6 Best Credit Cards When You Have No Credit

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August 03, 2023

6 Best Credit Cards When You Have No Credit

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Building credit is one of those catch-22 scenarios in life — your credit isn’t considered strong unless you have a good score and history, but you can’t build your score if you don’t have access to credit. While this is a bit of a conundrum, it’s not impossible to overcome.

It’s also true the best credit cards are typically reserved for those with good or excellent credit scores. Cards with valuable rewards programs and perks such as statement credits on your card anniversary or added consumer protections are examples of cards that give you more for your money. You may aspire to have a credit card like this one day, but there are also plenty of options for those who aren’t quite there yet and have limited or no credit history.

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Overview of best credit cards for those with no credit history

Credit card	Best for…
Discover it® Secured Credit Card	Lucrative cash-back rewards program
Petal 2 Cash Back, No Fees Visa Credit Card	No fees, including late fees
Capital One Platinum Secured Credit Card	Low security deposit threshold
OpenSky Secured Visa Credit Card	Qualifying without a credit check
Chase Freedom® Student credit card	Student card with a welcome offer
Discover it® Student Cash Back	No security deposit

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Best credit cards for those with no credit history

Here are a handful of credit cards designed for those with a limited credit profile.

1. Discover it® Secured Credit Card

The Discover it® Secured Credit Card stands out because it’s a secured card option, which means you put down at least a $200 security deposit to establish a credit line. The best part is it’s designed for people who don’t have any credit history, making it a great choice for establishing a credit profile and credit score.

Cardholders may be even more surprised to learn this card has a handsome cash-back rewards program – a rarity among secured credit cards. You earn 2% cash back on gas station and restaurant purchases (up to $1,000 combined each quarter), plus an unlimited 1% on all other purchases.

Pros and cons

Pros

No annual fee
Free FICO score reporting
Your credit line is automatically reviewed after 7 months
Up to 2% cash back on purchases and a cash-back match the first year

Cons

Higher variable APR
Your available credit is equal to the amount you put down ($200 minimum)

Read a full review of Discover it® Secured Credit Card.

2. Petal 2 Cash Back, No Fees Visa Credit Card

The Petal 2 Cash Back, No Fees Visa Credit Card offers a chance for anyone trying to build their credit to get established without the hassle of expensive fees. If approved, you start with a minimum of a $300 credit line. From there, you can earn cash back on eligible purchases of up to 1.5%.

You can also enjoy free credit score monitoring from the card’s app, which is ideal for anyone focused on credit-building. Plus, if you suspect any fraudulent activity, you can immediately freeze your card and take quick action through Petal.

Pros and cons

Pros

No fees, including annual, foreign transaction, or late fees
Cash back rewards program, up to 1.5% cash back rate on eligible purchases
Credit line of at least $300

Cons

Cash back rewards are available only from select merchants
Higher interest rates
No welcome bonus

Read a full review on the Petal 2 Cash Back, No Fees Visa Credit Card.

3. Capital One Platinum Secured Credit Card

The Capital One Platinum Secured Credit Card is a great option for someone who wants to establish credit without putting down a major security deposit. Although the card requires a $49 security deposit for a $200 credit line, this is much lower than many other secured credit card options. If you want a higher credit line of up to $1,000, you may qualify for it if you put down a higher initial deposit.

You’ll enjoy other benefits, too, such as no annual fee and no foreign transaction fees, which makes it a smart option if you need to pay for purchases when traveling outside of the country. Once you establish on-time payments and credit, you may be eligible to upgrade to another Capital One credit card.

Pros and cons

Pros

No annual fee
Reports to all three credit bureaus, so you can establish credit quickly
Lower initial security deposit of $49

Cons

No rewards program
Interest rate on the higher side

Read a full review of Capital One Credit Cards.

4. OpenSky Secured Visa Credit Card

If you anticipate carrying a balance on your credit card, you want to look for one offering the most competitive interest rate possible. The OpenSky Secured Visa Credit Card offers a lower rate than most other secured cards, currently at 21.64%. However, it does have other fees that increase the overall cost of the card, including a $35 annual fee and a 3% foreign transaction fee if you make a purchase overseas.

Because this card is a Visa, you enjoy numerous Visa benefits, including $0 fraud liability, 24/7 pay-per-use roadside dispatch, and identity theft monitoring.

