Are you looking for Best First Time Credit Card with No Credit History? If Yes, then you are at the right place.
In this article, we are sharing all the information about the Best First Time Credit Card with No Credit History.
Would you like to learn more about credit cards? Have you ever tried applying for a credit card without credit? You may have been confused by that. Building credit without a credit card is impossible, so how can you build it?
Fortunately, there are options that let people with a limited credit history or no credit history qualify for credit cards. This article will show you the best credit cards for people without credit.
Many factors contribute to choosing the Best First Time Credit Card, such as whether you’re just starting with credit or have some credit history, whether you’re willing to pay an annual fee, or if you’re a full-time employee.
Best First Time Credit Card with No Credit History
- 1 Best First Time Credit Card with No Credit History
- 1.1 What is credit history, and why is it important?
- 1.2 How to Choose Right First Time Credit Card to Start Building Credit?
- 1.3 What You need to get Best First Time Credit Card with No Credit History?
- 1.4 Eligibility Requirements for Best First Time Credit Card with No Credit History
- 1.5 5 Best First Time Credit Card with No Credit History
- 1.6 How to apply and get approved for Best First Time Credit Card with No Credit History
- 1.7 How to Use Your First Time Credit Card with No Credit History?
- 1.8 What Should You Do if Your Application Is Denied?
- 1.9 FAQs Related to Best First Time Credit Card with No Credit History
The Best First Time Credit Card should be suited to your unique financial situation and needs, no matter who you are or how much money you make. A credit card should help you establish good credit card habits and reward you when you do so.
What is credit history, and why is it important?
Based on your credit history, a credit report describes your activity as a borrower and credit user. It shows you are a reliable and financially responsible borrower with no delinquencies or late payments.
A credit history shows lenders that you can pay back debts, but with one, they have that information. A person with no credit history may need help getting loans and credit cards approved. A person without credit is likelier to fall victim to predatory lending practices, such as payday loans, with sky-high interest rates that trap people in debt cycles. you can get No Credit Check Credit Cards Instant Approval No Deposit to use you first credit card.
You can build credit responsibly using a credit card if you have no credit history. Paying on time and in full can significantly impact your credit score because your payment history makes up 35% of your FICO score. There are also other factors, such as your credit history and your debt-to-income ratio, that play a role. You can increase your credit score if you have a credit card account for longer and owe less than you owe.
How to Choose Right First Time Credit Card to Start Building Credit?
It is important to be realistic when building a credit history. It has already been established that not all credit cards suit you. You’ll probably miss a big welcome bonus if you qualify for a card. The best option for you would be to look into Best First Time Credit Card. Credit scores can be built through these, though they will provide little benefit.
How should you choose a starter card? Some of the most important things to consider are:
- Reports to all three credit bureaus – A card issuer’s reporting of your payment history to all three credit bureaus is one of the most important factors to consider. The credit report you provide to a lender will sometimes be evaluated differently when you apply for loans in the future. You will be fully covered if your credit history is reported to all three credit bureaus.
- No annual fee –The card you choose should have no annual fee. The longer you keep the card open, the better your credit score will be since you’ll be more likely to keep it long-term.
- Is there a security deposit? – Unsecured credit cards don’t usually require you to put down a security deposit. Secured cards are not like that, unfortunately. If a cardholder fails to make a payment, the card issuer institutes a security deposit as protection.
- Pay attention to the APR – Make sure you compare the annual percentage rate (APR) when you compare cards. If your balance isn’t paid in full by the end of the month, then you’ll want to pick a card with the lowest APR possible.
What You need to get Best First Time Credit Card with No Credit History?
A starter card does not require a credit history. You won’t need a Social Security number in some instances. However, you will generally need:
- U.S. mail address
- A monthly income
- Checking or savings accounts.
Eligibility Requirements for Best First Time Credit Card with No Credit History
You may need to meet stricter income requirements for Best First Time Credit Card with No Credit History if you are older:
It depends on the type of starter card and what other requirements are required. Here are some examples:
If you want a credit card, you must show that you can pay on the account independently or have a cosigner over 21 who will take on the debt if you cannot.
If you are over 21, you must still report your income, but you may include any income you have a fair expectation of receiving.
- Credit cards with no credit checks. Some applicants may need help to apply for these loans as they require a cash deposit as collateral, which reduces the risk to the issuer. You usually have a credit limit based on the amount of your deposit. When the account is closed, the deposit will eventually be returned, or you upgrade to a standard credit card.
- Student cards with no credit. You may need to be enrolled in college to participate in these programs. You may need to provide information such as your school name, your major, and when you expect to graduate.
- Starter cards without a deposit. There are several requirements for applying for these cards, including government-issued identification documents, bank account information, and employment verification requirements. Their creditworthiness is assessed by analyzing employment, income, spending, savings, or credit history from another country, among other factors.
- Small business cards with no credit checks. Small-business cards are offered without taking into account personal credit history by some issuers, but you’ll need a lot of cash to apply.
5 Best First Time Credit Card with No Credit History
Here are the list of 5 Best First Time Credit Card with No Credit History –
Discover it Secured Credit Card
You can automatically upgrade to an unsecured credit card if you close your Discover it Secured Credit Card account without losing your deposit. The card also offers rewards, which is nearly unheard of for a secured card. As with almost all secured cards, a secured card can be applied without credit.
