A lot of credit cards won’t approve you without an established credit history. That makes building credit tricky — after all, how can you build credit with a credit card if you can’t get approved for one?
That’s where credit-building credit cards come in. As the name suggests, credit-building cards can help you build up your credit score, even if you have no credit history. With regular use and on-time payments, you’ll eventually be able to move on to bigger and better cards.
Best credit cards for no credit
CNET’S PICK
Intro Offer
Cashback Match™
Intro Offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Rewards Rate
1%
– 2%
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.; Earn 1% unlimited cash back on all other purchases – automatically.
Rec. Credit
Recommended Credit: A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
No Credit History
APR
18.24% – 27.24% Variable APR
The Discover it® Student Chrome* offers a winning combination of cash-back and other rewards opportunities, as well as lenient terms for first-time credit card holders.
You won’t get dinged by the credit card company for your first late payment (up to $41 thereafter) or have to deal with an exorbitant penalty APR. Plus, you can earn 1% to 2% back in rewards each month (2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases, then 1%) on this Discover credit card. Discover does offer another similar student credit card, the Discover it® Student Cash Back*, but the rotating bonus categories for earning rewards can make things overcomplicated, especially for first-time cardholders.
For our full review of the Discover it® Student Chrome, check out our coverage of the best student credit cards.
- Intro Balance Transfer APR
- 10.99% for 6 months
- Intro Purchase APR
- 0% for 6 months
- Regular APR
- 18.24% – 27.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
2%
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.
1%
Earn 1% unlimited cash back on all other purchases – automatically.
The Discover it® Student Chrome* offers a winning combination of cash-back and other rewards opportunities, as well as lenient terms for first-time credit card holders.
You won’t get dinged by the credit card company for your first late payment (up to $41 thereafter) or have to deal with an exorbitant penalty APR. Plus, you can earn 1% to 2% back in rewards each month (2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases, then 1%) on this Discover credit card. Discover does offer another similar student credit card, the Discover it® Student Cash Back*, but the rotating bonus categories for earning rewards can make things overcomplicated, especially for first-time cardholders.
For our full review of the Discover it® Student Chrome, check out our coverage of the best student credit cards.
- Intro Balance Transfer APR
- 10.99% for 6 months
- Intro Purchase APR
- 0% for 6 months
- Regular APR
- 18.24% – 27.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
2%
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.
1%
Earn 1% unlimited cash back on all other purchases – automatically.
The best credit card for no credit — with a caveat
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
Rewards Rate
1%
– 1.5%
Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.; 1% cash back on eligible purchases right away.
Rec. Credit
Recommended Credit: A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
No Credit History
APR
18.24% – 32.24% (Variable)
The Petal 2 Visa Card, issued by WebBank, stands out among credit cards that can help establish credit. It comes with no annual fees, no late fees, no foreign transaction fees and no returned payment fees — perfect for someone first handling the reins of managing credit. Your credit score, if you have one, and Petal’s Cash Score, which analyzes how you spend your money, may be used when evaluating your application. If you have no credit, this means you will need to provide some financial details.
Your credit limit will be between $300 and $10,000, based on creditworthiness. You also have the opportunity to earn 2% to 10% cash back at select merchants, and your cash-back rate of 1% on eligible purchases will increase to up to 1.5% after 12 months of on-time payments. And unlike other credit-building cards, there’s no need to worry about a security deposit.
Editor’s note: The Petal 2 card used to be ranked higher, but since Petal has downgraded users in the past to the Petal Rise, which comes with a monthly fee, we’ve lowered this card’s rating. It’s still a strong credit-building card, but cardholders should be aware that this company has a history of downgrading users.
Check out our full review of the Petal 2 Visa Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
1.5%
Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
1%
1% cash back on eligible purchases right away.
The Petal 2 Visa Card, issued by WebBank, stands out among credit cards that can help establish credit. It comes with no annual fees, no late fees, no foreign transaction fees and no returned payment fees — perfect for someone first handling the reins of managing credit. Your credit score, if you have one, and Petal’s Cash Score, which analyzes how you spend your money, may be used when evaluating your application. If you have no credit, this means you will need to provide some financial details.
