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.

Credit history has to do with how you’ve managed credit over time. Without it you may not have as many options. But it’s still possible to get a credit card. 

What you’ll learn:

• Having no credit history means you haven’t had information about your credit activity reported to at least one of the three major credit bureaus.

• Having no credit history, also known as 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 credit cards designed for people with no credit history.

• Seeing whether you’re pre-approved can give you an idea of whether you can get a credit card if you have no credit history.

Lending decisions are up to individual credit card issuers. But you can still get a credit card even if you don’t have an established credit score. There just may not be as many options. And the cards you’re eligible for may have higher rates, deposits or fees that help offset the lenders’ need for a credit history.

Having no credit history means the major credit bureaus (Experian®, Equifax® and TransUnion®) have no information in their reports about how you’ve managed credit. 

The credit bureaus receive credit activity information 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 have no credit accounts, there’s no activity to build a credit history. And that means there’ll be no credit scores or reports. It’s a situation also known as being credit invisible.

Not having a credit history doesn’t mean you have bad credit or are financially irresponsible. But having a credit history makes it easier for lenders to determine your creditworthiness. Here are some things it might be easier to get with a credit history:

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

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

In some states, car insurance companies can look at drivers’ credit scores to determine premiums. So 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. 

A person with no credit history may still qualify to rent. But they could 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. That can include a credit check, especially for jobs that involve finances or sensitive information. 

The rules may vary about how information from background screenings can be used, and companies are required to get your written permission before doing a background check.

Here are some credit cards that can work for beginners:

Not all traditional, or unsecured, credit cards are designed for people with no credit history. But there are some. 

For example, the Capital One Platinum Mastercard® could help build credit if it’s used responsibly by doing things like paying statements on time 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 have trouble being approved for the Platinum Mastercard, you could consider a secured credit card.

With secured credit cards, cardholders make a refundable security deposit, and the credit card issuer holds it as collateral for the credit line. 

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 depositing more than the minimum.

Student credit cards are designed for college students, so high credit scores or extensive credit histories may not be necessary to qualify. 

The Capital One Savor Student card lets 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.*

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

Once you’re ready to apply for your first credit card, here are some steps it may help you to follow. But be aware 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 (SSN) or Individual Taxpayer Identification Number (ITIN)

• Date of birth

• Address

• Income

Checking for pre-qualification or pre-approval for a credit card can be a great way to compare options and get an idea of whether you’ll be approved. Pre-approval at Capital One is quick, and it won’t hurt your credit scores.

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 you can start building credit.

You could become an authorized user if a trusted friend or family member is willing to give you access to their account. 

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 sets up an account with a fixed amount of money. You make monthly payments to the lender, 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 information to the credit bureaus that isn’t already being reported. That could include payments for things like rent, cellphone bills or utility bills. If they’re consistently on time, those payments could then positively affect your credit. Make sure you’re aware of any fees and other terms and conditions before you decide to use a third-party reporting service.

Getting a credit card if you have no credit history is possible. Secured and student credit cards could be two options. Becoming an authorized user is another. Keep in mind that building credit takes time and responsible use. 

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

• See if you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• 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, and using it won’t hurt your credit.