Starter Credit Cards

My first credit card was the Capital One Journey. I was a student back then.

You can't beat the benefits you get with a student credit card if you have no credit and absolutely want a credit card with 0 fees.

It is important to view a starter credit card as a tool, mainly as one 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.

Also, I would recommend NOT using it for things like gas or food, there is nothing tangible to show at the end of the month.

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 or students get off to a great start on building credit while still in school!

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.

Starter credit cards are necessary because consumers need a way to prove that they’re responsible enough to handle more robust financial products, such as a substantial home loan or a high line of credit.

Starter credit cards offer the kind of low-risk environment in which unproven consumers can show what they’ve got without the potential losses being too high for banks. They tend to have modest credit limits, modest rewards, modest fees, and modest interest rates, but they do report usage information to the major credit bureaus on a monthly basis and therefore provide an exceptionally cost-effective means by which to build credit.

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 History

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 approval harder. 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 get credit cards for minors is to add them as an authorized user. A minor cannot get their own credit card account. You must be at least 18 years old to do so. But all major credit card companies allow customers to get authorized-user credit cards for minors. Many don’t even have a minimum age for authorized users.

An authorized user is granted access to another person’s credit card account. The user can make purchases on the account and build credit. But they will not have to make monthly payments. The primary cardholder is responsible for all transactions charged to the card, including those made by an authorized user.

A parent can add their child as an authorized user as soon as they think the child is ready to learn about financial responsibility. Or, they could add them even earlier than that and just not allow them to use the card. That way, even an infant could build credit history. And once the minor does get spending access, the primary cardholder can usually set limits on the user’s spending.

Adding a minor as an authorized user is simple. You’ll need only the minor’s name, birthdate, and in some cases, Social Security number. Make sure you and the minor you’re thinking of adding to your account are aware of the potential benefits and risks of authorized users before you add them.

Here’s the best way to get credit cards for minors:

1. Add the minor as an authorized user. Becoming an authorized user is the best way to get credit cards for minors. Legally, minors are unable to get their own credit card.
2. Check age requirements. Most issuers don’t have an age restriction for authorized users. Amex has a minimum age of 13 to 15 years old, depending on the card. Barclays sets its minimum age at 13 years old. Discover and U.S. Bank require at least 15 and 16 years old, respectively.
3. Keep transactions separate. Consider adding an authorized user to a credit card you don’t use all that often. That makes it easier to monitor the minor’s spending.
4. Monitor credit activity: When an authorized user gets added to a credit card account, the card activity goes on their credit reports. If the minor has no previous credit history, their first credit score will be generated within the first six months. The score depends on how responsibly the card is used.
5. Don’t miss payments or pay late: Missed payments cause credit score damage for both the primary cardholder and the authorized user. But authorized users can dispute accounts with negative information to have them removed from their credit reports.

An authorized user is limited to making purchases on the account. They typically are unable to do balance transfers or take out cash advances. Only the primary cardholder can make changes to the account like requesting a credit limit increase or adding additional users. The primary cardholder can call the issuer’s customer service department to remove an authorized user from their account. An authorized can be removed for any reason.

Becoming an authorized user is the only way to get credit cards for minors in order to establish credit. Once an authorized user is no longer a minor, they can add their own credit card account to the mix.

Shoot for one with high approval odds and a low annual fee. People applying for their first credit card at age 18 should consider cards for no credit or secured cards if they don’t have credit history already. College students can also consider student cards, which give better terms because of students’ higher earning potential.

The best credit card for 18 year olds is the Capital One Platinum card because it has a $0 annual fee. The minimum starting credit limit is $300, and there’s no security deposit required to open the account. Accounts are considered for a credit limit increase after five consecutive on-time monthly payments. Young people who want to earn rewards and don’t mind paying a small annual fee may opt for the Capital One QuicksilverOne Cash Rewards card. It offers 1.5% cash back on all purchases, and the annual fee is $39.

The best credit cards for 18-year-old students are the Capital One Journey Student Rewards, Discover it Student Chrome and Discover it Student Cash Back cards. They all offer $0 annual fees and solid cash back rewards on all purchases. A student’s age and earning potential are an attractive prospect for credit card issuers, so they’re willing to extend offers not readily available to non-students.

Some of the other best credit cards for 18 year olds are secured credit cards, which offer the easiest approval. They require a security deposit, typically around $200. The security deposit sets the credit limit and serves as collateral for the lender. It’s fully refundable after closing the account in good standing. The Discover it Secured card and Capital One Secured Mastercard are two of the best secured credit cards for 18-year-olds.

Here are the best credit cards for 18-year-olds:

• Capital One Platinum: $0 annual fee. Eligible for a credit limit increase if you pay your bill on time for the first five months. 22.99% (V) APR.
• Capital One QuicksilverOne Cash Rewards: $39. 1.5% cash back on all purchases. $400 minimum starting credit limit. 22.99% (V) APR.
• Capital One Journey Student Rewards: $0 annual fee. 1% cash back on all purchases; 1.25% for each month you pay your bill on time. 22.99% (V) APR.
• Discover it Student Chrome: $0 annual fee. 2% cash back at gas stations and restaurants up to $1,000 spent each quarter and 1% on all other purchases. First year’s cash back matched. $20 statement credit for a 3.0 GPA or better each school year. 12.99% - 21.99% (V) APR.
• Discover it Student Cash Back: $0 annual fee. 5% cash back on $1,500 spent per quarter in categories that rotate. 1% back on all other purchases. First year’s cash back matched. $20 statement credit for a 3.0 GPA or better each school year. 12.99% - 21.99% (V) APR.
• Capital One Secured Mastercard: $0 annual fee. $200 initial credit limit with security deposit of $49, $99 or $200, based on creditworthiness. 26.99% (V) APR.
• Discover it Secured: $0 annual fee. 2% cash back at gas stations and restaurants up to $1,000 each quarter and 1% on all other purchases. First year’s cash back matched. 22.99% (V) APR.
• Citi Double Cash: $0 annual fee. 2% cash back on all purchases, 1% when you buy and 1% when you pay your bill. 0% balance transfer APR for 18 months with 3% transfer fee. 13.99% - 23.99% (V) regular APR. For 18-year-olds who have already built good credit as an authorized user.