Your credit limit will be between $300 and $10,000, based on creditworthiness. You also have the opportunity to earn 2% to 10% cash back at select merchants, and your cash-back rate of 1% on eligible purchases will increase to up to 1.5% after 12 months of on-time payments. And unlike other credit-building cards, there’s no need to worry about a security deposit.
Editor’s note: The Petal 2 card used to be ranked higher, but since Petal has downgraded users in the past to the Petal Rise, which comes with a monthly fee, we’ve lowered this card’s rating. It’s still a strong credit-building card, but cardholders should be aware that this company has a history of downgrading users.
Check out our full review of the Petal 2 Visa Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
1.5%
Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
1%
1% cash back on eligible purchases right away.
Rewards Rate
N/A
This card doesn’t offer cash back, miles, or points
Rec. Credit
Recommended Credit: A credit score is used to indicate an applicant’s credit worthiness and may provide guidance about account eligibility. It does not necessarily guarantee approval for any financial product.
No Credit History
Secured credit cards work differently than other credit cards. They require an upfront security deposit to open your account, which your “credit limit” is often based on. It’s an arrangement that’s especially useful as a credit builder account for someone who needs to show they can reliably pay a bill each month.
The Capital One Platinum Secured Credit Card* gives you $200 in credit when you deposit $49, $99 or $200, depending on your credit history — making it one of the few secured cards to offer actual credit. (Your particular terms depend on your specific application.) And this secured card checks all of the boxes: $0 annual fee, modest minimum security deposit of $49 — and the opportunity to earn back your security deposit as a statement credit when you use your card responsibly, like making on-time payments. Also nice: Capital One will see if you’re preapproved with a soft credit check, providing a risk-free peek at eligibility before you submit an official application to the credit card company.
Check out our full review of the Capital One Platinum Secured Credit Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 30.74% (Variable)
- Balance Transfer Fee
- $0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
Secured credit cards work differently than other credit cards. They require an upfront security deposit to open your account, which your “credit limit” is often based on. It’s an arrangement that’s especially useful as a credit builder account for someone who needs to show they can reliably pay a bill each month.
The Capital One Platinum Secured Credit Card* gives you $200 in credit when you deposit $49, $99 or $200, depending on your credit history — making it one of the few secured cards to offer actual credit. (Your particular terms depend on your specific application.) And this secured card checks all of the boxes: $0 annual fee, modest minimum security deposit of $49 — and the opportunity to earn back your security deposit as a statement credit when you use your card responsibly, like making on-time payments. Also nice: Capital One will see if you’re preapproved with a soft credit check, providing a risk-free peek at eligibility before you submit an official application to the credit card company.
Check out our full review of the Capital One Platinum Secured Credit Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 30.74% (Variable)
- Balance Transfer Fee
- $0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
What you need to know about credit before getting a credit card
The most important thing to know about credit is that it’s much easier to damage it than it is to repair it. That means missing any credit card payments will be detrimental to your finances, especially when you factor in penalty fees and penalty interest rates.
Pay your credit card statement on time each month to avoid any headaches, preferably in full to avoid paying any interest charges. Ideally, you’d keep your credit utilization — how much debt you have compared to your available credit — below 10%, but so long as you avoid using more than 30% of your credit limit, you should still see good results.
And while some credit cards offer rewards, for many first-time credit users, sticking with a no-frills card might be best.
“If you’re just starting out, focus on building credit for the long term because this will help you qualify for better credit cards and loans in the future,” said Natalie Garces, a 24-year-old personal finance influencer known as investwithnat on TikTok and other social media platforms. “Earning rewards can be tempting. You feel a rush of dopamine when you’ve earned the reward, but if you can’t pay off your balance in full each month, the interest charges can quickly eat away at any rewards you earn.”
What is a credit builder card
A credit builder card is a credit card that’s easier to qualify for than other credit cards. It focuses on helping the cardholder establish a better credit score. A credit-building card is no more effective than a standard credit card, but its lax credit requirements make it ideal for people with no or limited credit.
How to choose your first credit card
First, you’ll need to consider your credit level. Credit cards have credit requirements, meaning not every person is immediately eligible for all credit cards. Generally speaking, the higher the credit requirement, the better the rewards and features.
You can check your credit report for free by requesting your credit reports once per year from each credit bureau (Equifax, TransUnion and Experian) or through annualcreditreport.com. Some credit card issuers will provide your credit score for free, like Capital One’s CreditWise. Checking your credit report periodically for inaccuracies (which can then be disputed) can help keep your credit in good shape.
