Best Credit Cards for No Credit History in September 2024 | Bankrate (2024)

If you haven’t had an active credit account that reports to one of the credit bureaus (Experian, TransUnion or Equifax), then you don’t have a credit history. Credit cards are a common tool—typically everyone’s first tool—for building credit, but mortgages and car loans can also establish a credit history.

Why your credit score matters

Most credit cards and loans have credit score requirements for qualification. If you have no credit history, you won’t be able to qualify for many credit cards, including some of the most valuable rewards cards.

Having no credit score may also restrict you from qualifying for several other types of loans, including car loans and mortgages. Before lenders are willing to work with you, they want to know that you’re a reliable borrower who pays off your loans regularly and on time.

If you don’t have a credit history, your credit card choices are more limited than if you have fair credit, which is already restrictive. Here’s some expert advice to help you choose a secured card or another credit-building card that can steer you toward your ultimate financial goals.

How to choose a card for no credit

Here are some tips to help you find the right card when you have no credit.

1. Review the application requirements. Some cards for no credit history don’t require a credit check or use other means to determine creditworthiness, such as rent payments and financial history. Some also don’t require a Social Security number to apply, but you’ll need to provide some basic information to verify your identity.
2. Understand the costs and fees. When you’re focused on building your credit score, you don’t want to risk additional costs that might cause you to carry a balance. It’s par for the course, but secured credit cards require an upfront security deposit that the issuer uses as collateral if you default on payments. If you don’t want a security deposit, consider an unsecured card for building credit.
3. Look for additional credit-building features. Opportunities for credit line increases and a security deposit refund are some of the best features to look for. And some issuers let you upgrade to an unsecured card with a potentially higher credit limit once you've established a positive payment history.
4. Check for preapproval. A hard inquiry will temporarily lower your credit score, but prequalified offers can help you choose a card you’re more likely to qualify for without risking your credit score. You can also use Bankrate's CardMatch™ to get personalized card recommendations and see your approval odds.

How to use a credit card for no credit

Once you’ve decided which option is best for you, here are a few tips from our experts on how to get the most out of your new card during your credit-building journey.

• Make building credit a priority. While some cards offer rewards, be careful not to spend beyond your means since repairing credit after making mistakes can be a longer, tougher road than establishing a healthy credit profile in the first place.
• Limit your applications. You want to present yourself as a stable applicant, and applying for multiple cards in a short period of time could signal to lenders that you want more credit than you can responsibly handle, and multiple hard credit checks can add up and temporarily lower your credit score.
• Follow standard credit card best practices. There are several credit card best practices that will help you build credit and avoid credit card fees or interest. These are especially useful for new credit users as they establish positive credit habits that are relevant even as you qualify for higher-caliber cards.
• Be patient. Start with one card and make small purchases, pay them off immediately and set up payment reminders so you never miss your bill due date. Typically, it takes six months to have a valid FICO score, but the goal is to establish life-long, effective credit practices.

Discover and Chase cards are popular among Reddit users in the r/CreditCards subreddit, with several people praising the Discover it® Secured Credit Card and Chase Freedom® Rise℠ Card for their generous rewards and low cost. Users also pointed to cards like the Capital One Platinum Secured Credit Card as well as various student cards as options for people with limited credit history.

“Chase Freedom Rise is my pick. To what others have said, it’s an unsecured credit builder card without any real disadvantages when compared to ‘normal’ cards. This can also be useful for you down the road, since you can establish a relationship with Chase, and Chase has some of the best rewards cards on the market. It also offers a good product change path, as the [Chase Freedom Flex℠ and Chase Freedom Unlimited®] are both fantastic cards to have.”

— Reddit user*

Learn more:How expert Ana Staples built her credit with cards

“Rather than thinking of your lack of credit history as a negative, think of it as a blank slate. You’re unproven to most lenders, which means that while you may not qualify for some of those juicy high-earning rewards cards, you still have a variety of credit-building options available through most issuers.

And if you don’t feel comfortable managing your own credit card just yet, you can do what I did: ask to become an authorized user on a trusted family member’s credit card. This lets both of you benefit from the main accountholder’s credit habits but frees you from managing payments. Once your score improves and you become more comfortable with how a credit card works, you can apply for a card in your own name.”

— Steve Dashiell, Editor, Credit Cards

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Be sure to check the issuer's website/terms and conditions for all up to date content. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

Our data: Is bad credit better than no credit?

When evaluating the best cards available with a limited credit history, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that make it easy to build credit history while keeping costs low.

We analyzed over 50 of the most popular cards designed for people with a limited credit history and rated each based on its cost, APR, credit-building features and more to determine whether it belonged in this month’s roundup.

Here are some of the key factors that we considered:

Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Steven Dashiell is an editor for Bankrate and CreditCards.com with expertise in rewards credit cards, financial literacy, and helping consumers build and maintain their credit.

Courtney Mihocik is an editor at Bankrate Credit Cards and CreditCards.com specializing in credit card news and personal finance advice. Previously, she led insurance content at…