The USA is a country built on consumer credit. Americans have a love affair with credit that knows no bounds, from department stores to fast food. The lack of credit history required to obtain a credit card is shockingly low, making it especially hard for those with very little or no credit. More banks have been issuing credit card for people with no credit, as long as they can explain their financial health in other ways, like supplying checking and savings account details.
The shift occurred without an official declaration from banks, but several reports in The Wall Street Journal have demonstrated that lenders look beyond credit scores when making credit decisions. Whatever, If you are one of the majority who doesn’t have much credit history, you’ll want to check out these Best credit cards for people with no credit. They’re our top picks because they offer great-value rewards, have a more extended grace period than most, and don’t penalize you as much as other cards for making payments on time.
What is a Credit Card?
A credit card is an instrument that lets you borrow money from a credit union or bank, usually with a low-interest rate and no collateral required. You use the card to make purchases, and the vendor deposits the money into your account.
If you don’t pay off your balance, the card company can charge you interest. Credit cards are similar to debit cards in that they are accepted as a form of payment. Besides, a credit card is used as identity theft protection.
Why Get a Credit Card?
A credit card can be a fantastic way to get access to money quickly. You might not have excellent credit, but that won’t stop you from getting a credit card. Credit cards are created for people with bad or no credit, making it easy to get approved.
If you have no credit, you are likely to wonder, How to get a credit card or What are the best cards for people with no credit then We get that question, so we together this guide to help you get approved for a credit card.
There are many reasons to apply for a credit card, and it can do wonders for your credit score, even if you do not have excellent credit. You can: Build or rebuild credit – Using a credit card over time will help you establish credit.
Get a loan except by going to a bank: The best credit cards let you borrow without a traditional lending institution. You’re bypassing the bank and saving time and paperwork using a credit card.
Pay for something you need right now: You don’t need to save money for a vacation or something else in the future. You can pay for something you need right now with a credit card, like your groceries or gas.
Use it like cash: Unlike a check or money order, you can use a credit card to pay for something with no money or currency changing hands.
How to Get a Credit Card Without Credit?
When some credit cards like long-lasting intro offer or premium perks and rewards require excellent credit for approval, plenty of starter credit card options are designed to help you build and sustain good credit. Here are some steps you can obtain a credit card with no credit or bad credit:
Secured Credit Cards
Upon approval, secured credit cards need an upfront deposit, which typically acts as your credit limit. The warranty makes these cards more accessible for people with a bit of credit history or bad credit because the deposit reserves the credit the bank lends you, like a form of collateral.
These cards usually don’t offer fantastic rewards but can be a helpful stepping stone to more accountable card options. Depending on your issuer, even you may be capable of upgrading to an unsecured credit card in the future without having to close your statement.
Student Credit Cards
Student cards are an excellent credit-building option for students to go ahead before completing graduation. Not only can you set up a positive payment history by utilizing your card responsibly in school, but these cards often present wards and benefits geared toward students and everyday spending. While graduating, you may choose to continue requesting an upgrade to a standard credit or using your student card or card from your issuer.
You can also make credit as an authorized user on a trusted friend or family member’s credit card account if you cannot get approved for your own. For instance, parents may designate their children as authorized users of card support for emergencies or another use, like fueling up at the gas station.
Moreover, as an authorized user, you may have your card, but responsibility for payment and effects on your credit eventually falls on the account owner. Agreeing to be an authorized user, ensure that the account owner is a responsible cardholder with a history of timely payments. Future adverse payment history could reflect poorly on your credit score.
What is the requirement of getting a credit card with no credit?
In most cases, you’ll need to prove you have a source of income and a job that pays you at least $300 per month before applying for a credit card. That said, there are a few exceptions to this rule. If you are devoting to a credit card as a beginner, you will need to provide proof of identity, address, and employment details.
Moreover, if you’re applying for a card with an annual fee, you’ll also need to show evidence that you have a valid credit or debit card to reimburse you for the yearly cost should you choose to charge it.
