Best Credit Cards for Limited or No Credit History in September 2024 | LendingTree (2024)

On this page

• Our top picks in September 2024
• Side-by-side comparison
• What’s the easiest credit card to get with no credit?
• What to look for in a credit card with no credit
• How to apply and get approved for a credit card with no credit
• How to build credit with no credit history
• Frequently asked questions
• Methodology: How we chose the best credit cards for limited credit histories

Credit cards are an excellent tool for making purchases securely, managing your money and building credit. But if you have little to no credit history, you may feel that many credit cards are out of your reach — especially those with fancy perks and rewards.

The good news is that credit cards for no credit can help you build or rebuild your credit, showing lenders that you’re financially responsible and ultimately giving you a much wider array of credit card options. The best starter credit cards include secured and unsecured credit cards and student credit cards. They often have no annual fee and offer cash back rewards.

*The information related to the Chase Freedom Rise℠ Credit Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.

*The information related to the Petal^® 2 Cash Back, No Fees Visa^® Credit Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.

*The information related to the Amazon Secured Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.

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.

To bring you the list of credit cards for limited credit, we use an objective rating and ranking system that compares features across a large set of credit cards (over 200 of them from over 50 issuers). We use calculations to estimate the value of each card for the average cardholder, based on LendingTree and U.S. Bureau of Labor statistics.

For credit building cards in particular, we devote a large part of the score to features that help build credit — we want to help you locate cards that don’t cost a lot to own and provide help so you can upgrade to better card offers.

• Annual savings (50% of rating): We calculate how much the average cardholder can save with the card on a yearly basis. If it’s a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
• Credit building features (50% of rating): We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We take away points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.

Note that our ratings are a starting point for comparing and choosing the best credit card for building credit. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s bonus categories and which benefits you value to choose the best card for you.

*Out of network ATM withdrawal and over the counter advance fees may apply. See here for details. (https://www.chime.com/chime-credit-builder-visa-credit-card-agreement/)

The Secured Chime Credit Builder Visa^® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.

To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

Allie Johnson

Allie Johnson is an award-winning personal finance writer with more than 10 years of experience covering credit cards, mortgages, personal loans and small business. She holds a degree in magazine journalism from Ohio University’s E.W. Scripps School of Journalism. She has written for a variety of finance publications, including CreditCards.com, LendingTree and MagnifyMoney.

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