Best Credit Cards for People With No Credit History
Capital One® Platinum Credit Card
Credit Score Required:
Average, Fair, Limited
This Mastercard from Capital One gives you the best benefits of a credit card even if you don’t have a perfect credit history. As a result, this card is a great tool for many people to take their credit score to the next level while they enjoy cash back on things like gas and groceries.
What We Like
Unsecured credit card – no security deposit
Cashback rewards on things like gas and groceries you buy every day
Lower credit score requirements
Deserve Edu Card
Credit Score Required:
No Credit History Required
Deserve Edu is a great option for students that are looking to build their credit history while expanding their spending power. This card offers some awesome perks, like reimbursements for essentials like Amazon Prime Student membership. Best of all, you don’t need a credit history to qualify for this card.
What We Like
No credit history required to qualify
Earn rewards towards Amazon Prime Student Membership and Cellular Phone Insurance
No Annual Fee
The word “credit” can be somewhat of a scary word to many people. With the negative beliefs of debt, credit cards, over-spending, and the financial crisis almost 10 years’ ago, many people worry when it comes to their credit. Alongside worry, they also live in fear as to what their credit score may be. Therefore, most people tend to sweep the idea of “credit” under a rug with feelings of embarrassment.
In truth, having a healthy credit scores serves many beneficial purposes, and if you have a negative credit score, it is important to take the steps to increasing your credit score. Most importantly, there is no need to shame yourself because of your credit. Now, for people with no credit, the idea of having credit seems exciting yet potentially worrisome. The talk of high interest rates, being declined for a car, and potential debt is enough to convince any aspiring person wanting to build credit, out of doing it. Although there are many potential dangers of having a negative credit score, with determination and responsibility, you can build a successful credit score in no time.
With that said, the most common way to begin building credit is with a credit card. Although credit cards can be harmful if misused, they are extremely beneficial if used to establish a credit score. Let us dive into the topic of credit cards for people with no credit, the potential dangers, benefits, and how to manage your credit card properly. By the end, you will be instilled with the confidence needed to make a financially sound decision as to whether you should open a credit card for no credit.
The Importance of Establishing Credit
Establishing a great credit score happens mostly with those who are young and entering adulthood. If done appropriately and in a responsible manner, a young person can establish a good credit score in a matter of a year or two, and the benefits will create ease of life for the many years to come. With that, let us look at the many ways in which establishing a great credit score can aid you and be of benefit in the future:
1. Financial Institutions Trust You
When dealing with any type of loan, having a good credit score aids in the process, creating a bridge in which financial institutions can trust you. Through years of timely payments, always paying more, never being late, and never over-spending, you can build trust with a financial institution. During this time, lenders report your successful credit history to the credit bureaus, which is where your FICO score stems from.
In the future, when seeking a loan or any type of business with a financial institution, your credit score and report will reveal your past records and financial history with other credit lenders. This comes in handy, specifically when wanting to purchase or lease a car, take out a credit line, seeking a credit increase, or get a new credit card.
2. No Deposits on Many Things
When creating a new relationship with any type of company or lender, your credit score determines how well this company should trust you. A credit score allows companies to take a deep and closer look into your financial history, which will be used as a hypothesis as to your future spending habits. If your credit score is good, many companies that would normally issue a deposit for the use of their service will instead waive the deposit fee, or at least, lower it. An example of this maybe your local utilities companies or even cellphone carriers. When applying for utilities for your rental apartment, utility companies will look at your credit score to determine whether you need to pay a deposit.
3. You Can Lease a Home or Apartment
With a successful credit score history, you can easily rent a home without potential deposits. What your potential landlord looks for is if you have any outstanding debt, if you always pay your services or minimum payments on time, and your overall credit history.
4. Better Chance for Loan Approvals
Building credit allows for better chances at credit limit increases or loan approvals in the future. If you steadily increase your credit score, when the time comes you want an increased credit line or a potential loan from a financial institution, a good credit score promotes a greater chance of being approved.
5. More Negotiating Power
When buying a new car, taking out a house loan, or wanting to renegotiate your interest rates, a great credit score gives you leverage to negotiate. When purchasing a car, you can lower the price below sticker price by thousands, simply because you have a great credit score. However, creditors will not budge if your credit score is poor. In their eyes, a poor credit score, represents a greater financial risk.
