A lot of credit cards require an established credit history to qualify for. That makes building credit tricky -- after all, how can you build credit with a credit card if you can’t get approved for one?
Luckily, there are a number of credit-building credit cards available. They’re designed to build up your credit score through regular use and on-time payments so that you’ll eventually be able to move on to bigger and better cards.
For example, secured credit cards require a security deposit in exchange for a credit line, but because of this, you don’t need a high credit score to qualify. There are also traditional credit cards geared toward people with no or limited credit histories -- and a few even earn rewards.
Consider choosing one of these credit cards if you need to build your credit. Once your scores are in a better place, you can apply for some of the best credit cards available.
Best credit cards for no credit
The Discover it® Student Chrome* offers a winning combination of cash-back and other rewards opportunities, as well as lenient terms for first-time credit card holders.
You won’t get dinged by the credit card company for your first late payment (up to $41 thereafter) or have to deal with an exorbitant penalty APR. Plus, you can earn 1% to 2% back in rewards each month (2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases, then 1%) on this Discover credit card. Discover does offer another similar student credit card, the Discover it® Student Cash Back*, but the rotating bonus categories for earning rewards can make things overcomplicated, especially for first-time cardholders.
For our full review of the Discover it® Student Chrome, check out our coverage of the best student credit cards.
- Intro Balance Transfer APR
- 10.99% for 6 months
- Intro Purchase APR
- 0% for 6 months
- Regular APR
- 18.24% – 27.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
The Discover it® Student Chrome* offers a winning combination of cash-back and other rewards opportunities, as well as lenient terms for first-time credit card holders.
You won’t get dinged by the credit card company for your first late payment (up to $41 thereafter) or have to deal with an exorbitant penalty APR. Plus, you can earn 1% to 2% back in rewards each month (2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases, then 1%) on this Discover credit card. Discover does offer another similar student credit card, the Discover it® Student Cash Back*, but the rotating bonus categories for earning rewards can make things overcomplicated, especially for first-time cardholders.
For our full review of the Discover it® Student Chrome, check out our coverage of the best student credit cards.
- Intro Balance Transfer APR
- 10.99% for 6 months
- Intro Purchase APR
- 0% for 6 months
- Regular APR
- 18.24% – 27.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal 2 Visa Card, issued by WebBank, stands out among credit cards that can help establish credit. It comes with no annual fees, no late fees, no foreign transaction fees and no returned payment fees -- perfect for someone first handling the reins of managing credit. Your credit score, if you have one, and Petal’s Cash Score, which analyzes how you spend your money, may be used when evaluating your application. If you have no credit, this means you will need to provide some financial details.
Your credit limit will be between $300 and $10,000, based on creditworthiness. You also have the opportunity to earn 2% to 10% cash back at select merchants, and your cash-back rate of 1% on eligible purchases will increase to up to 1.5% after 12 months of on-time payments. There’s also no need to worry about a security deposit.
Editor’s note: The Petal 2 card used to be ranked higher, but since Petal has downgraded users in the past to the Petal Rise, which comes with a monthly fee, we’ve lowered this card’s rating. It’s still a strong credit-building card, but want cardholders to be aware that this company has a history of downgrading users.
Check out our full review of the Petal 2 Visa Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
The Petal 2 Visa Card, issued by WebBank, stands out among credit cards that can help establish credit. It comes with no annual fees, no late fees, no foreign transaction fees and no returned payment fees -- perfect for someone first handling the reins of managing credit. Your credit score, if you have one, and Petal’s Cash Score, which analyzes how you spend your money, may be used when evaluating your application. If you have no credit, this means you will need to provide some financial details.
Your credit limit will be between $300 and $10,000, based on creditworthiness. You also have the opportunity to earn 2% to 10% cash back at select merchants, and your cash-back rate of 1% on eligible purchases will increase to up to 1.5% after 12 months of on-time payments. There’s also no need to worry about a security deposit.
Editor’s note: The Petal 2 card used to be ranked higher, but since Petal has downgraded users in the past to the Petal Rise, which comes with a monthly fee, we’ve lowered this card’s rating. It’s still a strong credit-building card, but want cardholders to be aware that this company has a history of downgrading users.
Check out our full review of the Petal 2 Visa Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
Secured credit cards work differently than other credit cards. They require an upfront security deposit to open your account, which your “credit limit” is often based on. It’s an arrangement that’s especially useful as a credit builder account for someone who needs to show they can reliably pay a bill each month.
