How to get a credit card with no credit history

So you’ve decided to get a credit card. You’re responsible with your money, and you’re confident you can make the monthly payments. But you don’t have a credit history, which can make it tough to get a credit card. 

So how are you supposed to establish a credit history without having a card? Don’t panic. It’s possible to get a credit card when you have no credit history.

Key takeaways

• Having no credit history, also known as being credit invisible, means you haven’t had information about how you’ve managed debt reported to at least one of the three major credit bureaus.
• Credit invisibility can make things like getting approved for a credit card or a loan more difficult or costly.
• It’s possible to get a credit card with no credit. You might consider applying for a secured credit card, student credit card or retail store credit card to help establish and build your credit. 

While there may not be as many options available, you can get a credit card even if you don’t have an established credit score. But the cards you’re eligible for may come with higher interest rates.

If you’ve never had a credit card or loan in the U.S., you might not have a credit history. That means lenders or other companies haven’t reported how you’ve managed debt to at least one of the three major credit bureaus: Equifax®, Experian® and TransUnion®. People with no credit history might also be referred to as credit invisible.

Not having credit history doesn’t mean that someone is financially irresponsible. But without established credit history, lenders might not have the information they need to determine someone’s credit risk. 

Being credit invisible can lead to some challenges, including: 

Lenders might look at credit reports and credit scores to get a picture of things like a person’s payment history, debt, credit age and more. Without that information, lenders may not be able to assess a potential borrower’s credit and approve them for things like credit cards, auto loans and mortgages. 

According to the U.S. Government Accountability Office, it’s possible that a lender may use alternate data, such as rent and utility payments, to make a lending decision on people with no credit history. 

A lender may view a credit invisible borrower as having higher credit risk. So if a lender does approve a credit invisible borrower for a line of credit, the interest rate and credit limit might not be the same as those offered to a person with a longer credit history.

In some states, car insurance companies will look at a driver’s credit scores as part of determining their premium. So having an established credit history and good credit scores may be part of helping you get a lower car insurance rate.

When you apply to rent an apartment or a house, the landlord may check your credit history—along with your criminal and rental histories. 

You may still qualify to rent even without any credit history. But if a landlord has received multiple applications, they could decide to rent to another person instead. Or you may be asked to pay a larger security deposit or a few months’ rent up front.

If you apply for a job, some employers may ask to run a background screening. And that can include a credit check, especially for jobs that involve finances or sensitive information. 

The rules can vary about how information from background screenings could be used. And companies are required to get your written permission before doing a background check. But if you decline, you might not be considered for the job. 

If you don’t have a credit history and are considering your first credit card, there are a few things to consider, such as:

• Eligibility requirements: It’s a good idea to first check for any eligibility requirements. For example, you generally need to be at least 18 years old to apply for a credit card. But if you’re under 21, there are additional requirements. 
• Card type: You’ll want to think about what type of credit card you want, like store cards or cash back cards. 
• Interest rates and fees: It’s helpful to check credit card interest rates and whether there are any annual fees or other potential fees.

You can check to see whether you’re pre-qualified or pre-approved for a credit card before applying. Pre-qualification and pre-approval are considered soft inquiries, so they don’t affect your credit scores. Capital One offers pre-approval that’s quick and won’t hurt your credit scores. Keep in mind, pre-approval isn’t the same as applying for a credit card, which could result in a hard inquiry.

Getting a credit card without a credit history could be difficult, but there are some types of credit-building credit cards that may be a good fit for people who are credit invisible.

Many issuers offer secured credit cards. This can be a great option to build or rebuild credit.

Here’s how they work: You deposit an amount of money, sometimes known as a security deposit, and the credit card issuer holds it as collateral. For example, the Capital One Platinum Secured card has refundable security deposits of $49, $99 or $200 for an initial credit line of $200. If approved, you will get a credit card account with an initial credit limit. And if you add extra money, you might be able to increase the credit limit. 

You can then use the card to make purchases—just like you would with other credit cards. And by using your credit card responsibly, you may be able to start building a credit history and earn your security deposit back. You might also be able to upgrade to an unsecured credit card.

