How to get a credit card with no credit history

So you’ve decided to apply for a credit card. You’re responsible with your money and confident you can make the monthly payments. But you don’t have a credit history. What now?

You may not have as many options as someone with an established credit history, but it’s still possible to get a credit card. Learn how to apply. Plus, check out alternative ways to build credit before applying for your own card.

What you’ll learn:

• Having no credit history means you’re credit invisible, because information about your credit activity hasn’t been reported to at least one of the three major credit bureaus.

• Being credit invisible can make getting approved for a credit card more difficult or costly. But it’s possible.

• Secured credit cards and student credit cards are among the options for people with no credit history.

• Checking whether you’re pre-approved for a credit card can give you an idea of whether you can get a card without a credit history.

You could be approved for a credit card even if you don’t have established credit scores. That’s because lending decisions are up to individual credit card issuers. But you may have fewer options. Plus, the cards you’re eligible for may have higher interest rates, deposits or fees.

Not having a credit history doesn’t mean you have bad credit or are financially irresponsible. Instead, it means the major credit bureaus don’t have enough information about how you’ve used credit in the past. 

The credit bureaus receive information about your credit activity from financial institutions, lenders and credit card issuers. Based on that information, the credit bureaus build credit reports, which are then used to calculate credit scores. So if you don’t have any credit accounts, there’s no activity to build a credit history. And that means there’ll be no credit scores or reports. This situation is also known as being credit invisible.

Here are some credit card options that can work for people with no credit history:

With a secured credit card, cardholders make a refundable security deposit. The credit card issuer holds the deposit as collateral. That’s why secured cards can be easier for people with no credit history to get approval for. 

Sometimes, secured card credit limits are the same amount as the security deposit. So a $200 deposit might translate into a $200 credit limit. But some cards might have a credit limit that’s higher than the amount of the security deposit. With the Capital One Platinum Secured card, an initial security deposit of $49, $99 or $200 can open an account with a credit line of at least $200. Platinum Secured cardholders can also raise their credit limits by making more than the minimum security deposit amount, up to a maximum of $1,000.

Student credit cards are unsecured cards designed for college students, so high credit scores or extensive credit histories may not be necessary to qualify. And if the card is unsecured, there’s no security deposit required.

With the Capital One Savor Student card, cardholders earn unlimited 3% cash back at grocery stores and on dining, entertainment and popular streaming services, plus 1% cash back on all other purchases.

Typically, traditional unsecured credit cards aren’t designed for people with no credit history. But some are. 

For example, Capital One Platinum cardholders can build credit if they use it responsibly by doing things like making on-time payments every month. Plus, there’s no annual fee. View important rates and disclosures. And you’ll automatically be considered for a higher credit line in as few as six months.

If you’re not approved for the Platinum card, you could consider a Platinum Secured card.

Retail store credit cards may have more lenient requirements. But they may also have higher interest rates and lower credit limits than other types of credit cards. Before you decide on a retail card, it may be worth confirming whether the issuer reports card activity to the credit bureaus.

Here are some steps to follow once you’re ready to apply for your first credit card. Keep in mind that you must be at least 18 years old to apply for a credit card. If you’re under 21, you’ll have to prove you can independently make payments on the account.

When you apply for a credit card, issuers will ask for information that could include your: 

• Full name

• Social Security number or Individual Taxpayer Identification Number

• Date of birth

• Address

• Income

Checking whether you’re pre-qualified or pre-approved for a credit card can be a great way to compare options and gauge your chances for approval. Pre-approval at Capital One is quick, and you don’t need a credit score to apply.

Depending on the issuer, applying for a credit card online may be the quickest and easiest option. But you might also be able to apply in person, over the phone or by mail.

If you’re not ready for a credit card or aren’t approved for one, there are still ways to build credit without a card.

You could become an authorized user on the credit card account of a trusted friend or family member. 

If the issuer reports authorized users and the card is used responsibly, being an authorized user could help you build your credit history. But irresponsible credit behavior on the part of the account holder or the authorized user could hurt both users’ credit scores.

With a credit-builder loan, a lender establishes your account with a fixed amount of money. You make monthly loan payments, which are typically reported to the credit bureaus. Once the loan is paid off, you get access to the money in the account.

Self-reporting isn’t something you can technically do on your own. It typically means using a third-party service to send the credit bureaus information that isn’t already being reported. That information could include payments for things like rent, cellphone bills or utility bills. If they’re consistently made on time, those payments could then positively affect your credit.

Before using any third-party reporting service, you may want to first research its fees, terms and conditions.

Having a credit history makes it easier for lenders to determine your creditworthiness. So with a credit history, it might be easier to get:

• Credit and loan approvals: Lenders use credit history to assess a potential borrower and approve them for credit cards, auto loans, mortgages and more.

• Favorable loan terms: A person with a longer, positive credit history may get a better interest rate and a higher credit limit than a credit-invisible borrower. 

• Good car insurance rates: In some states, car insurance companies can look at a driver’s credit scores to determine premiums. So an established credit history and good credit scores could help you pay less for car insurance.

• Housing application approvals: When you apply to rent an apartment or a house, the landlord may do a credit check in addition to rental history and background checks. A person with no credit history may still qualify to rent. But they might be asked to pay a larger security deposit or a few months’ rent in advance.

• Jobs: If you apply for a job, some employers may ask for your written permission to run a background check. That can include a credit check, especially for jobs that involve finances or sensitive information. It may help to know that the rules may vary about how information from background screenings can be used.

Getting a credit card without a credit history is possible. Secured and student credit cards could be two options. Becoming an authorized user is another. While you’re working to establish credit, keep in mind that building credit requires time and responsible use. 

If you’re new to credit or searching for your next credit card, Capital One could help you: 

• See whether you’re pre-approved for credit cards without harming your credit scores. (You don’t need a credit score to check.)

• Explore cards for people with fair credit if you’re looking to build your credit with responsible use. 

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash back rewards card. 

• Monitor your credit report and score with CreditWise from Capital One. It’s free for everyone, even if you don’t have a Capital One credit card.