If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
If you have no credit history, you've probably found that there are few credit cards you can qualify for. Starter credit cards are a type of credit card you can open with no credit. To help you get on the path to an excellent credit score, we'll cover what to look for in credit cards to build credit, how to open one, and how credit cards work.
Our experts analyzed several card offers to bring you a short list of our picks for the best starter credit cards. Check out our list below.
Discover it® Student Cash Back
Great for: Students
Fair/New to Credit Under(669)
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 10.99%, 6 months
Regular APR
18.24% - 27.24% Variable APR
Rewards 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically
1% - 5% Cashback
Annual Fee
$0
Welcome Offer Discover will match all the cash back you’ve earned at the end of your first year.
Cashback Match
A leading student credit card with a rewards program that goes toe-to-toe with some of the top rewards cards we've come across. Read Full Review
Discover it® Secured Credit Card
Great for: Secured card with rewards
New/Rebuilding Under(579)
Intro APR
Purchases: n/a
Balance Transfers: 10.99%, 6 months
Regular APR
28.24% Variable APR
Rewards 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
1% - 2% Cashback
Annual Fee
$0
Welcome Offer Discover will match all the cash back you’ve earned at the end of your first year.
Cashback Match
This card is a great place to start when building your credit history. It offers perks rarely found in secured cards, including cash back, no annual fee, and Discover's innovative sign-up bonus. Read Full Review
Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Great for: Cash back rewards
Fair/New to Credit Under(669)
Regular APR
18.24 - 32.24% Variable
Rewards
Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. 1% cash back on eligible purchases right away. 2% - 10% cash back at select merchants.
A leading option among credit cards for building credit. The rewards program and lack of fees are standout perks in this category.
Capital One Platinum Secured Credit Card
Great for: Low security deposit
On Capital One's Secure Website.
On Capital One's Secure Website.
Fair/New to Credit Under(669)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
30.74% (Variable)
Rewards
N/A
Annual Fee
$0
Welcome Offer N/A
N/A
Comes with a low initial security deposit and no annual fee, making it a top pick if you want to open a secured card account without breaking the bank. Read Full Review
OpenSky® Secured Visa® Credit Card
Great for: No credit check
New/Rebuilding Under(579)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
22.64%, variable
Rewards
N/A
Annual Fee
$35
Welcome Offer
N/A
A good option for new to credit applicants. The fact that there's no credit check could justify the annual fee for some cardholders Read Full Review
U.S. Bank Secured Visa® Card
Great for: High potential credit limit
Fair/New to Credit Under(669)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
29.24% (Variable)
Rewards
N/A
Annual Fee
$0
Welcome Offer
N/A
A basic, no-frills secured credit card. It has everything needed to start building or rebuilding credit, but none of the valuable extras of the very best cards in its category.
These are the features to look for in starter credit cards.
A starter credit card is one that's available to people with limited or no credit history. This type of credit card is designed for those who are building credit for the first time.
There are a couple of common starter credit card types:
Another way to get a starter credit card is with a card issuer that lets you link your bank account during the application process. Petal is one example of a credit card company with this option. Even if you have no credit, you can link your bank account when you apply for the card. The card issuer uses your payment history from your bank to evaluate your creditworthiness.
RELATED: How Do Credit Cards Work: A Beginner's Guide
You'll need a starter credit card if you don't have much or any information in your credit file. Since you don't have much borrowing history, card issuers likely won't approve you for anything except starter credit cards.
Here are some common examples of situations calling for a starter credit card:
If you wonder why it's important to get a starter credit card, there are a couple of good reasons. A credit card is a secure payment method, because it's not tied to your bank account and you can get a replacement card if yours is lost or stolen. When you use a credit card and follow good habits, such as paying on time, it can raise your credit score. This can help you qualify for better loan rates and credit cards with more benefits, including cash rewards or travel rewards.
Ready to get a card? See The Ascent's list of the best credit cards for young adults.
There are only a few requirements to open starter credit cards:
Your income is what the card issuer looks at to confirm you can pay your credit card bill. It's also one of the main factors the card issuer uses to set an appropriate credit limit for you.
Keep in mind that your reported income can include more than just what you make from a job. If you're at least 21 years old, you can report any income you reasonably expect to access. Potential examples you could use when applying for credit cards to build credit include:
If you're under 21, you can use income from work, allowances, scholarships, and grants.
To open a secured credit card, you need enough money to pay the security deposit. Most secured credit cards to build credit require a deposit of at least $200. However, there are some with smaller deposit requirements.
If it's your first time getting a credit card, here's how to open one with no credit.
When you submit a credit card application, you may get an answer immediately. Sometimes, the card issuer needs more time to review your application. In that case, you'll get a response in the mail. You can also call the card issuer after a few days.
If your application is approved, you receive your new credit card in the mail within seven to 10 business days. If your application is denied, the card issuer will mail you a letter explaining why. You can call to ask that the decision get a second look. Card issuers sometimes reconsider denials.
