2017 RANKING & REVIEWS
CREDIT CARDS FOR NO CREDIT
Build Your Credit with Credit Cards for No Credit
Your credit score affects almost every aspect of your financial life: your ability to purchase a car or a home and even to qualify for a credit card. Without a solid credit history behind you, qualifying for any of these items can be next to impossible. Focus on building your credit to qualify for more favorable terms and offers on some of these items by beginning with our best credit cards for no credit.
Having no credit can be just as difficult of a situation as having poor credit, making it difficult to qualify for cards unless they’re specifically credit cards for people with no credit.
Lenders aren’t sure if they can really trust you to make timely payments, and not everyone is willing to issue credit cards for no credit history. Lenders need to know whether they can take a risk on your ability to be trusted.
Award Emblem: Top 6 Credit Cards for People with No Credit History
For people in search of the best credit card for someone with no credit, AdvisoryHQ has compiled this list with you in mind. These top six credit cards for no credit are designed to help build up your credit and make you more creditworthy and attractive to lenders in the future.
Are you ready to take the first steps toward building a credit history of your very own? Our list of the top six choices for the best credit card for someone with no credit is certain to get you started.
AdvisoryHQ’s List of the Top 6 Best Credit Cards for No Credit
List is sorted alphabetically (click any of the credit card names below to go directly to the detailed review section for that credit card):
- BankAmericard Cash Rewards™ Credit Card for Students
- Citi ThankYou® Preferred Card for College Students
- Commerce Bank Secured Visa®
- Discover it® Secured Credit Card
- nRewards® Secured Credit Card
- Wells Fargo Secured Credit Card
Top 6 Best Credit Cards for No Credit | Brief Comparison & Ranking
Credit Card Names
BankAmericard Cash Rewards™ Credit Card for Students
Citi ThankYou® Preferred Card for College Students
Commerce Bank Secured Visa®
Discover it® Secured Credit Card
nRewards® Secured Credit Card
Wells Fargo Secured Credit Card
Table: Top 6 Best Credit Cards for No Credit | Above list is sorted alphabetically
What Is a Secured Credit Card?
Issuing a line of credit or allowing individuals to borrow money when they have no history of being successful or trustworthy is a risky endeavor. Lenders need to be certain that they have some sort of leverage if you end up being less creditworthy than they would hope. As a result, banks developed a form of credit card popularly known as a secured credit card.
These are most often seen as credit cards for people with no credit or poor credit – for consumers who may just be getting started with an independent financial life. In this category, students and young adults tend to be rather prevalent. In fact, there are many options for the best credit card for someone with no credit that are designed specifically for the student population.
When a lender offers a secured credit card, he or she is asking for you to put a deposit down that can be used as collateral if you don’t make your payments on time. Depending on exactly how much credit you do have, credit cards for people with no credit may require a deposit equal to or perhaps less than the amount of your line of credit. Many of these “no credit credit cards” will require the two amounts to be equal: a $500 deposit for a $500 line of credit.
How Can a Secured Card Help?
Managing your “no credit credit cards” responsibly for a brief period of time will demonstrate your ability to borrow and repay your debt. While some people may start out with a secured credit card, many can move forward to unsecured cards with a greater line of credit, better rewards or a lower APR after proving their creditworthiness.
The best credit cards for people with no credit aren’t necessarily meant to be credit cards that you keep forever. The best credit card for someone with no credit can be used as an effective stepping stone to better credit cards that will qualify you for more favorable terms and conditions on your next credit card, loan or mortgage.
Before you find the best credit card to apply for with no credit, you’ll need to keep a few things in mind:
- How much can you spare for a deposit to secure your credit card?
- Is this truly a credit card for no credit borrowers or a prepaid debit card? A prepaid debit card will not report your activity to the credit bureaus and will not assist you in building credit over time.
- Can you make the payments in a timely manner, as required by the lender?
- Can you afford the interest rate, if any, on credit cards for people with no credit?
AdvisoryHQ’s Selection Methodology
What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top rated lists?
Please click here “AdvisoryHQ’s Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top rated credit cards, financial accounts, firms, products, and services.
Detailed Review – Top Ranking Best Credit Cards for No Credit
Below, please find the detailed review of each credit card on our list of credit cards for people with no credit. We have highlighted some of the factors that allowed these credit cards for no credit to score so high in our selection ranking.
