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No Credit History? Here Are the Best Credit Cards to Start Building Credit

No Credit History? Here Are the Best Credit Cards to Start Building Credit

By Jack Barnes

Starting your credit journey can feel intimidating, especially if you have no credit history. Whether you’re a student, just starting your career, or simply never used a credit card, building credit is crucial for your financial future. The good news? There are credit cards specifically designed for people with no credit history that can help you get started the right way.

Why Building Credit Matters

Before diving into the best credit cards for beginners, let’s understand why building credit is so important. Your credit score influences many financial opportunities, including:

Qualifying for loans with better interest rates
Renting apartments
Getting approved for utilities or mobile phone plans without deposits
Even landing certain jobs

Without any credit history, lenders don’t have enough information to judge your creditworthiness, which can limit your options or lead to higher costs. That’s why starting with the right credit card can set you on a path to build a strong credit profile.

What to Look for in a Credit Card With No Credit History

Not all credit cards are created equal, especially for beginners. Here are some key features to look for:

No or low credit score requirement: Many cards require a minimum credit score. Look for those that accept applicants with no credit or limited credit history.
Low or refundable security deposit: Secured credit cards require a deposit, but some offer refundable deposits once you build credit.
Reasonable fees: Avoid cards with high annual fees or hidden charges.
Credit reporting: Make sure the card reports to all three major credit bureaus—Experian, TransUnion, and Equifax—to build your credit history effectively.
Opportunities for upgrading: Some cards allow you to graduate to unsecured cards after responsible use.

Top Credit Cards to Build Credit From Scratch

Below is a detailed comparison of some of the best credit cards tailored for people with no credit history.

Credit Card	Type	Security Deposit	Annual Fee	Credit Reporting	Key Benefits
Discover it® Secured Credit Card	Secured	$200 minimum (refundable)	$0	Experian, TransUnion, Equifax	Cashback rewards, no annual fee, free FICO® Score
Capital One Platinum Secured	Secured	$49, $99 or $200 (based on creditworthiness)	$0	Experian, TransUnion, Equifax	Access to higher credit line after 5 months, no annual fee
Deserve® EDU Mastercard for Students	Unsecured	None	$0	Experian, TransUnion, Equifax	No SSN required for international students, cashback rewards
Citi® Secured Mastercard®	Secured	$200 minimum (refundable)	$0	Experian, TransUnion, Equifax	Designed to build credit, no rewards but solid credit-building tools

1. Discover it® Secured Credit Card

This card is an excellent choice for beginners because it combines credit-building features with rewards. You need to put down a refundable security deposit, typically starting at $200. The best part? You earn 2% cashback at gas stations and restaurants (up to $1,000 in combined purchases each quarter), and 1% on all other purchases. Plus, it offers a free FICO® Score to track your credit progress without any hidden fees[1].

2. Capital One Platinum Secured Credit Card

Capital One offers flexibility with your deposit amount, starting as low as $49 if you qualify with a higher creditworthiness assessment. No annual fee and access to a higher credit line after making your first five monthly payments on time make this a strong contender[2]. It’s also a good stepping stone to unsecured credit cards.

3. Deserve® EDU Mastercard for Students

Specifically designed for students—even international ones without a Social Security Number—this card doesn’t require a security deposit. You earn 1% cash back on all purchases, and there is no annual fee. They also help build credit by reporting to all three bureaus. This option is perfect if you want to start building credit while still in school[3].

4. Citi® Secured Mastercard®

A simple, no-frills secured card with no annual fee but no rewards either. Its main focus is helping you build credit through consistent payments and responsible use. It requires a minimum refundable deposit of $200 and reports to all three credit bureaus, making it a reliable option for credit novices.

How to Use Your First Credit Card to Build Credit

Getting the right card is only part of the puzzle. How you use it matters just as much:

Make on-time payments every month. Payment history accounts for 35% of your credit score. Even one late payment can hurt your progress.
Keep your credit utilization low. Try to keep your balance below 30% of your credit limit. For example, if your limit is $500, aim to keep your balance under $150.
Use the card regularly but responsibly. Making small purchases and paying them off in full monthly shows lenders you can manage credit.
Monitor your credit reports and scores. Use free tools that come with your card or reputable websites to track your credit-building progress.

Remember: your goal is to prove to lenders that you’re a responsible borrower. Over time, this can open doors to better credit cards and loans with lower interest rates and better terms.

When to Consider Upgrading Your Credit Card

After 6 to 12 months of responsible use, many secured cardholders become eligible to upgrade to an unsecured credit card. This means you get your security deposit back and gain access to more benefits like higher credit limits, rewards, and sometimes travel perks. Check with your card issuer about their upgrade policies, and consider applying for other cards that offer rewards tailored to your lifestyle.

Final Thoughts: Ready to Build Your Credit?

If you’re starting from scratch, choosing the right credit card is the first step. The Discover it® Secured Credit Card and Capital One Platinum Secured cards are excellent for their flexibility, no fees, and strong credit reporting. Students may also want to explore the Deserve® EDU Mastercard.

Don’t wait to start building credit—your financial future depends on it. Click the links above to apply now and take control of your credit journey!

Frequently Asked Questions (FAQs)

1. Can I get a credit card if I have absolutely no credit history?

Yes, many secured credit cards and some unsecured student cards are designed specifically for people with no credit history. These cards help you build credit from scratch by reporting your payment activity to credit bureaus.

2. What is a secured credit card?

A secured credit card requires a cash deposit as collateral, which usually serves as your credit limit. It reduces the risk for the card issuer and helps those without credit history get approved. Responsible use can help you transition to unsecured cards later.

3. How long does it take to build credit with a credit card?

Typically, it can take about 6 months of consistent on-time payments for a credit card to impact your credit score positively. Building a strong credit history takes time and responsible management.

4. Will applying for these cards affect my credit score?

When you apply, the issuer will perform a hard inquiry, which may temporarily lower your credit score by a few points. However, responsible card use and timely payments will help your score improve over time.

5. Can I use a credit builder loan instead of a credit card?

Credit builder loans are an alternative to building credit, but credit cards offer the added benefit of everyday convenience and sometimes rewards. Combining both can be effective but depends on your financial goals.