cons: The APR is high, at 22.99% variable, so carrying a balance is going to cost you more than the average card.

Who should apply? With its valuable rewards and high credit line (based on your deposit), plus the opportunity for a credit line increase, this is one of the better secured cards for someone rebuilding their credit.

Read our Discover it® Secured Credit Card review

How can I get a credit card if I have no credit history?

There are cards designed for people who are new to credit. Sometimes, their issuers want you to have a checking account, and they may require a refundable deposit of at least $200. Here is what you need to know about getting a card when you don’t have a credit history.

1. Check your credit. You’ll want to know exactly where you stand and track your progress as you start to build credit. You can pull your credit reports for free at least once a year via AnnualCreditReport.com and you can get a credit score for free or for a nominal fee through various websites. Learn how to get your credit score.
2. Look into a credit-builder loan. Check with your local financial institution about these small loans, which are designed primarily to help you build your credit. A local credit union is an excellent choice. You will likely need to open a checking or savings account with the institution.
3. Consider a secured card. The fastest and easiest way to build credit is with a credit card, and a relatively easy card to land is a secured card. That’s because you put down a refundable deposit that is used to secure your credit limit. Just make sure the card issuer is going to send your credit habits to the credit bureaus.
4. Research, then apply for one card. With your score handy, look at cards you are likely to get, checking annual fees and any other charges that might be incurred.
5. See about being an authorized user. If you don’t think you will be able to get your own card or you want to take baby steps, see if you can become an authorized user on a responsible consumer’s card. Just make sure they pay on time and in full each month because their good credit habits will go on your file. Not all card issuers report authorized users’ information to the credit bureaus, so check. In a few months, you will be able to apply for your own card.

How to build your credit with no or little credit

Building credit can take some time, but there are steps you can take to jumpstart the process. Here are just a few of them.

1. Pay your bills on time. You want to establish a responsible payment history, the biggest factor among the major credit scoring models. Even delinquent utility bills or rent payments can hurt your credit if the accounts wind up in collections.
2. Get a credit card that you can use responsibly. This is the fastest way to build credit, given there are credit cards designed for applicants with no credit history and the barrier for approval can be low.
3. Use your credit card. By making a small charge on your card each month, you keep your account active. Note: You don’t have to carry a balance to build credit; you can simply pay this charge off in full each month.
4. Pay your card in full. If you pay your card in full each month, you avoid paying interest charges and you build your credit that much faster. That’s because your available credit by your balance is factored into your score. If your available credit is $1,000 and your balance is $100, then your credit utilization ratio is 10%. The lower your credit utilization rate, the better.
5. Don’t be tempted to take out more credit. Think strategically – don’t apply for loans or credit cards without a plan, because applications can affect your credit. However, there are some times when taking out credit is a good idea. For example, by taking out a credit-builder loan or some other type of installment loan, such as a car loan, you give your credit a little boost.

Learn how to build credit.

Pros and cons of credit cards for people with no credit history

Pros of credit cards for people with no credit history

• Grow your score. Most cards designed for those with limited or no credit history come with perks built to help increase your credit score. Be sure that your card reports payment habits to the three major credit bureaus, a must-have benefit found with the majority of cards here.
• Control when you spend. With several of the cards here, you can work with your provider to negotiate a payment schedule that works for you. Setting your calendar to work smoothly around when you get paid and when your bills are due can be a flexible solution for some hectic schedules.
• Establish good habits. Because these cards are a fresh slate for so many cardholders, you have the opportunity to start on a high note. If you’re an exemplary cardholder and commit to a routine of good habits while keeping the demerits away, your score could grow expeditiously.

Cons of credit cards for people with no credit history

• Lack of extras. With cards for those with no credit, it shouldn’t come as a surprise that you won’t get all the fancy frills featured with top cards. Although you can find solid cash back rewards here, you might have to wait until you reach good credit to take advantage of worthwhile sign-up bonuses, welcome offers and other juicy incentives.
• Penalizing mistakes. By accepting applicants with low credit scores, card providers are taking on more risk with lesser-proven cardholders. To combat that risk, they often will charge you an extraordinarily high APR if you carry a balance or tack on hidden fees when you slip up.
• Limited spending. Many starter cards will give short credit limits when beginning your journey, leaving some cardholders with little flexibility in their monthly spending. If you’re expecting to use your card for larger purchases or to run up an expensive bill, explore your options to see where you can get the most buying power.