BankAmericard Cash Rewards™ Credit Card for Students Review
Since students tend to be one of the biggest populations actively seeking out the best credit card for no credit, this BankAmericard Cash Rewards™ Credit Card offers plenty of appealing features. You’ll find online rewards through its cashback program as well as highly competitive rates and offers.
There is no shortage of advantages to this credit card for no credit borrowers. You can score up to 3 percent cash back on certain purchases quarterly, with options on how you want to redeem them. Not to mention, Bank of America is a well-known financial institution with plenty of features to keep you interested:
- Online banking and text banking
- Overdraft protection
- Plenty of ATM access
- Chip cards
- $0 liability guarantee for fraudulent transactions
Fees and Rates
Unlike many of our top choices for credit cards for people with no credit, the card from Bank of America offers an attractive introductory rate to entice students. For the first 12 billing cycles, you’ll accrue 0 percent on purchases and balance transfers made within the first 60 days of opening your account. After this point, you’ll be subject to a standard variable APR, ranging from 13.24 percent to 23.24 percent.
The other main benefit to this choice for the best credit card for no credit is the lack of annual fees. Depending on your personal creditworthiness, the low interest rates combined with no annual fee should make for an ideal choice as one of the best credit cards for no credit to help you start building credit and making steps towards a brighter financial future.
Citi ThankYou® Preferred Card for College Students Review
Make the most of your student years by building your credit with the Citi ThankYou® Preferred Card for College Students. Easily one of the top choices for credit cards for no credit history, its no credit credit cards are an easy introduction to making payments, earning rewards, and ultimately improving your credit score.
You’ll receive all sorts of advantages when you qualify for this Citi card, one of the best credit cards for no credit history:
- Worldwide car rental insurance and travel accident insurance
- Trip cancellation and interruption protection
- Citi Price Rewind to get the lowest price on registered items
- Cashback rewards points to be redeemed on items, donations, gift cards, and more
- Citi Private Pass for access to tickets for concerts, sporting events, and other occasions
Just for using this best credit card for no credit, you’ll receive 2,500 ThankYou points after the initial $500 in spending over the course of the first three months. This bonus may give you your first incentive to cash in on one of its many rewards.
Rates and Fees
Featuring a tempting introductory offer, this credit card for no credit advertises zero interest for the first seven months. After that point in time, the Citi ThankYou® Preferred Card for College Students has a variable APR of 14.24 percent to 24.24 percent, depending on your creditworthiness. As you use this option for one of the best credit cards for no credit to build your credit, you may be able to qualify for the extremely low rates on the lower end of its tiered scale.
Even better than the card’s introductory offer is its extremely low annual rate of $0. With no annual fee and 0 percent APR for the first seven months, this definitely makes the Citi ThankYou® Preferred Card for College Students one of our top choices for credit cards for people with no credit.
Commerce Bank Secured Visa® Review
The Commerce Bank Secured Visa® was an easy choice for one of the best credit cards for no credit. This credit card features solidly competitive interest rates and a ton of perks for those who want something above and beyond a basic credit card for someone with no credit.
There’s certainly no shortage of perks with the Commerce Bank Secured Visa® card. It still requires an adequate collateral deposit into a savings account. This allows Commerce Bank to protect itself in the event that you default on your payments, but you still have the ability to take advantage of certain perks, such as:
- Free monthly FICO credit score on statements
- Overdraft protection
- Auto rental collision damage waiver
- $100,000 travel accident insurance
Fees and Rates
What can you expect to pay for access to this best credit card for someone with no credit history? Overall, the fees and rates are fairly competitive, but they do tend to lean toward the higher side of things. For example, the easiest cost to take a look at is its annual rate. While many of our best credit cards for no credit offer no annual fees at all, the Commerce Bank Secured Visa® does charge a relatively high but still minimal fee of $49 annually.
When it comes to the card’s interest rates, it falls solidly in the middle of the pack among many of the best credit cards for no credit. The APR on both balance transfers and purchases is at 18.49 percent, variable based on the prime rate. Its minimum interest charge is $2.50 regardless of what the balance is on your account.
Discover it® Secured Credit Card Review
Earn cash back on your purchases each quarter and build up your credit with the Discover it® Secured Credit Card, one of the best credit cards for no credit. You’ll enjoy all the advantages of rewards with flexible accounts and plenty of room for convenient upgrades.