Student credit cards are designed for college students. So high credit scores or extensive credit histories may not be necessary to qualify, depending on the card and its issuer. And student cards can have lower or no annual fees and offer benefits that appeal to students. For example, the SavorOne Rewards for Students card from Capital One allows you to earn unlimited 3% cash back on dining, entertainment and popular streaming services as well as at grocery stores,¹ plus 1% cash back on all other purchases.

A student credit card works just like other credit cards. So if you carry a balance on your card, you might have to pay interest.

According to the Consumer Financial Protection Bureau, a retail store card is another option.

Just like any other credit card, a retail store card could show up on your credit report if it’s reported to the credit bureaus. And you could build credit by using the card responsibly. That means doing things like making consistent, on-time payments on the card.

Keep in mind that you might only be able to use retail store cards in the store or group of stores associated with them. You can learn more by reading the card’s terms and conditions.

Once you decide what kind of first-time credit card you want to apply for, here are some steps you may want to follow:

Depending on the issuer, applying for a credit card online may be the quickest and easiest option. But you can also apply in person, over the phone or by mail. Applying for a credit card generally results in a hard inquiry, which can temporarily affect your credit scores. So it’s helpful to only apply for credit you need. You can get an idea of which cards you may be eligible for with pre-approval. 

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

You may also need to provide some additional information, depending on the issuer and your circumstances. 

As you’re building credit through responsible use, like making payments on time each month, it’s also a good idea to check your credit reports often.

One way to monitor your credit is with CreditWise from Capital One.² CreditWise is a free tool that allows users to monitor their TransUnion credit report and VantageScore® 3.0 credit score. Using CreditWise to keep an eye on your credit won’t hurt your scores. And it’s free to everyone—even if you don’t have a Capital One card.

You can also get free copies of your credit reports from the three major credit bureaus. Visit AnnualCreditReport.com or call 877-322-8228 to learn more.

Applying for a credit card on your own isn’t the only way to access credit. And you may be able to use them to build credit too. You could consider becoming an authorized user on another account or asking someone to co-sign a credit card with you if that’s an option.

Becoming an authorized user means you get a card linked to an existing account that you’re authorized to use. The account might belong to a friend or family member willing to add you to their credit card account.

As an authorized user, you’ll get your own card so you can make purchases with the account’s line of credit. But the primary cardholder is ultimately the one who is responsible for the account.

Many issuers report authorized users to the credit bureaus, although it’s important to check. If the issuer does report authorized users—and the card is used responsibly—being an authorized user could help you build your own credit history. 

Being an authorized user can be a great way to learn how to manage a credit card. And some issuers, like Capital One, allow eligible authorized users to create their own digital profiles, making it even easier to view details related to their card and spending.

There are benefits for the primary cardholder too. It can be easier to monitor spending when it’s all on the same account. And depending on the card, the primary cardholder could earn rewards for your spending.

If you don’t have credit history or if you’re trying to rebuild your credit, a credit-builder loan may be an option. 

A credit-builder loan is different from a traditional loan, where you might receive the money you’re borrowing up front and pay it back over time. With a credit-builder loan, you make fixed payments to a lender and then get access to the loan amount at the end of the loan’s term.

A credit-builder loan gives you an opportunity to show that you can handle consistently making on-time payments. And because your payment history may be an important factor in calculating your credit scores, it could help you build credit.

People with no credit history may also look for loans that don’t require a credit check, like a payday loan.  But it’s important to consider the risks around these types of loans.

Payday loans typically have 2-to-4-week loan terms. But they come with unique risks. And they’re extremely expensive and are even illegal in some states. So they might be a type of credit to avoid.

Getting approved for a card is just the beginning. Whichever one you end up with, it’s a good idea to use credit responsibly by doing things like consistently making at least the minimum payment on time every month. If you can, paying off the balance each month can help you avoid interest charges.

Using credit responsibly may help you build your credit history. And once you establish a credit history, you might find you have more options the next time you decide to apply for a credit card. Capital One has a useful credit card comparison tool that helps you search by credit requirements, rewards type and other factors to find the right credit card for you. 

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit score.

• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use.