The Ultimate Guide to Credit Cards
Thursday, July 18, 2024

Best Credit Cards for No/Limited Credit

John Ulzheimer

By: John Ulzheimer

John Ulzheimer
John Ulzheimer

John Ulzheimer is an expert on credit reporting, credit scoring, and identity theft. The author of four books on the subject, Ulzheimer has been featured thousands of times in media outlets including the Wall Street Journal, NBC Nightly News, New York Times, CNBC, and countless others. With over 30 years of credit-related professional experience, including with both Equifax and FICO, Ulzheimer is the only recognized credit expert who actually comes from the credit industry. He has been an expert witness in over 600 credit-related lawsuits and has been qualified to testify in both federal and state courts on the topic of consumer credit. In his hometown of Atlanta, Ulzheimer is a frequent guest lecturer at the University of Georgia and Emory University's School of Law.

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Editor: Lillian Guevara-Castro

Lillian Guevara-Castro
Lillian Guevara-Castro

Lillian Guevara-Castro brings more than 30 years of editing and journalism experience to the CardRates team. She has written and edited for major news organizations, including The Atlanta Journal-Constitution and the New York Times, and she previously served as an adjunct journalism instructor at the University of Florida. Today, Lillian edits all CardRates content for clarity, accuracy, and reader engagement.

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Reviewer: Ashley Fricker

Ashley Fricker
Ashley Fricker

Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.

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Below are our picks for 2024's best credit cards for people with no credit or limited credit. These cards offer competitive rates for those who lack a well-established credit history.

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All Results | 0% Intro APR | Cash Back | Secured | Student

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Review Breakdown: Cards for No Credit

Finding the right credit card can be tricky, especially for those with limited options due to their lack of credit history. Below is a summary table of the top credit cards for people with no credit history, including students and other first-time applicants who have limited or no experience with credit.

Here are 2024's best credit cards for people with no credit:

Credit Cards For No Credit
Rank Card Name Feature Annual Fee Expert Rating
1 Capital One Platinum Credit Card No/Limited Credit $0 ★★★★★ 4.7 See our review See rates & fees
2 Secured Chime Credit Builder Visa® Credit Card No/Limited Credit $0 ★★★★★ 4.7 See our review
3 Capital One Quicksilver Student Cash Rewards Credit Card 1.5% cash back $0 ★★★★★ 4.7 See our review See rates & fees
4 Discover it® Secured Credit Card 1% cash back $0 ★★★★★ 4.7 See our review See rates & fees
5 Discover it® Student Cash Back 0% intro APR on purchases $0 ★★★★★ 4.6 See our review See rates & fees
6 Capital One QuicksilverOne Cash Rewards Credit Card 1.5% cash back $39 ★★★★★ 4.6 See our review See rates & fees
7 Discover it® Student Chrome 0% intro APR on purchases $0 ★★★★★ 4.6 See our review See rates & fees

16 FAQs About Credit Cards for No Credit History

John Ulzheimer
By: John Ulzheimer
Credit Expert
16 FAQs About Credit Cards for No Credit History Guide: No Credit

Opening one of the best credit cards for no credit and using it responsibly can be a great way to establish and build credit. However, when you have little to no credit history to begin with, it can be challenging to find a lender who is willing to take a chance on you.

Challenging, however, doesn’t mean impossible. You can typically find credit cards you can qualify for with limited credit history, or even no credit history at all. You simply need to know where to look and how to prepare in advance.

1. What Does it Mean to Have No Credit?

To have no credit means you’re among one of the estimated 45 million people living in America who are “unscorable” or “credit invisible.”

According to the Consumer Financial Protection Bureau, that means you do not have a credit history with one of the nationwide credit reporting companies or lack sufficient credit history to produce a credit score. When a lender goes to perform a credit check on you, there is no recorded credit history for them to make an informed lending decision.

