Best Credit Cards to Build Credit with No Credit

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Key takeaways

Credit builder cards are easy to qualify for, even with a poor score.
Use your card responsibly, and your score will grow.
Once your score improves, you can upgrade to rewards cards with perks like cashback, travel points, and higher limits.

Credit cards are one of the easiest ways to establish a good credit history. The problem is that they aren’t always easy to get if your score isn’t up to snuff. That’s where credit cards for building credit with no credit come in.

These cards are designed for consumers with poor scores or limited credit history. They provide an accessible way to establish or rebuild your score. Snag a card, use it responsibly, and you can upgrade to better ones in the future.

Choosing the right card can make all the difference. Let’s review the top credit cards for building credit and how to use them effectively.

Best credit cards to build credit

The best credit cards to build credit will give you a decent credit limit, a lower APR, and few mandatory fees. Most importantly, they will report your payments and credit usage to all three major credit bureaus. It’s only by reporting your credit activity that you can achieve a good credit score.

Below we’ve listed a few options. Compare secured vs. unsecured credit cards, store cards vs. open-loop cards, to find the right fit for you.

Credit builder cards

A credit builder card is any credit card that helps you improve your credit score. The issuer will report your credit activity to all three national credit bureaus. Make your payments on time and keep your usage low, and your score will improve.

The appeal of these cards lies in their lenient requirements. Most target consumers whose FICO scores fall below 670. Many will even accept applicants with scores below 580. They are a good place to start when you have no credit history.

Many credit builder cards will begin with lower spending limits. You may be able to find a $500 credit card limit with no deposit. Use it as a stepping stone to better rewards cards.

Secured cards

If you’re starting from scratch, one of the most effective ways to build credit fast is by opening a secured credit card. Secured cards require a cash deposit, which sets your spending limit. For example, putting down a $200 deposit will give you a $200 credit limit.

The issuer holds the money as collateral in case you don’t pay your bill. This reduces their risk significantly. As a result, secured cards are among the easiest to qualify for. The deposit is fully refundable when you close your account in good standing.

Some issuers offer rewards, the ability to graduate to an unsecured card, or have flexible security deposit requirements.

Store cards

Certain retailers offer closed-loop credit cards that can only be used for shopping at their stores or sister franchises. Many are easy to qualify for and provide rewards and discounts. The catch is that they often come with high interest rates and low limits.

Store cards can be a good choice if you shop at the retailer frequently and can pay your bill in full to avoid high interest rates.

Subprime cards

Subprime cards are traditional credit cards with no deposit and lenient requirements. Many issuers approve applicants with poor scores or limited credit histories. In return, they charge extra fees, high interest rates, and set low limits.

If you have your heart set on an unsecured card, look for one that does not have an annual fee or a monthly maintenance fee. A few issuers offer rewards or cash back on everyday purchases, such as gas. You can also find subprime cards that automatically increase your credit limit after six months of consistent on-time payments.

Low-interest credit cards

Low-interest credit cards are ideal if you plan on carrying a balance. The lower your interest rate, the less debt you’ll accumulate. The catch is that it’s challenging to find a low-interest card when you have poor credit. There are a few secured cards that offer interest rates under 20% and accept applicants with bad credit or no credit history.

Another option is to explore credit cards offered by your bank. If you have a good banking history, your bank may approve you for an unsecured credit card with a lower APR, even with less-than-stellar credit.

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What to look for in credit cards to build credit with no credit history

There are plenty of cards on the market, but no issuer offers everything. You’ll need to be realistic and look for features that matter the most. The best credit cards for bad credit can help you achieve a good score while avoiding high fees and unreasonable terms.

Here’s what you need to consider.

Credit bureau reporting

Credit cards only affect your score if your provider reports your activity to all three credit bureaus – Experian, Equifax, and TransUnion. It’s not worth applying for a card that does not report to all of them, as you never know where a lender will pull your score from.

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Prequalify

While second-chance credit cards with guaranteed approval don’t exist, some cards let you prequalify. When you prequalify, the issuer does a soft inquiry, which does not impact your score. Prequalifying helps you gauge your chances of approval. If you like the offer, you can formally apply.

Manageable fees

Most second-chance credit cards for bad credit with no deposit have an annual fee. Some come with an additional monthly maintenance charge. Ensure that these fees align with your budget before applying.

Many secured cards do not charge annual fees. You do have to put down a security deposit, but it’s 100% refundable.

Upgrade path

A credit builder card is not a permanent card. Use it to strengthen your score, then move on. In the best-case scenario, you upgrade with the same issuer. Not all companies offer an upgrade option.

Not upgrading with the same issuer is not a significant concern. Simply close your account and apply for a new card elsewhere.

Flexible deposit

Secured cards require a cash deposit. Issuers know that locking away $100 to $300 can be tough. Look for providers with flexible deposit options.

Some providers will raise your spending limit without requiring a larger deposit. Others allow you to pay for your deposit in installments or add money at any time.

Certain fintech apps offer secured cards linked to your bank account. The money in your account serves as your deposit. You do not have to worry about tying up cash as you work on your score.

