Best credit cards for no credit history in November 2022

Compare Bankrate’s top credit cards for no credit history

A closer look at top credit cards for no credit history

Capital One Platinum Secured Credit Card: Best for accessing a higher credit line

• What we love about the Capital One Platinum Secured: This card is one of the only secured options that may reward you with a credit limit that’s higher than your initial deposit. You also have the option to pay the security deposit in installments over a 35-day period.
• Who this card is good for: People focusing solely on building credit who aren’t set on earning rewards.
• Alternatives: The Citi Secured Mastercard is another low-cost and no-fuss option for anyone who is set on building credit first before needing the added incentive of earning rewards.

Read our Capital One Platinum Secured Credit Card Review.
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Discover it Student Cash Back: Best for rotating cash back bonus categories

• What we love about the Discover it Student Cash Back: Discover is one of the few issuers to offer an intro APR offer for students with little-to-no credit history. Plus, rotating bonus categories give you a chance to earn rewards at a high rate in a variety of categories throughout the year (quarterly activation required).
• Who this card is good for: Students who want to take advantage of an introductory APR on new purchases to chip away at expenses over time (0 percent APR for six months upon account opening, then 14.99 percent to 25.99 percent variable).
• Alternatives: The Discover it® Student chrome offers rewards on a couple of popular spending categories like dining and gas, but skips out on the hassle of tracking and enrolling in bonus categories each quarter.

Read our Discover it Student Cash Back review.
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Capital One Quicksilver Secured Cash Rewards Credit Card: Best secured card for flat-rate rewards

• What we love about the Capital One Quicksilver Secured: This card is one of only a handful of secured cards that earns rewards and offers cardholders the chance to graduate to an unsecured credit card with responsible use.
• Who this card is good for: Credit-builders interested in upgrading to a Capital One rewards card after they’ve improved their credit score. The card is also a better fit for users who can pay their balance in full each month due to the card’s high variable APR.
• Alternatives: The Merrick Bank Secured Credit Card won’t earn rewards, but it offers the same low APR to all qualifying cardholders, regardless of credit history. If you aren’t able to pay your balances in full each month, having a low APR is much more important than earning rewards. Or, if you’re looking for ways to build credit outside of getting a credit card, you can tap into tools like UltraFICO and Experian Boost to build credit.

Read our Capital One Quicksilver Secured Cash Rewards credit card review.
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Discover it Secured Credit Card: Best secured card with rewards

• What we love about the Discover it Secured: Discover will automatically match all of the cash back that you earned at the end of your first year — a great bargain for a starter credit card.
• Who this card is good for: Foodies, roadtrippers and credit-builders alike who want to earn rewards but may not have the credit requirements for a more lucrative rewards card in key categories.
• Alternatives: If you don’t mind keeping up with rotating categories and enrollment dates (and you’re a student), the Discover it® Student Cash Back has the same welcome offer program and higher rewards rates in specified bonus categories.

Read our Discover it Secured Credit Card Review.
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Self – Credit Builder Account with Secured Visa Credit Card: Best for building credit with savings

• What we love about the Self-Credit Builder Account with Secured Visa Credit Card: The combination of a savings account and a secured credit card, especially because neither requires a hard inquiry on your credit report.
• Who this card is good for: Enthusiastic credit-builders who want to build savings while building credit or who want a headstart on establishing a credit mix.
• Alternatives: A more straightforward card option with rewards is the Discover it Secured Credit Card. A standard $200 security deposit will get you immediate access to a credit line and rewards on spending in a few popular categories.

Read our Self — Credit Builder Account with Secured Visa Credit Card review.
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Citi Secured Mastercard: Best for no monthly maintenance fee

• What we love about the Citi Secured: The access to exclusive deals and other perks through Citi Entertainment.
• Who this card is good for: Credit newcomers looking for a minimal-fee route to good credit.
• Alternatives: If you want to pair low costs and credit-building with some opportunity to earn rewards, the Petal 2 “Cash Back, No Fees” Visa credit card is a low-cost unsecured option with a competitive rewards rate.

Read our Citi Secured Mastercard review.
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Deserve EDU Mastercard for Students: Best overall student card

• What we love about the Deserve EDU Mastercard: The accessibility of the card for international students and U.S.-born students. You are not required to submit a social security number (SSN) with your card application, a rare perk of this credit card.
• Who this card is good for: U.S. and international students who want to earn cash back.
• Alternatives: The Journey Student Rewards from Capital One is another low-maintenance rewards card for students that still is up for grabs for international students. This card application will accept either an SSN or an individual taxpayer identification number.

