Best Credit Cards for No Credit of January 2020

Finding cards intended for credit newbies is the key. Because usually, one of the first things credit card companies do when you apply for a card is to check your credit score and credit report to see if you have a track record of handling credit responsibly.

If you’ve never had a loan or credit card, you may not have a credit report. And since credit scores are based on the data in credit reports, you won’t have one of those, either. But in order to build your credit, you need to get credit.

Fortunately, there is a way around this catch-22. The cards on the list above are designed specifically for people with no credit. As long as you are at least 18 years old and have enough income to afford a monthly payment, you have options.

Secured card: These cards have low (or no) credit score requirements, but do require a deposit to cover the bank if you stop making payments. The amount you deposit typically becomes your credit limit, and it’s refundable when you upgrade to an unsecured card or close the account in good standing. Secured cards often charge extra fees, but they can be used just like “regular” cards. 

• Store card: These are easy to get because they are often only accepted by the branded store or a small retailer network, and they charge high interest rates. New cardholders typically get a first-purchase discount or special financing offer. Many store cards also let you earn rewards on an ongoing basis, but that can encourage unnecessary spending, so apply with caution. 
• Student card: These cards, designed for college students, don’t require a deposit and may have lower interest rates than secured cards. Student cards are the most similar to traditional cards, and many even offer rewards or 0% interest promotions. 

Even though your options are limited, be selective about the quality of your first credit card. Our recommendations above are a great place to start, and then pay attention to the following:

• Credit bureau reporting: Before you apply for a card, make sure that the card company will report your account information to the major credit bureaus—the companies that create your credit reports. That’s crucial to building credit. Most cards do report to the credit bureaus, but always double-check. If it doesn’t say on the issuer’s website, call their customer service to ask. 
• APR: Ideally, the interest rate—also called annual percentage rate, or APR—of your first card won’t matter because you’ll pay off the balance each month to avoid interest charges. However, you should still seek a card with a lower APR in case you do ever run a balance. 
• Fees: Look for cards that don’t have tons of fees. Secured cards, in particular, are known to add extra charges such as monthly maintenance fees, an application fee, and other fees, so watch out for those. Try to spot cards without annual fees or cards that waive the late fee the first time you miss a due date. 
• Credit limit: A larger credit limit will make it easier to use the card often without eating up all your available credit. A high credit limit also helps you to keep your credit utilization rate low. That’s the ratio of your credit card balances to your available credit, and a low rate is important for your credit score.
• Credit education features: Many cards offer free credit scores, but also look for other resources, like credit report monitoring and financial advice. 
• Rewards: You aren’t eligible for the most rewarding cards on the market, but you can still find valuable offers. However, if earning rewards may encourage overspending, pass on this feature. 

You can apply for most credit cards online. The applications are straightforward. Besides basic personal information, you’ll need your Social Security number, employment, income, banking, and possibly housing information. For more information, check out our guide to applying for a credit card.

Once you open your credit card, you’ll have activity that can go into your credit report. Then, pay your bill on time, every single time. Pay off your balance each month in full to keep your credit utilization ratio low. Then be patient. You won’t earn a 700+ credit score just by opening a credit card. Follow these steps and your credit will rise over the months and years to come.

For more information, check out our guide to building credit from scratch. 

We collect data on hundreds of cards and score more than 55 features that affect your finances. We do this because it's our mission to give you unbiased, comprehensive credit card reviews.

About This List

We start by filtering our database of more than 200 cards for products that accept applicants with no credit, bad credit, or fair credit (300-579 or 580-669 on the FICO 8 scale of 300 to 850.)

What We Score

Annual fee, regular APR, and rewards are the most important things people consider when choosing a credit card, so we weigh those features heavily. But for this list of cards, we look closely at features like having access to a free credit score and the potential to upgrade from a secured card to an unsecured card. For full details on how we evaluate credit card attributes, check out our full methodology.