OpenSky Secured Visa Credit Card
OpenSky Secured Visa Credit Card does not require a credit check and has an approval rate of 85%. If you deposit $1,000, you’ll receive $1,000 in credit limit minus an annual fee. The annual interest rate on this Visa credit card is low, and if you pay off your credit card balance before the due date, you will avoid it altogether.
U.S. Bank Cash+ Visa Secured Card
This U.S. Bank Cash+ Visa Secured Card offers a solid option for those who want to build or rebuild their credit. A secured card that offers generous cash-back rewards is also not charged an annual fee and may allow you to graduate with an unsecured card. If you want a credit card to improve your credit standing, this card would be a good choice.
Capital One QuicksilverOne Cash Rewards Credit Card
A secured credit card like Capital One Quicksilver Secured Cash Rewards offers a reasonable flat cash-back percentage on all purchases. There is, however, a high APR on this card, which makes it unsuitable for anyone who intends to carry a balance which is true, of course, of every credit card). Whenever you purchase through Capital One Travel, you’ll get 1.5% cash back and 5% cash back on hotels and rental cars.
Capital One Platinum Credit Card
A Capital One Platinum Secured Credit Card provides $200 in credit when you deposit $49, $99, or $200, depending on your credit rating. It is a secured card that provides actual credit, unlike most. You’ll need to check your application for specific terms, but this secured card checks all the boxes.
There’s no annual fee, a modest $49 security deposit, and you can earn your security deposit back as a statement credit by making timely payments with the card. The credit card company will also inform you if you’re preapproved with a soft credit check, so you can know your eligibility before sending an official application.
Here is the table of Best First Time Credit Card with No Credit History –
|Card||Annual fee||Security deposit||Rewards|
|Discover it Secured Credit Card||$0||Varies by credit history||
2% cash back on gas stations and restaurants, 1% cash back on all other purchases
|OpenSky Secured Visa Credit Card||$35||$200||No rewards|
|U.S. Bank Cash+ Visa Secured Card||$0||Varies by credit history||
5% cash back on gas stations and restaurants, 2% cash back on grocery stores and select streaming services, 1% cash back on all other purchases
|Capital One QuicksilverOne Cash Rewards Credit Card||$39||Varies by credit history||
1.5% cash back on all purchases
|Capital One Platinum Credit Card||$0||Varies by credit history||No rewards|
How to apply and get approved for Best First Time Credit Card with No Credit History
The following steps will assist you in applying for a new credit card designed for those with limited or no credit history.
- Check out credit card options. You can choose a credit card that aligns with your spending habits and financial goals from numerous credit cards for people without credit.
- Collect your personal information. A credit card issuer requests information when you apply for a new credit card. You may be asked for your name, address, phone number, email address, social security number, employment information, and housing details on the application.
- Please submit your application. You must provide your personal information on the issuer’s website to complete the application.
- You must wait for the decision. The majority of credit card issuers provide instant approval when you apply online. You may not receive approval immediately, but you must wait for a mail-in decision.
- Getting approval. You will receive your physical card in the mail once your application has been approved. The credit card usually arrives within seven to ten days.
- You need to activate the card. Activating the card online or over the phone is the first step to using it. It is required when you receive the card. Setting up an online account to monitor payments and track transactions is a good opportunity. Set up automatic payments of the minimum amount due to avoid late fees and negative credit marks.
How to Use Your First Time Credit Card with No Credit History?
If you use your first credit card, limit charges to what you can afford and then pay them off on time. This will prevent you from missing payments, boost your credit score, and prevent late fees and interest charges.
A low credit utilization rate is achieved by paying off your balance at the end of every month (or more often). A person’s credit utilization refers to the amount of available credit they are using about the amount of available credit. The lower someone’s credit utilization, the more their credit score will benefit.
For instance, a good way a student could use their first credit card is to limit textbook purchases for a semester. This will put guide rails on their spending as they learn to budget and stay on top of their credit card statements.
The best practices associated with credit card safety must also be learned during the adjustment process to using a credit card. Among the dangers you should look out for are credit card skimmers, devices attached to credit card readers that steal sensitive information. It is also a good idea to keep your credit card information private, such as your CVV number.
What Should You Do if Your Application Is Denied?
The best thing someone can do after an application for a credit card is to work on improving their credit score. The creditworthiness of those who do so will be improved, thus improving their chances of approval. Improving a credit score by paying on time and keeping an existing credit card balance low is possible.
If someone cannot qualify for a credit card, how can their credit score be improved? If this is the case, becoming an authorized user on the credit card of a family member, such as a parent, might be an option.
A person who is an authorized user has an improved credit score if they make on-time payments through their main account holder. If neither the account holder nor the authorized user makes purchases they cannot afford, their credit scores will suffer, so both parties must plan to pay off the bill on time.
FAQs Related to Best First Time Credit Card with No Credit History
Are credit reports and credit scores the same thing?
Credit reports and credit scores are different. The importance of both, however, cannot be overstated. Credit reports contain detailed information about a person’s credit accounts and debts, both present and past. Credit scores are numerical snapshots that allow lenders to determine your creditworthiness at a given time.
Does the card offer rewards?
You should focus on something other than earning rewards when building credit, but some cards for no credit offer rewards points or cash back, which can be helpful. A rewards card may not be the best option if you prefer to build positive credit without distractions or if rewards might lead you to overspend.
What Is a Good Credit Limit for Best First Time Credit Card?
An average or Best First Time Credit Card has a credit limit between $500 and $1,000. However, it is possible to go as low as $100. You can expect your limit to grow as you make on-time payments and establish your credit.