The Best First Credit Cards for People With No Credit History

Even if you’ve never had a credit card before, you can still access perks like cash back rewards with starter cards, but you’ll have more limited options. If you haven’t built a credit history yet, but have cash to deposit, I recommend the Discover it^® Secured Credit Card. Not only do they make it easy to get approved for a credit card, but you can earn cash back rewards and follow your credit progress, which is the point of applying for a secured credit card.

This guide explores the different options for starter credit cards for people prioritizing cashback, students just starting out, people looking for automatic credit line increases, and those looking for travel benefits to help you get started.

Best first credit cards

• Discover it^® Secured Credit Card
• Capital One QuicksilverOne Cash Rewards Credit Card
• Chase Freedom Rise^®
• Capital One Savor Student Cash Rewards Credit Card
• Bank of America^® Customized Cash Rewards Secured Credit Card

Best first credit cards compared

Discover it^® Secured Credit Card

A secured credit card offers a simple way to build credit, and the Discover it Secured credit card makes having a secured credit card simple. You can open a card with as little as $200 (which equals your credit limit), and receive it back within 7 months when Discover does an automatic evaluation of your account to determine if you’re ready for an upgrade to an unsecured credit card.

Here’s the best part; you can also earn cash back. Most secured credit cards don’t offer rewards outside of the ability to get a credit card, so it’s a great way to get your feet wet with a rewards credit card without needing an excellent credit score.

Another great feature is that Discover shares your FICO score with you so you always know how your credit card habits help or hurt your credit score.

Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne card is another unsecured cash back credit card that doesn’t require a long credit history. Capital One requires fair credit for this card, which starts at 580. While there’s no magic formula that gets you to a 580, having at least a few tradelines with a solid history may get you there and eligible for this credit card.

While it has a small annual fee, you can quickly recoup it with 1.5% cash back on every purchase, every day. Unlike other cashback credit cards, you don’t have to track categories or worry about limits on your rewards. You can redeem your rewards for cash back via check or apply them directly to cover recent purchases.

You also get features including:

• Automatic credit line increase reviews
• Unlimited access to your credit score
• Access to some of the best travel prices on Capital One Travel

Chase Freedom Rise^®

If you’re already a Chase customer and have at least $250 in a Chase checking or savings account, you could increase your chances of approval for the Chase Freedom Rise card, meant for consumers looking to build credit. If you use the card properly, you may even get a credit line increase in as little as six months as they automatically evaluate accounts twice a year.

Like other cards on our list, it offers 1.5% cash back on all purchases and there’s no annual fee. This is a great way to get used to how rewards credit cards work before you work your way up to a travel rewards credit card or one with more robust requirements.

Like most Chase credit cards, the card also includes a 3 month DashPass subscription and 5% cash back on Lyft rides. This card also includes:

• Purchase protection
• Extended warranty protection
• Trip cancellation/interruption insurance

You can also choose how you receive your rewards including cash back rewards, shop with points on Amazon, gift cards, or you can book travel through Chase Travel with your points.

Capital One Savor Student Cash Rewards Credit Card

Finding a credit card while in college can be tough, especially if you didn’t build any credit yet. The Capital One Savor Student Cash Rewards Credit Card offers the opportunity of approval if you have steady income and minimal debts.

Despite being a card for students, this card packs quite a punch in the rewards department as it pays 3% back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores such as Walmart® and Target®) and 1% on all other purchases. It also has no annual fee, so it’s easy to carry without worrying about how you’ll pay off the extra fee.

Rewards don’t expire for the life of the account and you can redeem them how you want, whether as cash back via check or applied to directly cover recent purchases.

Other perks the card offers include:

• No foreign transaction fees
• Extended warranty
• Travel accident insurance
• Access to Capital One Travel
• Access to CreditWise, which alerts you of changes to TransUnion or Experian credit reports

Bank of America^® Customized Cash Rewards Secured Credit Card

Since the Bank of America Customized Cash Rewards Secured card is a secured credit card, you must put down at least $200, but can deposit up to $5,000 as your deposit equals your credit line. The downside is the 3% and 2% earning rates are limited to the first $2,500 spent each quarter.

This card is great for anyone with one category they spend a lot in, as this card pays 3% on a category of your choice — gas and EV charging stations, online shopping, dining, travel, drug store/pharmacy or home improvement/furnishings (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter). You can also earn 2% back at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter), and 1% on all other purchases.

Your cash back does not expire as long as your card is active and you can redeem your rewards for statement credits, deposits into your Bank of America bank account, or credits with Merrill.

