How to Get A Credit Card with No Credit?

Individuals with no credit usually experience a hard time getting approved for a credit card and they wonder how to get a credit card with no credit? This is because most credit issuers require applicants to have some good credit history including a credit score to approve a new credit card to new applicants. However, you need to have at least one active account on your credit report for six months for you to get a credit score.

Hence, some credit card providers have realized that people are experiencing some difficulties in getting a credit card for the first time, so they have simplified the process. It’s actually easier than you might think to get a credit card with no credit if you have a poor credit history or you don’t have a credit history at all, what you have to do is to look for the right places.

Understanding how to transfer money by using the routing number will help in transacting money from your bank account to the recipients even without a credit card. A secured account is of the great option because you are required to make a deposit with the issuing bank to get a secured card, the account acts as a lower risk to the lender hence the issuer is willing to risk doing business with you regardless of your credit status.

How Can You Transact Without A Credit Card?

However, if you are not in possession of a credit card there are other ways that one may need to transfer money from bank account either to pay for bills, send to family members or friends or for shopping. A merchant account is a necessary requirement for businesses doing credit payments by the use of credit cards.

However, securing financing for your small business can be tricky especially if you have a poor credit history hence credit card processing for small businesses with no monthly fee plays a vital role in making and receiving payments. Lenders use the credit score as one of the deciding factors on whether or not to offer you a business credit card.

Setting up a merchant account can be a hefty exercise and time consuming for small business, other ways to accept credit card payments without a merchant account can work well for such businesses. Moreover, there exist a lot of service providers that are willing to provide credit cards with no credit with no application fees or annual fee.

What Are the Factors to Consider in Getting Your First Credit Card?

i. Upfront security deposit requirements

Upfront deposits are to be expected when you are opening a secured credit account, even with a security deposit need, secured credit cards can still be a good option if unable to open unsecured credit cards.

ii. Rewards or cashback

For many starter credits, they do not offer rewards or cashback opportunities. If you can find a card that is easy to qualify for, it will help you build credit, and gives you some sort of rewards or cashback offer then it would be worth going for

iii. Initial fee requirements

You will most likely want to do away with any credit cards which requires initial fees such as registration fee like a merchant account. There exist options out there that accept credit card payments without a merchant account.

iv. Annual fees

Most people avoid cards with annual fees not unless there are some huge benefits or cashback opportunities that offset the expenses.

v. Credit limit

The higher the credit limit, the better. Higher credit limits help maintain your balance to lower credit limit ratios. When the ratios are low, your credit scores tend to be high.

vi. Credit reporting

If the credit card you are considering won’t report your account information to the relevant credit reporting agencies, Equifax, Experian, and Transunion then it would necessary to move to the next option.

What Are the Best Credit Cards with No Credit?

1. Capital One Secured Mastercard

The capital one secured Mastercard is a no credit, credit card that can help you to build or rebuild credit quickly with proper use for no annual fee. The owner gets to access a higher credit line and gets rewards after timely payments for the first 5 months. Responsible card use helps strengthen your credit in the future. Also, you can access your account 24/7.

With this credit card, you can use online banking to access your bank account by use of a smartphone with a mobile app in place. You can pay by check, online or at a local branch with no fee and chose a monthly due date that works best for you. The advantage is that there is fraud coverage if your card is stolen or lost. Access to an authorized bank account is required to make $49. $99 or 200$ refundable security deposits.

2. Discover it Student chrome

This card comes with a huge reward to first-year students including 2% cashback at gas stations and restaurants (up to $1000 a quarter in combined purchases), unlimited 1% back on everything else. The rewards are automatic with no need for sign-ups. In the first year of being a cardholder, Discover will match all of your rewards which is an added incentive.

Besides, it offers a reward for good grades, $20 statement credit each academic year your GPA is 3.0 or higher for up to the next 5 years. There are no annual fees, no late fee on first payment or APR change for paying late.

3. OPENSKY Secured Visa

On this credit card, there is no credit check necessary to apply. OPENSKY believes in giving an opportunity to everyone. With a secured card you put down a refundable deposit that becomes the basis of your credit limit, for example, if you put down a $200 deposit you will have a $200 credit limit.

using this card and paying your balance in full each month will mean you don’t incur interest charges and you will be building your credit over time. Moreover, OPENSKY reports to all 3 major credit bureaus.99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.

4. Deserve Edu MasterCard

This card makes it suitable for international and U.S students to build credit approval with a unique approval process. Also, it makes easy to earn rewards with a 1% unlimited cashback on all purchases. However, if you use your Edu MasterCard for payments, you will get a year refund on your amazon prime students’ membership.

This card that allows you to build your credit in a manageable way while also earning generous rewards could help your journey into personal finance get off to a smoother start. This card offers Mastercard Platinum benefits, like access to fuel rewards and price protection. There’s no fee for charging over the credit limit plus no annual fees or foreign transaction fees.

5. Discover it secured

This card is the one specifically designed for those with little to no credit that offers cashback rewards and at a reasonable rate too. This card is among the best rated secured credit cards. The Discover it secured earns 2% back on dining and gas up to $1,000 in spending per quarter, and 1% on everything else. Saving money and building up your credit sounds like the best therapy for this card.

However, regular timely payments will be reported to all the three credit bureaus that would be a plus to your credit history. Also, this card lets you establish your credit line with your tax return by providing a refundable security deposit from $200-$2500 after being approved. Bank information must be provided when submitting your deposit.

Bottom Line

Getting a credit card with no credit while you are a new user can limit your options, but the good news is that many credit card issuers are willing to work with people who are building credit for the first time. The cards above are some of the best picks, but most important is to see what cards your bank or credit union has, particularly if you’ve had an account there for a long time. Sometimes, banks and credit unions will consider your history with the organization when reviewing your application for a new credit card.