You can get a credit card without an established credit history by using a secured card, becoming an authorized user, or explore for a card designed for people building credit
A credit card company needs some way to know you will pay them back. If you have never borrowed money before, you have no track record. The three main paths around this are: put down cash as collateral (a secured card), have someone with good credit add you to their account (authorized user), or explore for a card made for people in your situation (a beginner or student card). Each one works differently and costs different amounts.
The fastest route is usually becoming an authorized user on someone else's card, because you can use it when ready and the account holder's payment history helps you. The cheapest route is usually a secured card, because you control the deposit and many have no annual fee. The easiest to understand is a beginner card, because the terms are straightforward and you own the account from day one.
Key Takeaways
- A secured credit card requires you to deposit cash ($200 to $2,500 typically) that becomes your credit limit, and most issuers convert it to a regular card after 7 to 18 months of on-time payments.
- Becoming an authorized user on someone else's card lets you use their credit history when ready, but you are responsible for any charges you make and the account holder is responsible for the full balance.
- Beginner and student cards have higher interest rates and lower credit limits than cards for people with established credit, but they report to the three credit bureaus so your payments build your history.
- Your first payment is the most important one — missing even one payment can damage your new credit history and make future borrowing harder.
- You will need a Social Security number and a bank account to open any credit card account.
Secured Credit Cards: How They Work and When to Use Them
A secured credit card is a card backed by a cash deposit you make upfront. You deposit money into a savings account held by the card issuer, and that amount becomes your credit limit. If you deposit $500, your limit is $500. You then use the card like any other card, make monthly payments, and the issuer reports your payment history to the credit bureaus.
The deposit stays in the account the whole time you hold the card — you do not spend it. The card issuer holds it as insurance in case you stop paying your bill. After you make on-time payments for a set period (usually 7 to 18 months), the issuer reviews your account and may convert it to a regular unsecured card, returning your deposit. Some issuers will also raise your credit limit without requiring a larger deposit.
Secured cards often have annual fees ($0 to $95) and higher interest rates than regular cards. Compare the fee, the interest rate, and the issuer's policy on when they convert to an unsecured card before you choose one. Capital One Secured, Discover Secured, and U.S. Bank Secured are common options, but your own bank may also offer a secured card.
Becoming an Authorized User on Someone Else's Card
An authorized user is someone added to an existing credit card account by the account holder. You get your own card with your name on it, you can make purchases, but the account holder is responsible for paying the bill. The account holder's payment history — both good and bad — is reported to the credit bureaus under your name.
This is the fastest way to build credit because you benefit from the account holder's established history when ready. If they have a long record of on-time payments and a low balance, that helps your credit score right away. However, you are responsible for any charges you make, and the account holder is responsible for the full bill. If you overspend or they miss a payment, both of your credit histories are affected.
The account holder can remove you at any time, and the account will stop appearing on your credit report after a few months. This is a good option if a parent, spouse, or trusted family member is willing to add you, but it only works if they have good credit themselves and if you trust each other with money.
Beginner and Student Credit Cards
Some card issuers offer cards designed for people with no credit history. These cards have lower credit limits (often $300 to $1,000), higher interest rates, and sometimes annual fees. They report to all three credit bureaus, so your payment history counts toward building your credit score.
Beginner cards are easier to understand than secured cards because you do not have to put down a deposit. You explore, get approved or denied based on your income and other factors, and start using the card. The tradeoff is that the interest rate is higher — often 18% to 24% or more — so carrying a balance costs you more money.
Student cards are similar but marketed to people in college or graduate school. Some require proof of enrollment. Both beginner and student cards are worth considering if you cannot get approved for a secured card or if you do not want to tie up cash as a deposit.
What You Need to explore
Every credit card issuer will ask for the same basic information: your full legal name, date of birth, Social Security number, current address, and income. You will also need a bank account to link for payments. Some issuers ask for employment information or allow you to include income from sources like student loans, disability payments, or part-time work.
