Best Credit Cards For No Credit
Discover the finest credit card options designed to cater to individuals with no credit history, featuring secured cards and other tailored choices.
Written by
Grace Lemire
Grace Lemire is a full-time content writer and part-time social media creator with a passion for helping people navigate life's toughest financial decisions – from moving out of your parents' house to buying a home.
Last Update on Aug 30, 2023
Table Of Contents
We’ve scoured the financial landscape to uncover the best credit card options available for those with no credit history. Whether you’re a recent graduate starting your financial journey or an individual looking to establish credit, this comprehensive guide presents a range of choices, including secured cards and specialized options, to help you kickstart your credit journey on the right foot. Say goodbye to credit barriers and hello to a brighter financial future.
| Credit Card | Rating | Best For… | Rewards | Credit-Building Tools | Interest Rates | Annual Fee |
|---|---|---|---|---|---|---|
| Amazon Secured Card | 4.1 | Frequent Amazon Prime shoppers | 2% cash back on eligible Amazon purchases | Free credit tracking, option to graduate to an unsecured card after 12 months | 10% | None |
| Capital One Quicksilver Secured Cash Rewards Credit Card | 4 | Earning back your deposit | Unlimited 5% cash back on purchases made inside the Capital One Travel portal, unlimited 1.5% cash back on everything else | Free credit monitoring, option to secure a higher credit limit after six months, ability to earn the security deposit back without closing the account | 29.99% | None |
| Discover It Student Cash Back | 5 | Overall cash back | 5% cash back on rotating categories, 1% cash back on everything else | Free credit monitoring, credit limit increases, free courses and resources | 17.99% to 26.99% | None |
| Navy FCU nRewards Secured Credit Card | 4.5 | Navy Federal Members | Unlimited 1x points per dollar spent | Free credit monitoring, credit limit increases, graduation to an unsecured card | 18% variable | None |
| U.S. Bank Cash+ Visa Secured Card | 3.8 | Rewards and cash back value | 5% cash back on the first $2,000 of purchases in two categories of choice, 2% cash back on purchases in one category of choice, 1% cash back on everything else | Free credit monitoring, free educational modules, ability to pick your payment date | 29.99% | None |
Best Credits For No Credit
Best for Frequent Amazon Prime shoppers
Amazon Secured Card
Credit Score Needed
No Credit, Poor Credit, or Fair Credit (0 to 649)
Credit Building Tools
Free credit tracking, option to graduate to an unsecured card after 12 months
Unique Features
Low interest rate
Annual Fee
None
Foreign Transaction Fee
None
Interest Rates
10%
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If you frequently shop on Amazon or Amazon Fresh, this card is ideal for you. The one downside is that the card can’t be used anywhere other than Amazon, so you are pretty limited in how you can use it.
Rewards: 2% cash back on eligible purchases made on Amazon.com, Amazon Fresh, and more
Credit-Building Tools:
- Free credit tracking
- Option to graduate to an unsecured card after 12 months of responsible use
Pros:
- No annual fee
- Opportunity to upgrade to an unsecured card
- Lower interest rate than most competitors
Cons:
- No welcome bonus
- You’ll need to be an Amazon Prime member to earn rewards
- Can only be used at Amazon
Additional Details
This card does not come with purchase protection, travel insurance, or extended warranties.
Best for Earning back your deposit
Capital One Quicksilver Secured Cash Rewards Credit Card
Credit Score
Bad to Limited
Credit Building Tools
Free credit monitoring, option to secure a higher credit limit after six months, ability to earn the security deposit back without closing the account
Unique Features
Ability to earn back the security deposit without closing the account
Annual Fee
None
Foreign Transaction Fee
None
Interest Rates
29.99%
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The Capital One Quicksilver Secured Cash Rewards Credit Card requires a refundable $200 security deposit to open an account. Unlike other secured cards, though, customers can earn the security deposit back without closing the account.