6. Better Car Insurance Rates
Auto insurers will look at your credit score as a method of determining how high or low your insurance premium will be. Reason being, insurance companies believe that people with low credit scores file more claims. With that said, a good credit score means you will pay less for insurance, effectively saving even more money.
What Having Your First Credit Card Means
This will be your first line of credit. Essentially, this will be the very first time a lender lends money with the expectancy that you will return it, in full, within 30 days. If not, there will be an interest rate for not having the money alongside the minimum payment due for the month. Therefore, it is extremely important to follow these simple rules when getting your first credit card:
- Pay the credit card in full, if you can.
- Always pay more than your minimum payment.
- NEVER be late on your payment.
- Always make more than 1 monthly payment.
- Try not to cancel this line of credit.
Things To Look Out For Your First Credit Card
When building credit, your credit card serves as a pillar to help you access the many benefits that come from having a great credit score. With that said, it is important read the fine print when getting your first credit card. This is one of the many different things to consider when opening a credit card for no credit. Let’s look at a few other considerations:
1. Annual Fees
Many credit cards will require an annual fee that can range between a minimum of $10 to $100. With many options available, stay away from credit cards with annual fees, unless they offer enough features and benefits that offset this cost. Keep in mind, many companies will not mention the annual fee even if the fee begins the second year.
Many credit cards offer endless amounts of rewards, whether it is gas points, grocery money, or travel points. With that, do an extensive amount of research on the best credit cards with rewards programs and you will easily find a plethora of options. Be sure to read all of the fine print, fees, APR, and applicable interest rates.
3. Credit Limit
Keep in mind that this is your first line of credit. Therefore, there will be a credit limit, and, in most cases, it will be minimal. However, when building credit, it all begins with small steps that eventual lead to big leaps. When wanting to increase your credit limit, wait at least 6 months to 12 months before asking for a credit increase. Many credit card lenders will automatically increase your credit, if you are in good standing within the first 6 months.
4. Interest Rate
As a first-time card holder, you should expect that your interest rate will be high. However, if you can pay the credit card in full each month, you will avoid an interest rate charge for next month. If it happens that you have used more of your credit limit than you can pay back in a 30-day timespan, the good thing is, the more you pay, the sooner you can knock down the principal. Now, there are specific credit cards that offer 0% interest for balance transfers and 0% interest for the first 3 to 6 months of your credit opening. These may be worth your consideration; however, they are typically harder for individuals with no credit.
5. Late Fees
This is where credit companies tend to receive a bad reputation. Other than high interest rates, there are late fees if you pay late. In the eyes of the credit lender, they were trusting you to pay the money back within a certain time frame, and, if not, there will be a charge. The most important tip to keep in mind is knowing your late fee and know when to pay so you never have to pay it. To avoid any late fees, try setting up automatic payments.
How Your First Credit Card Benefits You
As said earlier in the article, there are many benefits of establishing credit. Your first credit card for a person with no credit will surely aid in the transition to becoming a trusted and responsible credit holder. Here are a few benefits of your first credit card:
- Building trust with the credit bureau and financial institutions.
- Giving an insightful look into your spending habits.
- Creating a habit of paying your bills and minimum payments on time.
- Allowing you to spend appropriately.
- Makes it easier to ask for loans later in life.
- Makes it easier to rent or purchase a home.
Advantages and Disadvantages of Credit Cards for No Credit
Opening a credit card for no credit may be a questionable decision for some consumers. With all the information provided thus far, let’s begin to take a closer look at the more specific advantages and disadvantages of credit cards for no credit.
- Ability to pay a large purchase in installments.
- Will boost your credit significantly.
- Allows for funding during emergencies.
- Allows you to earn rewards you can use later.
- The temptation to spend more than you can afford.
- The terms can be somewhat confusing.
- Fees and interest rates can be extremely expensive.
- Misuse can ruin your credit score.
Tips on Managing a Credit Card
At this point in the article, you should feel well prepared and equipped with enough information to decide whether a credit card for no credit is the best decision for you. In light of this, since this is your first credit card, you may not be fully aware of how to properly manage a credit card. This is where thousands of new credit holders make the gravest of mistakes, like missing a payment or paying the wrong amount. Given the amount of credit terminology and lingo that lenders spew during the process, it may be confusing. To better help you out, we have created and effective list of tips to manage your first credit card.
- Always know your pin number and keep it secure.
- Include your credit card payment in your budget to ensure you can pay the entire balance, or at least the minimum due. This is the best way that you can avoid interest charges.