This may describe you if you’re a young adult new to credit — the most common reason to have no credit — or a recent immigrant without a Social Security number. In either case, financial products are available that can help you begin your credit building journey, including a starter credit card or credit builder account.

When you’re approved for a loan or line of credit, your new account information is reported to at least one of the three major credit bureaus — Experian, Equifax, and TransUnion. You’ll develop a credit score when your new account is first reported to the credit bureau, which may take up to six months, but should happen sooner.

No credit is sometimes confused with bad credit, but the two are very different. Bad credit is the result of a history of financial missteps, including late payments, maxed-out credit cards, or bankruptcy. No credit means you’re a blank slate, and you’re an unknown credit risk for lenders.

You won’t qualify for the best financial products and services with the lowest rates and fees, but nor should you settle for the high rates and fees associated with loan and credit cards for poor credit applicants.

2. Can You Qualify for a Credit Card with No Credit History?

Yes, it may be possible to qualify for a credit card with no credit history. Some credit card issuers even develop and market products that are designed for consumers who need to build or even rebuild their credit history.

Should You Get an Unsecured or Secured Card?

Of course, with no credit or limited credit, you’re highly unlikely to qualify for the most attractive credit card offers on the market. That being said, you can use your first credit card account to help you start building credit.

If you manage your new account or accounts properly, you will establish credit and be able to leverage it for the future, and eventually, you may be in the position to qualify for more coveted credit card offers, like the ones named after precious metals.

As a credit newbie, you will be better off searching for credit card offers designed for your specific situation. Don’t look for the “excellent credit required” credit card options, as you’ll likely be turned down if you apply for such offers.

Rather, look for “no credit required” or “limited credit required” credit card offers, depending on which definition fits you the best. If you’re a student, you may qualify for an attractive student credit card, such as the Chase Freedom Student Credit Card. A good starter credit card may not have rewards, but shouldn’t charge you an arm and a leg for the convenience of credit, either.

Secured credit cards can often be a great option when you have no credit history or a limited credit history. If you search for the easiest credit card to get, a secured card will likely be the option presented to you.

Because you are required to make a deposit with the issuing bank when opening a secured card, the account represents a much lower risk to the lender. As a result, the issuer is more willing to take a chance on doing business with you, even if you are still a credit unknown.

Your deposit is fully refundable, and it will be returned to you when you close your credit card account in good standing. Defaulting on your account will result in your account being closed and your deposit being used to pay your outstanding balance. If you owe more than your deposit can cover, you will be required to pay the difference.

It is a mistake to assume that you have no credit history without first checking your three credit reports. You’d be surprised what can end up on your credit reports without your knowledge.

Federal law allows you to claim a free copy of all three of your credit reports from Equifax, TransUnion, and Experian once every 12 months. To exercise this right, visit

3. How Much Credit History Do You Need to Have a Credit Score?

Believe it or not, everyone does not have a credit score. When it comes to credit scores, your reports must first be eligible or qualified before you can receive one.

How do you become eligible to receive a credit score? What are the minimum requirements?

The answers to these questions depend on which credit scoring model a lender is using to generate your credit score. Each credit scoring model has its own set of rules.

To be eligible for a FICO credit score, your credit report must meet the following minimum requirements:

  • Your credit report must contain at least one undisputed account (not including third-party collections or public records) that has been open for six months or longer AND
  • Your credit report must contain at least one undisputed account that has been updated within the past six months AND
  • Your credit report cannot have any indication that you are deceased

VantageScore has different minimum criteria for credit scores that are easier to satisfy. To be eligible for a valid VantageScore credit score, your credit report must meet the following minimum criteria:

  • Your credit report must have at least one qualified tradeline (aka account) AND
  • Your credit report cannot have any indication that you are deceased

You can satisfy the minimum scoring criteria of both scoring systems with a single account or with multiple accounts. For example, if you have an American Express account that is five years old, was updated last month, and you’re not dead, your credit report will qualify for FICO and VantageScore credit scores.