Rewards:
- Unlimited 1.5% cash back on all eligible purchases
- Unlimited 5% cash back on hotels and rental cars booked through the Capital One Travel portal
Credit-Building Tools:
- Ability to earn your security deposit back as a statement credit after using the card responsibly
- Opportunity to graduate to a higher credit limit after six months, with no additional deposit needed
- Free credit monitoring through Capital One’s CreditWise
Pros:
- No annual fee
- Unlimited 1.5% cash back on all eligible purchases
Cons:
- No welcome bonus
- High APR
Additional Details
This card comes with up to six months of complimentary Uber One membership credits through 11/14/2024.
Best for Overall cash back
Discover It Student Cash Back
Credit Score Needed
New to Credit, Fair
Credit Building Tools
Free credit monitoring, credit limit increases, free courses and resources
Unique Features
Cashback Match; Full suite of financial education resources
Annual Fee
None
Foreign Transaction Fee
None
Interest Rates
17.99% to 26.99%
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The Discover It Student Cash Back Card is an ideal first credit card. It offers rotating reward categories with up to 5% cash back with no annual fee.
Discover’s Pathway to Financial Success program provides free access to a variety of financial tools:
- Financial calculators, like a Debt-to-Income Ratio Calculator and Student Loan Calculator
- Free courses for high schoolers, college students, families, and educators
- Free modules, curriculum bundles, and external resources
Rewards:
- 5% cash back in rotating categories (eg. gas, grocery stores, etc.)
- 1% cash back on all other purchases
Credit-Building Tools:
- Credit limit increases
- Free credit monitoring
Pros:
- No annual fee
- No foreign transaction fee
- Solid rewards
- Cashback Match
Cons:
- 1% cash back is lower than some competitors
- 5% cash back is limited to $1,500 in purchases per quarter
- Few credit-building tools
Additional Details
Discover’s credit cards also come with free online privacy protection, which monitors the Dark Web for information like your Social Security Number and alerts you of suspicious activity.
The card does not have purchase protection, travel insurance, or extended warranties.
Best for Navy Federal Members
Navy FCU nRewards Secured Credit Card
Credit Score Needed
Poor to Bad (0 to 649)
Credit Building Tools
Free credit monitoring, credit limit increases, graduation to an unsecured card
Unique Features
No balance transfer fees
Annual Fee
None
Foreign Transaction Fee
None
Interest Rates
18% variable
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The Navy FCU nRewards Secured Credit Card has no annual fee, no balance transfer fee, and a flat-rate rewards program. It does, however, require Navy Federal Credit Union membership, which is selective.
Rewards: Unlimited 1x points per dollar spent
Credit-Building Tools:
- Free credit monitoring
- Ability to increase your credit limit after three months, without an additional deposit
- Ability to graduate to an unsecured card after six months
Pros:
- Ability to graduate to an unsecured card after six months
- Ability to increase your credit limit without an extra deposit
- No balance transfer fees
Cons:
- No welcome bonus
- Navy Federal Membership is required
Additional Details
This card comes with Navy Federal’s Cell Phone Protection. Navy Federal also offers a variety of free resources and guides to teach people about financial topics.
Best for Rewards and cash back value
U.S. Bank Cash+ Visa Secured Card
Credit Score Needed
Poor to Bad (0 to 649)
Credit Building Tools
Free credit monitoring, free educational modules, ability to pick your payment date
Unique Features
Customizable rewards categories
Annual Fee
None
Foreign Transaction Fee
3%
Interest Rates
29.99%
Show More Details
The U.S. Bank Cash+ Visa Secured Card requires a $300 security deposit to open an account. It comes with no annual fee, competitive cash back rewards, and a full suite of free financial education modules.
Rewards: Cardholders earn:
- 5% cash back on the first $2,000 in combined eligible purchases each quarter in two categories of their choice
- 2% cash back on eligible purchases in their choice of one everyday category (eg. gas, grocery, dining)
- 1% cash back on all other eligible purchases
Credit-Building Tools:
- Free educational modules
- Free credit monitoring
- Ability to choose your own payment date, which can lower the likelihood you miss a payment
- Describe the credit-building tools and features associated with each credit card, such as credit limit increases, credit score tracking, and financial education resources.
