Best Credit Cards for People with No Credit of October 2024

Benzinga found that the best credit cards for no credit for this month include Firstcard and Capital One. Start your credit journey today!

Limited or no credit history can make it difficult for young adults and newcomers to qualify for traditional credit products, as lenders often rely on credit scores. This lack of access can hinder their ability to build credit and create barriers to financial stability, such as obtaining loans or renting apartments. The good news is that there are credit card options specifically designed for individuals in this situation. These cards are often referred to as "starter" or "secured" credit cards and can be a great entry point for building credit. The best card can differ depending on individual goals. Benzinga reviewed some of the best credit cards available for people with no credit for this month to help you with your credit-building journey.

Quick Look at the Best Credit Cards for No Credit:

• Best for Budget-Conscious Students: Firstcard® Credit Builder Card with Cashback for College Students
• Best Overall: Capital One Platinum Credit Card
• Best for First Card: Open Sky Secured Visa®
• Best for Travel: Petal 2 "Cash Back, No Fees" Visa Credit Card
• Best for College Student: Discover It Student Cash Back
• Best for Business: American Express Blue Business Cash
• Best for Cashback: Capital One QuickSilver Secured Cash Rewards
• Best for Free Credit Building: Step

Best Credit Cards for No Credit History

Let's dive into the best credit cards available for individuals with no credit history, so you can start building a solid financial future today. From cards that can help you build a credit score overnight or get a mortgage-qualifying credit score to rewards credit cards, explore your top options below.

1. Best for Budget-Conscious Students: Firstcard® Credit Builder Card with Cashback for College Students

Firstcard is a student credit card with no fees, minimum balance or credit history requirements, founded by Kenji Niwa in 2020. It offers cash back rewards on purchases, high annual percentage yield (APY) on deposits and virtual card access. It aims to provide student-accessible banking solutions and streamline the banking experience for college students.

The Firstcard Credit Builder Card is designed specifically for college students. This card is meant for building credit rather than functioning as a traditional credit card. Once your account is approved, you will need to make a deposit of funds, which will determine your credit limit. Firstcard also accepts international students. This includes those who do not have a Social Security number.

Why We Picked It: This is a great option for students looking to establish credit in a responsible and budget-friendly way. With its low credit limit, cashback rewards program, educational resources, and no annual fee, this card provides a solid foundation for college students to start building their credit history.

2. Best for Overall: Capital One Platinum Secured Credit Card

The Capital One Platinum Secured card is great for those building or rebuilding their credit. The card is designed to help people with no credit. Capital One reports all payment activity to the major credit reporting agencies, so each time you make an on-time payment, it's building a positive credit history. 

Your credit line equals the initial deposit, so you can choose your credit line by depositing the amount you desire. In some cases, you may get a credit limit that’s higher than your initial deposit. You can also opt to pay the security deposit in installments over a 35-day period.

After six months of on-time payments, you can request an increase in your credit line with no additional deposit or shift to an unsecured credit card. According to a Redditor, Capital One offers some of the best credit-building cards on the market. 

Why We Picked It: With no annual fee, easy approval process and opportunity for credit limit increases, this card can help you build a positive credit history with all three credit bureaus with a small deposit and work towards achieving your financial goals.

3. Best for First Card: OpenSky Secured Visa

The OpenSky Secured Visa is a card for those who are serious about improving their credit score. The card issuer claims that after six months of on-time payments, you can request an increase in your credit line with no additional deposit or get approved for an unsecured credit card.

On-time payments are reported monthly to all three reporting agencies to help you build or improve your credit score. Your credit line equals your deposit. Choose your credit line from $200 up to $3,000 with a matching deposit. With a higher credit limit, keeping your credit utilization ratio low while building a positive credit history is easier. This credit card has an annual fee of $35.

Why We Picked It: With no credit check required for approval, the ability to improve your credit score by making on-time payments, and low fees, this card is a solid option for first-time cardholders or anyone looking to build a strong credit history fast on a secured card.

