Credit cards for customers with no credit history


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Credit cards for customers with no credit history

Credit cards for customers with no credit history

The content is accurate at the time of publication and is subject to change.
Without any credit history, an individual might find things a bit hard. There is very limited credit line available for someone who doesn't have a credit history. This is because someone without a credit history is a risky prospect and may default on the debt at a later stage. But there are some cards which are offered to individuals without any credit history and hence can be used to establish good credit over a period of time, moving on to better options. Prepaid Cards These are cards which represent no risk to the companies which issue the cards. That is why they are offered to customers with no credit history. In this case, the individual pays an upfront deposit in their account and gets a card. This card could be used similar to the way a credit card is used. The only difference is that the customer is spending his or her money instead of borrowing from the bank. The card company might levy a fee on the card for activation or transaction. Usually the money that the individual can spend using the card is less than upfront deposit. The customer can continue using this card month after month by paying the amount spent or replenishing the account. There are some reliable prepaid card companies which do not charge exorbitant fees and hence can be used for a start to build credit history. Secured Cards In secured credit cards, the customer deposits collateral in the account and gets a card which can be used like a credit card. The customer will have to pay the monthly bill to keep the account going. If that is not done, the money deposited originally will be taken by the card company. Secured credit cards represent lower risk for the card issuers, which is why the interest rate is low for the secured cards compared to unsecured credit cards. Student credit card Students usually do not have a credit history to start with. But they have to build one before they get out of college. They have a steady stream of income and lot of expenses too. This qualifies for a credit card and if they use it responsibly, they will develop a good credit history. student credit cards usually have age restrictions. Also student credit cards need a co-signor which means guardian or parent of the student with an established credit should vouch for the student. If a student doesn't handle the card responsibly and doesn't pay the bills regularly, the co-signor's credit history will also be tarnished which is why both students and parents should be careful. Cards at gas stations You can obtain cards at gas stations, grocery stores and super markets too. The interest rates on these cards are quite high but are a good option for those with no credit history. However, customers must ensure that they buy cards only from those gas stations and grocery stores which report the credit to the credit bureaus. Otherwise the activity on the card will not benefit the customer at all.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!