You can get a credit card without an established credit history by using a secured card, becoming an authorized user, or finding a card designed for people building credit
A credit card company wants proof that you will pay them back. If you have never borrowed money before, you have no track record to show. The solution is not to wait until you magically have credit — it is to start with a product designed for people in your exact position. The three main paths are a secured credit card (you put down a cash deposit), becoming an authorized user on someone else's card, or explore for a credit-builder card (designed specifically for people with no history).
Each path has different costs, timelines, and risks. Your choice depends on how much cash you have available, whether you know someone with good credit willing to add you to their account, and how quickly you need to build a credit history. All three can work — the key is understanding what happens after you open the card.
Key Takeaways
- A secured credit card requires you to deposit cash as collateral, which becomes your credit limit, and most issuers graduate you to an unsecured card after 12 to 18 months of on-time payments.
- Becoming an authorized user on a parent's or trusted person's card can build your credit history if the primary account holder has good payment habits and the card issuer reports authorized user activity to credit bureaus.
- Credit-builder cards charge a small fee to open but are designed to approve people with no credit history, and your payment history goes directly to the three major credit bureaus.
- Your first card should have no annual fee, and you should plan to use it for small purchases you can pay off in full each month to avoid interest charges.
- Building credit takes time — most lenders want to see at least six months of payment history before they consider you for a regular unsecured card.
How a secured credit card works
A secured card is the most straightforward path if you have cash available. You deposit money into a savings account held by the card issuer — typically $200 to $2,500 — and that amount becomes your credit limit. You then use the card like any other credit card: make purchases, receive a monthly bill, and pay it. The deposit stays in the account untouched; it is collateral, not payment.
The card issuer reports your payment history to the credit bureaus (Equifax, Experian, and TransUnion). If you pay on time every month, your credit score begins to build. After 12 to 18 months of consistent payments, most issuers will convert your account to a regular unsecured card and return your deposit. Some cards do this automatically; others require you to request the conversion.
Secured cards do have costs. Many charge an annual fee ($25 to $95), and some charge a processing fee when you open the account. Compare these fees across issuers before choosing. The goal is to find a card with the lowest total cost that also reports to all three credit bureaus — not all secured cards do. Common issuers of secured cards include Capital One, Discover, and U.S. Bank, though options vary by state and by your banking history.
Becoming an authorized user on someone else's card
If a parent, spouse, or trusted family member has a credit card with a good payment history, you can ask them to add you as an authorized user. This means you receive a card in your name linked to their account. You can make purchases on that card, but the primary account holder is responsible for paying the bill.
The benefit to you is that the account's payment history — if it is positive — may be reported to the credit bureaus under your name. This can boost your credit score without you having to open your own account or put down a deposit. However, this only works if the card issuer reports authorized user accounts to the credit bureaus. Before asking someone to add you, call the card company and confirm they do. Most major issuers (Chase, American Express, Capital One, Discover) report authorized user activity, but smaller issuers may not.
The risk is shared: if the primary account holder misses a payment, it damages both their credit and yours. If they carry a high balance, it can hurt your credit score even if you never use the card. This path works best when you trust the person completely and their account is in good standing. You have no control over their spending or payment habits, so choose someone whose financial behavior you know well.
Credit-builder cards designed for no credit history
Some card issuers create products specifically for people with no credit history. These cards typically have lower credit limits ($300 to $1,000) and charge a one-time fee to open ($20 to $50) plus sometimes an annual fee. The trade-off is that they approve people who would be rejected for a regular card. Examples include the Self Visa Card, the Chime Credit Builder Visa, and cards from some credit unions.
Your payment activity goes directly to the credit bureaus, so every on-time payment builds your score. After six to twelve months, you may be offered a higher credit limit or conversion to a standard card. These cards often have higher interest rates than secured cards, but if you pay your full balance each month, the interest rate does not matter.
