Best credit cards for limited credit history 2024: Editorial reviews
Our Top Pick - Secured
For a secured card, the Capital One Quicksilver Secured Cash Rewards Credit Card holds up quite well against the competition. With 1.5% cash back on everything and 5% back on eligible travel purchases, along with no annual fee, its reward rate is comparable to some of the best credit cards out there. If you can fund the minimum $200 for a security deposit, this credit card could make a worthy addition to any wallet.
Best for Students with No Credit - Unsecured
If you’re a student with limited credit, the Capital One SavorOne Student Cash Rewards Credit Card could offer you a way to earn generous rewards on your purchases. It offers 3% back in some of the categories students spend the most: dining, entertainment, grocery stores, and streaming services, and even offers 1% back on other purchases that are not in those categories. If you’re already spending money on those things, why not earn cashback?
Capital One SavorOne Student card review
Best for Building Credit with Savings - Secured
If you don’t qualify for many cards because funding a $200+ security deposit makes your head spin and you don’t have enough credit history for an unsecured card, the Self-Credit Builder Account with Secured Visa® Credit Card could provide an alternative. With Self, there are three components: a loan, a certificate of deposit, and a credit card. First, you open a Self Credit Builder Account, which is a secured installment loan. Then, you make small monthly payments to fund a certificate of deposit (CD), which earns interest. After successfully saving $100 or more in your CD and making at least 3 monthly payments on time, you could be eligible for the secured credit card. It may sound a bit confusing, but it provides a way for you to effectively build your credit without needing a credit check or to fund a large security deposit.
Self Credit Builder Card review
Best for a Flexible Deposit - Secured
The Chime Credit Builder Secured Visa® Credit Card offers another non-traditional way for users to build credit. First, you need to open a Chime Checking Account and receive a qualifying direct deposit of $200 or more. Once they receive that $200 deposit, you can apply for the secured Chime Credit Builder Visa®. The way it’s different than a traditional credit card is that it works similarly to a prepaid card; you add money from your checking account to your Chime account, and then you can spend that money until your card balance gets to $0, then rinse and repeat. It doesn’t require a credit check either, has no annual fee, and reports to all 3 credit bureaus, so it could be a unique way to build or rebuild your credit.
Chime Credit Builder review
Best for Cash Back - Unsecured
If you’re set on getting an unsecured card but have limited credit, the Capital One QuicksilverOne Cash Rewards Credit Card could be just what you’re looking for. It offers unlimited 1.5% cash back on all purchases, much like the other Quicksilver cards, but unlike them, it doesn’t offer an elevated rate on eligible travel purchases. It also charges a $39 annual fee and you may end up with a low credit line (as low as $300), so you might be better off with the secured counterpart until you can qualify for something even better.
Capital One QuicksilverOne review
Best for Simple Credit Building - Unsecured
The Capital One Platinum Credit Card is another unsecured option for users looking to build their credit. It doesn’t earn rewards and has a high APR but it also has no annual fee. It’s pretty basic overall, but it can certainly do its job of helping you to build credit with responsible use.
Capital One Platinum review
Best for No Credit Check - Secured
Many credit cards for limited credit still require you to have some credit history, which can be frustrating when you’re just starting out. The OpenSky Secured Credit Card boasts a very high approval rating and doesn’t require a credit check or bank account, so you have a pretty good chance of qualifying for it even with no credit. It does have a $35 annual fee, but when your options are limited, something is still better than nothing.
OpenSky Secured Visa review
Best for Low APR - Secured
Credit cards for bad or limited credit have notoriously high APRs, so if you tend to carry a balance, you’ll end up paying way more in the long run. While we never recommend carrying a balance, sometimes it’s inevitable. With a variable APR of as low as 14.49%, the First Progress Platinum Prestige Mastercard® Secured Credit Card can help you keep interest charges low while you build credit.
Why does credit history matter?
Your credit score and history show lenders whether you are trustworthy with your money, like if you’re likely to pay your bills on time. This helps them determine if they’re willing to take the risk of loaning you money.
Your credit history starts the second you open a credit card or take out a loan, and it will then continue to grow with new account openings.
Having a credit history can make a big difference in your credit score. Creditors look for two main things: how long you’ve been using credit and the type of credit. The length of your credit history accounts for 15% of your FICO score, while a mix of your credit accounts makes up 10%.
The chart below shows what factors go into determining your credit score.