- Always stay within your designated credit limit. If you accidently go over, you might find yourself being charged high fees.
- Avoid cash withdrawals at all costs.
- For beginners, start with tracking each purchase until you grasp credit card functionality.
The verdict is quite simple, if you are seeking a credit card to increase your credit, with this knowledge, you can easily master having good credit. It is always important to check your options and do proper research on the best ways to increase your credit. When it comes to credit cards for no credit, the options are endless. With that, if opening a credit card seems somewhat nerve-wracking, you can open a secured credit card which uses your own money as a deposit. Once you have gotten a routine of using your credit card, purchasing, and paying back, you can then get your deposit back and open an actual credit card.
From this moment forward, you are officially building trust between you and the credit bureau. Do not fear the credit-card-trap and don’t forget to always keep track of your payments. In no time, you will be looking at different credit cards for people with great credit.
General Credit Card with No Credit Questions
This section will help you understand the basic information about credit cards without credit. Use this information to help you understand more complex answers later on.
How to open a credit card with no credit history?
The easiest way to open a credit card with no credit history is to get a secured credit card. They’re easy to get and some, like the OpenSky card, don’t even require a credit check.
What credit card can I get with no credit?
If you don’t have any credit, then the credit card you’re most likely to be approved for is a secured credit card. This will allow you to establish a credit history and get an unsecured card in the future.
I have no credit score. How do I get a credit card?
People with no credit score have the best chance at getting a secured credit card. These cards are much easier to get than unsecured credit cards for bad credit and are designed to help people in exactly your situation.
What kind of credit card can I get with no credit?
The credit card you’re most likely to get without any credit is a secured credit card. You’ll just have to make a deposit equal to your line of credit up front, and you can start building your credit history.
What is the easiest credit card to get with no credit?
A secured credit card is definitely the easiest credit card to get with no credit. Some, like the OpenSky card and others, will approve you without even doing a credit check, so your lack of credit won’t be a problem. You probably won’t qualify for a sign up bonus credit card at this stage but can work your way up.
How do credit cards work with no credit?
If you don’t have a credit history, then getting a credit card can be a great way to start building a positive credit report. They report your payments and balances to credit reporting agencies, who use that information to generate a credit score for you.
Who issues credit cards if you have no credit?
Most banks and companies that offer secured credit card will issue you one even if you have no credit. That’s because secured credit cards aren’t much of a risk for the bank, as your initial deposit can be taken if you default on the card.
How high of a credit card can I get with no credit?
That depends on a few different aspects of your situation. If you’re getting a secured card, then the maximum credit line you can get will be equal to the deposit you can make on it. If you can qualify for an unsecured card, for example many student credit cards can be obtained without credit, then your limit will usually start out around $300-$500.
What is the typical credit card limit if you have no credit?
The typical credit limit for a card if you have no credit will be between $300 and $500 for an unsecured card. For a secured card, the limit will be equal to the amount of your initial deposit.
Which secured credit card good best if you have no credit?
That depends on what you’re looking for. The Capital One secured card is good for a lower initial deposit, and the OpenSky card is the best option if you don’t want a credit check or don’t have a bank account. Finally, the Discover it Secured card is a good choice for people looking for card rewards and upgrades. These are also good credit cards for very poor credit.
Why can’t someone with no credit qualify for a credit card?
People with no credit might have trouble qualifying for a credit card because the credit card company or bank don’t know how much of a risk they are. That means they get treated as an extreme risk for non-payment, and so aren’t issued a card. That’s why a secured card is your best bet. Read more about pre-qualify credit cards and their requirements.
No Credit and Specific Credit Cards
This section answers your questions about how to get specific credit cards when you don’t have any credit.
How to get a Chase credit card with no credit?
You’re probably not going to be able to get a Chase credit card with no credit. Your best option is to build your credit with a secured credit card or starter credit card, and then apply for a Chase card when you have a credit history.
How to get a Discover card with no credit?
The best way to get a Discover card with no credit is to apply for a Discover it Secured card. These are much easier to get and you can quickly upgrade it to an unsecured card. Make sure you’re also getting the best credit card with no foreign transaction fee if you travel.
How to apply for Visa credit card with no credit?
You can apply for a Total Visa unsecured credit card, which is designed as a card to help you start building credit when you don’t have any. You can also get a Visa secured card to help establish your credit history. Learn more about how to apply for a credit card with no credit.
How to get an American Express card with no credit?
