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Just because you have no credit history doesn’t mean you can’t get a credit card. One key step is finding the right card, specifically designed for someone like you. Read our expert advice, compare the best offers from our credit card partners and start building your financial future today.
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Having no credit history limits your credit card options, but we all have to start somewhere. Fortunately, many financial institutions offer cards designed specifically for people who have yet to start building their credit profile.
The best credit cards for no credit history offer more than the everyday convenience of cashless transactions. They also offer rewards, financial education resources, account management tools and a clear path to an improved credit score. But first, your credit-building journey begins with choosing the right credit card for yourself.
| Card Name | Best for | Bankrate Review Score |
|---|---|---|
| Petal® 2 “Cash Back, No Fees” Visa® Credit Card | Best card with credit-building app | 4.0 / 5 (Read full card review) |
| Discover it® Student Cash Back | Rotating cash back bonus categories | 4.1 / 5 (Read full card review) |
| Capital One Platinum Secured Credit Card | Accessing higher credit line | 3.0 / 5 (Read full card review) |
| Discover it® Secured Credit Card | Secured card with rewards | 4.0 / 5 (Read full card review) |
| OpenSky® Secured Visa® Credit Card | No required credit check | 3.2 / 5 (Read full card review) |
| Petal® 1 “No Annual Fee” Visa® Credit Card | Local cash back offers | 3.6 / 5 (Read full card review) |
| Self – Credit Builder Account + Secured Visa Credit Card | Building credit with savings | 3.0 / 5 (Read full card review) |
| Deserve® EDU Mastercard for Students | Best overall student card | 2.6 / 5 (Read full card review) |
| Citi® Secured Mastercard® | No monthly maintenance fee | 3.0 / 5 (Read full card review) |
Read our Petal® 2 “Cash Back, No Fees” Visa® Credit Card Review.
Jump back to offer details.
Read our Discover it® Student Cash Back review.
Jump back to offer details.
Read our Capital One Platinum Secured Credit Card Review.
Jump back to offer details.
Read our Discover it® Secured Credit Card Review.
Jump back to offer details.
Read our OpenSky® Secured Visa® Credit Card Review.
Jump back to offer details.
Read our Petal® 1 “No Annual Fee” Visa® Credit Card Review.
Jump back to offer details.
Read our Self — Credit Builder Account + Secured Visa® Credit Card review.
Jump back to offer details.
Read our Deserve® EDU Mastercard for Students Review.
Jump back to offer details.
Read our Citi® Secured Mastercard® review.
Jump back to offer details.
Your credit history, often called your credit report, is a record of your performance as a borrower and user of credit. A good credit history indicates that you’re a reliable and financially responsible person. Establishing a solid credit history will increase your chances of getting approved for loans and receiving better offers on interest rates.
Improving your credit score can help when:
Most credit card issuers report your spending habits and payment history to one of three major credit reporting agencies. These agencies compile this information with reports from other lenders such as your mortgage company or small loan lender to create your overall credit report and credit score.
Your credit history will probably have a large influence not only on your personal finances but also on other areas of your life. Used correctly, a credit card is one of the ways you can start building a solid credit foundation.
Your credit report is created when you open your first credit account, whether it’s a credit card, auto loan or some other type of credit. What happens next depends a lot on your actions and decisions.
Building a credit history takes time. Building a strong credit history takes both time and good financial habits. Keep these guidelines in mind as you think about establishing your credit history:
Taking a look at your credit report is an essential step to give yourself an idea of where you stand. Even if you haven’t begun your journey yet, errors can appear on your credit report, so it’s best to check ahead of time to be sure you’re not wrongfully disadvantaged.
Luckily, this step is easy. Upon request, each of the three major credit bureaus will provide a free copy of your credit report once a year. You can easily request a copy online. And if you do find anything that looks incorrect, you can dispute the errors to get them removed.
Opening a credit card account is a major step on the road to building credit history, so take time to find the right credit card. Evaluate the key features, credit score requirements and any fees (annual fees, late payment fees and so on). Pay particular attention to the annual percentage rate (APR), which determines how much interest you would pay for carrying a balance.
A secured credit card that requires a deposit might be a viable option for someone with no credit history. You can build credit and qualify for a refund of your deposit after making consecutive on-time payments.
Before applying for any credit card, see if pre-qualified offers are available. A pre-qualified offer can give you an idea of your approval odds without initiating a hard credit check that can temporarily lower your credit score.
Being a responsible user of credit shows the credit reporting bureaus and potential lenders that you’re low-risk, meaning they have little reason to worry about you not paying your bills or maxing out your credit.
Also, overspending with your card could affect your credit utilization, the ratio that measures how much credit you’re using in relation to how much credit you have available. In general, it’s best to keep this ratio at 30 percent or less. For example: If you have a card with a total credit limit of $1,000, aim to spend no more than $300 on the card in a billing cycle.