Can I be eligible for a credit card with no income?
You can be qualified for almost every credit card without having any income. All that matters is your income and if you can afford to repay the debt. There are plenty of cards that require no credit checks, but they will all be categorized as “universal cards” by credit card companies. These cards work just as well for people with bad credit as they do for those with good credit.
Moreover, it’s one of the most comfortable ways to get a credit card because most banks and credit unions don’t even ask for any documents to prove your income. However, keep in mind that some cards require you to make some of a deposit or put up something of value as collateral if you want to be approved for a higher limit card. Most credit unions and banks will let you open an account even if you don’t have any money or assets to put up as collateral.
How can you a credit card help you build credit fast?
The only steps to obtain this are applying for and accepting credit cards. However, you don’t need many cards to build credit, contrary to popular belief.
The fewer cards you have, the faster you’ll be able to make your credit. An excellent place to start is with two cards – one with a low credit limit and one with a high credit limit. By adding new accounts regularly, building credit will come easier and faster.
The 10 Best credit cards for people with no credit
Your credit application will process much faster if you have good credit, as with any credit. However, a few credit cards don’t require perfect credit. You should consider applying for any of the following cards if you have bad or no credit.
1) The Capital One® Savor™ Cash Rewards Credit Card
The Capital One® Savor™ Cash Rewards Credit Card is a premium card that earns unlimited 1.5% cash back on every purchase and can add up over time. The card has a $59 annual fee, but it’s waived the first year.
Additionally, If you don’t have a perfect credit score, this card is an excellent option. It has a long 0% intro APR worth keeping in your back pocket. If you make only the most petite purchases every month, you can pay nothing for the first year.
After that, the ongoing APR is 16.49 percent. This Capital One® Savor™ Cash Rewards Credit Card also has incredible benefits, like Priority Pass™ membership and airport lounge access.
This card, on the other hand, does have a few drawbacks. The biggest is that it doesn’t offer a signup bonus like other cards on this list. In addition, the ongoing cashback rewards are in the 1.5 percent range, which isn’t as generous as the signup bonus on some of the other cards. Finally, the fee is a bit high, especially when you consider that the competitors on this list all have waived annual fees the first year you have an account.
- No cash back limits
- Redeem cashback for statement credit, gift cards, or check
- Save any amount at anytime
- Convenient automatic deliverance options: annually or when you reach a particular threshold ($25, $50, $100, or $200)
- Not redeemable for merchandise or airline travel
2) The BankAmericard Travel Rewards® Credit Card from Bank of America
The BankAmericard Travel Rewards® Credit Card from Bank of America is one of the top travel credit cards on the market. The card earns unlimited 1.5 percent cash back on every purchase, just like the name suggests. But that’s not all: The card also gives you unlimited 1.25 percent cash back on all gas purchases and 0.25 percent on all other purchases.
Surprisingly, It has one of the most extended average annual percentage rates (APR) in the zero percent category. Depending on which version you get, you can get the card with a $95 or $125 yearly fee. Further, The $95-a-year card has a long 0% introductory APR for 12 months that you can fall back on after that. If you make only the most minor purchases every month, you can pay nothing for the first year.
After that, the ongoing APR is 16.49 percent. Another reason this card is so great is that it comes with an extra $10,000 in travel cash, specifically for those who are approved for bad credit. You can get the same benefits as those with good credit, like priority boarding and free checked bags on certain airlines, without needing a significant credit score.
On the contrary, for one thing, the cashback rewards aren’t as generous as those on other cards. It had better help if you also had excellent credit to get this card, as it’s not available to those with bad credit. Finally, the ongoing APR is a bit high at 16.49 percent, and the $95-a-year card has a high annual fee.
- Earn uncapped rewards
- Bank of America Selected Rewards clients earn 25%-75% more cash back on every acquisition
- No foreign transaction fees
- No bonus categories to boost reward earnings
- No intro APR offer for balance transfers
- APR can be high, depending on creditworthiness
3) The Chase Slate®
The Chase Slate® is one of Chase’s Signature cards, and it’s best for people who want a longer 0% intro APR on purchases. That means you can pay absolutely nothing for the first year, and then the ongoing APR is a low 15.24 percent.
