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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.
Great for: Students
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
Credit Rating Requirement:
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
Great for: Secured card with rewards
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
Credit Rating Requirement:
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
Great for: Cash back rewards
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
Credit Rating Requirement:
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
Great for: Low security deposit
Capital One® Secured Mastercard®
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
Credit Rating Requirement:
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
Great for: No credit check
OpenSky® Secured Visa® Credit Card
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
Credit Rating Requirement:
Rewards
N/A
Annual Fee
$35
Intro APR
Purchases: N/A
Ongoing APR
17.39%, variable
Welcome Bonus
N/A
Highlights
Great for: High potential credit limit
U.S. Bank Secured Visa® Card
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.
Credit Rating Requirement:
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
These are the features to look for in starter credit cards.
If it's your first time getting a credit card, here's how to open one with no credit.
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.
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:
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.
A credit card can help you build credit because it impacts three important factors in your credit score:
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.
Once you've found the best starter credit card for building credit, follow these tips to maximize its benefits.
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.
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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.
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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 |
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.
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