Credit Card For No Credit: How To Build Credit

Starting your credit journey can feel like trying to enter an exclusive club with no invite. But here’s the good news: you don’t need a VIP pass to get your hands on a credit card, even if you have no credit history. The trick is knowing where to look and what to expect. Whether you’re aiming to build your credit from scratch or just need a financial backup, we’ve got you covered with some of the best options to get started.

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MoneyLion can help you explore various credit card options tailored to your needs and preferences. Get started by selecting why you need a credit card:

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Best credit cards for no credit history

Getting approved for your first credit card doesn’t have to be an uphill battle. Here are some of the top picks to consider if you have no credit history:

1. Best for secured credit building: Discover it® Secured Credit Card

The Discover it® Secured Credit Card is a top choice for those starting their credit journey. This card is designed specifically for people with no credit history, requiring a refundable security deposit that determines your credit line. What sets this card apart is its rewards program, which is rare for secured cards. 

You earn 2% cashback at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and 1% on all other purchases. Discover matches all the cashback you’ve earned at the end of your first year. With no annual fee and a chance to transition to an unsecured card with responsible use, the Discover it® Secured is an excellent option for building credit without sacrificing rewards.

Credit score needed: None	Purchases intro APR: 28.24% variable
Intro bonus: Discover will match all the cashback you’ve earned at the end of your first year	Cash advance fee: $10 or 5%, whichever is greater
Annual fee: $0	Balance transfer fee: 3%
Regular APR: 29.99% variable	Foreign transaction fee: None

2. Best for low fees: Capital One Platinum Credit Card

The Capital One Platinum Credit Card is a straightforward, no-frills option perfect for those with limited or no credit history. This card doesn’t offer rewards but doesn’t charge an annual fee, making it a cost-effective way to start building credit. 

One of the standout features is the potential for a credit line increase after six months of on-time payments, which can help improve your credit utilization ratio – a key factor in credit score calculations. The Capital One Platinum Credit Card is ideal for individuals who want to establish credit without being burdened by high fees or complex rewards programs.

Credit score needed: None	Purchases intro APR: None
Intro bonus: None	Cash advance fee: $10 or 3%, whichever is greater
Annual fee: $0	Balance transfer fee: None
Regular APR: 29.99% variable	Foreign transaction fee: None

3. Best for cashback: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

The Petal® 2 Visa® Credit Card is designed for those with little to no credit history who want to build credit while earning cashback rewards. Unlike traditional credit cards, Petal® 2 uses your banking history to assess your creditworthiness, making it accessible even if you don’t have a credit score yet. 

The card offers 1% cashback on eligible purchases immediately, which can increase to 1.5% after 12 months of on-time payments. With no annual fee, foreign transaction fee, or late fee, Petal® 2 is an excellent choice for responsible spenders looking to establish credit without the extra costs.

Credit score needed: None	Purchases intro APR: None
Intro bonus: None	Cash advance fee: None
Annual fee: None	Balance transfer fee: None
Regular APR: 18.24% – 32.24% variable	Foreign transaction fee: None

4. Best for college students: Discover it® Student Cash Back

The Discover it® Student Cash Back card is a fantastic option for students looking to build credit while earning rewards. This card offers 5% cashback on rotating categories each quarter (up to the quarterly maximum, then 1%) when you activate, plus 1% cashback on all other purchases. The introductory offer makes it even more appealing: Discover will match all the cashback you’ve earned at the end of your first year. 

With no annual fee and a 0% intro APR on purchases for six months, the Discover it® Student Cash Back card is designed to help students start their financial journey on the right foot.

Credit score needed: None	Purchases intro APR: 0% for six months
Intro bonus: Unlimited Cashback Match – Discover matches all the cashback earned at the end of your first year	Cash advance fee: $10 or 5%, whichever is greater
Annual fee: $0	Balance transfer fee: 3%
Regular APR: 18.24% – 27.24% variable	Foreign transaction fee: None

5. Best for store loyalty: Amazon Prime Rewards Visa Signature Card

The Amazon Prime Rewards Visa Signature Card is perfect for loyal Amazon shoppers looking to build their credit history. This card offers 5% cashback on purchases made on Amazon.com and at Whole Foods Market with an eligible Prime membership, making it a great deal if you frequently shop on these platforms. 