Our advice for picking your first credit card

When you’re applying for your first credit card, you may have fewer choices than if you had an established credit history. You’ll likely find low credit limits and high interest rates, but that doesn’t mean you can’t look for specific features including:

• No annual fee: Many starter credit cards require an annual fee, but not all do. Consider applying for those with no annual fee first to see if you qualify. You’ll save money and will have a lower credit utilization rate because you won’t have to use some of your already low credit limit on fees.
• Options for upgrades: First-time credit cards typically have few benefits, and some even require a security deposit. However, major credit card companies like Capital One offer the option for automatic upgrades to better cards if you prove you can use your card responsibly.
• Rewards: Not all starter cards will offer rewards, but many on this list offer things like cash back or statement credits. Consider it a chance to get your feet wet in the credit cards rewards department for when you build credit and qualify for even more robust cards.
• Cardholder perks: Many cards offer additional benefits besides the chance to earn rewards. This may include something as simple as no foreign transactions or travel accident insurance. You won’t get robust perks like cards for people with established credit histories, but something is better than nothing.
• Credit bureau reports: Focus on credit cards that report to all three credit bureaus to ensure you build the credit history you desire and will be eligible for other credit cards in the future.

How to use credit cards responsibly

No matter what type of card you get, it’s imperative you use your card in a responsible way. This means that you’ll need to:

• Pay your bill on time. Late payments can be devastating to your credit score, as payment history is one of the most important components in determining your score. Commit to responsible use and set up automatic payments so you never miss a due date.
• Pay in full. Whenever possible, avoid carrying a balance on a card; interest charges are high and you could end up paying a lot more than you planned, which can be devastating to your bank account. To avoid this, pay off your card in full each billing cycle.
• Avoid maxing out your credit cards. Another important factor in determining your credit score is your credit utilization ratio. Your credit utilization ratio is calculated by dividing the amount of credit used by the amount of credit available to you.
  For instance, if you have $100 in total available credit and have used $30, divide $30 by $100 to get a 30% utilization ratio. To maintain a good credit score, it’s usually advisable to keep your utilization below 30%.
• Don’t open too many cards at one time. Opening new cards requires a hard credit inquiry, which means the lender checks your credit and a notation is placed on your report. Too many inquiries in too short a time frame can hurt your score. Opening new credit also affects the average length of your credit history, which is another factor in calculating your credit score. A longer length of credit history will earn you a better score, while opening a new card reduces the average time your accounts have been opened and can lower your score.

It’s important you commit to practicing these responsible borrowing behaviors before opening your first credit card. Otherwise, you could find yourself deep in debt or be hit with a low credit score that affects future borrowing opportunities.

What to do if you’re denied for your first credit card

If you’re denied credit, try to determine why. If the card issuer made a decision based on your credit score, they should send you an adverse action notice. This will explain your rights, including the right to access your credit report for free.

You can check your credit report for any mistakes or inaccurate info that may have lowered your score. If you find errors, you can dispute your credit report to have the mistakes corrected.

If your score is low for a legitimate reason, work on improving your score. This may mean applying for a card with less strict qualifying standards, such as a secured credit card. First Progress Platinum Prestige Mastercard^® Secured Credit Card is one such card that does not require a credit check to apply.

Alternatively, you could potentially get a cosigner to apply for credit with you. A cosigner shares legal responsibility for the debt, so if you find a cosigner with higher credit, creditors may be more willing to lend to you.

If you do things to make yourself a more attractive borrower, such as paying down existing debt, boosting your credit score, or improving your income, reapply for the card you want after a bit of time has passed. Once you can show the lender you’re likely to pay back what you borrow, you should hopefully be able to get approved.

FAQs

Cards that didn’t make our list

Finding a credit card that allows you to have no credit history can be challenging, and not all eligible credit cards made the list. While I talked about the Chase Freedom Rise card, Chase offers another card for those newer to the credit scene.

The Chase Freedom Flex^® credit card is meant for those newer to credit, but you have your highest chances of approval if you have another credit card with a good repayment history for at least one year which excludes anyone who is brand new to building credit. This card allows you to earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening, offers 5% on rotating quarterly categories you activate (on up to $1,500 spent) and travel purchased through Chase Travel℠ , and has a $0 annual fee.

Bottom line

As you can see, you have many options when it comes to your first credit card. Take the time to research different types of cards to decide which one is right for you. No matter which card you choose, be sure to practice responsible borrowing behavior so you can earn a great credit score and have your choice of cards in the future.

If you’re looking for more options, check out the best credit cards for fair credit and best credit cards for poor credit for more opportunities.

Earn Cash Back While You Build Your Credit

Discover it^® Secured Credit Card

5.0

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Discover it^® Secured Credit Card

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Rates and fees

Current Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

$0

Rewards Rate

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.

Benefits and Drawbacks

Benefits

• Automatically considers applicants for an upgraded unsecured card after 7 months
• $0 annual fee
• Pays bonus rewards for gas and dining out, the two most common expenses consumers have

Drawbacks

• You must make a security deposit that’s equal to your credit line, which can limit your overall credit line

Card Details

• No credit score required to apply. No Annual Fee.
• Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
• Raise your credit score by 30+ points.
• Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
• Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
• Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
• Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
• Terms and conditions apply.