Source: Discover it® Secured Credit Card
Most individuals searching for the best credit cards for people with no credit history aren’t likely to want to open a large line of credit. The cost of doing so with a secured credit card can certainly be cost-prohibitive. The Discover it® Secured Credit Card, one of our top choices for the best credit card for someone with no credit, features accounts that range from just $200 all the way up to $2,500.
Even better, after one year, Discover will review your credit activity to determine if you have used it responsibly. If so, it can automatically refund your initial safety deposit and transform your secured card into an unsecured card. The flexibility of these credit cards for no credit make it one of our top choices.
Fees and Interest Rates
You do receive an introductory interest rate of 10.99 percent on balance transfers for the first six months of your account opening. Other than this, it has a standard variable purchase APR of 23.24 percent – definitely towards the higher end of the interest rates included in our reviews of the best credit cards for no credit history.
The annual fees for this credit card for no credit clock in at exactly nothing, though, which does make up for some of the higher interest rates available. After your one-year mark, this best credit card for no credit will evaluate your status on a monthly basis to determine if your can receive a security deposit return based on either responsible credit habits or when you pay off the card amount and close your account.
nRewards® Secured Credit Card Rewards Review
Those consumers searching for credit cards for no credit history that aren’t limited to students will enjoy this option from Navy Federal Credit Union. Its nRewards® card has plenty of perks, including low rates, no annual fee, and a rewards program.
The nRewards® Secured Credit Card is a good option for one of the best credit cards for people with no credit history who have a military affiliation. The Navy Federal Credit Union is only available to members of the armed forces and their families, but this nRewards® Secured Credit Card is still a top choice.
You can open an account with as little as $500 in a savings account, held for the duration of your time using the nRewards® card. This is a higher minimum balance than some of the other best credit cards for no credit; however, it is still achievable and manageable.
The other benefit is the ability to earn rewards – not always common with credit cards for no credit borrowers. You can redeem for gift cards or merchandise, available after spending your first $1,000. Points are valid on its no credit credit cards for up to four years.
Fees and Interest Rates
What can you expect to pay when it comes time to use the nRewards credit card? We’ll take a closer look at its annual fees and interest rates:
Wells Fargo Secured Credit Card Rewards
Perfect as a choice for the best credit card for someone with no credit, the Wells Fargo Secured Credit Card does give you the opportunity to upgrade to an unsecure account when you can prove your creditworthiness. Setting itself up as a wonderful “gateway” card to the world of credit, you receive flexibility and great terms which makes it one of the best credit cards to apply for with no credit.
Source: Wells Fargo Secured Credit Card
As with most of our secured credit cards for people with no credit, your deposit is equal to the amount of money you place down as a deposit. The benefit to the Wells Fargo Secured Credit Card is the extreme flexibility in just how large your line of credit has the capability of being.
You can open a secured credit account on this card with a deposit ranging from $300 to $10,000. While the higher end of this spectrum will prove to be cost-prohibitive for most individuals, the flexibility and freedom to open up an account with a larger line of credit does make it possibly the best credit card for someone with no credit.
Fees and Rates
While it may not be a completely free secured credit card, the Wells Fargo Secured Credit Card is still an ideal choice as the best credit card for someone with no credit. The annual fee is relatively low, at just $25 per year, which should be more than manageable for most consumers. The interest rates on this credit card for no credit borrowers remain the same, with a variable APR that is identical across the board: 19.24 percent.
As you would expect, the Wells Fargo Secured Credit Card for people with no credit does report your activity to the major credit bureaus.
Conclusion—Top 6 Best Credit Cards for No Credit
Searching for the best credit cards for no credit can be a daunting task. The rates and fees can be tedious and time-consuming to investigate. However, building your credit is a critical step towards future financial freedom and success. Your ability to qualify for future loans and greater lines of credit depends on building your creditworthiness, and these credit cards for people with no credit can be a great starting point.
You can take advantage of the opportunities afforded by these best credit cards for no credit history to begin making a positive impact today. These options will report to the credit agencies that will ultimately calculate your FICO credit score. By beginning with one of these smaller credit cards for no credit, you can prove your ability to borrow and repay responsibly.
Don’t let time slip away. Especially if you’re a student with many of your adult years ahead of you, utilizing the best credit cards for people with no credit is imperative to your ability to borrow in the future. Let this list of our top credit cards for people with no credit history be your guide.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.