You can get a credit card with no credit history, but your options are limited to secured cards, store cards, or cards designed for people building credit

A credit card company has no record of whether you pay bills on time because you have never borrowed money before. To them, you are an unknown risk. The main paths forward are a secured credit card (you put down a cash deposit that becomes your credit limit), a store card (issued by a retailer, easier to get but only usable there), or a credit-builder card (designed specifically for people with no history, often with a small deposit or annual fee). You will not be turned down for having no credit — you will be turned down for having nothing to show you can handle debt.

Each of these options reports to the credit bureaus (Equifax, Experian, TransUnion), which means your on-time payments start building a credit history immediately. The goal is not to use credit forever — it is to use it responsibly for 12 to 24 months, then move to a better card with lower fees and better terms.

Key Takeaways

  • Secured cards require a cash deposit ($200 to $2,500 typically) that serves as your credit limit, and most convert to regular cards after 12 to 18 months of on-time payments.
  • Store cards from retailers like Target or Amazon are easier to get with no credit history, but you can only use them at that store and interest rates are usually higher.
  • Credit-builder cards charge an annual fee ($25 to $95) but are designed for people with no history; some require a small deposit, others do not.
  • Your first card will have a low credit limit ($300 to $500 for secured cards), and you should use it for small recurring charges you pay off monthly to build a positive payment history.
  • After 12 to 24 months of on-time payments, you can request a credit limit increase or move to a card with better rewards and no annual fee.

How secured credit cards work

A secured card is the most common entry point for people with no credit. You open a savings account with the card issuer and deposit money — usually $200 to $2,500. That deposit becomes your credit limit. You then use the card like any other card, and the issuer reports your payments to the three credit bureaus (Equifax, Experian, TransUnion). The deposit stays in the account untouched; it is collateral, not payment.

The card issuer makes money from interest if you carry a balance and from transaction fees. You make money by building a credit history. After 12 to 18 months of on-time payments, most issuers will convert your account to a regular unsecured card, return your deposit, and raise your credit limit. Some will do this automatically; others require you to request it. Banks that offer secured cards include Capital One, Discover, and U.S. Bank. Credit unions often offer them too, sometimes with lower fees. Compare the annual fee (usually $0 to $95), the interest rate (APR), and the conversion timeline before you choose.

Store cards and retail credit options

Retailers like Target, Amazon, Walmart, and Best Buy issue their own credit cards. These are easier to get approved for with no credit history because the retailer is betting you will shop there and carry a balance. The downside: you can only use the card at that store (or its sister stores), and the interest rate is typically 18% to 25% APR — higher than most bank cards.

Store cards make sense if you shop at that retailer regularly and plan to pay off the balance monthly anyway. If you carry a balance, the high interest rate will cost you significantly. Some retailers offer a 0% promotional period on large purchases, which can be useful if you have a specific purchase in mind and can pay it off before the rate jumps. The advantage for credit building is the same as a secured card: the issuer reports to the credit bureaus. After six to twelve months of on-time payments, you may be able to move to a regular card from that company or use the improved credit history to get a bank card elsewhere.

Credit-builder cards and their trade-offs

Some card companies issue cards specifically designed for people with no credit or poor credit. These cards often charge an annual fee ($25 to $95) and may require a small deposit ($200 to $500), though some do not. The credit limit is usually low ($300 to $500), and the interest rate is high (18% to 25% APR).

The trade-off is that these cards are easier to get approved for than secured cards — you may not need a deposit at all — and they report to all three credit bureaus. If you cannot afford a deposit or do not want to tie up cash, a credit-builder card with an annual fee might be the faster route. However, if you carry a balance, the combination of the annual fee and high interest rate becomes expensive quickly. Read the terms carefully. Some credit-builder cards charge a monthly fee in addition to an annual fee, or charge a fee just to check your credit limit. These are red flags. Stick to cards with a single annual fee and no hidden charges.

What to do after you get your first card

Getting the card is the first step. Building credit with it is the second. Use the card for a small recurring charge — a streaming service, a gas station, groceries — something you would buy anyway. Charge $25 to $50 per month. Pay the full balance on the due date, every month, without exception.

Do not carry a balance to "build credit faster." That is a myth. Paying interest does not help your credit score; paying on time does. A $50 charge paid in full looks identical to a credit bureau as a $500 charge paid in full. The difference is that one costs you nothing and the other costs you interest. After six months of on-time payments, check your credit report at annualcreditreport.com (the only free, official source). Look for errors. After 12 months, request a credit limit increase from your card issuer — many will grant one without a hard inquiry. After 18 to 24 months, you should have enough history to move to a card with better terms: no annual fee, rewards, or a lower interest rate.

Common mistakes to avoid

The biggest mistake is applying for multiple cards at once. Each application triggers a hard inquiry, which temporarily lowers your credit score. Space applications out by at least six months. One card is enough to build history; you do not need three.

The second mistake is closing the card after you get a better one. Your credit score depends partly on how long you have had credit accounts open. Keep the first card open, use it occasionally, and pay it off. The age of your oldest account matters. The third mistake is maxing out the card. Credit utilization — the percentage of your limit you use — affects your score. If your limit is $500 and you charge $450, that is 90% utilization, which hurts your score. Keep usage below 30% of your limit. With a $500 limit, that means charging no more than $150 per month.

Timeline and what to expect

Getting approved for a secured or store card usually takes one to three business days. The card arrives in the mail within one to two weeks. Your first statement arrives 30 to 45 days after your first charge. The issuer reports your account to the credit bureaus within 30 to 60 days of opening it.

Your credit score will not move immediately. After three to six months of on-time payments, you should see a small increase. After 12 months, the increase is usually noticeable — 50 to 100 points is common. After 24 months, you will have enough history to get better cards and better rates on loans. This timeline assumes you pay on time every month. A single late payment can set you back months. A missed payment reported to the credit bureaus can stay on your record for seven years.

Frequently Asked Questions

Do I need a Social Security number to get a credit card?

Yes. Card issuers are required by law to verify your identity and check for fraud. If you are a non-citizen, you may be able to use an ITIN (Individual Taxpayer Identification Number) instead. Some issuers accept ITINs; others do not. Call ahead and ask.

Will getting a credit card hurt my credit score?

The application itself causes a small, temporary dip (usually 5 to 10 points) because of the hard inquiry. This recovers within a few months. Opening the account also lowers your average account age slightly, but this effect is small. The benefit of building payment history outweighs these temporary effects.

What if I cannot afford a deposit for a secured card?

Look for a credit-builder card that does not require a deposit, or check with a local credit union — many offer secured cards with lower deposit minimums ($100 to $300) than banks. Some also waive the deposit for members who have been with them for a certain period.

Can I use a secured card to build credit if I already have a bad credit history?

Yes. Secured cards work for both people with no history and people rebuilding after past problems. The process is the same: deposit, use the card responsibly, and convert to an unsecured card after 12 to 18 months. Your past problems will still show on your credit report, but new positive history gradually outweighs them.

How much should I charge on my new card each month?

Charge enough to show you use the card ($25 to $50 per month is fine) but not so much that you cannot pay it off in full. Paying the full balance every month is what builds credit. The amount does not matter as long as you pay on time.