Best Starter Credit Cards for No Credit

Triston Martin

Mar 04, 2022

If you're about to purchase an initial credit line, it's not easy to decide which one to choose. The ideal first credit card you can get will be determined by various factors, including whether you're just beginning your credit journey or have a credit history and other factors such as your ability for an annual cost and your current employment status. Whatever category you're in, your objective is the same: find the perfect first credit card that meets your specific requirements and financial situation that can help you establish good credit practices from the start.

However, even if you don't own any credit cards, you could have a credit background. The fact that you are an authorized user of another's credit card, possessing an account with a bank or mobile phone account, or streaming service that is registered in your name could all contribute to your credit score. A car loan or student loan could also be a factor in building a record of responsible behavior in your payment.

· Capital One Platinum Credit Card

After six consecutive months of on-time payments, you should be considered for an increase in your credit limit. To keep tabs on your credit, you'll have access to the CreditWise tool. There is no yearly fee for this card.

· Citi Secured Mastercard

Security deposits might range from $200 to $2,500 after you've been approved. This will determine your credit limit and the date on which payments are due. Build your credit by making monthly purchases and paying them off on time. With the Citi Secured Mastercard, you'll never have to pay a fee.

· Bank of America Cash Rewards Secured Credit Card

3 percent payback in any category, 2 percent from wholesale clubs and supermarkets (on a cumulative $2,500 per quarter, followed by 1 percent), and 1 percent on all other purchases are available. Bank of America requires a security deposit ranging from $300 to $4,900 to create an account.

· Petal 2 Visa Credit Card

When you make qualified purchases, you'll get 1% cashback. Those who make their monthly payments on time are eligible for a 1.5% cashback bonus. To determine whether you are eligible for a loan, additional criteria such as your income and payment history might be considered.

· Discover it Student Cash Back

After activation, you'll get 5% cashback in rotating categories (on up to $1500 in purchases every quarter, and then 1% back) and 1% cashback on everything else. Discover will match the money you've earned at the end of the first year. Additionally, there are no yearly fees associated with Discover's Student Cash Back card.

Things to Know

If you choose to get a credit card for people without a credit history, it's likely to come with some flaws. Security deposits credit limits that are low and higher than the average rate of annual percent are all common. If you're using a secured credit line, it is common to deposit a security deposit to get the account opened. The credit limit of your card is typically at the same level as the deposit, and the deposit will be held until you close the account or switch to an unsecured card. The deposit process could hinder your chances of being approved for a credit card; however, it could be worthwhile if you aren't able to qualify.

Other kinds of cards for people who do not have credit might be able to operate without a fee; however, they could have drawbacks. For instance, credit limits are usually lower, preventing you from making a large charge to the card. Each card has an APR that is unique to it; certain kinds of credit cards are likely to have higher rates than other types. Gas, store, and secured cards - which you can get without credit could have more than average APRs as well as student cards are generally around average.

How Long Does It Take To Establish A Credit History?

To get a FICO score, you need to have at minimum one credit account that's been open for at least six months and at the very least one account that's had a report filed with a credit reporting bureau within the last six months. The opening and use of credit cards responsibly during at minimum six consecutive months will meet both of these prerequisites. Also, there should not be any evidence on your credit report you're deceased. This can be a problem if you share the account of someone else and the person who shared your account is deceased.


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