Rewards and perks

Even subprime cards and certain secured cards offer rewards programs. You can find options with cash back, points, or miles. While earning rewards is tempting, only spend what you can afford to pay for in full at the end of the month. Your focus should be on attaining a good score. Carrying a balance can negate any rewards you earned.

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How many credit cards should you have?

Starting with one or two credit-building cards is ideal. The number may seem small, but it enables you to develop responsible habits. You won’t overwhelm yourself with too many accounts to manage. You’ll be able to pay on time and keep your usage low.

Having too many cards can lead to overspending or missed payments, which can harm your credit score.

As your score improves, you can add more cards to your wallet.

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How long does it take to build credit with a credit card?

You can start building credit as soon as you have a credit card. How long it takes to get approved for a credit card depends on the issuer, your credit profile, and the type of card. Many issuers offer instant decisions, allowing you to use your card right away.

Building credit from scratch with a credit card generally takes six months of responsible use. If you already have a credit score, you can expect to see improvements within three to six months. After 12 to 24 months of responsible use, you should qualify for better credit cards and loans with favorable terms.

Establishing a good credit history is an ongoing process. While you can see improvements in only a few months, it takes years to reach good to excellent credit. Once there, you need to maintain responsible habits to avoid a drop in your score.

Frequently asked questions

1. How many credit cards should I have to build credit?

Start with one or two cards. You will only have one or two due dates to remember, making it easier to pay on time. Too many cards can lead to overspending or missed payments. Focus on responsible use rather than quantity.

2. What are good credit cards to build credit?

Good cards for building credit have lenient approval requirements, few mandatory fees, and report to all three credit bureaus. Secured cards are an excellent choice since they tend to have fewer fees. You have to make a cash deposit, but it is refundable when you close the account in good standing.

3. What builds your credit score the most?

Your payment history is the most significant factor in determining your score. Consistently paying your bill on time is the best thing you can do.

4. Are prepaid cards a good way to build credit?

Prepaid cards do not build credit. They function similarly to debit cards. You load money onto the card and can only spend what you have deposited. Since you are not borrowing money, there is no activity to report. If you want to use a prepaid card to build a credit history, you’re better off using a secured card.

5. How to properly use a credit card to build credit?

Only spend what you can afford to pay for in full every month. Pay your bill on time and keep your balance below 30% of your limit. Over time, your score will improve, and you won’t pay interest on credit card debt.

Bottom line

Getting a credit card when your score is poor is challenging, but that’s what credit builder cards are for. Take the first step toward improving your rating by selecting a card with lenient approval requirements and few fees.

Next, learn how to use a credit card to build credit. You have to use your new card responsibly. Pay your bill on time and in full every month. Avoid overspending or carrying a balance. Over time, your score will grow.

Once your score reaches the good range, you can upgrade to a rewards card with perks like cashback, travel points, or other benefits. Your first card is only the beginning.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Paycheck Advance is an earned wage access service and is not a loan or credit product.

3. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and/or Cross River Bank, Member FDIC. The Current Visa® Debit Card, which may be issued by Choice Financial Group and/or Cross River Bank, and the Current Visa® secured charge card, which is issued by Cross River Bank, are all issued pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. A Current debit account is required to apply for the Current Visa® secured charge card. Independent approval required.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Debit card: Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees. Build Card: Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

6. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

7. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

8. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

9. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

10. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions. Individual Current Accounts only.

11. For eligible customers only. You may earn Points in connection with your Build Card purchases at retailers whose merchant code is classified as: Dining (e.g., restaurants) and Groceries (e.g., supermarkets) and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. Points will expire 365 days after they settle. For more information (including specific eligibility criteria), please refer to the Current Points Terms and Condition.

12. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

13. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. No minimum balance required. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. To earn a Boost rate of 4.00%, the sum of your Eligible Payroll Deposits over a rolling 35-day period must be $500 or more, with at least one Eligible Payroll Deposit equalling a minimum of $200. For more information, please refer to Current Boost Terms and Conditions.

14. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

15. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

16. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

17. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

18. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

19. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

20. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

21. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

22. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

23. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

24. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

25. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

26. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

27. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

28. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

29. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

30. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

31. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

32. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

33. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

34. Tipping or not tipping has no impact on your eligibility for SpotMe®.

35. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

36. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

37. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

38. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

39. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

40. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

41. MyPay is only offered in select states

42. To be eligible for MyPay, you must receive qualifying direct deposits to your Chime Checking Account as set forth in the MyPay Agreement. A qualifying direct deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Maximum Available Advance may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 – $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply.

43. Not affiliated with Empower Annuity Insurance Company of America (www.empower.com). Not everyone will qualify. Offers range from $10-$300 for first-time customers; $10-$400 for all others. Offers are based on our eligibility requirements and can go up with on-time payments. In Feb 2025, the average offer was $95 for first-time customers; $187 for all others. Instant delivery is optional—see fees in Empower’s Terms. Empower offers a 14-day trial for first-time customers followed by an auto-recurring $8/month subscription fee. Cancel anytime.

* EarnIn is not available for Connecticut residents

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor's credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor's degree in journalism and an MBA.

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Best Credit Cards to Build Credit with No Credit

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