For a secured card, you will also need to fund the deposit, usually by transferring money from your bank account or making a deposit at a branch. For an authorized user account, the account holder needs to contact their card issuer and provide your name, date of birth, and Social Security number.
You do not need a credit score to explore — you have no score yet. The issuer is looking at your income, your bank account history, and sometimes your employment to decide whether to approve you. Having a job or other steady income makes approval more likely.
Building Your Credit Score After You Get the Card
Your credit score starts building the moment the card issuer reports your account to the credit bureaus. The most important factor is payment history — making every payment on time, even if it is just the minimum. One missed payment can lower a new credit score significantly and stay on your report for seven years.
Keep your balance low relative to your credit limit. If your limit is $500, try to keep your balance under $100. This is called your credit utilization ratio, and it affects your score. Issuers report your balance to the bureaus once a month, usually on your statement date, so paying down your balance before that date helps your score.
Use the card for small purchases you would make anyway — groceries, gas, a coffee — and pay the full balance each month. This shows you can handle credit responsibly without paying interest. After 6 to 12 months of on-time payments, you will have enough history to be approved for other cards or loans.
Comparing Your Options: Secured Card vs. Authorized User vs. Beginner Card
| Option | Upfront Cost | How Fast It Works | Best For |
|---|---|---|---|
| Secured Card | $200–$2,500 deposit + annual fee ($0–$95) | Builds credit when ready; converts to unsecured in 7–18 months | People who want full control and do not have someone to add them to an account |
| Authorized User | $0 | Fastest — benefits from account holder's history right away | People with a trusted family member or partner who has good credit |
| Beginner Card | $0 deposit; annual fee ($0–$95); higher interest rate (18%–24%+) | Builds credit when ready if approved | People who want no deposit and do not may have access to for other cards |
Common Mistakes to Avoid
The biggest mistake is missing a payment. Even one late payment damages a new credit score more than it damages an established one. Set up automatic payments for at least the minimum amount due, or set a phone reminder for a few days before the due date.
The second mistake is maxing out your card. A new card with a $500 limit is not permission to spend $500. Keeping your balance low shows you can handle credit responsibly and helps your score grow faster.
The third mistake is closing the card after it converts to an unsecured card. Your credit history is partly based on how long you have held accounts. Keeping the card open and using it occasionally helps your score more than closing it does.
Do not explore for multiple cards at once. Each process creates a small dip in your credit score, and multiple applications in a short time can signal desperation to lenders. Space applications out by at least a few months.
Frequently Asked Questions
How long does it take to build enough credit to get a regular credit card?
Most people can get approved for a regular card after 6 to 12 months of on-time payments on a secured card or as an authorized user. Your credit score needs to reach at least 620 to 650 for most regular cards, though some cards accept scores as low as 580. The exact timeline depends on how often you use the card and how low you keep your balance.
What happens to my credit if I become an authorized user and the account holder misses a payment?
The missed payment appears on your credit report just as it does on theirs. Your credit score will drop. This is why becoming an authorized user only works if you trust the account holder completely and they have a strong payment history. You can ask the issuer to remove you if the account holder's situation changes.
Can I use a secured card and a beginner card at the same time?
Yes, but it is not necessary. Using two cards at once spreads your available credit across two accounts, which can help your utilization ratio, but it also means two payments to track and two chances to miss a due date. Most people build credit faster with one card they use consistently.
Do I have to pay interest on a secured card?
Only if you carry a balance. If you pay your full balance every month, you pay no interest. The deposit itself does not earn interest — it just sits in an account as collateral. Some issuers pay a small amount of interest on the deposit, but it is usually less than 1% per year.
What if I get denied for a secured card?
Denial is rare for secured cards because the deposit reduces the issuer's risk, but it can happen if you have a very low income or a history of fraud or identity theft. If you are denied, ask the issuer why. You can also try a different issuer, ask a family member to add you as an authorized user, or wait a few months and reapply if your income has increased.