4. Best for Travel: Petal 2 "Cash Back, No Fees" Visa Credit Card

Few secured credit cards are good for travel, but Petal 2 is the exception. It has no foreign transaction fees and a decent cash-back reward. The Petal 2 is issued by WebBank, which looks at your income, expenses, savings and debts instead of credit scores to determine eligibility. 

You can earn up to 1.5% cash back with on-time payments. There are also no annual fees or late fees. While it's not a fantastic travel credit card, you can build a credit history and save before applying for premium travel rewards cards. 

Why We Picked It: This credit card is a great option for travelers who want to earn rewards on their purchases without having to worry about hidden fees. With its cash back rewards, no fees and travel benefits, the Petal 2 card is perfect for those who love to explore the world while also saving money along the way.

5. Best for College Student: Discover It Student Cash Back

Students wanting a little more cash back while building their credit score can consider the Discover It Student Cash Back. You'll get a free FICO score with regular access to your score, low fees and forgiveness for your first late payment.

You could get 5% cash back on everyday purchases with rotating quarterly categories. Common rewards categories include grocery stores, restaurants and gas stations, plus unlimited 1% cash back on purchases. You'll have to activate the quarterly bonus categories for higher credit card rewards. 

Discover automatically matches all the cash back you’ve earned at the end of your first year, with no minimum spending or maximum rewards. 

Why We Picked It: With its generous rewards program, no annual fees and added security features, this Discover card is definitely worth considering for students looking to manage their finances responsibly while in school.

6. Best for Business: American Express Blue Business Cash

If you're launching a business in the United States or want to build a positive credit history, consider the American Express Blue Business Cash card. Thanks to a partnership between American Express and credit-reporting startup Nova Credit, this credit card allows expats from certain countries to translate credit to a U.S.-equivalent credit report instantly. 

You can access a credit history from bureaus in Australia, Canada, India, Mexico, the United Kingdom, Brazil, the Dominican Republic, Kenya, Nigeria, South Korea, the Philippines, Spain and Switzerland. 

With no annual fee, you can also enjoy these perks:

• Earn 2% cash back on all eligible purchases on up to $50,000 per year, then 1% thereafter
• Get a $250 statement credit after you spend $3,000 in purchases in the first three months
• Travel benefits such as car rental loss and damage insurance
• Shopping benefits such as purchase protection and extended warranty
• Employee cards
• Integration with QuickBooks to help you monitor and manage your Employee Business Card expenses
• 0% intro APR on purchases for 12 months

Why We Picked It: With no annual fee, employee cards at no extra cost, and a range of expense management tools, this credit card offers great value for international businesses and expats who want to transfer credit history to build credit in the United States fast. 

7. Best for Cashback: Capital One QuickSilver Secured Cash Rewards

The Capital One Quicksilver Secured Cash Rewards Card stands out because it offers cash back on a secured card. You earn 1.5% on every dollar spent on purchases. In addition, you can earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel. 

To get the Capital One Quicksilver Secured card, you must make a $200 deposit for a $200 credit line. This low credit line makes it difficult to keep credit utilization low. But after six months of on-time payments, you may qualify for a credit line increase or an unsecured card. 

Capital One reports to all three credit reporting agencies monthly, making it easier to build your credit score from the first month.

Why We Picked It: This card offers a simplified cash back structure, making it an attractive option for individuals looking to build or rebuild their credit. With its straightforward rewards program, no annual fee and opportunity to increase credit limit over time, this card provides a solid foundation for improving financial health and achieving credit goals.

8. Best for Free Credit Building: Step

Step is a new mobile finance app that helps users build credit for free. There is a secured credit card that works just like a debit card so that you add money and make purchases which are reported automatically to Experian, Equifax and Transunion. In turn, this is consistently helping you build or improve your credit score. Plus, you can earn 1% cash back on everyday purchases.

The app is simple to use, it can help kids learn about money and you can sign up at any time.

Why We Picked It: We love this app because it has no pretense, works for adults or kids, helps build credit and has no fees attached.

