You can get a credit card without an established credit history, but your options are limited to secured cards, student cards, or cards for people building credit
A credit card company has no way to know whether you'll pay them back if you've never borrowed money before. That's why most cards require a credit score, which you don't have yet. The solution is a secured credit card — you put down a cash deposit, usually $200 to $2,500, and the card company lets you borrow up to that amount. You use it like any other card, make monthly payments, and after 12 to 24 months of on-time payments, the company converts it to a regular card and returns your deposit.
A few card companies also offer unsecured cards for people with no credit, meaning you don't need a deposit. These are rarer and often come with higher interest rates or annual fees. Student credit cards are another route if you're enrolled in college — they're designed for people without credit history and typically have lower credit limits.
The goal isn't to borrow money you don't have. It's to build a credit history so that later, when you need a car loan, apartment lease, or better credit card, lenders will have proof that you pay your bills.
Key Takeaways
- A secured credit card requires a cash deposit but doesn't require a credit score, making it the most straightforward path for someone with no credit history.
- You'll pay interest on purchases and may face an annual fee, so only use the card for small, regular purchases you can pay off quickly.
- On-time monthly payments are what build your credit score — missing even one payment can erase months of progress.
- After 12 to 24 months of consistent payments, most secured cards convert to regular cards and return your deposit.
- Student credit cards and unsecured cards for no-credit borrowers exist but are harder to find and often carry higher costs.
How a secured credit card works
You open an account with a bank or credit card company, deposit money into a savings account they hold, and receive a credit card with a limit equal to your deposit. If you deposit $500, your credit limit is $500. You use the card to buy things — gas, groceries, a small purchase online — and receive a monthly bill just like a regular credit card.
You then pay the bill from your regular checking account, not from the deposit. The deposit sits untouched in the bank's account as collateral. If you stop paying your bills, the bank keeps the deposit to cover what you owe. If you pay on time every month, the deposit stays yours and eventually gets returned.
The card reports your payment history to the three credit bureaus — Equifax, Experian, and TransUnion — the same way a regular card does. This is what builds your credit score. After 12 to 24 months of on-time payments, the card company reviews your account and decides whether to convert you to a regular, unsecured card. At that point, your deposit is returned to you.
What to expect in costs
Secured cards charge interest, usually between 18% and 24% annually, depending on the card and your bank. They often charge an annual fee, typically $25 to $99. Some also charge a one-time processing fee when you open the account.
These costs are higher than what someone with good credit pays, but that's the trade-off for getting a card without a credit history. The key is to use the card in a way that minimizes interest charges. If you charge $100 and pay the full balance when the bill arrives, you pay no interest. If you charge $100 and pay only $50, you'll owe interest on the remaining $50 at your card's annual rate.
To avoid paying unnecessary interest, treat the card like a debit card: only charge what you can afford to pay off in full each month. This also helps you build credit faster, because paying your full balance every month shows lenders you manage money responsibly.
Where to find secured credit cards
Major banks and credit unions offer secured cards. Capital One, Discover, and U.S. Bank all have secured card products. Credit unions often have lower fees and interest rates than big banks, so if you belong to a credit union, start there.
When comparing cards, look at the annual fee, the interest rate, and the minimum deposit. Some cards require a $200 minimum; others require $500 or more. Some return your deposit after 12 months of on-time payments; others take 24 months. These differences matter if you're trying to build credit as quickly and cheaply as possible.
Avoid cards that advertise heavily on social media or promise to "may provide" approval. Legitimate secured cards don't need to advertise that way, and guarantees are a red flag for scams.
Student credit cards and unsecured options
If you're a full-time student, some card companies offer student credit cards that don't require a deposit or a credit history. Discover and Capital One both have student card products. These cards typically have lower credit limits — often $500 to $1,000 — and higher interest rates than cards for people with good credit, but no annual fee.
A few companies also offer unsecured cards for people with no credit, meaning you don't need to put down a deposit. These are harder to find and usually come with an annual fee and a higher interest rate than a secured card. Unless you're a student or have a specific reason to avoid a deposit, a secured card is usually the better choice because the terms are more predictable.
Building credit while you use the card
Your credit score is built on five things: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). A secured card helps you build the first three.
Payment history is the biggest factor. Every on-time payment gets reported to the credit bureaus. One late payment can drop your score by 100 points or more. One missed payment can take months to recover from. Set up automatic payments for at least the minimum due, or set a phone reminder on the day your bill is due.
Amounts owed means how much of your credit limit you're using. If your limit is $500 and you charge $450, you're using 90% of your limit, which hurts your score. If you charge $100, you're using 20%, which helps your score. Try to keep your balance below 30% of your limit.
Length of credit history improves over time. After 12 months, you have a one-year history. After 24 months, you have a two-year history. The longer you keep the account open and active, the better.
When to move to a regular credit card
After 12 to 24 months of on-time payments, your card company will likely offer to convert your secured card to a regular card. At that point, your deposit is returned, usually within 5 to 10 business days. You keep the card and the account history, which continues to help your credit score.
Once you have a regular card and a credit history, you can start looking at other cards with better rewards, lower interest rates, or no annual fee. Don't close the secured card account after it converts — closing it can hurt your score because it shortens your average credit history. Keep it open and use it occasionally, even if you switch to a different card for most purchases.
If your card company doesn't offer to convert you after 24 months, contact them and ask. If they refuse, you can close the account and open a regular card elsewhere. By that point, you should have enough credit history to may have access to.
Frequently Asked Questions
Do I need a credit score to get a secured credit card?
No. Secured cards are designed for people with no credit history or poor credit. The deposit replaces the need for a credit score. You will need a bank account and a Social Security number or ITIN, and the card company will do a soft credit check to verify you're not committing fraud, but this doesn't affect your credit score.
What happens if I can't pay my bill?
If you miss a payment, the card company reports it to the credit bureaus, which damages your credit score. If you continue to miss payments, they may use your deposit to cover what you owe. After that, your account goes to collections. The best move is to contact the card company as soon as you know you'll be late and ask about a payment plan.
Can I use a secured card to build credit if I already have bad credit?
Yes. Secured cards work for people with no credit and people rebuilding after past mistakes. The process is the same: on-time payments rebuild your score over time. It takes longer if you're recovering from missed payments or collections, but secured cards are one of the few options available.
How long does it take to build enough credit to get a regular credit card?
Most lenders want to see 12 to 24 months of payment history before they'll approve you for an unsecured card. Some may approve you sooner if you have other positive factors, like a steady income or a long banking relationship. After 24 months, you should have enough history to may have access to for regular cards with better terms.
Should I get multiple secured cards to build credit faster?
No. One secured card is enough. Multiple new accounts in a short time can hurt your score because each process triggers a hard inquiry. Focus on using one card responsibly for at least 12 months, then add another card only if you have a specific reason to do so.