Credit Cards for Limited or No Credit History

Building credit can feel like a catch-22: you need credit to get credit. Fortunately, there are card options designed for people who are just starting out or rebuilding.

Types of cards to consider

Secured credit cards

You provide a refundable security deposit, which usually becomes your credit limit. Used responsibly, a secured card can help you build a credit history, and some issuers eventually upgrade you to an unsecured card.

Student credit cards

Designed for college students with little or no credit history. They often have lower credit limits and may offer modest rewards.

Starter or credit-builder cards

Some issuers offer unsecured cards for people with limited credit, sometimes looking at income and banking history instead of credit history alone.

Becoming an authorized user

Being added to a family member’s card can help build your history – as long as the primary cardholder pays on time.

What to look for

• Reports to all three major credit bureaus – otherwise your good habits may not help your score.
• Low or no annual fee.
• A clear path to upgrade or get your deposit back.
• Reasonable fees for late payments and other charges.

Habits that build credit

• Pay your bill on time, every time. Setting up autopay helps.
• Keep your balance low compared with your credit limit.
• Avoid applying for many cards in a short period.
• Check your credit reports regularly for errors.

This article provides general information only and is not financial advice. Card terms vary by issuer.