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- Best Credit Cards
- Best Starter Credit Cards for No Credit
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If you have no credit history, you've probably found that there aren't a lot of credit cards you can qualify for. Starter credit cards are a type of credit card that you can open with no credit. To get you 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.
The Ascent's best starter credit cards:
- Students: Discover it® Student Cash Back
- Secured card with rewards: Discover it® Secured Credit Card
- Cash back rewards: Petal® 2 "Cash Back, No Fees" Visa® Credit Card
- Low security deposit: Capital One® Secured Mastercard®
- No credit check: OpenSky® Secured Visa® Credit Card
- High potential credit limit: U.S. Bank Secured Visa® Card
Great for: Students
Rating image, 5.0 out of 5 stars.
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.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.
Bottom Line
Earn up to 5% cash back in rotating quarterly categories, up to the quarterly maximum when you activate. Somehow this card also packs in a 0% intro APR offer for no annual fee. This student card somehow rivals many of the best cash back cards on the market. Read Full Review
Rewards
Cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Unlimited cash back on all other purchases - automatically
Annual Fee
$0
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 10.99%, 6 months
Ongoing APR
12.99% - 21.99% Variable APR
Welcome Bonus
Dollar-for-dollar match of all cash back earned the first year
Highlights
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- Good Grades Rewards: $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
- Earn rewards while building your credit history that can help you after graduation. And, get your free Credit Scorecard that includes your FICO® Credit Score and important details that help make up your score.
- No annual fee. No late fee on first late payment. No APR change for paying late.
- Refer-a-Friend: Once you become a Discover it® Student cardmember, you can earn a $50 statement credit each time you refer a friend and they’re approved. Over half a million students got Discover Cards from their friends' recommendations.
- Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
- Discover is accepted nationwide by 99% of the places that take credit cards.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 12.99% - 21.99% applies.
Great for: Secured card with rewards
Rating image, 5.0 out of 5 stars.
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.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.
Bottom Line
Need to build your credit history? This card is a great place to start. It offers perks rarely found in secured cards including cash back, no annual fee, and double cash back in the first year. Read Full Review
Rewards
2% cash back for gas and restaurants ($1,000 combined spending cap each quarter), 1% cash back on all else
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: 10.99%, 6 months
Ongoing APR
22.99% Variable APR
Welcome Bonus
Dollar-for-dollar match of all cash back earned the first year
Highlights
- No Annual Fee, earn cash back, and build your credit with responsible use.
- Using your secured credit card will build a credit history with the three major credit bureaus. Generally, prepaid and debit cards can’t do that.
- Establish your credit line by providing a refundable security deposit of at least $200 after being approved. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- Discover is accepted nationwide by 99% of the places that take credit cards.
- Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
Great for: Cash back rewards
Rating image, 4.5 out of 5 stars.
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.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.
Bottom Line
People with no or limited credit histories will be hard pressed to beat it. The rewards program and lack of fees are clear standouts in the category. Read Full Review
Rewards
1.5% cash back after making 12 on-time monthly payments. 1% cash back on purchases right away
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
12.99% - 26.99%, variable
Welcome Bonus
N/A
Highlights
- No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee.
- Up to 1.5% cash back after making 12 on-time monthly payments
- 1% cash back on eligible purchases right away
- 2% - 10% cash back from select merchants
- $500 - $10,000 credit limits
- Variable APRs 12.99% - 26.99%
- Build credit alongside tens of thousands of Petal Card members
- Cash flow technology may help applicants without credit history get approved
- Petal's mobile app makes it easy to manage your money, track your spending, and automate payments
- See if you're pre-approved within minutes without impacting your credit score
- Petal reports to all 3 major credit bureaus
- No deposits required
- Card issued by WebBank, Member FDIC
Great for: Low security deposit
Capital One® Secured Mastercard®
Rating image, 4.5 out of 5 stars.
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.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.
What We Like About The Card
Build your credit responsibly with this top-of-the-line secured credit card. It 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
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
26.99%, variable
Welcome Bonus
N/A
Highlights
- No annual fee, and all the credit building benefits with responsible card use
- Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
- Access to an authorized bank account is required to make your $49, $99 or $200 refundable security deposit
- Make the minimum required security deposit and you'll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line
- Get access to a higher credit line after making your first 5 monthly payments on time with no additional deposit needed
- Easily manage your account 24/7 with online access, by phone or using our mobile app
- It's a credit card accepted at millions of locations worldwide
Capital One® Secured Mastercard® is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
Great for: No credit check
OpenSky® Secured Visa® Credit Card
Rating image, 4.0 out of 5 stars.
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.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.
Bottom Line
A good option for new to credit applicants. The fact that there's no credit check could justify the annual fee for some cardholders
Rewards
N/A
Annual Fee
$35
Intro APR
Purchases: N/A
Ongoing APR
17.39%, variable
Welcome Bonus
N/A
Highlights
- No credit check is great for building credit
- $35 annual fee
- $200 minimum security deposit
Great for: High potential credit limit
U.S. Bank Secured Visa® Card
Rating image, 4.0 out of 5 stars.
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.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.
Bottom Line
With a large credit line range for a secured card, this is a great choice. It also comes with rental car insurance and free access to your credit score.
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
25.99%, variable
Welcome Bonus
N/A
Highlights
- Credit limit ranges from $300-$5,000 based on deposit.
- The deposit is put in an FDIC-insured savings account that earns interest and won't be touched as long as your account remains open and in good standing.
- Car rental insurance available at no additional cost if you charge the car rental on your card and decline rental company's collision damage waiver option.
- Free TransUnion® Credit Score.