4. How Can a Credit Card Help You Establish and Build Credit?

When you qualify for a credit card, the credit card company will typically send your account information to each major credit bureau every month. This update will contain information like your statement balance, your payment status, and your credit limit. Once the credit bureaus receive this information, the account will be added to your credit reports.

Your credit card account can help you establish and build credit because it has a direct influence over several of the factors that determine your credit scores. For example, a credit card can potentially have a positive impact on the following:

  • The Payment History category of your credit reports, which is worth 35% of your credit score points. Make your payments on time every month and your credit scores will be well on their way to 850.
  • The Amounts Owed category of your credit reports, otherwise known as your credit utilization, is worth 30% of your credit score points. Maintain low credit card balances or pay them down before your statement is issued. This will help you to maintain as low a utilization ratio as possible, which is an important component in your credit scores.
  • The Age of Credit category of your credit reports, which is worth about 15% of your credit score points. As your credit card account ages, the overall average age of accounts on your credit reports will increase. This will help your credit scores improve over time, albeit little by little.

Sometimes what’s good for your credit scores can also be bad for your credit scores. While opening and properly managing a credit card can certainly help in the long run, it can also lower your scores in the short term.

When you apply for a new credit card, the card issuer will pull at least one of your credit reports, which will result in a credit inquiry being posted to that credit report. Credit inquiries can lower your credit scores, albeit only slightly and for no longer than 12 months.

It’s certainly not a reason to avoid applying for a card, but you should at least be cognizant of this scoring issue.

5. Why is Your Credit History Important?

Your credit history is important because of the influence it can have on so many different areas of your life. A good credit history has the potential to open doors and save you a ton of money. A poor credit history, or no credit history at all, can often have the opposite effect.

If you’re wondering just how much your credit history matters, here’s a look at some of the ways earning good credit can benefit you.

  • You may have an easier time landing a job or a promotion if your employer checks your credit history. Note: Employers can only potentially check your credit reports, never your scores.
  • A good credit history will lead to good credit scores.
  • Good credit scores may make it easier to qualify for low-rate loans and top-rated credit cards, like the Chase Freedom Unlimited® or the Citi Double Cash® Card.
  • You can save money when you have good credit scores by securing financing with better terms and at cheaper prices. This is a big deal because it could add up to hundreds or thousands of dollars in savings every single month.
  • A good credit history and good scores may help you save money on your insurance premiums.
  • You may pay lower deposits, or no deposits at all, on newly opened utility accounts and other services when you have good credit.
  • Good credit can make it easier to purchase or lease a home or an apartment.

Lenders care about your credit history and credit scores because this information helps them to assess the risk of doing business with you. If your credit reports and scores indicate you’ve properly managed credit accounts in the past, future lenders will be more likely to do business with you and to offer you affordable rates and terms.

6. What Should You Look for in Your First Credit Card?

If you have no established credit history, the first thing you should look for in your first credit card is an offer designed for people in your situation. You don’t want to fill out an application for a credit card that requires excellent or even good credit scores to qualify. They are out of your reach at this point. Rather, you should search for cards marketed to people with no credit or limited credit.

Believe it or not, the interest rate on your credit card probably shouldn’t be the most important feature you consider. If you manage your accounts wisely, you’ll be paying off your balance in full every month so you won’t accrue interest fees.

Focus on the other aspects of the account that may make it easier for you to qualify. These factors may include the following:

