Best Credit Cards for No Credit

When you have no credit, getting a credit card can be an overwhelming task to overcome, especially if you’re not working. Though students can get a credit card pretty easily if they are already receiving student loans, these credit cards usually have a limit of up to $300 to $500. 

While getting an unsecured credit card will be challenging, secured credit cards can be an option. Credit card lenders like Capital One promise to refund the deposits made after making eight months of timely payments. Although this may vary with other banks, the refund process is usually between 6 to 9 months. 

Upon getting an unsecured credit card, not only will you be able to get your deposit back in less than a year, but you’ll also be able to increase the available credit line on the credit card. This can be an excellent investment if you use your credit card wisely. 

Best Credit Cards for No Credit

After boosting your limit, you can spend more money on your credit card, leading to more cash back and benefits. That’s why the cash backs are a must-look if you’re planning on using your credit card often. Using your credit card as a cash alternative and paying it back on time will also positively affect your credit score – just mind how much you’re spending as you wouldn’t want to seem as high-risk.

Unsecured vs. secured credit cards for people with no credit history

Most credit card lenders will require you to put in a deposit of at least $300 or so. This amount can be as high as ten thousand dollars. However, we recommend putting in an average amount of what you spend monthly. By doing it like this, you’ll have more cash flow and be able to make your monthly payment with ease. 

Your credit score

As soon as you get your credit card, you’ll start building credit. However, this is not something instantaneous. Just because you’ve made a few monthly payments on time won’t lead to a higher credit score. Establishing good credit will take many months; therefore, a credit card with a higher credit line will take. 

As your credit score can fluctuate if you’re not making the payments on time here and there, we recommend monitoring your credit score as often as you can. 

Best Credit Cards for No Credit

Some credit card lenders offer free credit scores for actively using their credit cards. But the credit score is mostly the VantageScore 3.0, not the FICO score. This kind of credit score isn’t the same as the FICO credit score, which is the one that banks and lenders widely use. You’ll need eventually need to know your FICO credit score. That’s why we recommend subscribing to a credit monitoring service. Some credit card companies offer these services as standalone products. Make sure to check your credit company to see if they provide such a service.

These credit cards are suitable for students and young adults who don’t have credit. 

Bank of America® Cash Rewards

Best Credit Cards for No Credit

Bank of America® Cash Rewards

This is a credit card offered to students and our best pick for you overall if you’re a student and have no credit. It provides many things to manage your budget without paying anything extra. You are subjected to 0% APR for 15 months from account opening. 

Bank of America® Cash Rewards perks

  • No annual fee
  • 3% cash back in your category of choice. Choose either one of the following: gas stations, online shopping, travel, dining out, drug stores.
  • 2% cash back on grocery stores and wholesale clubs.
  • 1% cash back on all the other purchases.
  • Access your FICO credit score for free. 

We recommend Bank of America’s Cash Rewards credit card because it offers free access to FICO credit score. In addition to this, you receive a $200 cash reward for spending $1,000 within 90 days from account opening.

Apply for Bank of America® Cash Rewards

Journey® Student Rewards from Capital One®

Best Credit Cards for No Credit

Build credit while getting up to 1.25% unlimited cash back. We love this credit card because Capital one may raise your credit limit if you make your first five monthly payments on time. A great credit card as a starter if you’re a college student looking to build credit and continue using the same credit card.

Journey® Student Rewards from Capital One® Features

  • No annual fee
  • Unlimited 1% cash back on all purchases. This is increased to 1.25% for every month you pay on time. 
  • Get full access to your FICO score through Capital One’s CreditWise tool. 
  • Create virtual credit card numbers for online shopping securely. You can set amounts and not share your actual credit card details.

This credit card from Capital One is a great option for those looking to build their credit score and use the same credit card as their primary one. As the available credit line is increased as your credit score goes up, you won’t need to look for another credit card. 

Apply for Capital Journey® Student

Deserve® Edu Mastercard

Best Credit Cards for No Credit

If you can’t get any credit cards because of no credit history, Deserve® Edu Mastercard is undoubtedly the easiest one to obtain. It requires no credit check, but you won’t get a high credit limit – it sounds like a fair trade. The credit line is usually around $200 or $500 at max. This doesn’t mean that you can’t get a higher limit, though. As you build your credit, you can always request your credit limit to be increased. The only drawback to the credit card, depending on how you look at it, is you can’t get cash advances. 

Deserve® Edu Mastercard Features

  • No annual fee
  • Free one year Amazon Prime subscription, which has a $59 value
  • Cellphone protection up to $600
  • 1% cash back on all purchases
  • No transaction fee on international purchases

Deserve® Edu Mastercard is a great credit card to apply for if other credit card companies have denied you. The approval rate for this credit card is considerably higher than other credit cards, even if you have no credit or bad credit. 

Apply for Deserve® Edu Mastercard

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