Best Credit Card for Someone with No Credit History

When you’re starting out with no credit history, finding a suitable credit card can be a bit challenging. Here are some types of credit cards often recommended for beginners:

  1. Secured Credit Cards: These require a deposit that typically serves as your credit limit. They’re a great tool for building credit, as they often report to the three major credit bureaus.
  2. Student Credit Cards: If you’re a student, these cards are tailored for you. They often have lower credit requirements and might offer rewards like cash back on purchases.
  3. Store Credit Cards: These are often easier to get than regular credit cards but are limited to use in a specific store or group of stores.
  4. Credit Builder Loans: While not a credit card, credit builder loans are a way to build credit. You make payments to a loan that you receive at the end of the term.
  5. Authorized User Status: Becoming an authorized user on someone else’s credit card (like a parent) can help you build credit.
  6. Starter Credit Cards: These cards are specifically designed for people with no credit history. They typically have low credit limits and straightforward terms.

Secured credit cards:

  • Capital One Platinum Secured Mastercard: This card requires a security deposit that matches your credit limit, but it offers no annual fee and has a low minimum deposit of $200. It also earns 1% cash back on all purchases and 2% back on gas and groceries.
  • Discover it® Secured Credit Card: This card also requires a security deposit, but it offers a $20 cashback bonus after your first six months of on-time payments. It also earns 1% cash back on all purchases and 2% back at gas stations and restaurants on up to $1,000 in purchases per quarter.
Milestone® Mastercard®
Milestone® Mastercard®
  • Greater access to credit than before – $700 credit limit
  • Get a Mastercard accepted online, in store and in app
  • Account history is reported to the three major credit bureaus in the U.S.
  • $0 liability* for unauthorized use
  • Access your account online or from your mobile device 24/7
  • *Fraud protection provided by Mastercard Zero Liability Protection. If approved, you’ll receive the Mastercard Guide to Benefits that details the complete terms with your card.
Apply Online – Click Here
Purchase APR Rate: See terms – Annual Fee: See terms – Credit Needed: Fair/Good – Foreign Transaction Fee: 1% of each transaction in U.S. dollars.

Unsecured credit cards for limited credit:

  • Milestone Mastercard℠: Milestone Mastercard and Destiny Mastercard are targeted towards individuals with poor or limited credit history. It provides an opportunity to start building credit. With a starting credit limit of $700.
  • Capital One Quicksilver Mastercard: This card has a $35 annual fee, but it offers unlimited 1.5% cash back on all purchases. It’s a good option for people who want a simple cash back card with no spending categories or restrictions.
  • Destiny Mastercard: Destiny offer a pathway to credit building for individuals with limited options due to their credit history.
Destiny Mastercard®
Destiny Mastercard®
  • All the benefits of a Mastercard, without a security deposit
  • 24/7 access to your account, even on mobile!
  • Reports to all three major credit bureaus
  • Less than perfect credit is okay, even with a prior bankruptcy!
Apply Online – Click Here
Purchase APR Rate: See terms – Annual Fee: See terms – Credit Needed: Poor to Good – Foreign Transaction Fee: 1% of each transaction in U.S. dollars.

Student credit cards:

  • Discover it® Student Cash Back: This card offers a $20 cashback bonus after your first six months of on-time payments. It also earns 5% cash back on up to $1,500 in purchases in rotating categories each quarter, 1% cash back on all other purchases, and no annual fee.
  • Capital One Quicksilver Student Mastercard: This card has no annual fee and offers a 1.5% cash back on all purchases. Build your credit with responsible card use.

No matter which card you choose, it’s important to use it responsibly and pay your bills on time in full each month. This will help you build a strong credit history and qualify for better credit cards in the future.

Here are some additional tips for choosing a credit card with no credit history:

  • Start with a low credit limit. This will help you avoid overspending and getting into debt.
  • Look for a card with no annual fee. There’s no need to pay an extra fee just to build your credit.
  • Read the fine print. Make sure you understand the card’s terms and conditions before you apply.
  • Monitor your credit score. Keep an eye on your credit score and make sure it’s improving over time.

Remember, when you’re choosing a credit card, it’s important to look at the fees, interest rates, and whether the card reports to the credit bureaus. Also, always ensure to make payments on time and keep your balances low to build a good credit history.

What Users from Reddit Suggest for Beginner Credit Cards

One key piece of advice from the Reddit community highlights the importance of starting with well-known and beginner-friendly credit card issuers. Particularly, Capital One and Discover are frequently recommended for their user-friendly approach to new credit users. Also they have pre-qualification pages where you can find out if you could be approved without a ding to your credit.

Capital One: A Great Starting Point

Capital One offers a range of cards that are ideal for those just beginning their credit journey. The Capital One Platinum Secured Credit Card stands out as a viable option. This card requires a security deposit but is known for its lower deposit requirements and the opportunity to get a higher credit line after making the first five monthly payments on time. Another attractive feature is the Capital One pre-approval site, which allows potential applicants to check their eligibility for various cards without impacting their credit score.

Discover: Rewards and Flexibility

Similarly, Discover is celebrated for its Discover it® Secured Credit Card, which not only helps build credit but also offers cash-back rewards – a rare find in secured cards. The card has no annual fee and provides an upgrade path to an unsecured card, making it a great tool for credit beginners. However, a note of caution from Reddit users: while Discover cards don’t carry foreign transaction fees, they might face acceptance issues abroad. Hence, it’s wise to have cash or a backup payment method when traveling internationally.

Here are some more honorable mentions:

  1. Chase Freedom® Student Credit Card: A good option for students, offering cash back rewards without an annual fee, and providing credit limit increases after five months of on-time payments.
  2. Citi® Secured Mastercard®: This card requires a security deposit but comes with no annual fee. It’s a solid option for building credit history.
  3. Petal® 2 “Cash Back, No Fees” Visa® Credit Card: This card is aimed at those with no credit history and offers cash back rewards. It doesn’t require a security deposit and has no annual fee.
  4. Bank of America® Customized Cash Rewards Credit Card for Students: A student card that offers cash back in categories of your choice, with no annual fee.

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