How to Get a Credit Card Without a Credit History

Getting a credit card without a credit history can seem like an impossible task. Since most credit card issuers use your credit history to assess your reliability, it may feel like a catch-22—you need a credit card to build credit, but you need credit to get approved for one. Fortunately, there are ways to break through this barrier. In this guide, we’ll explain how to get a credit card without a credit history and offer strategies to help you build your credit profile.

1. Consider a Secured Credit Card

One of the most accessible options for someone with no credit history is a secured credit card. Unlike traditional credit cards, which are unsecured, a secured card requires a cash deposit as collateral. This deposit typically becomes your credit limit, meaning if you deposit $500, your credit limit would be $500.

How it helps you:

• The deposit serves as a safety net for the credit card issuer, reducing their risk of lending to someone without a credit history.
• As you use the card responsibly and make on-time payments, the issuer will report your activity to the credit bureaus, helping you build your credit history.

Tips for Choosing a Secured Credit Card:

• Look for a card with low fees and competitive interest rates.
• Ensure the issuer reports your activity to all three major credit bureaus (Equifax, Experian, and TransUnion).

2. Apply for a Student Credit Card

If you’re a student, you might be eligible for a student credit card. These cards are designed specifically for young people who have little to no credit history. Student cards often have lower credit limits and less stringent approval requirements, making them a great option for newcomers to credit.

How it helps you:

• These cards can be a good entry point to start building credit while managing a relatively low limit.
• Some student credit cards offer rewards or incentives, which can be useful as you learn how to manage your finances.

Tips for Applying:

• Ensure that you have proof of income or a co-signer (if required) to show that you can meet the card’s payment obligations.
• Use the card responsibly by making small purchases and paying the balance in full each month.

3. Ask for a Co-Signer or Joint Account

If you have a trusted family member or friend with good credit, they can co-sign your credit card application or add you as an authorized user on their account. While you’ll still be responsible for making payments, the co-signer’s credit history will help you qualify.

• Co-Signer: A co-signer agrees to be responsible for the debt if you fail to make payments. This can improve your chances of approval for an unsecured credit card, as the issuer will consider the co-signer’s creditworthiness.
• Authorized User: Being added as an authorized user on someone else’s credit card can help you build your credit history without being responsible for the payments. The primary cardholder’s positive payment history will be reported on your credit report.

How it helps you:

• This can be an easier path to getting a credit card without your own credit history.
• The account will be reflected on your credit report, helping you build credit as long as the primary account holder has a good payment history.

4. Explore Credit Builder Loans

While not exactly a credit card, a credit builder loan can help you establish a credit history. These loans are small, short-term loans where the lender holds the funds in an account until you’ve paid the loan back in full. After repayment, the funds are released to you, and the activity is reported to the credit bureaus.

How it helps you:

• Successfully repaying a credit builder loan can help you demonstrate creditworthiness, which may make it easier to qualify for a traditional credit card in the future.

5. Look for Credit Cards Designed for People with No Credit

Some credit card issuers offer products specifically tailored for individuals with no credit history. These cards tend to have higher interest rates and lower credit limits, but they may approve you if you have no existing credit. You’ll typically need to demonstrate that you can handle credit responsibly by providing proof of income or employment.

How it helps you:

• These cards give you the opportunity to start building credit even if you don’t have a credit history.
• As long as you use the card responsibly, you’ll be able to transition to a more traditional credit card with better terms over time.

6. Start with a Retail or Store Credit Card

Retail credit cards, offered by stores and brands, are often easier to qualify for than regular credit cards. These cards usually come with lower credit limits and higher interest rates but can be a good starting point for building your credit history.

How it helps you:

• Retail cards generally have less stringent approval requirements and are easier for individuals with no credit history to obtain.
• Once you’ve been approved, using the card responsibly can help you build a positive credit history.

Tips for Using Retail Cards:

• Use the card for small purchases you can easily pay off each month.
• Avoid racking up debt, as these cards can come with high APRs, which can quickly add up if not managed carefully.

7. Demonstrate Financial Responsibility

No matter which option you choose, the key to building a strong credit history is demonstrating financial responsibility. Here are a few general tips:

• Make On-Time Payments: Always pay your bills on time, as late payments can significantly hurt your credit score.
• Keep Your Credit Utilization Low: Aim to use less than 30% of your available credit, as higher utilization can negatively affect your credit score.
• Check Your Credit Report Regularly: Once you have a credit account, monitor your credit report for accuracy and to track your progress.

Conclusion

While it may be challenging to get a credit card without a credit history, it’s not impossible. Secured cards, student cards, co-signers, and retail cards all offer ways to start building your credit profile. As you begin using credit responsibly, you’ll gradually improve your credit score and become eligible for better credit card offers in the future.

By understanding your options and following good credit habits, you can pave the way for financial success and start building a positive credit history that will benefit you for years to come.