Online account management makes it easy to track your charges day to day without having to wait for a statement at the end of the month. Use your account’s dashboard to keep an eye on how much you’re using the card.
Speaking of spending, making too many purchases with your credit card could also lead to big balances that are difficult to pay off in time. Late or missed payments never look good on your credit history. On the other hand, making it clear that you can consistently pay on time and in full will do wonders for your credit score.
A more immediate concern of missing payments is APR, which represents the cost of interest and other fees that would apply to any unpaid charges carried over from one billing cycle to the next. To avoid APR, pay off your entire balance by the due date whenever possible.
Some credit-building cards provide extra incentive by offering to raise your credit limit after you’ve made a certain number of consecutive on-time payments.
Length of credit history accounts for 15 percent of your credit score. A big part of determining your length of credit history is the average age of all your credit accounts. Even if you cancel a credit card with your account in good standing, which is a positive, the effect on someone with a limited credit history is pronounced.
When you close a credit account, such as a credit card, it also affects your credit utilization ratio. Having fewer accounts means you have less available credit.
To keep things simple, make your credit card payments on time and spend responsibly. Those good habits should help you avoid situations where you’re tempted to cancel a card abruptly, such as running up a large balance.
So-called “thin-file” consumers who’ve never taken out a car loan or a mortgage tend to come up short under the traditional definitions of credit history. The good news is that newer credit-scoring models and payment-reporting services have the potential to benefit consumers who have good credit habits even if their traditional credit profiles are lacking.
Credit bureaus have traditionally focused on payment history, length of credit history, amounts owed, credit mix and new credit. Experian Boost and UltraFICO supplement that information by adding deposit accounts to the mix — checking, savings and money markets — and considering factors including:
Experian Boost also factors in payments for utilities, eligible streaming services and cellphone service. Services such as PayYourRent and RentTrack that report your rent payments to credit bureaus could also help you leverage a history of being a good tenant into a better credit score.
Each case is situational, but those just beginning their credit-building history will need three to six months before a score can be calculated. It takes a bit of time after opening your first credit account to get a three-digit score, but this window is an opportunity to make a good start by spending responsibly and paying your bills on time.
Making on-time, in-full payments has a positive effect on the most important of several factors that determine your credit score. A solid payment history can help establish a solid credit score faster than expected, sometimes in less than half a year.
I received an email from someone who visited our site with questions about credit scores and rewards cards. Taylor is a recent college graduate planning to apply for her first credit card, and she wanted to know:
Here’s a summary of my answers:
My advice to Taylor was to make FICO her first choice, for reasons that involve market share more than reliability. FICO says that its credit scores are used in 90 percent of lending decisions, so chances are high that your FICO Score will play a prominent role when you apply for a credit card.
I also clarified that checking her credit score with FICO or any other credit scoring service is considered a “soft inquiry” rather than a “hard pull” and won’t affect her score.
Taylor is correct about a travel card potentially being harder to qualify for, especially for someone with limited credit history. Unless she travels a lot (as in several extended trips a year, with airfare and hotel stays), getting her money’s worth with a travel card could be tricky.
I also told her about my own experience with cash back rewards, which has been quite positive. My current card earns 3 percent cash back on gas, 2 percent on groceries and utilities, and 1 percent on other general purchases. Since I pay my monthly bill on time and in full like clockwork, I don’t have to worry about interest or late fees cutting into my rewards earnings.
For Taylor’s first credit card, I recommended a general-purpose card that can help her further establish her credit history. And if she qualifies for a card that also earns simple cash back rewards, that would be icing on the cake.
Making your first-ever credit card application doesn’t have to be intimidating. Consider a few guidelines that can help you prepare:
Credit card issuers and other types of lenders can perform two kinds of credit checks when someone submits an application: a hard inquiry and a soft inquiry. A hard inquiry will temporarily lower your credit score while a soft inquiry has no effect.
Pre-qualified offers don’t require a hard inquiry, so keep an eye out for pre-qualification features like CardMatch™. You can get a better idea of which cards you might qualify for without taking a short-term hit on your credit score.
It’s routine for the card application process to require some basic information, even if you have no credit history. The issuer will need to verify your identity, which is why you’ll be asked for details such as your full name, date of birth, Social Security Number and address.
Depending on the type of card and the issuer, you might also need to provide your yearly income, monthly rent or mortgage payments and other information that offers insight into your current financial situation.
Applying for multiple cards in a short period of time could signal to lenders that you want more credit than you can responsibly handle. Also, remember that credit applications involving a hard inquiry will lower your credit score temporarily. Be selective about which cards you apply for.
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author’s alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