Your other option is to shop around for other starter credit cards for no credit history. You may want to look at the easiest credit card to get if you're having trouble getting approved.
A credit card can help you build credit fast if you follow a few credit habits:
That's all it takes to get a good credit score. If you stick to those habits, your credit score should increase quickly.
To understand why these habits work, let's look at the factors that have the biggest impact on your credit score.
Your credit score is basically a rating of how likely you are to repay debt. So it makes sense that nothing affects your credit score more than your payment history. If your credit report includes years of on-time payments, odds are that you'll have a very high credit score. Any late payments, on the other hand, can drop your score quite a bit, even into the bad credit range.
With a starter card, it's easy to build a good payment history. Pay on or before the due date and the card issuer reports that you paid on time to the credit bureaus. As your record of on-time payments grows, your credit score gets better and better.
Another big part of your credit score is your credit utilization ratio, or how much of your credit you use. You could also look at it as how close you are to maxing out your credit cards. The farther away from that you are, the better it is for your credit.
To calculate your credit utilization, divide your credit card balances (what you owe) by your credit limits (the maximum amount you can charge on your credit cards). For example, if you have one starter credit card with a limit of $1,000 and a $100 balance, then your current credit utilization is 10%.
Your credit utilization has a positive impact on your credit when you keep balances low. Very high balances, on the other hand, can lead to bad credit. A good rule of thumb is not going above 20% to 30% credit utilization. On a card with a $1,000 credit limit, that would mean not exceeding a balance of $200 to $300.
Age is only a number, but the age of your credit accounts is a key factor in your credit score. Specifically, credit-scoring formulas look at how long you've used credit and the average age of your credit accounts.
The only thing you need to do here is to get a credit card and keep it open for the long haul. Once you have your first credit card, that starts the clock on your credit history. By keeping it open, you continue building a longer account age.
LEARN MORE: The Complete Guide to Understanding Your Credit Score
Once you've found the best starter credit card for building credit, follow these tips to maximize its benefits.
Your first-time credit card for no credit history is essential in starting your credit file. If you use it with an eye toward score improvement, you should see your credit score rise dramatically over time.
Want to know who the top credit card issuers are? See The Ascent's list of credit card companies.
Card | Rating | Great For |
---|---|---|
|
Rating image, 5.00 out of 5 stars.
5.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Students |
Rating image, 5.00 out of 5 stars.
5.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Secured card with rewards |
|
Rating image, 4.25 out of 5 stars.
4.25 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Cash back rewards |
|
Rating image, 4.50 out of 5 stars.
4.50 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Low security deposit |
|
Rating image, 3.50 out of 5 stars.
3.50 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: No credit check |
|
U.S. Bank Secured Visa® Card
![]() |
Rating image, 4.00 out of 5 stars.
4.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: High potential credit limit |
You can get your first credit card when you're 18. When you're younger, it's possible to use a credit card as an authorized user on another person's account, because many credit card issuers don't have minimum age requirements for authorized users. But to open your own credit card account, you must be at least 18.
The best starter credit card is the Petal® 2 "Cash Back, No Fees" Visa® Credit Card. It charges no fees, earns cash back, and doesn't require a security deposit or credit history to open. You can connect your bank account during the application process, and Petal uses that information to evaluate your application.
The best credit card for beginners is the Discover it® Secured Credit Card. With a refundable security deposit, it offers cash back, a welcome bonus offer, and charges no annual fee or foreign transaction fee. Discover is one of the top credit card companies for beginners, as it has educational resources and excellent customer service.
Yes, you can apply for a credit card with no income, but the card issuer will likely deny your application. Federal law requires that credit card companies only approve an application if they're confident someone can make their monthly card payments.
You may, however, qualify with alternate forms of income. If you're 21 or older, you can include household income, Social Security, retirement fund distributions, trust fund distributions, scholarships, and grants. If you're under 21, you can include allowances, scholarships, and grants.
You can get secured credit cards with no credit, and student credit cards if you're in college. In addition, there are unsecured credit cards for everyone, not just students, that you can get using your banking history. Credit cards from the issuer Petal are one example.
Before using a starter credit card, you should know that the best way to use it is by paying the bill in full every month. Only pay for purchases you can afford, and always pay the entire balance by the due date. You'll build credit, and you won't be charged any credit card interest.
The best credit card for students with no credit history is the Discover it® Student Cash Back. It offers cash back, free FICO® Score tracking, identity alerts, and no annual fee or foreign transaction fee. Discover also has highly rated customer service, so it's a great card issuer for students who are starting out with credit.
To get a credit card for the first time, check out starter credit cards and pick one you like. Fill out an application for the card, submit it, and wait for a response.
If you're not approved, you can ask the card issuer to reconsider. Alternatively, you can simply choose a new card to apply for.
Our Credit Cards Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Motley Fool owns shares of and recommends Visa and Mastercard.