How to get a credit card with no credit history

So you’ve decided to get 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, making it more challenging to get a credit card. 

So how are you supposed to establish a credit history without having a card? Fortunately, getting a credit card when you have no credit history is possible.

What you’ll learn:

• Having no credit history is also known as being credit invisible. It means you haven’t had information about how you’ve managed debt reported to at least one of the three major credit bureaus.

• Credit invisibility can make things like getting approved for a credit card or a loan more difficult or costly.

• It’s possible to get a credit card with no credit. 

• Secured credit cards and student credit cards are among the credit cards designed for people who are new to credit.

Yes. While there may not be as many options, you can still get a credit card even if you don’t have an established credit score. But the cards you’re eligible for may come with higher interest rates or require a refundable security deposit.  

But remember, decisions about extending credit are ultimately up to individual credit card issuers.

Financial institutions, lenders and credit card issuers report credit activity to one or all of the three major credit bureaus: Equifax®, Experian® and TransUnion®. 

Based on that information, the credit bureaus build credit reports, which are then used to calculate credit scores. But without credit accounts, there’s no activity to build a credit history—and ultimately, no credit score or credit history. This can make you credit invisible.

Not having a credit history doesn’t mean someone has bad credit or is financially irresponsible. But being credit invisible can lead to some challenges, including:

Without credit history, lenders might not be able to assess a potential borrower and approve them for credit cards, auto loans, mortgages and more.

A lender may view a credit-invisible borrower as having higher credit risk. That means interest rates and credit limits might not be the same as those offered to a person with a longer, positive credit history.

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. 

You may still qualify to rent even without any credit history. However, if a landlord has received multiple applications, they could decide to rent to another person instead. Or you could be asked to pay a larger security deposit or a few months’ rent upfront.

If you apply for a job, some employers may ask to run a background screening. And 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. But if you decline, you might not be considered for the job.

If you don’t have a credit history and are considering your first credit card, there are a few things to consider, such as:

• Eligibility requirements: It’s a good idea to first check for any eligibility requirements. For example, you must be at least 18 years old to apply for a credit card. But if you’re under 21, there are additional requirements. 

• Card type: Think about what type of credit card you might want, such as cash back cards. 

• Interest rates and fees: It’s helpful to check credit card interest rates and whether there are any annual fees or other potential fees.

Getting a credit card without a credit history could be difficult, but there are some types of credit-building credit cards that may be a good fit for those who are credit invisible.

Many issuers offer secured credit cards, which can be a great option to build or rebuild credit.

Here’s how they work: Cardholders make a refundable security deposit, and the credit card issuer holds it as collateral. 

The Capital One Platinum Secured card has a refundable security deposit of $49, $99 or $200 for an initial credit line of $200. If approved, you will get a credit card account with an initial credit limit. And if you add extra money, you might be able to increase the credit limit.

Student credit cards are designed for college students. So high credit scores or extensive credit histories may not be necessary to qualify. Student cards can also have lower fees or no annual fees and offer benefits that appeal to students. 

The Savor Student card from Capital One allows you to earn unlimited 3% cash back at grocery stores and on dining, entertainment and popular streaming services, plus 1% cash back on all other purchases.¹

Once you decide what kind of first-time credit card you want to apply for, here are some steps you may want to follow:

Depending on the issuer, applying for a credit card online may be the quickest and easiest option. But you can also apply in person, over the phone or by mail. You can get an idea of which cards you may be eligible for with pre-approval. 

When you apply for a credit card, issuers will ask for information that could include your: 

• Full name

• Social Security number or Individual Taxpayer Identification Number 

• Date of birth

• Address

• Income

Depending on the issuer, you may also be asked to provide additional information.

Applying for a credit card on your own isn’t the only way to access or build 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.

Being an authorized user can also be a good way to learn how to manage a credit card. Some issuers, like Capital One, allow eligible authorized users to create their own digital profiles.

There are benefits for the primary cardholder too. It can be easier to monitor spending when it’s all on the same account. And depending on the card, the primary cardholder could earn rewards for your spending.

A credit-builder loan is different from a traditional loan, where you might receive the money you’re borrowing upfront and pay it back over time. With a credit-builder loan, you make fixed payments to a lender and then get access to the loan amount at the end of the loan’s term.

A credit-builder loan gives you an opportunity to show that you can handle making on-time payments consistently.

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. 

But always remember that building credit takes time and responsible use. That means doing things like consistently paying your credit card bills on time and keeping your credit utilization low. 

Ready to get started? You can compare fair and building credit cards from Capital One, then see if you’re pre-approved—without harming your credit.

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit score.

• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use.