Can You Get a Credit Card With No Credit?

Yes, you can get a credit card with no credit. No credit means that you haven't built a positive credit history. This usually means you've never had a line of credit that reports to credit bureaus. Many credit-building cards are designed to help students and recent immigrants get started on their credit-building journey.

In some cases, cards designed for people with no credit can also be used by those with poor or fair credit to build a positive credit history. Common cards include:

• Secured credit cards: With these cards, you'll need to make a security deposit, usually equal to the line of credit, to "secure" the line of credit. These cards typically have low credit lines and can often be converted to a standard credit card after six months to one year.  A secured credit card is the easiest credit card to get approved for if you have no credit.
• Student credit cards: These cards are often the best credit cards for an 18-year-old with no credit history and are designed to help young people build credit history. Student credit cards usually have lower credit limits and higher interest rates.
• Store credit cards: Store credit cards are issued by popular retailers and may come with store rewards or perks. These cards are a form of revolving credit you can use to make purchases and pay the balance later. Some, like the Amazon secured card or JCPenny card, are available to borrowers with no credit history. 

Pros and Cons of Credit Cards for No Credit

While credit cards can provide opportunities to build your score and enjoy financial flexibility, they also come with potential pitfalls that can affect your financial health. Here are some pros and cons to keep in mind before getting a credit card if you have limited or no credit history,

Pros

• Build positive credit history: Using a credit card responsibly can help establish a positive credit history. This can be beneficial for future loans or mortgages.
• Emergency funds: A credit card can provide a safety net in case of unexpected expenses, allowing for immediate access to funds.
• Rewards and benefits: Many credit cards offer cash back, points or rewards programs that can benefit users for everyday purchases.
• Convenience: Credit cards are widely accepted and can make transactions easier, especially for online purchases or travel.

Cons

• High interest rates: No credit individuals may be offered cards with higher interest rates, making it more costly to carry a balance.
• Temptation to overspend: Having a credit card can sometimes lead to overspending and accumulating credit card debt that may be difficult to manage.
• Fees: Some credit cards come with annual fees, late fees or foreign transaction fees. These charges can add up quickly for new users.
• Risk of fraud: Credit cards can be vulnerable to fraud. While there are protections, dealing with potential unauthorized charges can be cumbersome.

How to Compare Credit Cards for No Credit History

When you're just starting out on your financial journey, getting a credit card can be a great way to build your credit history and establish good financial habits. However, with so many options available, it can be overwhelming to choose the right starter credit card for you. Here are some key factors to consider when looking for a credit card for no credit:

• Are there annual fees?
• What is the interest rate (APR)?
• Are there credit score requirements?
• Which credit bureaus does the issuer report to?
• Are there foreign transaction fees?
• Is it secured or unsecured?

When you’re new to credit, it is best to look for a credit card with no annual fees that offers decent rewards and the possibility of qualifying for an unsecured credit card after some months of on-time payments.   

How to Get a Credit Card for No Credit History

To get approved for credit cards if you don’t have a credit history, you'll need to provide other information requested by the lender. For a secured credit card, you'll need to make a security deposit. You'll also usually need to show the lender: 

• Your name and legal ID
• Social Security number (SSN) or individual taxpayer identification number (ITIN)
• Information on employment, income and debt
• Any other issuer-specific requirements

How to Build Your Credit With Starter Credit Cards

To build credit with starter credit cards, remember the basics:

• Keep credit utilization below 30% of available credit
• Pay off the card in full each month
• Setup automatic payments to avoid late payment

Remember that building a credit history is a long-term process. While you can start seeing positive credit history from the first month, it can take months or years to build a good to excellent credit score. 

If you want to build your credit history faster, consider becoming an authorized user or using a rent reporting company to report past on-time rental payments.

Should You Get No Credit Credit Cards?

Building a positive credit history can open new financial opportunities. It can help you get a business or personal loan or a mortgage with a lower interest rate. Sometimes, it can help you get a job. With on-time payments and responsible use, the best credit card for no credit can be the first step to financial freedom.