- You are not responsible for unauthorized transactions if your U.S. Bank Secured Visa Card is ever lost or stolen.
What to look for in a starter credit card
These are the features to look for in starter credit cards.
- No excessive fees: Beginner credit cards to build credit shouldn't be expensive, but some credit card companies charge all kinds of unnecessary fees. Ideally, your starter card won't have any unavoidable annual or monthly fees. The card issuer also shouldn't charge you for standard services, such as making purchases or paying your bill online.
- Reports payments to all three credit bureaus: The main credit bureaus are Equifax, Experian, and TransUnion. Each one collects information on you for a credit report, used to calculate your credit score. That means everyone has separate credit reports and scores with Equifax, Experian, and TransUnion. Since your credit score with each bureau is important, you need to build credit with all of them. For that, you need a credit card that reports your on-time payments to all three.
- Credit score monitoring: The best starter credit cards offer free credit score monitoring. With this service, you can review one of your credit scores monthly and see whether it's going up. Credit monitoring tools also usually provide tips on what you can do to increase your credit score.
How can I get a credit card with no credit?
If it's your first time getting a credit card, here's how to open one with no credit.
- Check out starter credit cards to build credit that fit your situation. If you're in college, student credit cards are a popular choice. If you have money saved and can afford a deposit, secured credit cards are worth a look.
- Decide which of these credit cards to build credit you like most, and click the "Apply Now" option on the card provider's website.
- Fill out the application form with the required information.
- Submit the application and wait for a response.
After you submit a credit card application, you may get an answer immediately. Sometimes, the card issuer may need more time to review your application. In that case, you usually get a response in the mail. You can also call the card issuer after a few days to see if there are any updates.
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 mails you a letter explaining why. You can call to ask that the decision get overturned. 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 specifically for the easiest credit card to get if you're having trouble getting approved.
What do I need to open a starter credit card?
The only requirement to open starter credit cards is consistent income. Your income is what the card issuer looks at to confirm that you'll be able to pay your credit card bill, and to determine an appropriate credit limit on your card.
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're allowed to report any income you can reasonably expect to access. Potential examples you could use when applying for credit cards to build credit include:
- A partner's income if you've combined finances
- Distributions from a trust fund
- An allowance
- Scholarships and grants
If you're under 21, you can use income from work, allowances, scholarships, and grants.
To open a secured credit card, you need to have 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.
How can a credit card help me build credit?
A credit card can help you build credit because it impacts three important factors in your credit score:
- Payment history: Your record of on-time and late payments on your credit file.
- Credit utilization ratio: The amount of your available credit that you use (for example, how close you are to maxing out your credit cards).
- Length of credit history: How long you've been using credit, and the average age of your credit card accounts.
Your payment history has the biggest effect on your credit. Starter credit cards make it easy to build your payment history. Every time you pay your credit card bill by the due date, the card issuer reports an on-time payment. As your record of on-time payments grows, your credit score gets better and better.
Your credit utilization ratio is simply all your credit card balances (what you owe) combined, then divided by your combined credit limits. For example, if your card has a credit limit of $1,000 and you have a $100 balance, your credit utilization is $100 (balance) /$1000 (limit) = 0.10 = 10%. The lower you keep this ratio the better (don't get close to maxing out your credit cards). If you have a credit card and you never carry a balance higher than 20% of your credit limit, that has a positive impact on your credit.
Your length of credit history is, obviously, something that you can develop only with time. By opening one of those credit cards for no credit, you can "start the clock" and begin building your credit history.
How to make the most of your starter credit card
Once you've found the best starter credit card for building credit, follow these tips to maximize its benefits.
- Stick to a budget. Don't spend more than you can afford: You don't want to end up with expensive credit card debt.
- Pay your bill on time -- and in full -- every month. By paying on time, you build your payment history and raise your credit score. And by paying in full, you avoid credit card interest charges.
- Never let your credit card balance exceed 20% of your credit limit. If your card has a $1,000 credit limit, never exceed a balance of $200. This keeps your credit utilization low and benefits your credit score.
- Check your credit score every month. If your credit card doesn't show you your score, there are several free ways to get your credit score. Your score should steadily rise as you use your card and pay on time.
- Wait until you have a good credit score of 670 or higher before applying for any new credit cards. Credit card applications can cause your credit score to drop a small amount. It's better to focus on building credit first, and waiting until you can qualify for the top credit cards to apply for a new one.
Credit cards to build credit are a must for people with no credit history. Your first time credit card no credit history is essential in starting your credit file. If you use it correctly, you should see your credit score improve dramatically within the next year.
| Card | Rating | Great For |
|---|---|---|
|
Rating image, 5.0 out of 5 stars.
|
Great For: Students |
|
|
Rating image, 5.0 out of 5 stars.
|
Great For: Secured card with rewards |
|
|
Rating image, 4.5 out of 5 stars.
|
Great For: Cash back rewards |
|
|
Rating image, 4.5 out of 5 stars.
|
Great For: Low security deposit |
|
|
OpenSky® Secured Visa® Credit Card 
|
Rating image, 4.0 out of 5 stars.
|
Great For: No credit check |
|
U.S. Bank Secured Visa® Card 
|
Rating image, 4.0 out of 5 stars.
|
Great For: High potential credit limit |
FAQs
-
The best starter credit card is that reports your payments to all three credit bureaus, allows you to monitor your credit score, and doesn't charge excessive fees. These three features will allow you to build credit from day one of using your credit card.
-
You can get secured credit cards with no credit, or student credit cards if you're in college. Credit cards with Petal are another option, as it offers cards for people with no credit history.
-
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.
About the Author
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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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 has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
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