The Capital One Platinum Secured Credit Card* gives you $200 in credit when you deposit $49, $99 or $200, depending on your credit history -- making it one of the few secured cards to offer actual credit. (Your particular terms depend on your specific application.) And this secured card checks all of the boxes: $0 annual fee, modest minimum security deposit of $49 -- and the opportunity to earn back your security deposit as a statement credit when you use your card responsibly, like making on-time payments. Also nice: Capital One will see if you’re preapproved with a soft credit check, providing a risk-free peek at eligibility before you submit an official application to the credit card company.
Check out our full review of the Capital One Platinum Secured Credit Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 30.49% (Variable)
- Balance Transfer Fee
- $0 at this Transfer APR
Secured credit cards work differently than other credit cards. They require an upfront security deposit to open your account, which your “credit limit” is often based on. It’s an arrangement that’s especially useful as a credit builder account for someone who needs to show they can reliably pay a bill each month.
The Capital One Platinum Secured Credit Card* gives you $200 in credit when you deposit $49, $99 or $200, depending on your credit history -- making it one of the few secured cards to offer actual credit. (Your particular terms depend on your specific application.) And this secured card checks all of the boxes: $0 annual fee, modest minimum security deposit of $49 -- and the opportunity to earn back your security deposit as a statement credit when you use your card responsibly, like making on-time payments. Also nice: Capital One will see if you’re preapproved with a soft credit check, providing a risk-free peek at eligibility before you submit an official application to the credit card company.
Check out our full review of the Capital One Platinum Secured Credit Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 30.49% (Variable)
- Balance Transfer Fee
- $0 at this Transfer APR
What you need to know about credit before getting a credit card
The most important thing to know about credit is that it’s much easier to damage it than it is to repair it. That means missing any credit card payments will be detrimental to your finances, especially when you factor in penalty fees and penalty interest rates.
Pay your credit card statement bill on time each month to avoid any headaches, preferably in full to avoid paying any interest charges. You also want to avoid using more than 30% of your credit limit for the best results.
And while some credit cards offer rewards, for many first-time credit users, sticking with a no-frills card might be best.
“If you’re just starting out, focus on building credit for the long term because this will help you qualify for better credit cards and loans in the future,” says Natalie Garces, a 24-year-old personal finance influencer known as investwithnat on TikTok and other social media platforms. “Earning rewards can be tempting. You feel a rush of dopamine when you’ve earned the reward, but if you can’t pay off your balance in full each month, the interest charges can quickly eat away at any rewards you earn.”
How to choose your first credit card
First, you’ll need to consider your credit level. Credit cards have credit requirements, meaning not every person is immediately eligible for all credit cards. Generally speaking, the higher the credit requirement, the better the rewards and features.
You can check your credit report for free by requesting your credit reports once per year from each credit bureau (Equifax, TransUnion and Experian), or through annualcreditreport.com. Some credit card issuers will provide your credit score for free, like Capital One’s CreditWise. Checking your credit report periodically for inaccuracies (which can then be disputed) can help keep your credit in good shape.
Once you know your credit score, you’re ready to start comparing credit cards. “Look for cards with no annual fees and low interest rates because you want to save money and not have to pay unnecessary charges when you’re first starting out,” Garces says.
If your score is low, a secured credit card or one of the credit card picks on this list can help you build a credit history from the ground up. If you have a fair or good credit score, you have more options, though Garces still suggests avoiding rewards until you’re in the habit of using your card responsibly -- that means paying your bill in full and on time, and not spending outside of your budget.
If you’re ready to consider a card with rewards, choose a card that fits your lifestyle and complements your regular spending habits. “If you’re a student, consider student credit cards specifically designed for students where they offer cash back in categories that students typically spend on,” Garces says. Many student credit cards offer rewards on dining or takeout, which can be helpful if you’re always on the go.
Lastly, if you’re traveling abroad, a credit card without foreign transaction fees can save you money on international trips.
When should you get your first credit card
You’re eligible to apply for a credit card once you’re 18 years old. But that doesn’t mean you should apply for a card right away.
Garces recommends waiting until you have a job that pays a steady income or when you’re able to manage your expenses. But don’t jump into a credit card application without brushing up on a few basic factors. “It’s important that you educate yourself prior to getting your first credit card on how they work, what APY means, how interest works and how to build your credit score,” she says.
