Best Starter Credit Cards

The best starter credit card to build credit with is the Capital One Platinum Credit Card because it welcomes applicants with limited credit or no credit history at all, and it reports account activity to the credit bureaus on a monthly basis. The Capital One Platinum card also has a $0 annual fee. This card does not offer any rewards, but as long as you pay your bill in full every month, it can act as an inexpensive tool to build credit fast.

Best Starter Credit Cards to Build Credit

The best starter credit cards for building credit usually fall in one of three categories. Student credit cards, for one, typically have no annual fees and offer great rewards by beginner credit card standards. If you are not in school, you can opt for an unsecured credit card for no credit or a secured credit card. Secured credit cards tend to charge lower fees and interest rates than their unsecured counterparts. The disadvantage is that you’ll have to put down a security deposit to get a secured card.

Whichever starter credit card you pick, you’ll only be able to build good credit if you pay your credit card bills on time and keep your credit utilization low. For more information, check out WalletHub’s step by step guide on how to build credit with a credit card.

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.

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

1. Check for a credit report/score to confirm you really have no credit
2. See if your school email still works, as student credit cards are the best available to beginners
3. Compare starter credit cards to find the lowest fees and highest approval odds
4. Apply online and get a decision within days, if not instantly
5. 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 credit 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

1. Become an authorized user on a family member’s credit card.
2. Apply for a starter credit card.
3. Set up automatic payments from a bank account for your starter card.
4. Make sure your card’s monthly statement balance is much lower than the credit limit.
5. Work toward a high-paying job.
6. Save as much as possible and minimize debt.
7. 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.

Credit-builder loan

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.

Car loan

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.

Rental payments

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.

Final Thoughts

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.

You can keep track of what’s on your TransUnion credit report and check your latest credit score for free on WalletHub. You’ll get personalized tips for how to build credit most efficiently, too.

It is important to know that a starter credit card should be used as a tool to build credit for larger purchases like a car or a home later in life. Thus, it is not bad to use the starter card for items like a new outfit, school supplies, or other things. But the user should definitely have the funds to pay in full at the end of a billing cycle. It is very important to start good credit habits with your very first credit card. It is so easy to get caught up in using a credit card for every purchase, feeling like it is "free money" for those who have never had a credit card before. But, by doing this, a person can face a lifetime of bad credit decisions, especially if they are uneducated.

Here's what you should know before using a starter credit card:

• Know the card's terms: Some of the best starter credit cards have no annual fees, but make sure to be aware of any costs your credit card comes with. Starter cards tend to have high interest rates, so it's best to pay your bill in full.
• Don't max out your credit limit: If you're using your card to build credit, maintaining a good credit utilization is important. You should aim to use less than 30% of your available credit. If your credit limit is low, making several payments per month can help lower the credit utilization figure at the end of the month.
• Pay your bill on time and in full: Payment history is an important part of your credit score as late payments can cause considerable damage. And most starter cards have high interest rates which can be avoided if you pay on time and don't carry a balance from one month to another. You can avoid paying late by setting up automatic payments.
• Set a spending budget: Know how much you can afford to spend monthly and keep your charges below that amount. If you exceed your budget, make a plan to pay off what you owe as quickly as possible so you can avoid accruing interest on your balance.
• Review your monthly statements: Keeping track of your purchases and understanding your spending habits will help you budget more efficiently. It will also help you avoid getting overcharged and spot any potential unauthorized charges. If you spotted an error, you can dispute the charge.

Starter cards can be a very helpful tool if used correctly, and a very dangerous obstacle if used frivolously. But with a bit of common sense and a little self-control they can help young people, students or anyone with limited or bad credit get off to a great start at building credit!

One of the best starter credit cards for students is the Chase Freedom® Student credit card because it has a $0 annual fee and gives you $50 after your first purchase made in the first 3 months. This card also offers 1% cash back on all purchases.

Nearly all student credit cards qualify as starter credit cards because you can get approved for them with limited or no credit history.

In general, student credit cards are the best starter credit cards because they’re easy to get without prior experience yet offer far better terms than an inexperienced applicant would ordinarily command. That’s because lenders want to appeal to students in the hope of gaining a long-term customer who may land a well-paying job upon graduation.

Ultimately, you can check out our editors’ latest picks on the best starter credit cards for students to see which better suits your needs.