How long you’ve had your accounts open can directly impact your credit score. While it’s true that it may not be the most important factor when scoring your credit, having a long history of keeping up with cards and loans can make you more trustworthy when borrowing money.
Credit scoring agencies get the information they need to analyze your credit report from the three main national credit reporting companies: TransUnion, Experian, and Equifax. The detailed record of your financial history is called your credit report.
Who should get a credit card for no credit?
There are a variety of reasons someone may benefit from a credit card for no credit. Credit cards are a big responsibility, though, so it’s important to understand how credit cards work before committing to your first card.
Students & young adults
College is a great time for students to begin building their credit history, and there are a variety of credit cards to help them do just that. Read more in our guide to the best student credit cards.
Young adults who aren’t in college should also look to start building their credit history to help benefit their future. Note, however, that you must be 18 or older to become a primary credit account holder, and if you’re under 21, you need to either show proof of independent income or have a co-signer.
Immigrants
If you’ve recently immigrated to the United States, you may want to start building a credit history as soon as possible. This will help you have a better chance of approval when looking to rent or purchase a home, borrow money, etc.
Credit beginners
It’s never too late to start building a credit history and it’s actually easier to build a positive history from the ground up than it is to fix a bad credit score. Make sure you understand how credit cards work, what different terms mean, and how to keep your credit score high so you don’t end up needing to repair your score with a credit card for bad credit.
Establishing your credit history
You shouldn’t wait until you need to be approved for a home, car, or loan to consider your credit history. However, starting can be tricky. How can you prove that you are a responsible card owner if you don’t qualify for most credit cards? Fortunately, starter cards are meant for this!
Here are some tips as you’re starting to establish credit:
- Pay off your credit in full every month. This will help keep your interest rates low and FICO score high. Also, remember, you only pay interest if you carry a balance!
- Never let your balance exceed 30% of your available credit (learn more about your credit utilization ratio).
- Make sure your new card reports to all 3 major credit bureaus (Experian, Equifax and TransUnion)
- Keep an eye on your credit score and reports to make sure they stay in good shape.
- If you can’t get your own credit card yet, become an authorized card user by having a family member who has good credit add you to their account. Doing this allows you to build your credit and access a line of credit.
Establishing credit is a marathon, not a sprint, so it’s good to start as soon as you can so you can enjoy the rewards.
What to look for in a first credit card
Those new to credit likely won’t be eligible for top-rated credit cards with hefty rewards, large sign-up bonuses, or the lowest interest rates. However, you can work your way up as you secure your credit history.
Your first credit card for no credit may be geared toward people with no history or low credit scores. However, some cards still provide rewards, no annual fees, and can be some of the easiest credit cards to get with no credit.
Things you should look for may include:
Applying for your first credit card with no credit
Established credit is an important factor when applying for a card.
If you don’t have any credit history, your options can be limited. Your credit history won’t necessarily prevent you from being able to get a card, but it will impact the cards that are available to you.
That is what starter credit cards are for! You can use a limited credit card to build credit and ultimately raise your credit score.
When you first apply for a starter card, you may need certain information, depending on the card lender:
- Your name
- Your birthdate
- Social security number
- Evidence of income (this doesn’t necessarily have to be a job. If you have investments or a spouse’s income, these could qualify)
- Proof of rent or housing
Some credit cards will need more information, and some starter cards will accept less.
Make sure you don’t apply for too many cards, as credit card applications lead to a hard inquiry on your credit report, which can temporarily damage your credit score.
Tools like CardMatch or pre-approval tools from individual issuers can help you know your chances of being approved for certain cards.
How we selected our top cards
Credit cards for no credit can are designed to get you in good standing. If you don’t have any history of credit, there are certain features you should look for to help manage your spending and establish credit.
We looked for cards with no annual fee, easy qualification standards, and lenders who report your monthly payments and credit limit to all three credit bureaus. Building credit works best to improve your score across the board, and not everyone reports to credit bureaus, so it is a good feature to look for in credit cards to build credit.
Additionally, we look at interest rates. Starter cards have notoriously high variable interest rates, but if you aren’t planning on exceeding your limit and know to pay your balance in full, this may not be a big deal.
Finally, we look at reward rates, which can be limited in this selection. However, they exist and can greatly benefit you if you make combined purchases. You can often redeem rewards for a statement credit, cash-back, gift cards, travel points, and more.
Learn more about credit cards
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