Read our Deserve EDU Mastercard for Students Review.
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OpenSky Secured Visa Credit Card: Best for no required credit check

• What we love about the OpenSky Secured: You can be approved for this card while skipping a credit check altogether. You don’t even need a bank account to apply. Plus, the card’s 20.39 percent variable APR rate is one of the lowest available on a card available with no credit history.
• Who this card is good for: Credit-builders with negative information on their credit report could have an easier time qualifying for this card than other credit-builder cards. And if you can’t pay your balance in full every month, a low-interest credit card like the OpenSky card could help you save money.
• Alternatives: This card has an added annual fee on top of the required security deposit, but the lack of a credit check can be fairly enticing. The Capital One Platinum Secured card has no annual fee and the minimum security deposit you put down can be as low as $49, so it could be a more cost-effective alternative.

Read our OpenSky Secured Visa Credit Card Review.
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Why building credit history is important

According to the Consumer Financial Protection Bureau, approximately 26 million Americans are credit invisible, meaning they have no credit history with any of the three major credit bureaus.

Your credit history, detailed in your credit report, is a record of your performance as a borrower and user of credit. A positive credit history with little-to-no delinquencies or late payments indicates that you’re a reliable and financially responsible borrower. But without a documented credit history, lenders have no record of your ability to pay back debt.

If someone has no credit history, they will have trouble getting approved for loans and credit cards. Without access to traditional loans, people with no credit are more likely to seek out alternative options and may fall prey to predatory lending practices, such as payday loans, which can come with sky-high interest rates that keep people stuck in a cycle of debt.

Used responsibly, a credit card can help you build credit when you have no credit history.

What do you need to get a credit card when you have no credit history?

Accessing a credit card without a credit history is not impossible, though there are certain requirements you’ll have to meet. Make sure you check a few boxes below and you can be on your way to establishing a credit history in no time.

These are the requirements to apply and be eligible for a credit card:

• You must be at least 18 years old. You cannot be approved for your own credit card as a minor. Even at 18 to 20 years old, you have to provide proof of independent income or to have a parent co-sign on your application, as required by the Card Act of 2009.
• You must have an income source or access to an income source. Credit card applications will ask for your income. If you don’t have an independent source of income, you may list that of your parent or partner, as long as you have “reasonable expectation of access” to that money, like having a shared bank account. This factor is an amendment to the Card Act of 2009.
• You’ll usually need a Social Security number or an Individual Taxpayer Identification Number. In most traditional cases, you must provide your SSN on a credit card application. However, some issuers may accept an Individual Taxpayer Identification Number (ITIN) in place of a SSN. An ITIN is a nine-digit number issued by the IRS to a tax-paying individual who lives in the U.S. and does not have a Social Security number. Keep in mind that you may still be denied for a credit card if you have no credit, despite also having an ITIN.

There may be a few other criteria you have to meet depending on the type of credit card for no credit history you apply for. Student credit cards often require you to show proof of enrollment while secured credit cards require applicants to put down a deposit as collateral in exchange for access to a credit line.

Pros and cons of credit cards for no credit

Who should get a credit card for no credit history?

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  Students

  Many students just getting started on their credit journey will often have little, if any, credit history. The requirements for approval on these kinds of credit cards are fairly relaxed, making them easier for students to acquire. Although credit cards for no credit history are an option for students, there are many student credit cards that offer specialized, student-centric benefits and rewards and are just as easy to qualify for and probably fit better into a student’s lifestyle.

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  International students

  Foreign students studying abroad in the U.S who wish to start building credit in the States may run into some challenges. Luckily, there are ways international students can access credit cards. Some cards on the market skip the need for a Social Security Number (SSN) or only require you to open a U.S. checking account, effectively removing a few of the main barriers for international students trying to access credit.

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  Credit beginners

  If you don’t fall into the student demographic — but still hope to build credit for the first time — you may find your fit in a credit card for no credit history. Relaxed credit requirements, modest rewards and other credit-building tools allow credit beginners to start somewhere. Most of these credit card options are also relatively low in cost, often skipping annual fees. If you’re a first-generation credit user, these options can also be a good place to start.

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  Immigrants

  It can be difficult to begin building credit without a credit history and a Social Security number, but immigrants with an ITIN Number can qualify for a number of starter credit cards like the Capital One Platinum card. Some issuers will also look at alternative data, such as your bill payment history and banking activity, which can help overcome a limited credit history.