  • Annual FeesMost people prefer to avoid credit cards with annual fees unless you’re receiving valuable rewards or cash back opportunities that offset the expense. Of course, you may find that an annual fee is hard to avoid due to your lack of credit history. If this is the case, you can still shop around for the lowest annual fees being offered by card issuers.
  • Initial Fee Requirements: You will likely want to avoid any cards which require initial fees, such as application fees, if possible. These cards are often referred to as fee-harvester cards. There are better options out there, so keep looking.
  • Upfront Security Deposit Requirements Upfront deposits are to be expected when you’re opening a secured credit card account. This isn’t a bad requirement if it helps you qualify for an account. Even with a security deposit requirement, secured credit cards can still be a good option if you’re having trouble qualifying for an unsecured credit card due to a thin credit file. Just make sure the card issuer reports the account to all three of the credit bureaus or you’re wasting your time.
  • Rewards or Cash Back: Many starter credit cards, such as those you may be able to qualify for when you have no credit history or limited credit, do not offer rewards or cash back opportunities. If you can find a card that is easy to qualify for, will help you build and grow credit, and gives you some sort of rewards or cash back offering, consider those rewards icing on the cake.
  • Credit Limit: When it comes to the credit limit ranges offered by card issuers, the higher the better. Higher credit limits help keep your balance to credit limit ratios lower. When this ratio is lower your credit scores are likely to be higher.
  • Credit Reporting: Will the credit card you’re considering report information about your account to all three credit reporting agencies – Equifax, TransUnion, and Experian? If not, move on to the next option. This is a deal-breaker if it doesn’t happen. Non-reporting is akin to the tree falling in the woods metaphor.
  • Fixed vs. Variable APR: Fixed APRs are far less common, but they’re still around on some secured cards and unsecured cards from credit unions. A variable APR means your APR will fluctuate based on the U.S. prime rate (published in The Wall Street Journal, among other sources), whereas a fixed rate is set until the card issuer chooses to change it. If this happens, the issuer must notify you at least 30 days prior to the change, and you have the ability to deny the change and close your account.
  • Other Various Fees: Charging interest and various fees for certain card features is how card issuers make money. You may be charged a foreign transaction fee for purchases made overseas, a cash advance fee if you withdraw money from an ATM, or a balance transfer fee if you move credit card debt from one card to another. Be sure to read the terms and conditions so you understand all of the fees associated with the account.

Make sure you know — before you start shopping for a card — which features are deal-breakers, and which you can live with (or without).

7. What is the Minimum Age to Qualify for a Credit Card?

Before the Federal law passed in 2009 known as the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), young adults could apply for and open credit card accounts as soon as they were old enough to legally sign a contract at 18 years of age.

After the CARD Act, however, young people must be 21 to open their own credit card account — with a few exceptions:

  • You can open a credit card before you are 21 if you have a job or can demonstrate an ability to pay your debts.
  • You can open a credit card before you are 21 if you have a cosigner.

If you meet either of the above criteria and you or your cosigner have the credit and income necessary to qualify for a new credit card account, you don’t have to wait until your 21st birthday to open an account.

8. What is a Cosigner & Who Needs One?

A cosigner is someone who agrees to pay your debt if you default on a credit obligation. In the case of a credit card account, a cosigner is usually a friend or family member who agrees to add their name to your credit card application if you have difficulty qualifying for a credit card account on your own.

Chart of Issuers Allowing Cosigners

However, before you rush to ask your loved one for a favor, consider the following. Cosigning can be risky for your friend or family member. When you ask someone to cosign, he or she will be equally liable for the debt on the credit card account. Additionally, the account itself will most likely be added to your cosigner’s credit reports as well as your credit reports.

If you ever make a late payment on the account, you could damage not only your personal credit scores but your cosigner’s credit scores as well. To add even more risk to the equation, it’s possible to damage your cosigner’s credit scores unintentionally.

If your credit reports ever show that you’re utilizing a large percentage of your available credit limit, you could hurt both your scores and your cosigner’s scores even if your payments on the account remain on time.

Here’s the bottom line. If you ask a loved one to cosign for you, you’re asking them to put the health of their own credit into your hands.

9. Do You Need a Bank Account to Apply for a Credit Card?

Although it is possible to open a credit card account without an active bank account, it probably won’t be easy. In fact, if you have no credit, limited credit, or even fair credit, qualifying for a credit card without a deposit account can be even more challenging.