The key difference from a secured card is that you do not put down a large deposit. Instead, you pay smaller fees upfront. This makes credit-builder cards a good option if you do not have several hundred dollars to set aside as collateral. Some credit-builder cards also offer features like automatic payment reminders or the ability to link to a savings account, which can help you stay on track.
What to look for when comparing your options
Regardless of which path you choose, avoid cards with annual fees above $50 unless the card offers significant rewards or other benefits. For your first card, the goal is to build credit cheaply, not to earn rewards. A $50 annual fee on a card you use for small purchases is money wasted.
Check whether the card reports to all three credit bureaus. Some cards only report to one or two, which slows your credit-building progress. This information is usually in the card's terms or on the issuer's website. You can also call the issuer's customer service line and ask directly — they will tell you.
Look for a card with no foreign transaction fees if you travel internationally, and confirm the interest rate (APR) in case you carry a balance. For a first card, a rate between 18% and 24% is typical; rates above 29% are a sign to keep looking. The APR matters only if you carry a balance, but it is good to know what you are signing up for.
How to use your first card to actually build credit
Getting the card is the first step. Using it correctly is what builds your score. Make small purchases — a coffee, groceries, gas — things you would buy anyway with cash. Pay the full balance before the due date every month. This shows lenders you can borrow and repay reliably.
Do not max out your card or carry a balance to "build credit faster." That is a myth. Carrying a balance costs you money in interest and can actually hurt your score. Your credit utilization — the percentage of your limit you are using — matters to your score. Keeping it below 30% is ideal. If your limit is $500, try to keep your balance below $150 at any time.
Set a calendar reminder for your payment due date, or set up automatic payments from your bank account. Missing even one payment can set back your credit-building progress by months. After six to twelve months of on-time payments, you will have enough history to open a second card or move to an unsecured card.
When to move beyond your first card
Once you have six months of payment history on your first card, you become a candidate for a regular unsecured card. You can check your credit score for free through AnnualCreditReport.com (the official site run by the three bureaus) or through many banks and credit card issuers, which offer free score tracking to customers. Checking your own score does not hurt it — only hard inquiries from lenders do.
A score of 620 or higher opens doors to many regular cards. A score of 700 or higher qualifies you for better rates and terms. If your score is still below 620 after six months, keep using your first card on-time and check again in three months. Scores move slowly at first, then faster as you build more history.
When you do open a second card, keep your first one open and active. Closing old accounts can hurt your score. The longer your credit history, the better your score looks to future lenders. You do not have to use the first card every month, but using it occasionally — even for a small purchase — keeps the account active in the eyes of the credit bureaus.
Frequently Asked Questions
Do I need a job to get a credit card with no credit?
Most card issuers ask for income information on the process, but they do not always verify employment. Income can include student loans, disability payments, or support from family. For a secured card, the main requirement is having cash for the deposit, not having a job. Call the issuer if you are unsure whether your income source qualifies.
Will being an authorized user hurt the primary account holder's credit?
No. Adding an authorized user does not change the primary account holder's credit score or credit report. However, if the authorized user runs up charges and the primary holder cannot pay, that debt affects the primary holder's credit. The risk is financial, not to the credit score itself.
How long does it take to build credit with a secured card?
Most people see a measurable credit score after three to six months of on-time payments. A score high enough to may have access to for an unsecured card typically takes 12 to 18 months. The exact timeline depends on your starting point and how you use the card.
What if I am denied for a secured card?
Denial is rare because secured cards are designed for people with no credit history. If you are denied, the issuer must tell you why. Common reasons are a very recent bankruptcy, active fraud on your credit report, or a ChexSystems issue (a banking history report). You can dispute errors on your credit report for free at AnnualCreditReport.com.
Can I use a prepaid card instead of a credit card?
No. Prepaid cards do not build credit because they do not involve borrowing. The issuer does not report your activity to the credit bureaus. A prepaid card is useful for budgeting, but it will not help you build a credit history. You need an actual credit card — secured, authorized user, or credit-builder — to build credit.