Pros:
- No annual fee
- No foreign transaction fee
- Customizable rewards categories
Cons:
- High APR
- Higher deposit requirement than some competitors
- Rewards program may be complicated to follow
Additional Details
This card has a foreign transaction fee of 3%. If you plan to travel abroad frequently, this isn’t an ideal option for you.
The Dollargeek Method
We aim to provide transparent, meaningful insights into the value and utility of various credit cards, catering to diverse user needs and preferences. Check out the entire methodology.
What Is Credit History?
Credit history is a vital record of a person’s borrowing and credit usage. A positive credit history reflects financial reliability, leading to favorable loan terms. Conversely, bad credit or no credit history may result in loan rejections or higher costs.
Credit Cards For No Credit History
For individuals with no credit history, specific credit cards offer a pathway to begin building credit. They’re suitable for students, international students, credit beginners, and immigrants, but often come with limitations like lower credit limits or higher APRs.
Requirements
Applicants must be at least 18, have an income source, and provide a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Additional criteria might apply, such as student enrollment proof or a collateral deposit for secured cards.
Application Process
Look for pre-approval offers, prepare necessary information, and limit the number of applications. Once obtaining a starter card, focus on building credit by making small purchases and paying off balances promptly.
Pros And Cons Of Credit Cards For No Credit History
| Advantages | Disadvantages |
| Streamlined Approval Process: Credit cards designed for individuals without a credit history generally feature simpler application requirements, making it easier to get approved. | Restricted Credit Limit: If you’re applying for a card with no credit history, you might face credit limits below $3,000. This constraint could challenge your ability to manage your credit utilization effectively. |
| Tools to Monitor Credit Growth: Many issuers offer complimentary services, like credit score tracking, to help you understand and manage your credit health. | Increased Interest Rates: These cards might come with higher Annual Percentage Rates (APRs), making it more expensive to carry a balance from month to month compared to other credit cards. |
| Opportunity to Build Credit: These cards can serve as foundational tools for establishing your credit history since they report to the main credit bureaus, enabling you to create a positive credit footprint. | Limited or No Special Offers: Unlike cards tailored for those with good or excellent credit, no-credit cards often lack attractive introductory offers, such as 0% APR on purchases or balance transfers, that can save you money initially. |
Building Credit: Step-by-Step
- Review Your Credit Report: Ensure there are no errors on your credit report before applying for a credit card.
- Choose the Right Credit Card: Consider features, fees, and APR. Practice responsible spending habits by keeping credit usage under 30%.
- Pay Bills on Time: Timely payments and keeping accounts open positively affect your credit score and credit utilization ratio.
- Alternatives for Building Credit: Beyond credit cards, options include timely student loan payments, using Experian Boost for bill tracking, credit-builder loans, car loans, or becoming an authorized user on another’s account.
Understanding and building credit history is essential for financial well-being. Utilizing credit cards designed for those with no credit history or considering other responsible practices can lead to a strong credit foundation. Monitoring tools, wise spending habits, and timely payments are the keys to success in this financial journey.
Have you already built up your credit? Discover the best credit cards for excellent credit.
Frequently Asked Questions (FAQs)
What Are The Benefits Of A Credit Card For No Credit History?
These cards can help you build credit when used responsibly. Some also offer rewards or benefits like cash back or purchase protections.
Can I Upgrade To A Regular Credit Card In The Future?
Yes, many card issuers allow you to upgrade to a regular credit card once you’ve demonstrated responsible credit use over a certain period.
How Can I Use A Credit Card To Build Credit?
Use your card for small, regular purchases and pay off your balance in full each month. This demonstrates responsible credit use and can help build your credit over time.
How Can I Increase My Chances Of Approval?
Consider starting with a secured card or a card designed for individuals with no credit. Be sure to have a stable income and a checking or savings account.
Does Having A Co-Signer Help?
Yes, having a co-signer with good credit can increase your chances of approval. However, your co-signer will be responsible for your debt if you fail to pay.
Grace Lemire
Author
Grace Lemire is a full-time content writer and part-time social media creator with a passion for helping people navigate life's toughest financial decisions – from moving out of your parents' house to buying a home.
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