How to choose a credit card with no credit history

Who should get a card for no credit history

• The new cardholder. A little self-explanatory, but if you’re new to the credit card world, a card for those with no credit history can be a great place to get started. With minimal risk for approval hurdles, you can begin setting the trend of good habits to grow your score and can get acclimated to what it’s like to carry a credit card.
• The student saver. College students and other young adults have lots to take advantage of with cards for no credit history. Some cards here come with cash back rates on student-focused purchases and other useful perks to help young credit-builders get started.
• The rebuilding cardholder. If you’ve suffered from debt, bankruptcy or anything else that may crush your credit score, one of the choices here may be your saving grace. Although the cards here are designed for no credit history, some will allow for experienced cardholders with poor scores who are trying to climb back.

Who should skip a card for no credit history

• The debt conqueror. If you’re looking to tackle a debt problem, a credit card could be a great place to start. Although many options here are built to help those with outstanding balances and other sticky situations, you’ll need a balance transfer credit card if you really want to manage your debt problem.
• The rewards hunter. Some of the choices here have wonderful rewards for a card requiring no credit history, but someone looking for uncapped cash back, enticing travel offers and other valuable rewards should look elsewhere. If the top rewards cards aren’t in your credit range, a card here could be a great tool to grow your score along the way.
• The on-their-way cardholder. If you’re someone who has experience as a cardholder but not too much success when it comes to growing your score, don’t be discouraged. There are cards for fair credit and other options on the market that can help as you continue to improve your credit history.

How to make the most of your credit card

When you’re starting out and building up your credit, your goal should be to match or exceed the 690 credit score target required to establish good credit. Here are a few tips to help you get there:

• Develop healthy payment habits. When trying to build your credit, you should aim to pay off your balance on time and in full every month to avoid interest, or at least pay more than the minimum. Plus, you should plan to use less than 30% of your available credit limit at all times.
• Keep your account open and active. Responsible credit card use over time is a component that the credit bureaus take into consideration. Demonstrating a responsible credit history can go a long way towards boosting your score over time.
• Be meticulous. You can utilize credit monitoring tools offered by your issuer, bank or third-party sources to keep track of your score and check for any mistakes. If you do encounter any mistakes, you can dispute them and keep your credit score on track.
• Evaluate your options. When initially searching for a credit card, you’ll want to consider if there is a path to a better credit card with the same issuer. After establishing a good credit history you may be able to upgrade to a better card with a higher credit limit and rewards rate while maintaining your line of credit.

Factors to look for in your first credit card

If you’ve made up your mind to get your first credit card in 2021, you’ve come to the right place. However, with hundreds of credit cards in the market, it can be overwhelming to decide which card you should get first. We can help with that. For example, you’ll need to look at which type of card you want (or can get); whether there are fees; and what rewards are offered. We’ll walk you through the different types of cards and what you should pay attention to.

• Credit reporting. Does the card issuer report to the credit bureaus? This is a deal-breaker because if the issuer doesn’t report to the bureaus, you won’t be able to improve your credit with the card.
• Fees. Are you clear about the fees? Look at not only the better-known fees in the “Schumer Box,” such as late and returned payment fees, but also fees lower in the text, including “billing statement copy fee” and “expedited telephone payment fee.” Make sure you won’t be nickel-and-dimed with your new card.
• Types of cards
  • Secured. This card requires a refundable deposit, typically starting at $200. This is a good card for someone with bad credit or no credit.
  • Unsecured. Most cards are unsecured, which means there is no required deposit. There are some unsecured cards available for consumers just starting out.
  • Student. These cards are usually geared toward students or recent graduates with benefits designed to promote responsible use.
  • Rewards. The ultimate goal for many is to work toward a rewards card, which typically requires good or excellent credit, but some beginner cards include rewards.
  • Gas. Gas cards typically require lower credit and, sometimes, loyalty to specific brands. Some are co-branded, which means they are aligned with a card network, such as Visa or Mastercard, which allows you to use the card anywhere the network is accepted.
• Qualification requirements. Check that you have a high likelihood of landing the card before applying, because every time you apply for a card, it impacts your credit score by about 5 points. Using tools like our CardMatch feature can help sort it out beforehand.
• Annual fee. While this isn’t necessarily a deal-breaker, you’ll want to pay attention to make sure it’s something you can afford and that it’s worth your while.
• Interest rate. While it’s usually a bad idea to carry a balance on your credit card, because you’ll pay interest charges if you do, you’ll want to pay attention to the APR, just in case.

People with no credit may not be able to qualify for a top-tier product right away, but, after they demonstrate responsible use, they can look into an upgrade.

“You’ll start building a positive credit history within a month of signing up for your first credit card, as long as you pay the bill on time,” says Ted Rossman, industry analyst at CreditCards.com. “You should also try to maintain a utilization ratio (credit used divided by credit available) below 30%. After about six months, you should be able to upgrade from a secured card or another type of starter card to a card with even better terms and more lucrative rewards.”