If you don’t make any large purchases right away, you can fall back on the ongoing 15.24 percent APR for a long time. You do not have to worry about paying a high annual percentage.
In addition to the long 0% intro APR, this card also comes with many great benefits, including Trip cancellation/interruption coverage. Besides, this card offers a Free credit score, Travel medical insurance (Duals), Car rental insurance, and emergency roadside assistance, and you can able deadline extension as well.
In contrast, this card is a $95 annual fee, which is higher than most competition. The ongoing cashback rewards are also lower than most other cards, with one exception. The Chase Slate® has a maximum limit of $750 in cash back per quarter, so you’ll want to look elsewhere to take advantage of high-value purchases.
- Relatively long APR-free period for balance transfers and purchases
- No introductory balance transfer fee
- No penalty APR
- No rewards or one-time offer
- 3% foreign transaction fee
4) Citi® Double Cash Card | 18 months 0% APR
Citi® Double Cash Card | 18 months 0% APR is a no-annual-fee card with two rewards: cash back and 0% APR on purchases for 18 months. The card has a long 0% introductory APR, which means you can fall back on it after making only the most petite purchases. That gives you an extended grace period to pay off your balance, which is especially helpful if you have bad credit.
The card also has a $500 cash back reward, suitable for a $500 deposit in your account after making a $500 purchase within the first year.
On the other hand, on this card, the cashback rewards aren’t as generous as those on other cards. In addition, you need excellent credit to get the card, as it’s not available to those with bad credit. That’s because the ongoing APR is 29.99 percent.
- Earn up to 2% cash back—1% when the purchase is made and 1% when payment is made on the account
- No cash back cap—no limit on the amount of cash back that can be earned
- No annual fee
- Introductory APR period for a balance transfer
- Foreign transaction fee and Balance transfer fee
- Lack of benefits seen in other no annual fee cards
- No introductory 0% APR on purchases
5) U.S. Bank Altitude Select™ Mastercard®
The U.S. Bank Altitude Select™ Mastercard® is one of the top travel credit cards. It earns unlimited 3% cash back on gas purchases and 2 percent on all other investments, which can add up over time. This is an excellent card because this card also comes with an extended 0% introductory APR worth keeping in your back pocket.
If you make only the most petite purchases every month, you can pay nothing for the first year. After that, the ongoing APR is slightly higher, at 16.49 percent.
Another reason this card is so great is that it comes with an extra $200 in travel money, specifically for those who are approved for bad credit. You can get the same benefits as those with good credit, like priority boarding and free checked bags on certain airlines, without needing a significant credit score.
In opposition, the ongoing cashback rewards aren’t as generous as those on other cards. Another downside is that the $95 annual fee is higher than most competition.
- High rewards rate
- Bonus categories
- New cardholder bonus offer
- No foreign transaction fees
- Has annual fee
6) The American Express® Gold Card
The American Express® Gold Card is our top pick for people with no credit. This card gets much of its value from the sheer number of privileges it offers its holders. For example, the first year you have this card, you’ll get an extra 25,000 Membership Rewards points if you have an annual fee credit card with American Express.
The number of rewards points you will earn for everyday purchases is one of the best in the business. If that wasn’t enough, this card offers many additional benefits, including a $200 airline fee reimbursement if you purchase an American Airlines flight. You must call the customer service number on the back of your card within 60 days of your purchase of a qualifying airline ticket and explain you are a cardholder—complimentary access to Cabela’s and Brookstone stores.
This also offers $100 off a Skechers purchase and the ability to transfer your Membership Rewards points to 26 foreign airline partners. The first year there has No annual fee, and then only $175. This card has an exemplary rewards program and an incredible list of perks, making it an excellent choice for people with no credit.