Keep in mind that the Credit Card Accountability, Responsibility And Disclosure (CARD) Act of 2009 places limits on credit cards for 18-year-olds. Under the law, consumers younger than 21 years old must have either a co-signer or proof of a steady income to be a credit card’s primary accountholder. If you can meet one of these two requirements, you’ll have a pool of cards to choose from that will help you establish credit.

Another option is to become an authorized user on someone else’s credit card. You can become an authorized user on any type of credit card, and you’ll enjoy any benefits the card offers while you establish your credit. The primary cardholder is financially responsible for the account, and his or her card activity will also be reflected on your credit report. However, any negative information such as late or missed payments will cause a drop in both of your credit scores.

The best Capital One starter card is the Capital One Platinum Credit Card because it has a $0 annual fee, gives a $300+ credit limit with no deposit required, and is available to people with limited or no credit history. Plus, cardholders become eligible for a credit limit increase after making 5 consecutive monthly payments on time.

That’s not the only option, though. Capital One is a rare credit card company with several good starter credit cards. They include a starter credit card for students with no credit, a rewards card for newcomers, a business credit card for no credit, and even a fresh start card for people with damaged credit. Which you choose really depends on who you are and how much you plan to spend.

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

Here are the best Capital One starter cards:

• Capital One Platinum Credit Card. $0 annual fee. Available to people with limited or no credit.
• Capital One QuicksilverOne. $39 annual fee. 1.5% cash back on all purchases. Available to people with limited or no credit.
• Capital One Secured Mastercard. $0 annual fee. $49, $99 or $200 deposit required, but $200 minimum credit limit guaranteed. Available to people with bad, limited or no credit.
• Journey Student Rewards from Capital One. $0 annual fee. 1% cash back on all purchases or 1.25% for paying on time. Available to students with limited or no credit.
• Capital One Spark Classic for Business. $0 annual fee. 1% cash back on all purchases. Available to business owners with limited or no credit.

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.

Legally, there is no minimum age for an authorized user on a credit card. That’s because authorized users aren’t entering into any kind of contract or borrowing money in their own name. But some credit card companies have their own requirements. Barclaycard authorized users must be at least 16 years old, for example, while U.S. Bank requires you to be 15 or older. American Express and Discover also use 13 years old as the minimum age for authorized users on the credit cards they issue. None of the other 15 largest credit companies have minimums, though. You could make a newborn an authorized user on your account if you want to.  

No matter how old the authorized user is, adding one is an important decision. On the one hand, it’s a great way for a young person to build credit before they’re old enough to qualify for their own account. But on the other hand, the primary accountholder has to be comfortable assuming responsibility for any charges the authorized user makes. 

Here’s the minimum age for an authorized user on a credit card:

• Chase: No minimum age
• Bank of America: No minimum age
• Citibank: No minimum age
• American Express:15 years old
• Capital One: No minimum age
• Discover: 15 years old
• Wells Fargo: No minimum age
• U.S. Bank: 16 years old
• Barclays: 13 years old
• Synchrony Bank: Synchrony issues store credit cards for over 85 retailers, and each sets its own policy.
• USAA: No minimum age 
  To be eligible for membership, you or a family member must have served in the armed forces.
• Navy Federal Credit Union: No minimum age 
  To be eligible for membership, you or a family member must have served in the armed forces.
• PNC Bank: No minimum age
• TD Bank: No minimum age
• First National: No minimum age

If you’re worried about an authorized user being irresponsible with your account, several banks allow you to manage your user’s access to credit. For instance, you may be able to set individual spending limits or get alerts when the user makes new purchases. Sometimes, you can even make it so that all purchases must be approved by you before they go through. That way, you can give someone young experience with credit while still laying down restrictions.

The best introductory credit cards are meant for beginners, offering high approval odds to people with limited or no credit history. They also have low annual fees and report account information to the major credit bureaus each month, allowing responsible cardholders to build credit over time.

There are several types of introductory credit cards, including secured credit cards, student credit cards, and other unsecured credit cards for people with limited credit. Student cards tend to have the best terms, while secured cards give the highest approval odds.

Best introductory credit cards:

• Discover it® Secured
• Capital One® Platinum Credit Card
• Journey® Student Rewards from Capital One®
• Citi® Secured Mastercard®
• Discover it® Student Cash Back
• Capital One® QuicksilverOne® Cash Rewards Credit Card

The best introductory credit cards can provide low fees, rewards, and a clear path to a higher credit score. But they’re far from the best credit card offers on the market. If you use an introductory credit card responsibly, making sure to always pay your monthly bill by the due date, you can build the credit standing needed to qualify for the market’s best overall credit cards before too long.