Why establishing a credit history matters

Unless you live on a plot of land you own free and clear in a tiny house powered by propane, your credit matters.

That’s because the list of people who care about your credit score goes beyond just credit card issuers and lenders. Employers, landlords, even utility companies make decisions based on how you handle credit.

Here are some primary ways credit can affect your world:

• Insurance. Your insurance company looks at your credit when deciding how much your premiums should be.
• Credit card. When you are on the hunt for a credit card, your first stop needs to be a card that will likely accept your credit score – anything above will only set you up for rejection.
• Mortgage or car loan. Perhaps the best-known reason for why credit matters, lenders look at your credit to decide which product, if any, to grant you, as well as product terms. That means the higher your score, the better the terms, usually.
• Job. While potential employers can’t check your credit without your approval, companies are increasingly studying job applicants’ credit history before making a final decision.
• Apartment. Landlords are increasingly looking at potential renters’ credit when making a decision on which renter to accept.
• Utility and cellphone accounts. Utility and cellphone companies check your credit before making a call on whether to require a down payment and in some cases, even whether to accept you as a customer.

How old do you have to be to get a credit card?

You can apply for a credit card once you turn 18, but you will need proof of income or a willing co-signer in order to get approved. Issuer requirements get a little less stringent once you turn 21, though they will still consider your income and credit history during the application process. Evaluating the following can help you when trying to get a credit card as a young adult:

• Do you have credit files? The first thing you should do when you turn 18 is to check your credit files with the 3 major credit bureaus, TransUnion, Experian and Equifax. You want to make sure that a) you even have a file and b) that the file is accurate. Have the bureaus correct any incomplete or inaccurate information. You shouldn’t have a file if you don’t have any credit accounts.
• Do you have income? If you are under 21, you are required by the Credit CARD Act of 2009 to have your own income if you want a credit card of your own.
• Could you be an authorized user? If you don’t have your own income or your credit file is too thin (not enough credit information), look into being an authorized user on a responsible consumer’s credit card account. You are not legally responsible for the bill, but you benefit from their good credit habits. Also, unlike co-signing, it’s easy to be taken off an account as an authorized user. A couple of things to know about being an authorized user:
  • Make sure the holder of the account pays on time and in full every month.
  • Keep track of your credit reports and scores to make sure they are on track.
  • Work toward getting your own card, because the benefits from being an authorized user last only as long as you are on that account.
  • Not all card issuers report authorized users’ credit habits to the 3 major credit bureaus, so check before you are added to the account.

How we picked the best credit cards for people with no credit

• Credit-building perks. The main goal of a card for people with no credit is to grow credit scores. We made sure the cards here had perks to improve credit score, such as flexible schedules and reporting payment habits.
• Credit needed. When it comes to cards for no credit history, we made sure that our selections would be available for all to access. The cards here have low barriers to be accepted.
• Hidden costs. With cards for those with no credit history, you’ll often find unexpected fees and penalizing rates whenever you make a mistake. To help newer cardholders, we sought out options without overly harsh punishments.
• Miscellaneous benefits and features. While secondary to credit-building features, rewards rates and categories are a long-term feature to consider. Plus, you’ll want to evaluate the card’s credit monitoring tools and ability to improve your credit line.

More information on credit cards for people with no credit

For more information on all things credit cards and getting yourself established, continue reading content from our credit card experts:

• What to do if you have no credit score
• Buying a car with no credit: 6 options to consider
• Why was I denied a no-credit-check secured card?
• Will a ‘no-credit-check’ card show up on my credit report?
• Everything you need to know about authorized users

About the Author

Joey Robinson

Joey Robinson worked at a “Big Four” (Ernst & Young) accounting firm before exploring the world of credit cards. After learning proper professional and financial practices through federal audits, he moved on to his second job, where he was introduced to CreditCards.com/Bankrate as a data analyst. As time passed, his interests drifted away from data analysis and into the communication of credit card essentials. Over the past two years, he’s shared his expertise and has brought understanding to complex topics as a writer and editor for sites like CreditCards.com, Bankrate.com and NextAdvisor. His advice on avoiding common credit card fees, top balance transfer tactics and more financial tips have been featured on MSN Money and other various news publications.

About the Editor

Tracy Stewart

Tracy Stewart is a personal finance writer specializing in credit card loyalty programs, travel benefits, and consumer protections. He previously covered travel rewards credit cards, budget travel, and aviation news at SmarterTravel Media. His money-saving tips have appeared in the Washington Post, the Wall Street Journal, Consumer Reports, MarketWatch, Vice, People, the Zoe Report and elsewhere.

About the Reviewer

Jason Steele

Jason Steele is a CreditCards.com personal finance contributor.