You’re going to have a hard time getting an American Express card without any credit. Your best option is going to be to aim for another card while establishing a credit history, wait at least 6 months, and then try for an American Express card. Also you probably shouldn’t expect to qualify for a zero percent credit card right now until your credit is built up.
How to get a Capital One credit card with no credit?
Capital One offers several cards for people with no credit. The QuickSilver One card is a good choice, as is the Capital One secured card, which is even easier to get. For unsecured credit card bad credit options we have reviewed other cards.
How to get a Best Buy credit card with no credit?
You usually need a minimum credit score of at least 620 to get a Best Buy credit card, so you should probably get another credit card and wait at least 6 months while you establish a credit history before applying for a Best Buy Credit hard. Be sure to compare credit cards 2020 has to offer.
How hard is it for someone with no credit to apply for Bank of America Travel Rewards Student Card?
It’s going to be fairly difficult to get the Bank of America Travel Rewards Student card without credit, though if you talk to your local Bank of America branch, you may be able to qualify. Otherwise, build your credit with a secured card first. Read also: What is the best credit card for travel rewards?
Which Discover card is best no credit history?
The Discover it Secured card is the best Discover card option if you don’t have a credit history. You can fund the card for a line of credit from $300 to several thousand dollars, and you can upgrade the card to an unsecured card fairly quickly. Compare more cards to choose the best first credit card to build credit.
Which Capital One card is best for no credit history?
The best Capital One card for someone with no credit history is either the Capital One Quicksilver One card, which is designed to be a first credit card, or a Capital One Secured card. Look at more rebuild credit cards and compare the offers.
How to get a Delta credit card with no credit?
The best option for getting a Delta credit card with no credit is to establish a credit history before applying. Delta cards are reserved for people with good to excellent credit scores in most cases.
How to get approved for an AmEx Business charge card with no business credit?
You’ll need to establish business credit before you can get an AmEx business card. Fortunately, that’s fairly easy to do. Just get an EIN and open a checking account in your business’s name to start building business credit. Take a look at more business credit cards with rewards.
No Credit and Types of Credit Cards
We’ll answer your questions about various types of credit cards when you don’t have credit in this section.
How to get a student credit card with no credit?
In many cases, you’ll just need to apply. Many student cards are designed for people with little to no credit history. Check out the offers on campus, as these offers usually understand that many applicants won’t have credit. Take a look at our review on student credit cards with no credit.
How to get a business credit card with no credit?
You can try for a Capital One Spark Classic for businesses. You don’t need an extensive credit history, just an EIN and a bank account in the business’s name to apply. Take a look at the best cash back business credit cards.
How to get a store credit card with no credit?
The best way to get a store credit card with no credit history is to choose the right store to apply with. Large department stores like Macys or JCPenney are your best option to get approval without credit. If you have a score but its bad then check out secured credit card bad credit offers.
How to apply for a gas card with no credit?
It’s difficult to get a gas card with no credit, so your best bet will be to apply for a secured credit card to build credit history. Then, you can apply for a gas card after 6 months. You can also apply for a regular credit card with gas rewards to have even more flexibility.
Applying for Credit Cards with No Credit
This is the section where you’ll find answers to your questions about how you can apply for a credit card without any credit.
How to apply for a credit card with no credit?
The key to applying for a credit card with no credit history is to focus on credit cards that are designed for people in your situation. The Visa Classic card and secured credit cards are your best options. Its still possible to find credit card low interest rate offers.
What credit card to apply for with no credit?
Your best option for a credit card to apply for with no credit history is a secured credit card. These are easier to get and will help you build a credit profile so you can qualify for unsecured credit cards. It may be harder to get rewards credit cards such as travel credit cards but if you do build up credit then take a look at the best airline credit card 2020 has to offer.
What is a good first credit card for someone with no credit?
A secured credit card like the OpenSky Secured card or Discover it Secured card are great options for a first credit card for someone with no credit.
When to apply for credit card with no credit history?
You can start applying to certain types of credit cards right away. Cards like secured cards will likely give you approval, and you can use these products to start establishing a credit history.
Getting a Credit Card with No Credit
Getting a credit card without any credit can be tough. We’ll answer your questions about how to get a credit card with no credit in this section.
How to get a credit card with no credit history?
Applying for a secured credit card is the best way to get a credit card with no credit history.
How to get approved for a credit card with no credit?