Most credit card issuers that offer accounts to individuals without well-established credit histories will require you to have an active checking account. This requirement can help to reduce the lender’s risk by allowing a way to confirm your monthly income or liquid assets. Additionally, if you are opening a secured credit card or if your unsecured credit card requires upfront fees, a checking account may be required to pay these.

Every credit card issuer has its own approval requirements. If you’re concerned that you could be turned down due to the lack of a checking account, check each card issuer’s specific requirements before you apply for any new accounts.

10. Can You Get a Credit Card without a Social Security Number?

It may surprise you to learn that there is no legal requirement for a lender to collect your Social Security number as part of a credit card application. That being said, you’ll be hard-pressed to find a credit card application that doesn’t ask for this information.

The Social Security number requirement can make it challenging for resident aliens, foreign nationals, or other non-U.S. citizens living in the United States to qualify for a credit card account. Thankfully, there are some card issuers that may be willing to accept alternative documentation if you don’t have a valid Social Security number.

Even if you don’t have a Social Security number you may be able to qualify for an Individual Taxpayer Identification Number (ITIN) from the IRS. Some card issuers will allow you to apply for a credit card with an ITIN, a foreign passport, or other government-issued ID in lieu of a Social Security number.

WARNING: Do not be tempted to misrepresent your Social Security number with a different nine-digit number. That is fraud. If you don’t have a Social Security number, leave that field of your application blank.

11. Can You Earn Credit Card Rewards with No Credit History?

The most attractive credit card reward offers are typically reserved for consumers who have already earned excellent credit scores. That doesn’t mean no credit equals no rewards.

Some card issuers may have credit card offers that feature rewards or cash back options even if you have no credit or a limited credit file. You’ll just have to look harder.

The key is to shop and compare offers to see what is currently available. If you want a credit card that can help you establish positive credit history and earn rewards simultaneously, make sure to be on the lookout for the features that matter most to you when you do your research.

How to Earn Credit Card Rewards

Be realistic and selective in your efforts. You should avoid applying for credit card accounts that require approval criteria that you simply cannot satisfy.

If you’ve already checked your credit reports and confirmed that they are completely blank or you know your credit scores are low, there’s no reason to apply for an account that requires excellent credit. You’ll just be wasting your time and adding a score-damaging inquiry to your credit report for no good reason.

12. Are there Credit Cards for Businesses with No or Limited Credit History?

Just as there are credit card offers designed for consumers with limited or no credit history, you may also find credit card offers for businesses that are in the same predicament. In general, you shouldn’t expect the rates, fees, or rewards on these credit cards to be as attractive as the offers that may be available to businesses with well-established credit profiles.

Also keep in mind that when you apply for a business credit card, it’s common for both your personal credit reports and business credit reports to be considered by the lender as part of the application. If you don’t think you can meet a lender’s qualification requirements for an unsecured business credit card that doesn’t mean you are out of luck.

You may still be able to qualify for a secured credit card for your business even if the business owner or the business itself has little to no previously established credit history.

The business card issuer may ask the company owner to personally guarantee the debt associated with the business card. This is not unusual, so don’t take it personally if this is asked of you. Just be aware that any default on the business card will likely fall back on you personally.

13. Can Prepaid or Debit Cards Build Credit History?

Despite popular myths, prepaid credit cards, prepaid debit cards, and traditional debit cards won’t help you build a credit history with Equifax, TransUnion, or Experian.

Why not? All three of those popular plastic alternatives to credit cards are never reported to the credit bureaus because they are not an extension of credit.

Graphic of Accounts Not Likely to Build Credit

Prepaid cards are like gift cards and have no credit-building value. You load funds onto the card and use them until your card balance is exhausted.

They’re like a plastic version of cash, nothing more. If you wish to use the card again, you’ll have to load the account with more funds. They may look like a traditional credit card on the outside, but that is where the similarities end.

Debit cards are tied to your checking account. They are essentially a plastic version of a paper check. When you use your debit card, the funds are taken directly from your checking account balance. It’s not an extension of credit from a bank. It’s simply using your own money in a more convenient way.