Once you know your credit score, you’re ready to start comparing credit cards. “Look for cards with no annual fees and low interest rates because you want to save money and not have to pay unnecessary charges when you’re first starting out,” Garces said.
If your score is low, a secured credit card or one of the credit card picks on this list can help you build a credit history from the ground up. If you have a fair or good credit score, you have more options, though Garces still suggests avoiding rewards until you’re in the habit of using your card responsibly — that means paying your bill in full and on time and not spending outside of your budget.
If you’re ready to consider a card with rewards, choose a card that fits your lifestyle and complements your regular spending habits. “If you’re a student, consider student credit cards specifically designed for students where they offer cash back in categories that students typically spend on,” Garces said. Many student credit cards offer rewards on dining or takeout, which can be helpful if you’re always on the go.
Lastly, if you’re traveling abroad, a credit card without foreign transaction fees can save you money on international trips.
When should you get your first credit card
You’re eligible to apply for a credit card once you’re 18 years old. But that doesn’t mean you should apply for a card right away.
Garces recommends waiting until you have a job that pays a steady income or when you’re able to manage your expenses. But don’t jump into a credit card application without brushing up on a few basic factors. “It’s important that you educate yourself prior to getting your first credit card on how they work, what APR means, how interest works and how to build your credit score,” she said.
You might also consider applying for your first credit card if you’re going away to college. A credit card not only provides a way to build credit but also offers access to emergency funds and rewards on eligible purchases. Just make sure you have the funds to pay off your balance each month.
“I like to treat my credit cards like a debit card and only use credit when I know that I have the money to pay it off in full every month,” credit expert Daniel Braun said. “That way, my spending stays the same, but I’m able to build credit and earn rewards at the same time for no extra cost.”
Here’s how the experts recommend building credit
Gerri Detweiler
Expert Reviewer
Daniel Braun
Expert Reviewer
Leslie Tayne
Expert Reviewer
While credit cards with lower credit requirements can help improve your credit score, it’s important to tackle not just the symptoms but also the root of the cause, according to CNET Money credit card expert Gerri Detweiler.
“You want to stabilize before improving your credit score,” she said. “The big mistake I see people make is they jump into credit repair when they haven’t fixed the credit problem. They’re worried about repairing their credit, but debt collectors are calling or they have accounts that could be sent to collections. Deal with the debt first rather than trying to fix the credit score.”
Detweiler also cautioned people to keep an eye on their credit utilization when it comes to secured credit cards or credit cards for people with limited credit.
If the secured card has a low credit limit, even a small purchase can cause your credit utilization — how much you owe versus how much credit you have access to — to jump up. To avoid this, Detweiler recommends using a credit-building card to pay off an essential bill each month, then pay the balance right away.
To ensure you never miss a payment, Detweiler suggests setting up autopay. It sounds obvious to pay on time, but life gets busy and sometimes credit card websites can be confusing,” Detweiler said. Autopay can ensure you won’t miss any payments and also help you avoid costly interest charges while keeping your credit utilization low.
However, secured credit cards aren’t your only way to build credit. Daniel Braun, a credit card expert, suggests becoming an authorized user on someone else’s credit card account if you’re looking to establish credit.
“Being an authorized user under someone else like a parent who has good credit habits can also help you to establish your credit early on,” he said. “Just make sure that the primary account holder is someone responsible who does not ever miss payments or maintain high credit utilization.”
Leslie Tayne, a credit expert, financial attorney and founder of Tayne Law Group, provides another alternative — a credit builder loan.
You can typically find credit builder loans at credit unions, and they work a little differently than a traditional loan. “If you’re approved for a credit-builder loan, you don’t receive the money upfront,” said Tayne. “Instead, the lender sets it aside in a secured savings account or CD. You then make regular, fixed payments over a set term, usually six to 24 months. You’ll also pay interest on the loan, and there might be an administrative fee. Each on-time payment contributes to your credit history, and once the loan is fully repaid, the lender releases the funds to you, minus any interest and fees.”
If you aren’t sold on a secured credit card, consider either of these other options to still work toward a better credit score.