Getting approved for a credit card with no credit is just a matter of choosing the right card to apply for. We recommend looking for starter credit cards and secured credit cards. The Discover it Secured is a great option because you can quickly upgrade it to an unsecured card and you can get cash back rewards when you use it.
How to get your first credit card with no credit?
Applying for a secured credit card is the best way to get your first credit card with no credit. We recommend looking for a secured credit card that will automatically upgrade to an unsecured card after you’ve made a certain number of payments.
What credit card will approve me with no credit?
OpenSky Secured Card is a great option for getting approval with no credit. They don’t even require a credit check and you can use the card to get a credit history running. If you already have a card then you can look at balance transfer credit cards for bad credit.
How to get a secured credit card with no credit?
The only thing you’ll need to get a secured credit card with no credit is a large enough initial deposit to meet the minimum. Usually this is from $200-$300, depending on the specific credit card.
What is the best credit card for no credit history?
The best card for people with no credit history is a secured credit card that you can upgrade to an unsecured credit card after a certain number of on-time payments. That way you can get approved and quickly get your security deposit back.
How to qualify for a credit card with no credit?
The best way to qualify for a credit card with no credit is to save up enough money to make a security deposit for a secured credit card. Many secured credit cards will approve you without even doing a credit check.
Where to apply for a credit card with no credit?
We recommend applying for secured cards like the Discover it Secured card or the Bright card from BB&T. These cards require a minimum deposit to secure your line of credit and can be upgraded to unsecured cards one you establish a credit history.
How to get an unsecured credit card with no credit history?
The best way to get an unsecured credit card with no credit history is to focus on student or beginner credit cards. These will have a fairly low credit limit and won’t have the best fees or interest rates, but you can use them to establish credit and get a better card. You can also look at unsecured credit cards for fair credit.
How to get approved for a credit card when you have no credit and has no deposit?
Starter credit cards and student credit cards are the best chance for approval if you don’t have any credit history and don’t have a deposit. These cards will have a lower than average credit limit and may have higher than average interest rates and fees though. There may also be some online store credit cards guaranteed approval options.
Other Questions about Credit Cards and No Credit
Credit and credit cards can be very complex, so there’s plenty of questions people have that don’t fit into our other categories. We’ll answer those questions here.
How to get a credit card with no credit check?
Look for secured credit cards if you want to get a credit card without a credit check. Because you secure your line of credit, companies are willing to give you a card without checking your credit history.
Which credit card is best for students with no credit?
Student cards and secured cards are the best cards for students with no credit history. They’ll help you establish a credit history and will also allow you the flexibility and rewards that come with using a credit card.
How to get a free credit card with no credit?
It’s going to be difficult to get a free credit card with no credit. The Capital One Platinum credit card, Discover it Student Cash Back, and the Total Visa unsecured card are your best options, as these products are intended for people with little to no credit history.
How to get a loan or credit card with no credit?
Getting a credit card with no credit is a matter of picking the right card to apply for. Things like secured credit cards or self-lender loans are great ways to start establishing credit so you can get more favorable financial products.
What is the best credit card for a student with no credit?
Discover offers some of the best credit cards for a student with no credit. The Discover it Student chrome and Discover it Student Cash Back cards are your best options.
How to get cash from a credit card if you have no credit?
You’ll need to apply for a starter unsecured card that offers cash advances. The Total Visa unsecured card and the Capital One Quicksilver One Cash Rewards cards are good choices for you.
Does applying for credit cards when you have no credit hurt your credit?
Sort of, but not really. Hard credit checks will influence your score for 6 months after the check. It takes 6 months to generate a FICO score, so by the time you have a credit score, your application won’t be affecting it anymore.
How to get a credit card with no credit as a college student?
Applying for student cards is one of the best ways to get a credit card with no credit as a college student. Your other option is to get added as an authorized user to a parent’s credit card.
How to get a credit card as a teen with no credit?
It’s going to be hard to get a credit card as a teen with no credit. You should look into a secured credit card so you can start establishing a credit history and upgrade your card to an unsecured card as soon as possible.
What credit card will give me the highest limit with no credit?
The Surge Mastercard and the Total Visa cards are the best choices for a higher credit limit on a credit card when you don’t have any credit. These cards are designed to be starter credit cards, so they’re easier to get approved for.
Financial Advisor - MoneyBeagle.com
David is our in-house financial advisor with years of experience in the credit card industry. He became interested in credit cards after working for several years at a major bank. He holds a Masters Degree in Finance.