- No foreign transaction fee
- Lots of travel credits and perks
- Lots of rewards redemption options
- Very high rewards earnings rate on food and airfare purchases
- High annual fee
- Limited financing options
- Narrow rewards categories
7) The Discover it® Visa -0% APR on Purchases for 15 Months
Discover it® is another excellent choice if you have no credit or bad credit. It has a 0% introductory APR on purchases for 15 months. If you make a $1,000 purchase today, you will pay nothing for a year. After the promo period, your interest rate will be 14.99% — one of the lowest rates available.
The card has no annual fee, and you’ll get a low-interest rate on your purchase balance. If you’re interested, apply here.
- Suitable for people who want to build or repair their credit while earning cashback rewards
- No yearly fee
- No foreign transaction fee is required
- Discover reviews your account to see if they can switch you to an unsecured card
- The user-friendly online banking system
- No travel rewards
- 2% cashback limited quarterly
8) Deserve® EDU Mastercard for Students
The Deserve® EDU Mastercard for Students is an alternative to conventional banks and credit card issuers and expertise in credit cards for students and beginners. This credit card checks most essential boxes: It offers 1% back-on features, a relatively low late-payment fee, all spending, and a flat 18.74% APR (depending on the prime rate).
While offering a lower student rewards rate than other cards, its relaxed qualification requirements are well-suited for students with a brief or non-existent credit history or potentially disqualifying limitations. For example, you are not having a Social Security number if you’re an international student.
- No security deposit or co-signer required
- Refer a Friend program
- High APR
- Fairly low rewards
9) Petal® 2 “Cash Back, No Fees” Visa® Credit Card
People who are new to credit can benefit from this card because they will be able to build responsible credit habits, increase their credit scores, and get rewards.
But what makes this card (which is issued by WebBank, Member FDIC) stand out is its approach to application approvals. The bank uses your credit history and other financial information such as your income and payments history to determine your creditworthiness if you have no history on your credit report. If you are not interested in a secured credit card but are unlikely to get authorized for a standard card based on credit, this can be a helpful alternative.
In addition to getting 1% cash back on purchases with the Petal 2 Visa card, after you make 12 on-time payments a year, you’ll be rewarded with 1.5% cashback. You can also earn 2%-10% cashback at select merchants using Petal Offers. Additionally, the card won’t charge you any fees – no annual fee, no foreign transaction fee, no late payment fee, and no penalty interest rate, for example. However, revolving balances will accrue an interest rate between 13.24% and 27.24%.
- No annual fee
- Qualify with average credit
- No foreign transaction fees
- Reports to the three major credit bureaus
- Complicated rewards
- No bonus offer
- No intro APR offer
10) Capital One Platinum Credit Card
This card can offer an excellent value for building credit despite its lack of rewards. Your credit limit is automatically increased after six months of timely payment of your statement balance. By paying on time, you’ll build your payment history.
Having a higher credit limit will reduce your credit utilization ratio, which compares the amount of credit you use to your available credit. Both of these are essential factors in your credit score. Capital One CreditWise from Capital One enables you to monitor your credit, making this card a helpful tool. A solid credit-building option.
On the other hand, Capital One Platinum* is a straightforward credit-building card. Capital One does not charge an annual fee and has a variable APR of 27.24%. While there are no rewards, CreditWise gives you access to your credit score and credit monitoring to protect your credit score and score. Besides not paying foreign transaction fees, Platinum Mastercard benefits include fraud liability coverage of zero dollars and additional travel and purchase protections.
- Qualify with average credit
- No annual fee
- No foreign transaction fee
- High APR
- No rewards
Credit cards are a grand scheme to build credit and get approved for loans in the future. They also come with various perks, like rewarding you for paying your bills on time. If you have bad or no credit, getting approved for a credit card can be challenging.
That’s where these ten cards come in. They have generous credit limits, no annual fees, and high credit card approval rates. But not everyone understands the value of a credit card, and some may feel that they must have good credit to get one. Keep in mind that the more creditworthy you are, the easier it will be for you to borrow money in the future.