Plus, you’ll earn 2% cashback at restaurants, gas stations, and drugstores and 1% on all other purchases. With no annual fee for Prime members and a $100 Amazon gift card upon approval, this card provides a rewarding way to start building credit while enjoying significant savings on everyday purchases.

Credit score needed: None	Purchases intro APR: Promotional offers with fixed APRs and varying durations may be available from time to time on some accounts
Intro bonus: Get a $100 Amazon Gift Card instantly upon approval with an eligible Prime membership	Cash advance fee: Either $5 or 4% of the amount of each transaction, whichever is greater
Annual fee: None	Balance transfer fee: Either $5 or 4% of the amount of each transfer, whichever is greater
Regular APR: 20.49% – 29.24%	Foreign transaction fee: None

How to get a credit card with no credit

If you’re just starting your credit journey, here’s how you could get approved for your first credit card.

Use MoneyLion

MoneyLion can help you compare credit card offers tailored to your needs. You can find a card that matches your financial situation and goals by comparing personalized offers based on your credit profile.

Start with a secured credit card

Secured credit cards require a security deposit, which typically equals your credit limit. This makes them accessible to those with no credit history. Use the card responsibly to build your credit.

Consider a retail credit card

Retail credit cards are often easier to get and can help you build credit, but they usually come with lower credit limits and higher interest rates. Use them wisely to avoid debt.

Consider a credit union

Credit unions may offer credit cards to those with no credit history, often with more favorable terms than traditional banks. Membership requirements vary but can be easier to meet than you might think.

Pros and cons of credit cards for no credit

Even without a credit history, getting your first credit card has its own pros and cons.

Why you should consider first-time credit cards even with no credit history

• Building credit: A credit card is a powerful tool for building your credit history, which is crucial for future financial goals.
• Emergency funds: A credit card can provide a financial safety net for unexpected expenses.
• Rewards and benefits: Some credit cards offer rewards like cashback or points and benefits like travel insurance.
• Easier purchases: Credit cards are convenient for making larger purchases or shopping online.

Potential risks with credit cards for no credit

• Interest charges: Carrying a balance can lead to high interest charges, increasing the cost of your purchases.
• Debt trap: It’s easy to overspend and fall into a debt trap that’s hard to escape.
• Annual fees: Some credit cards have annual fees, which can eat into any rewards you earn.
• Limited approval: People with no credit may struggle to get approved for cards with higher limits or better rewards.

Credit card for bad credit vs credit card for no credit

Credit cards for bad credit and no credit can be similar in terms of approval requirements, but they’re tailored to different financial situations:

• Credit card for bad credit: Designed for those with a poor credit history, these cards may come with higher fees and lower credit limits but offer a path to rebuild credit.
• Credit card for no credit: Tailored for those just starting their credit journey, these cards focus on helping you establish credit, often with fewer fees and better terms.

Comparing credit cards for no credit

Here’s what you should consider when comparing credit cards for no credit.

• Use MoneyLion: Compare credit card offers through MoneyLion to find the best fit for your needs. MoneyLion provides personalized offers from trusted partners based on your credit profile.
• Annual fee: Look for cards with no or low annual fees, especially when starting.
• APR (Annual Percentage Rate): Understand the APR on purchases and balance transfers. A lower APR means lower interest charges if you carry a balance.
• Credit limit: While a low credit limit is common for beginners, aim for a card with a reasonable starting limit.
• Grace period: Choose a card with a grace period that allows you to avoid interest on purchases if you pay your balance in full each month.
• Additional costs: Be aware of any other fees, such as late payment, over-limit, or foreign transaction fees.
• Rewards: While rewards may be limited for cards targeted at those without credit, consider any perks or benefits offered.
• Customer service: Consider the card issuer’s reputation for customer service if you need assistance or have questions.

Start your credit journey

Getting your first credit card with no credit history doesn’t have to be daunting. By carefully comparing your options and choosing a card that suits your needs, you can build your credit confidently. Remember, responsible use of your new credit card is key to establishing a strong credit history that will benefit you in the long run.

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