How to get a credit card with no credit history

You can get a credit card without an existing credit history by using a secured credit card, becoming an authorized user on someone else's account, or finding a card designed for people building credit for the first time. A secured card requires a cash deposit that becomes your credit limit — typically $200 to $2,500 — and reports to the three major credit bureaus (Equifax, Experian, and TransUnion) just like a regular card. After 6 to 18 months of on-time payments, many issuers convert it to an unsecured card and return your deposit.

The reason you need one of these routes is that traditional credit cards require a credit score or credit history to assess risk. Without either, most issuers will decline you. Secured cards and beginner-focused products exist because the issuer's risk is capped by your deposit or because they target a specific market segment. The deposit is not a fee — it sits in a bank account and you get it back.

Key Takeaways

  • A secured credit card requires a cash deposit that becomes your credit limit, and most issuers return it after you demonstrate consistent on-time payments.
  • Becoming an authorized user on a parent's or trusted adult's account can build your credit history without requiring a deposit, though you inherit their payment behavior.
  • Credit unions often have less stringent approval requirements than national banks and may offer cards or credit-builder loans to members with no history.
  • Your first card's main purpose is to build a credit history, not to maximize rewards — focus on cards with low annual fees and straightforward terms.
  • On-time payments every month are what create a credit score; a single late payment can set back months of progress.

Secured credit cards: how the deposit works

With a secured card, you deposit money into a savings account held by the card issuer. That deposit amount becomes your credit limit. If you deposit $500, your limit is $500. You then use the card like any other — make purchases, receive a bill, and pay it. The issuer reports your payment history to the credit bureaus, which is what builds your score.

The deposit stays in the account untouched unless you default on the card. If you miss payments, the issuer can take money from the deposit to cover what you owe. If you pay on time every month, the deposit remains yours. After 12 to 18 months of consistent payments, many issuers automatically convert the card to unsecured status and return your full deposit. Some require you to request the conversion; check the card's terms.

Common secured card issuers include Capital One, Discover, and various credit unions. Fees vary: some charge an annual fee ($0 to $95), and some charge a processing fee when you open the account. Compare the terms before you choose. A card with no annual fee and a $200 minimum deposit is generally better than one with a $95 annual fee, even if the second one offers slightly better rewards.

Becoming an authorized user on someone else's account

If a parent, spouse, or trusted adult with good credit adds you as an authorized user to their credit card account, their payment history may appear on your credit report. This can build your score without requiring a deposit or a separate process. You may or may not receive a physical card — some people add you to the account but don't issue you a card, which still builds your history.

The risk here is that you inherit their payment behavior. If they miss a payment, it damages your credit too. If they carry a high balance, it can lower your score even if they pay on time. Before you ask someone to add you, confirm that they pay consistently and on time, and that their balance stays well below their credit limit.

Not all credit card issuers report authorized user accounts to the credit bureaus, so ask first. Capital One, Chase, American Express, and Discover generally do. If the account holder's bank does not report it, you gain no credit history benefit.

Credit unions and credit-builder loans

Credit unions often have lower approval barriers than national banks. Many will issue a credit card or credit-builder loan to a member with no credit history, especially if you have a deposit account with them. A credit-builder loan works differently from a credit card: you borrow a small amount (usually $500 to $1,000), the lender holds the money in a savings account, and you make monthly payments to repay it. Once you finish, you get the money back and have a credit history.

To join a credit union, you typically need to live or work in a specific area, belong to a certain employer or organization, or meet other membership criteria. The National Credit Union Administration (NCUA) website has a tool to find credit unions you may be able to join. Membership is usually free or costs a small one-time fee.

Credit-builder loans often have lower interest rates than credit cards and are specifically designed to create a credit history. If your credit union offers both a credit card and a credit-builder loan, the loan may be the faster route to a score because the payment structure is simpler and the lender's incentive is aligned with your success.

What happens after you open your first card

Once you have a card, your job is to use it in a way that builds credit. This means charging small purchases you can afford to pay off — a gas fill-up, a grocery trip, a streaming subscription — and paying the full balance by the due date every month. You do not need to carry a balance or pay interest to build credit. In fact, paying interest costs you money and does not build credit faster.

Your credit score depends on five factors: payment history (35%), amounts owed relative to your limits (30%), length of credit history (15%), credit mix (10%), and new inquiries (10%). With one new card, you are building payment history and starting to establish length of history. Keep your balance below 30% of your limit — if your limit is $500, keep your balance under $150 — to show you can manage credit responsibly.

A single late payment can drop a new score by 100 points or more. Set up automatic payments for at least the minimum due, or set a phone reminder for the due date. Missing even one payment early in your credit history makes it much harder to recover.

Cards to avoid and red flags

Some cards marketed to people with no credit charge very high annual fees ($75 to $150), require you to buy a "credit-building package" upfront, or charge processing fees on top of an annual fee. These are not inherently scams, but they cost you money that does not go toward building credit. A card with a $95 annual fee and a $50 processing fee costs you $145 before you even use it. A secured card with no annual fee and a $200 deposit costs you nothing extra.

Avoid cards that require you to pay money upfront before you receive the card, or that promise to "may provide" approval. No legitimate card issuer guarantees approval, and upfront fees are often a sign of a predatory product.

Also avoid explore for multiple cards in a short time. Each process triggers a hard inquiry on your credit report, and multiple inquiries in a short period can lower your score. Space applications out by at least three to six months.

Timeline and what to expect

Opening a secured card takes one to three business days if you explore online. The issuer will ask for your Social Security number, date of birth, address, and income. They may ask for proof of identity or income. Once approved, you fund the deposit, usually by transferring money from a bank account or mailing a check.

Your first credit score typically appears 30 to 45 days after you open the card and make your first payment. Credit bureaus need at least one reported payment to calculate a score. After that, your score updates monthly as new payment information is reported.

Conversion from secured to unsecured usually happens automatically after 12 to 18 months of on-time payments, though some issuers require you to request it. When it converts, your deposit is returned to you, usually within 7 to 10 business days. At that point, you have a traditional credit card and a credit history that other lenders can see.

Frequently Asked Questions

Do I need a job to get a credit card with no credit?

Most issuers ask for income information, but it does not have to be from employment. Student loans, disability payments, unemployment benefits, or regular support from family can count as income. Be honest about what you report — issuers verify income on secured cards less often than on unsecured ones, but lying is fraud.

What if I am denied for a secured card?

Denial is rare for secured cards because your deposit covers the issuer's risk. If you are denied, the issuer must tell you why. Common reasons are a very recent bankruptcy, an active fraud investigation, or a ChexSystems report (a banking history report, separate from credit). Ask the issuer what the specific reason was, and consider a credit-builder loan from a credit union instead.

Can I use my secured card to withdraw cash?

You can, but it costs you. Most secured cards charge a cash advance fee (2% to 5% of the amount) and charge interest when ready, with no grace period. Treat the card as a spending tool, not a cash source. If you need cash, use an ATM with your debit card instead.

How long until I can get a regular credit card?

After 6 to 12 months of on-time payments on a secured card, you may be approved for an unsecured card from other issuers. After 18 to 24 months, you should have enough history to access most standard cards. The exact timeline depends on how much you use the card and how consistently you pay.

Will becoming an authorized user hurt the primary account holder?

No. Adding you as an authorized user does not change the account holder's credit or their liability. If you make purchases on a card issued to you, the account holder is still responsible for the bill. Make sure you have their permission and understand the terms before you use the card.