How to Get a Credit Card with No Credit

If you're in the United States and looking to get your first credit card but don't have any credit history, don't worry. There are several pathways to obtaining a credit card and starting to build your credit. Here's a step-by-step guide, complete with relevant companies and service providers.

1. Secured Credit Cards

What They Are: Secured credit cards are designed for individuals with no credit or bad credit. They require a cash deposit that usually serves as your credit limit.

How They Help: They're an excellent tool for building credit because they typically report to all three major credit bureaus: Experian, Equifax, and TransUnion.

Secured Credit Card Providers: Companies like Capital One and Discover offer secured credit cards that are well-regarded in the industry.

2. Authorized User Status

What It Is: Being an authorized user means you're added to someone else's credit card account.

How It Helps: It can help you build credit, as the account's history will be added to your credit report.

Considerations: Ensure the primary account holder has a good payment history, as any negative records will also reflect on your credit.

3. Co-Signers

What It Is: Some credit cards allow a co-signer, which is someone who agrees to take responsibility for your debt if you default.

How It Helps: A co-signer with good credit can help you get approved for your first credit card.

Co Signer Credit Cards Providers: While not as common, some banks like U.S. Bank and Wells Fargo occasionally offer products that allow for co-signers.

4. Credit Builder Loans

What They Are: These are small loans specifically designed to help you build a credit history.

How They Work: The loan amount is typically held in an account while you make payments. Your payment history is reported to credit bureaus.

Credit Builder Loan Providers: Credit unions and community banks often offer credit builder loans.

5. Retail and Store Cards

What They Are: These are credit cards tied to a specific store or brand.

How They Help: They usually have more lenient approval criteria but often come with higher interest rates.

Store Card Providers: Stores like Target and Macy's offer store cards that can help build credit.

6. Student Credit Cards

What They Are: These are cards specifically designed for students who are new to credit.

How They Help: They usually offer low limits and have easier qualification criteria.

Student Credit Card Providers: Discover and Capital One have student cards with perks like cashback and no annual fee.

7. Pre-Approval Offers

What They Are: Many issuers allow you to check if you're pre-approved for their cards without a hard inquiry on your credit report.

How They Help: This can give you an idea of your approval odds before you officially apply.

Pre Approval Offer Providers: Most major banks, including Chase and Bank of America, offer some form of pre-qualification tool on their websites.

Tips for Building Good Credit:

Pay On Time: Always pay at least the minimum due, on time.
Watch Your Utilization: Try to use less than 30% of your available credit.
Monitor Your Credit: Keep an eye on your credit report for errors or fraudulent activity.

Final Thoughts:

Obtaining a credit card with no credit in the U.S. is entirely feasible with the right approach. Whether it's a secured card, becoming an authorized user, or getting a retail card, you have options. But remember that the key to building good credit is to use it responsibly. Make payments on time, keep balances low, and monitor your credit regularly. With patience and good habits, you'll establish a strong credit history in no time.