How to use your credit building card effectively
Your key to success is to always pay your credit card bill on time each month. Positive payments are the most effective way to build credit. However, it’s equally important to not spend money you don’t have. Credit card debt is a slippery slope and can accumulate quickly unless you’re immediately paying off your card purchases.
To help, you should treat your credit card like it’s a debit card – meaning immediately paying off your purchases — and you should have no trouble avoiding interest charges while working to improve your credit.
How to build credit without a credit card
If you don’t have a credit card, there are still ways to build your limited credit history. If you have student loans or an auto loan or mortgage, making your payments on time will improve your credit. You could also utilize a credit builder loan, which will help establish a strong on-time payment history.
You can be added as an authorized user on a family member’s credit card. If they have good credit and manage their credit card well, it’ll contribute to your credit score. The most straightforward way to establish and grow your credit history, however, is by responsibly using a credit card.
Being an authorized user under someone else like a parent who has good credit habits can also help you to establish your credit early on. Just make sure that the primary account holder is someone responsible who does not ever miss payments or maintain high credit utilization.
What to do after you’ve opened your first credit card
After you find the right credit card, using it responsibly will help you grow your credit score. As your score increases, you’ll be able to apply for credit cards that offer better rewards and perks.
“Once you’ve opened your first credit card, you want to keep the account open and in good standing to improve your age of credit history,” Garces said.
And if you realize the credit card you opened isn’t the best fit, there are some steps you can take. “If your first credit card has an annual fee that you regret paying each year, you can call the credit card company to see how they can downgrade your credit card to a card without an annual fee instead of closing it,” Garces said.
The age of your credit accounts is one of the main factors that contributes to your credit score. Rather than closing a card and applying for a new one, you can maintain the history of your card by asking to downgrade (or in some cases, upgrade) to a card that better fits your needs.
How to apply for a credit card
Follow these steps:
- Choose a card that matches your needs and budget.
- Apply securely on the credit card issuer’s website.
- Provide the required personal and financial information, including name, date of birth, Social Security number, income and monthly rent or mortgage payment.
- You should hear back instantly with the issuer’s decision. Otherwise, it may reach out for clarification or more information.
FAQs
No. Having no credit means you don’t have any credit history yet, while a bad credit score means you have a credit history, but it’s been damaged in some way.
Most credit cards require some form of income verification while applying. Credit cards are still a form of loan, which means they involve risk. The lender needs to know you have a way of paying back the money you borrow.
In most cases, you’ll need a checking account and evidence of regular income to be eligible for a credit card. If you don’t have one, check out our article on best checking accounts to find the account that best suits your needs.
While most of the credit-building process requires time, there are a few things you can do to ensure that you’re improving your credit score number as quickly as possible.
- First, pay all of your bills on time. This will boost your on-time payment history calculation in your credit score.
- Second, work to keep your credit utilization as low as possible. Do that by paying off your entire balance at least once a month and twice per month if you can. It will also help to have a higher credit limit, so look for credit cards that offer credit increases periodically — or call your bank every five to six months if they don’t, and ask for a credit limit increase.
- Finally, don’t open too many new credit accounts all at once, even if you’re trying to improve your credit mix. Lenders can get skittish if you’ve recently applied for multiple credit accounts, as it shows you could be a riskier borrower.
Our methodology
CNET reviews credit cards by exhaustively comparing them across set criteria developed for each major category, including cash-back, welcome bonus, travel rewards and balance transfer. We take into consideration the typical spending behavior of a range of consumer profiles — with the understanding that everyone’s financial situation is different — and the designated function of a card.
For cash-back credit cards, for example, key factors include the annual fee, the “welcome bonus” and the cash-back rate (or rates, if they differ by spending category). For rewards and miles credit cards, we calculate and weigh the net monetary value of a card’s respective perks. And with balance transfer credit cards, we analyze specs such as the duration of the introductory 0% APR period and the balance transfer fee, while acknowledging secondary factors such as the standard APR and the length of time you have to make a balance transfer after you open the account.
Other credit cards we researched
- Discover it® Student Cash Back
- Capital One Quicksilver Secured Cash Rewards Credit Card
- Self – Credit Builder Account with Secured Visa® Credit Card
- OpenSky® Secured Visa® Credit Card
More credit cards
*All information about the Discover it Student Chrome, Discover it Student Cash Back and the Capital One Platinum Secured Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