Most people consider their first credit card to be a “starter” credit card. As such, the types of people who typically need starter credit cards include:

• Young People
• Immigrants
• Divorcees & Widowers (who haven’t had credit under their own name in the last few years)

All of these groups tend to have minimal credit history, either because they haven’t been eligible to access credit for very long or because circumstances that previously allowed them to rely on another party’s credit standing have changed.

Some of us may also seek out starter credit cards when looking to start our financial lives over after previous mistakes, such as missed payments, account default, or even bankruptcy.

You can get credit cards for kids by making them authorized users on your credit card account. A child legally cannot get their own independent credit card account until they turn 18 years old, but making your child an authorized user on your credit card can help them get a head start on building their credit history. Some credit card companies have minimum age limits for authorized users, but most credit card companies do not.

When a primary cardholder pays the bill on time and maintains low credit utilization, any authorized users on the account benefit from it. An authorized user doesn’t even have to use the credit card to reap the benefits. Also, some card issuers allow primary cardholders to set spending limits for each authorized user, which could come in handy if you’re giving a credit card to a child.

That said, if you’re trying to teach your kids about budgeting in a more hands-on way, you may also consider letting them use a prepaid or reloadable debit card designed for kids. These prepaid cards - one example is the Greenlight Card - allow parents to load money onto the card from an app and closely monitor their kids’ transactions. The big downside to a prepaid card for kids is that it does not build their credit history, because it’s not a credit card.

The best Capital One starter card is the Capital One Platinum Credit Card because it is available to people with limited credit and has a $0 annual fee. Capital One Platinum does not offer rewards, but it does help cardholders build credit by reporting to the three major credit bureaus monthly. Plus, cardholders become eligible for a credit limit increase in as little as 6 months.

That’s not the only option, though. Capital One offers several good starter cards. They include credit cards for students, rewards cards, business credit cards, and even options for people with damaged credit. Which you choose really depends on who you are and how much you plan to spend.  

Best Capital One Starter Cards

For people with no credit who expect to spend at least $2,600 per year, Capital One QuicksilverOne is the best starter credit card Capital One has to offer. It gives 1.5 - 5% cash back on all purchases, with no earning limit, but charges a $39 annual fee. Folks looking for a fresh start might want to begin with Capital One Platinum Secured for high approval odds. It requires a deposit of $49, $99 or $200 but guarantees a $200 credit limit.

One great quality that all Capital One starter cards share is $0 foreign transaction fees. No Capital One credit cards charge them. So, you won’t have to pay extra when buying from foreign-based merchants. All Capital One starter cards also offer $0 balance transfer fees, though they do not have any kind of introductory 0% APR on balance transfers.

There is no Chase starter credit card. All Chase credit cards require a minimum of good credit (700+ credit score) for approval. Some even require excellent credit (750+ credit score). A true starter credit card is for people with limited or bad credit.

The one way to get a starter credit card from Chase is by becoming an authorized user on someone else’s Chase account. Anyone can be an authorized user regardless of credit, and it gets you a Chase credit card that shares a credit limit with the primary cardholder. You’ll be able to make purchases and use the card’s benefits while you’re building your credit. But you won’t be responsible for paying the bill; the primary cardholder will be.

There are also starter cards from other issuers that are ideal for anyone looking to build credit. A couple of good options are Bank of America® Unlimited Cash Rewards Secured Credit Card and Capital One QuicksilverOne Cash Rewards Credit Card. Responsible use of a starter card can raise your credit profile to the point where you’ll be eligible to qualify for your own Chase credit card account.

The best Discover starter cards are the Discover it® Student chrome and Discover it® Secured Credit Card because they are available to people with limited credit to get. The student option is the way to go if you’re in school because it does not require a security deposit.

Lenders view students as good future customers because of their increased earning potential when they graduate. Because of this, students are more likely to receive offers with more favorable terms, fewer fees and better rewards than non-students with limited credit.

Best Discover Starter Credit Cards

• Discover it® Student chrome
• Discover it® Student Cash Back
• Discover it® Secured Credit Card

A Discover starter credit card is a great credit-building opportunity for students with limited credit. Pay your bill on time and don’t overspend during your college years. By the time you graduate, you’ll likely qualify for cards for good or excellent credit. It will also be easier to secure favorable terms on a car loan, get an apartment, or land that first job.