The best credit card for beginners with no credit is the Capital One Platinum Credit Card because it has a $0 annual fee and reports account information to the major credit bureaus monthly. Capital One Platinum also offers high odds of approval to people who are new to credit and does not require a security deposit.
Beginners with no credit should also consider secured cards as an alternative. They’re typically easier to get than unsecured cards and have lower fees in many cases.
To get a credit card with no credit, apply online for a starter credit card, student credit card or other type of credit card for people with limited credit history. By choosing a card designed for people with no credit, newcomers who are at least 18 years old with enough income to afford monthly bill payments will have good approval odds. You don’t need credit history to get credit. But you do need to demonstrate the ability to repay future balances.… read full answer
It’s actually easier than you might think to get a credit card with no credit. You just need to follow a few simple steps. We’ll tee them up below and then explain each in more detail.
How to Get a Credit Card with No Credit
Check for a credit report/score to confirm you really have no credit
See if your school email still works, as student credit cards are the best available to beginners
Compare starter credit cards to find the lowest fees and highest approval odds
Apply online and get a decision within days, if not instantly
Activate your starter credit card
So, if you want to get a credit card without credit history, start by making sure you really have no credit, then compare credit card offers, select the best one for your needs and submit an application. You could have a new card in your hands within 7-10 business days of applying.
But let’s not get ahead of ourselves. Let’s go through the steps involved in getting a credit card for the first time with no credit history in greater detail.
Step 1: Confirm you have no credit. You might have credit history without even realizing it. This could have come from being an authorized user on a parent’s credit card account. Or, it could be some sort of a mistake. And it could either put you in line for a better starter credit card or make it harder to get approved. You can check your credit report and score for free on WalletHub.
Step 2: See if your school email still works. College students typically get much better credit cards than other people with no credit. So if you have an active “.edu” email address, it will be an asset in your credit card search.
Step 3: Compare starter credit cards. You have to comparison shop if you want to find the best credit card deal. Your top priority should be getting a card with no annual fee whose other terms complement your spending and payment habits nicely.
Step 4: Submit your application. Actually applying for a credit card is the simplest part of the process. Just click “Apply Now” when you find your favorite offer, and we’ll redirect you to the issuer’s secure online application page. Applying online is the fastest application method. You could even be approved instantly.
Step 5: Activate your new credit card (or place a deposit on a secured card). If you don’t get approved the first time you apply for a starter credit card, place a refundable deposit on a secured credit card. Secured cards have the highest approval odds because your deposit usually matches your spending limit.
It’s simple to get a credit card with no credit. But once you open a credit card account, make sure to use it responsibly. Above all else, that means paying your bill on time every month and keeping your credit utilization as low as possible. That will ensure your credit score starts strong and stays headed in the right direction. You can track your progress for free on WalletHub, the first and only site with free daily credit score updates.
The best way to build credit at 18 is to get a credit card in your name and use it responsibly. All major credit cards report account information to the credit bureaus each month, allowing you to build credit history. As long as the information shows on-time payments and reasonable … read full answercredit utilization, that credit history will be positive and you’ll be on your way to building a good credit score.
There are two ways to get a credit card at 18: as an authorized user or by applying for your own account. If you have enough independent income to afford monthly bill payments, you can get your own credit card account when you turn 18. The best type of credit card to get at 18 is a student credit card, assuming you’re in college. Credit cards for students tend to have better rewards as well as lower rates and fees than other starter credit cards for people with no credit.
How to Build Credit at 18 Years Old
Become an authorized user on a family member’s credit card.
Apply for a starter credit card.
Set up automatic payments from a bank account for your starter card.
Make sure your card’s monthly statement balance is much lower than the credit limit.
Work toward a high-paying job.
Save as much as possible and minimize debt.
Monitor your credit and make adjustments when needed.
Other Ways to Build Credit at 18
Using a credit card isn’t the only way to build credit at 18. There are several alternatives worth at least considering.
A credit-builder loan is essentially a loan that holds the borrowed money in a bank account while you make payments. This allows you to build credit easily, and doesn’t require a good credit score. Once you’ve made all of the payments, the money is released to you. Credit builder loans are typically small (think around $1,000) and have short repayment times, usually just a year, so their sole intent is to help you build your credit.
Financing a car using an auto loan can also help you build credit. Just like with any other loan, payments you make are reported to the credit bureaus. Getting an auto loan can also help your credit because a portion of your score is determined by your “credit mix,” and having an installment loan adds variety once you have a credit card.
You can arrange to have apartment rental payments reported to the credit bureaus. Some landlords report monthly rental payments to the credit bureaus automatically, but not all do. If your landlord doesn’t, you can still have your rental payments reported through a third-party service. Some of the top ones are RentTrack and eRentPayment. Paying rent is something you’d have to do each month anyway, so you might as well use it to build your credit, too.
Getting a starter credit card and/or becoming an authorized user on a family member’s or friend’s account is the best approach to building credit at 18 years old. Just remember that having your own account requires more responsibility, as you’ll be the one who has to pay the bills. If you don’t, your credit score will suffer. When you’re an authorized user, bill payments are the primary accountholder’s responsibility. Because of that, authorized users can file a dispute with the credit bureaus to get negative information removed from their credit reports.
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