No Credit? No Problem. Build Credit With These No-Credit Credit Cards
Credit is a tricky thing, as you need credit to acquire credit so what are the best credit cards for no credit? While some lenders make it virtually impossible for anyone without a solid credit history to access a line of credit, some cater their offerings strictly to newbies. Other companies do one better and help individuals establish credit, build up their scores and earn rewards in the process.
Table of contents
- No Credit? No Problem. Build Credit With These No-Credit Credit Cards
- The Best Five
- Best Credit Cards for No Credit: Our Top Picks for 2020
- Discover It® Student Cash Back – Rewards, Cash Back and More
- Capital One Platinum – No Frills
- Discover It® Secured – Cashback on a Secured Card
- Petal 2 Visa® – Available to Individuals With Limited or No Credit History
- Secured Mastercard® From Capital One – Possibility of a Partially Security Line of Credit
- Quick Questions
The Best Five
- Discover It® Student Cash Back: Best Overall
- Capital One Platinum Credit Card: Best No Frills, No Fee
- Discover It® Secured: Best Secured Credit Card
- Petal 2 Visa® Credit Card: Best Starter Card
- Secured Mastercard® From Capital One: Best Partially Secured Card
Best Credit Cards for No Credit: Our Top Picks for 2020
Discover It® Student Cash Back – Rewards, Cash Back and More
Designed for students trying to make a name for themselves in this crazy thing called life, the Discover It® Student Cash Back offers more perks than almost any card on the market. With no annual fee, a 0% 6-month APR introductory rate and a variable APR of between 12.99% and 21.99%, this card is more than affordable.
Earn 5% cashback on purchases in rotating categories and 1% cashback on all other purchases up to $1,500 per quarter. After the first year, Discover automatically matches all the cashback you’ve earned. Maintain a 3.0 GPA each school year and receive a $20 reward.
This card is one of the few credit-building cards that offers cashback and that matches it dollar for dollar.
Capital One Platinum – No Frills
Capital One Platinum comes with a $0 annual fee and reports to all three credit bureaus, which is really all you need to start building credit. It was also designed for newcomers, meaning approval odds are high for individuals with average credit or with a limited credit history.
This card does not come with a 0% introductory APY offer, nor does it offer cashback rewards. It does, however, come with a lenient application process, no fees and the potential for a higher credit limit after six months. If you’re serious about building your credit in an inexpensive way, this card can help you do so.
Manage your credit responsibly for six months and qualify for a credit line increase.
Discover It® Secured – Cashback on a Secured Card
The Discover It® Secured is one of the rare secured cards that offers cashback on purchases. With no one-time, monthly or annual fees and a moderate APR of 22.99% V, this card is also affordable. Establish a line of credit with a security deposit as low as $200.
Earn 2% cashback each quarter on the first $1,000 spent at restaurants and gas stations, and 1% cashback on all other purchases. That’s nearly double the earning rate for all other cash rewards cards on the market today. As a bonus, Discover matches your rewards dollar for dollar after the first year.
The approval requirements are lenient for this card. If you prove you can use your card responsibly for eight months, Discover may transition you to an unsecured card and raise your credit limit.
Petal 2 Visa® – Available to Individuals With Limited or No Credit History
The Petal 2 Visa® is truly a starter product, with lenient approval requirements, no annual fee and substantial credit limits.
Earn at least 1% cashback on all purchases upon activation. If you make payments on time for at least six months, the cashback rate increases to 1.25%. The rate jumps to 1.5% after 12 consecutive months of on-time payments.
Credit lines range from $500 to $10,000, and APRs can be as low as 12.99%.
Secured Mastercard® From Capital One – Possibility of a Partially Security Line of Credit
As far as secured cards go, Capital One’s ranks up there among the best. Though it doesn’t offer rewards, it does come with a partially secured option and does not charge any reoccurring fees.
Depending on the length and shape of your credit history, you will have to make a deposit of $49, $99 or $200 to receive a credit line of $200. Most secured cards require a deposit equivalent to the credit limit.
With this card, you can easily rebuild your credit for little to no cost. Make payments on time for six months to qualify for a credit line increase. Eventually, Capital One may return your deposit and transition you to an unsecured card.
There are several options for individuals without a solid credit history. The best credit cards for no credit, however, offer rewards, minimal to no fees, opportunities for credit line increases and lenient approval requirements.
Rewards and cashback are nice, but at the end of the day, the best credit cards for no credit report to the three credit bureaus, have lenient qualification requirements and no annual fees, and boast reasonable interest rates.
Per the Credit Card Act of 2009, individuals must be either at least 21 or 18 and financially independent to obtain a credit card.
Per the same act, being a stay-at-home parent is not a valid reason for denying a credit application.
Are you trying to establish or rebuild your credit? Get more tips for doing so in our blog.