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.

You may not have as many options, but it’s possible to get a credit card when you have no credit history.

What you’ll learn:

• Having no credit history is also known as being credit invisible. 

• Credit invisibility means you haven’t had information about your credit activity reported to at least one of the three major credit bureaus.

• Having no credit history can make getting approved for a credit card more difficult or costly. But it’s possible.

• Secured credit cards and student credit cards are among the credit cards designed for people with no credit history.

Lending decisions are ultimately up to individual credit card issuers. But you can still get a credit card even if you don’t have an established credit score. There just may not be as many options. And the cards you’re eligible for may have rates, deposits or fees that help offset the need for a credit history.

Financial institutions, lenders and credit card issuers report credit activity to some 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. So if you have no credit accounts, there’s no activity to build a credit history. And that means that there’ll be no credit reports or scores. This can mean you’re credit invisible.

Not having a credit history doesn’t mean you have bad credit or are financially irresponsible. But if you have a credit history, it’s easier for lenders to determine your creditworthiness. Here are some things it might be easier to get with a credit history:

Lenders use credit history 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. A person with a longer, positive credit history may get a better interest rate and a higher credit limit.

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. 

A person with no credit history may still qualify to rent. But they 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.

Here are some types of credit cards that may be a good fit for the credit invisible looking to build credit:

With secured credit cards, cardholders make a refundable security deposit, and the credit card issuer holds it as collateral for the credit line. 

For example, 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 benefits that appeal to students. 

For example, the Capital One Savor Student card lets you earn unlimited 3% cash back at grocery stores and on dining, entertainment and popular streaming services, plus 1% cash back on all other purchases.*

Retail store credit cards may have more lenient qualifications. But that might be because they have higher interest rates and lower credit limits than other credit cards. Before you decide on a retail card, it’s worth confirming that the issuer reports card activity to the credit bureaus.

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.

If you don’t have a credit history and are considering your first credit card, here are some things to think about:

• Eligibility requirements. Application requirements may differ depending on the issuer. If you’re applying for a Capital One credit card, you’ll be asked for information including your full name, date of birth, Social Security number (SSN), address and annual income. And you must be at least 18 years old to apply for a credit card. If you’re under 21, you’ll have to prove you can independently make payments on the account. 

• Interest rates and fees. Once you’ve found the card that’s right for you, you’ll want to make sure you understand what you’re agreeing to. You can check things like credit card interest rates and whether there are any annual fees.

Once you’re ready to apply for your first credit card, here are some steps it may help you to follow:

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

• Full name

• SSN or Individual Taxpayer Identification Number (ITIN)

• Date of birth

• Address

• Income

Checking to see whether you’re pre-qualified or pre-approved for a credit card can be a great way to compare options and get an idea whether you’ll be approved. Pre-approval at Capital One is quick, and it won’t hurt your credit scores.

Depending on the issuer, applying for a credit card online may be the quickest and easiest option. But you might also be able to apply in person, over the phone or by mail.

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. 

Keep in mind 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. 

New to credit or looking for your next credit card?

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

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

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