Just like prepaid cards, debit cards offer no credit-building value.

14. What Are Retail Store Credit Cards and Who Should Get One?

Retail store credit cards

work similarly to traditional credit cards. You apply for an account and, if you are approved, you will be issued a card with a preset spending limit. When you make charges to the card, you have to repay them by the due date.

Yet, while retail store credit cards are similar to traditional credit cards, there are a few key differences you should understand:

  • The interest rates on retail store credit cards are often notoriously high — even if you have great credit scores. Their rates are normally above the 25% range.
  • The credit limits typically issued on retail store credit cards are notoriously low.

While the interest rate on your retail store credit card doesn’t matter if you always pay your balance in full, the low credit limits typically associated with these accounts can be problematic. Remember, credit scoring models pay attention to the percentage of your credit limit you are using as reflected on your credit reports. This is the infamous revolving utilization ratio.

When your revolving utilization ratio climbs, your credit score will likely fall. Because retail store cards are often issued with low credit limits, it can be easy to use a large percentage of your available credit.

If you charge $250 on an account with a $500 limit, for example, your account will have a utilization ratio of 50%, which is not good for your credit scores.

That being said, retail store cards are generally easier to qualify for because their terms are more like subprime card terms. If you need to add something positive to your credit reports and you don’t plan on carrying a balance, a retail store card isn’t the worst option.

15. What is the Difference Between Unsecured and Secured Credit Cards?

Unsecured credit cards and secured credit cards are almost entirely identical, except for one major difference. Secured credit cards require you to make an upfront deposit with the issuing bank. Unsecured credit cards, on the other hand, do not require a deposit.

After your initial deposit (or lack thereof), unsecured and secured credit cards behave the same. If you make a charge on either type of account, you must pay it back or at least make a minimum payment by the due date that is found on your statement.

If you fail to pay your bill on time, you could be faced with penalty fees, credit damage, account closure, and other negative consequences such as collection lawsuits.

Unsecured vs Secured Credit Cards

Both unsecured and secured credit cards can be used to help you build or rebuild your credit history. Either type of account will likely appear on your three credit reports, provided the lender chooses to report them to the credit bureaus.

16. How Many Credit Cards Should You Have at One Time?

You can potentially damage your credit scores and your wallet by applying for, opening, and using too many credit card accounts at the same time. However, if you spread out your credit card applications over time, it is possible to open numerous credit card accounts and still maintain great credit scores — meaning you can have as many credit cards as you can comfortably manage.

Credit scoring models aren’t so concerned with the number of credit card accounts you have open but more so on how you manage them. Do you always pay your accounts on time? Do you have large balances? Do you have small balances on a large number of credit card accounts?

These are all variables that can impact your credit scores, positively or negatively. As for usability, having more credit cards of different brands is certainly better than it is problematic.

There was a time where certain credit card brands were not universally accepted. Those days are long gone. However, there are still merchants here and there that will only accept certain types of credit cards.

So, to the extent you have at least one of every type of card, you know you’ll never run into a usability issue because you can always pull out a different card for your purchases.

Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on will direct you to the issuer's website, where you can review the current terms and conditions of the offer.

The information on this page was reviewed for accuracy on .

About the Author

John Ulzheimer John Ulzheimer Credit Expert

John Ulzheimer is an expert on credit reporting, credit scoring, and identity theft. The author of four books on the subject, Ulzheimer has been featured thousands of times in media outlets including the Wall Street Journal, NBC Nightly News, New York Times, CNBC, and countless others.

With over 30 years of credit-related professional experience, including with both Equifax and FICO, Ulzheimer is the only recognized credit expert who actually comes from the credit industry.

He has been an expert witness in over 600 credit-related lawsuits and has been qualified to testify in both federal and state courts on the topic of consumer credit. In his hometown of Atlanta, Ulzheimer is a frequent guest lecturer at the University of Georgia and Emory University's School of Law.

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