Pros and cons

Pros

It’s possible to qualify for the card without a credit check
Interest rate is on the lower side (currently 21.64%)
Higher line of credit available of up to $3,000

Cons

No introductory APRs on purchases or balance transfers
No rewards program or welcome bonus
$35 annual fee

Read a full review of OpenSky Secured Credit Card.

5. Chase Freedom® Student credit card

The Chase Freedom® Student credit card is designed with students in mind who have a limited credit history. Student credit cards are an excellent way for young adults to establish credit and this card is no exception. It has no annual fee, a cash-back rewards program, and with on-time payments, you may qualify for a higher-tier Chase card after the first year.

Another bonus with this card is the welcome offer, which isn’t often found with student credit cards. You can qualify for a $50 bonus after your first purchase within the first three months of account opening. Do watch out for foreign transaction fees with this card, though, so if you need a card for studying abroad, you might want to consider another option.

Pros and cons

Pros

1% cash back on all purchases
No annual fee
An unsecured credit card option

Cons

Foreign transaction fees
No introductory APR or balance transfer offers

Read a full review of Chase Credit Cards.

6. Discover it® Student Cash Back

Another option aimed at helping students build credit is the Discover it® Student Cash Back credit card. This card includes a top-notch cash-back rewards program. You earn 5% on bonus cash back on activated rotating bonus categories (up to $1,500 per quarter), plus 1% cash back on all other purchases, making it one of the highest reward rates among student credit cards.

Another major benefit of this card is the 0% introductory APR for the first six months on purchases, which helps you plan if you anticipate a large purchase. The balance transfer rate of 10.99% for the first six months is another benefit worth mentioning if you have a balance on another higher-interest credit card.

Pros and cons

Pros

Strong cash back rewards rate with bonus categories
Cash back match at the end of your first year
No fees, including annual, foreign transactions, or a late payment fee on your first late payment
0% introductory APR for the first six months on purchases

Cons

The rotating categories and bonus categories may be hard to keep track of
No purchase or travel protection benefits

Read a full review on Discover Credit Cards.

The Credit Pros

Increase Your Credit Score (And Get Your 3 Bureau Reports Free!)

FREE "Certified Credit Repair Specialist" Consultation
90 Day Money Back Guarantee
Takes Less Than 2 Minutes To Sign Up

Increase Your Credit Score (And Get Your 3 Bureau Reports Free!)

Summary of best credit cards for those with no credit history

Card	Security deposit required	Secured or unsecured option	Rewards program available
Discover it® Secured Credit Card	Yes, $200	Secured	Up to 2% cash back
Petal 2 Cash Back, No Fees Visa Credit Card	No	Unsecured	Up to 1.5% cash back
Capital One Platinum Secured Credit Card	Yes, $49	Secured	None
OpenSky Secured Visa Credit Card	Yes, $200	Secured	None
Chase Freedom® Student credit card	No	Unsecured	1% cash back
Discover it® Student Cash Back	No	Unsecured	Up to 5% cash back

FAQs

Is it better to have a secured credit card or unsecured?

While an unsecured credit card is better for consumers because you’re not required to put any money down to establish a credit line, a secured credit card could be better for your finances. If you’re trying to establish credit then you’ll have better odds of approval with a secured credit card. An unsecured credit card usually comes with extra benefits too, such as rewards programs and lower interest rates.

What factors make up your credit score?

There are several factors that determine your credit score and creditworthiness and each scoring model from the three credit bureaus calculates the score slightly differently. In general, the following make up the score: Percentage of on-time payments you make each month; amount of debt you owe (your credit utilization ratio); length of your credit history; how often you apply for new credit; and credit mix, including how many revolving accounts and installment loans you have.

Is no credit the same as bad credit?

No, having no credit is not the same as bad credit. Someone with no credit is someone who is just starting out on their credit journey and has yet to take out any installment loans or revolving credit. Someone with a bad credit rating means they’ve received negative marks on their credit score, perhaps from missed or late payments or collections.

The Credit Pros

Increase Your Credit Score (And Get Your 3 Bureau Reports Free!)

FREE "Certified Credit Repair Specialist" Consultation
90 Day Money Back Guarantee
Takes Less Than 2 Minutes To Sign Up

Increase Your Credit Score (And Get Your 3 Bureau Reports Free!)

The bottom line

Building credit takes time, but any of these credit cards listed above can assist you in getting – and staying – on the right credit journey. If you have no credit history or a limited one, you may find it difficult to qualify for credit cards loaded with perks and rewards. However, you still have plenty of options for your main goal of building credit.

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Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.

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