Best Credit Cards for No Credit (or Limited Credit) in November 2024

The easiest credit cards to get are often secured credit cards or starter credit cards that can help you build your credit history. After you’ve shown that you can use credit responsibly, you can eventually get cards with more attractive rewards, benefits and interest rates.

Here are some of the best types of starter credit cards:

• Secured credit cards. Secured credit cards require a refundable security deposit, which is typically equal to your line of credit. These cards are a great credit-building option, especially if you can’t qualify for an unsecured credit card.
• Student credit cards. Many student credit cards offer rewards and other perks that are similar to standard credit cards, although they’re usually easier to get since they’re designed for people starting out on their credit journey. Just keep in mind that you’ll probably need to show proof that you’re a college student to qualify.
• Gas credit cards. Some gas credit cards are fairly easy to get, and they can help offset the cost of fuel by offering rewards or discounts on gas purchases.
• Store cards. Store credit cards are often easy to qualify for since they tend to have lower credit limits, and they offer discounts and perks. Retail cards tend to have high APRs, so you should avoid getting a store card if it might tempt you to spend more than you can pay in full each month.

Keep in mind that some of these cards may charge annual fees and other fees, such as late fees, and secured credit cards will require a deposit. Make sure you’re clear on the fees and other costs before you apply for a credit card.

When searching for a starter credit card for individuals with no credit, you should look for the following features:

  Reports to all 3 credit bureaus

It’s important that the credit card reports your credit activity to the three major credit bureaus — Equifax, Experian and TransUnion — on a monthly basis. That way, your responsible card usage, including paying your bill on time and keeping your credit utilization low, will help improve your credit score.

  Low APR

The average credit card interest rate in America was 24.59% as of January 2024, which is the highest since LendingTree began tracking credit card rates in 2019, but it can be even higher for people with bad credit. The best way to avoid interest is to pay off your credit card balance in full each month. But if you can’t, having a credit card with a low APR minimizes the amount of interest you’ll pay.

  No or minimal fees

Avoiding fees is key to improving your finances. However, some credit cards for limited history (usually unsecured cards) have expensive fees. If you can, choose a credit card with no annual fee and no foreign transaction fees.

If you do choose a card with fees, make sure you know how much they are. Some cards charge late fees of $40 or more, which can hit your wallet hard. Just to be on the safe side, set up automatic payments to make sure your bill will be paid on time every time.

  Credit building tools

Many cards for people with no credit offer free credit-building tools, such as free access to your credit score and information such as the number of recent inquiries on your credit report. These tools can help you monitor your progress as you build credit and detect fraud or any other issues.

  Account reviews to boost your credit limit

Many credit cards automatically review your credit history to determine if you’re eligible for an increase in your credit limit. A few of the cards on our list do an automatic review six or seven months after you open the account.

Higher limits allow you to make larger purchases and can lower your credit utilization ratio, or percentage of your total credit limit being used, as long as your spending stays the same. This can improve your credit score.

  Rewards programs

Earning rewards on your purchases is an added bonus as you build your credit. You may be able to earn cash back, points or miles that can help offset the cost of everyday purchases. Rewards programs on starter credit cards really run the gamut, with some offering rewards programs that rival those on standard credit cards and others offering none at all. Most cards in this category focus on cash back rewards.

  Other benefits

Credit card perks vary widely, but they can be even more valuable than earning rewards. Look for purchase and extended warranty protection, travel insurance, credit monitoring tools and other benefits that add value to your card.

  Ability to convert to an unsecured card (for secured credit cards)

If you can only qualify for a secured card, you might want to look for a card that states you can be upgraded to an unsecured card with responsible use. Just like with credit limit reviews, some card issuers do automatic reviews to see if you qualify to convert your card. This is a big plus because you’ll get your deposit back and likely have a better, more flexible card.

Follow these steps when you’re ready to apply for a credit card designed for those with limited or no credit history.

1. Get your credit picture. Even if you think you have no credit, you may have a credit file, especially if you’ve taken out student loans or ever opened a store or gas credit card in the past. To be sure, request free copies of your credit reports from the three major bureaus at AnnualCreditReport.com.
2. Review credit card options. There are numerous credit cards for people with no credit or limited credit, so pick one that aligns with your spending patterns and goals, using our criteria above to compare features and benefits of different cards.
3. Gather your personal information. When you apply for a credit card, the card issuer will request information to process the application. You’ll typically need to give your name, address, phone, email, Social Security number, annual income and the cost of your monthly mortgage or rent payment.
4. Submit your application. Visit the card issuer’s website to complete the application with your personal information.
5. Wait for the decision. Many card issuers provide instant approval online when you apply for a credit card. However, you may not receive immediate approval and will have to wait for a decision in the mail.
6. Get the card. Once your card is approved, you’ll receive the physical card in the mail. It typically takes seven to 10 days for the credit card to arrive.
7. Activate the card. Once you receive the card, you’ll have to activate it online or over the phone before you can use it. This is a good opportunity to create your online account to monitor transactions and make payments. Consider setting up automatic payment of the minimum amount due to avoid late fees and negative marks on your credit report.

If you have no credit and want to build your credit from scratch, there are several steps that you can take. Some of these actions impact your credit right away while others will take more time to pay off.

• Become an authorized user. As an authorized user, you benefit from the credit history of someone else’s account. Make sure that they have excellent credit, pay on time and don’t carry high balances, as the status of that account can affect your credit as well.
• Open a secured credit card. Getting a secured credit card is fairly easy and straightforward. Your credit limit usually equals your deposit amount. If you close your account or if your card is upgraded to an unsecured card, you’ll receive your security deposit back.
• Report your rent history to credit bureaus. Some landlords offer this feature for free or for a monthly fee. There are also subscription services where you can self-report rent payments to the credit bureaus.
• Get credit for utility and other payments. Services like Experian Boost report recurring payments to credit bureaus. Eligible payments include utilities, streaming services and telephone bills.
• Open a credit-builder loan. Credit-builder loans act like traditional loans, but in reverse. You choose the loan amount, then make monthly payments for a defined period of time. At the end of the term, you’ll receive a lump sum from your payments after deductions for interest charges and fees.