You might also consider applying for your first credit card if you’re going away to college. A credit card not only provides a way to build credit, but also offers access to emergency funds and rewards on eligible purchases. Just make sure you have the funds to pay off your balance each month.
How to build credit without a credit card
If you don’t have a credit card, there are still ways to build your limited credit history. If you have student loans or an auto loan or mortgage, making your payments on time will improve your credit. You could also utilize a credit builder loan, which will help establish a strong on-time payment history.
You can be added as an authorized user on a family member’s credit card. If they have good credit and manage their credit card well, it’ll contribute to your credit score. The most straightforward way to establish and grow your credit history, however, is by responsibly using a credit card.
And there are ways to begin building credit without applying for a credit card on your own. “You can become an authorized user on a family member’s credit card to start building credit history,” says Garces, who was added to her mom’s Boeing Employee Credit Union credit card when she was 20. “That stands as my oldest account (4 years, 6 months) in my credit history. I’m so grateful my mom added me as an authorized user to her credit card because it made getting another credit card a lot easier since I already had an account that had established a credit score.”
What to do after you’ve opened your first credit card
After you find the right credit card, using it responsibly will help you grow your credit score. As your score increases, you’ll be able to apply for credit cards that offer better rewards and perks.
“Once you’ve opened your first credit card, you want to keep the account open and in good standing to improve your age of credit history,” says Garces.
And if you realize the credit card you opened isn’t the best fit, there are some steps you can take. “If your first credit card has an annual fee that you regret paying each year, you can call the credit card company to see how they can downgrade your credit card to a card without an annual fee instead of closing it,” says Garces.
The age of your credit accounts is one of the main factors that contributes to your credit score. Rather than closing a card and applying for a new one, you can maintain the history of your card by asking to downgrade (or in some cases, upgrade) to a card that better fits your needs.
How to apply for a credit card if you have no credit
Follow these steps to apply for a credit card if you have no or limited credit:
- Find a credit card with lower or alternative requirements.
- Follow one of the links above to a secure application.
- Submit all the required information.
- Use the card responsibly and pay your bill on time each month.
FAQs
No. Having no credit means you don’t have any credit history yet, while a bad credit score means you have a credit history, but it’s been damaged in some way.
Most credit cards require some form of income verification while applying. Credit cards are still a form of loan, which means they involve risk. The lender needs to know you have a way of paying back the money you borrow.
In most cases, you’ll need a checking account and evidence of regular income to be eligible for a credit card. If you don’t have one, check out our article on best checking accounts to find the account that best suits your needs.
While most of the credit-building process requires time, there are a few things you can do to ensure that you’re improving your credit score number as quickly as possible.
- First, pay all of your bills on time. This will boost your on-time payment history calculation in your credit score.
- Second, work to keep your credit utilization as low as possible. Do that by paying off your entire balance at least once a month, and twice per month if you can. It will also help to have a higher credit limit, so look for credit cards that offer credit increases periodically -- or call your bank every five to six months if they don’t, and ask for a credit limit increase.
- Finally, don’t open too many new credit accounts all at once, even if you’re trying to improve your credit mix. Lenders can get skittish if you’ve recently applied for multiple credit accounts, as it shows you could be a riskier borrower.
Our methodology
CNET reviews credit cards by exhaustively comparing them across set criteria developed for each major category, including cash-back, welcome bonus, travel rewards and balance transfer. We take into consideration the typical spending behavior of a range of consumer profiles -- with the understanding that everyone’s financial situation is different -- and the designated function of a card.
For cash-back credit cards, for example, key factors include the annual fee, the “welcome bonus” and the cash-back rate (or rates, if they differ by spending category). For rewards and miles credit cards, we calculate and weigh the net monetary value of a card’s respective perks. And with balance transfer credit cards, we analyze specs such as the duration of the introductory 0% APR period and the balance transfer fee, while acknowledging secondary factors such as the standard APR and the length of time you have to make a balance transfer after you open the account.
More credit cards
- Best Credit Cards for Fair and Average Credit
- Best Credit Cards Without Foreign Transaction Fees
- Best Credit Cards for Good Credit
*All information about the Discover it Student Chrome, Discover it Student Cash Back and the Capital One Platinum Secured Credit Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