Still unsure on the right card type for you? Check out our Credit Card Spender Type Tool where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.

How to choose a credit card for no credit history

Is the card secured or unsecured?

Credit cards can either be secured or unsecured. Secured credit cards typically require a security deposit that the issuer uses to recoup any losses if you fail to pay your card balance, while unsecured credit cards don’t have a deposit. If a credit card you’re eyeing is secured, keep in mind that there are added costs and restrictions associated with secured credit cards.

Is there a security deposit or any extra fees?

These are a couple of added costs that can come with credit cards for no credit history. If you elect to go with a secured credit card, make sure that the security deposit is something you can afford. Also, there are some credit cards that have both security deposits and annual fees, so you may want to avoid these more costly options if at all possible.

What’s the application process like?

One of the key assets of a credit card for no credit history is that the application requirements are typically easier to meet. Some of these cards do not require a credit check at all, or use other means to determine credit worthiness, such as checking account activity. Some also don’t require a SSN to apply, which removes a substantial barrier of entry that most traditional credit cards have. You’ll want to keep features like these in mind if they apply to your particular situation and can make getting a card a little easier.

How to establish credit with a credit card

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. Building a strong credit history takes both time and good financial habits. Keep these guidelines in mind as you establish your credit history:

1. Check your credit report before getting started. Reading your credit report will give you 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. Upon request, each of the three major credit bureaus provide a free copy of your credit report once a year.
2. Apply for a credit card. 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, any fees and make sure the card reports to the credit bureaus, as they are the agencies that create your credit report. Pay particular attention to the annual percentage rate (APR), which determines how much interest you pay for carrying a balance.
3. Practice good spending habits. Overspending with your card could affect your credit utilization, which is a ratio of how much credit you use versus how much you have available. In general, it’s best to keep this under 30 percent.
4. Pay your credit card bill on time and in full. Making it clear that you can consistently pay on time and in full will do wonders for your credit score. If you don’t pay your balance in full each month, you may be subject to added interest, which applies to any unpaid charges carried over from one billing cycle to the next. Your interest rate may also increase significantly if you miss even one payment.
5. Keep the credit card account open. Length of credit history accounts for 15 percent of your credit score and is an average age of all your credit accounts. Even if you cancel a credit card with your account in good standing, the effect on someone with a limited credit history is pronounced. When you close a credit card, it also affects your credit utilization ratio.

Credit-building alternatives to credit cards

Credit cards can be excellent credit-building tools when used correctly. They offer flexibility and protections that debit cards just can’t match (some even reward you for using them). But if you don’t want a credit card or are having a hard time qualifying for one, it is entirely possible to build your credit without using a credit card.

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  Pay your student loans

  Your student loans can impact your credit score. Whether that impact is positive or negative depends on how you handle your loans. Paying off your student loans over a period of time can be a great boost to your credit-building efforts, but you have to keep certain factors in mind. If your payment history is positive — that is, you pay your bills on time each month — it positively impacts your credit score. The opposite action will negatively impact your score. Having your student loans on your credit profile can also give your loan a boost by lengthening your credit history. It can also provide you with a good credit mix, since creditors like seeing a variety of accounts on your credit report.

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  Use Experian Boost

  Experian Boost is a credit-building tool that helps you boost your credit score using bills you already pay. This service monitors your bill payment behavior and reports it to the three credit bureaus. Users will get a boost to their scores for paying rent, utility bills and streaming services. You can add up to 24 months of data when you get started with Experian Boost, giving your credit score two years of positive credit behaviors in an instant.

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  Get a credit-builder loan

  A credit-builder loan is a great choice for credit-builders and you can access one through your current bank or credit union. They are much easier to qualify for than traditional unsecured loans. They also carry lower interest rates, as they’re less risky for the creditor. If you borrow the lowest amount possible and pay it off on time, your payment history is reported to the credit bureaus, and with positive credit behaviors over time, you may see your credit score improve.

Tips on applying for your first credit card

Your first-ever credit card application doesn’t have to be intimidating. Consider a few guidelines that can help you prepare:

Look for pre-approval offers

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. Both of these inquiries impact your score differently. 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.

Be ready to submit some information

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.

Limit the number of applications

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. The ding to your credit score for one inquiry is small, but multiple inquiries could make a difference, so be selective about which cards you apply for.

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