Thrifty Thinking: How To Get a Credit Card With No Credit History

Credit cards can be one of the simplest ways to establish and build credit, and most issuers offer cards designed specifically for that purpose — many of which can be obtained with no annual fee. The advice below can help is offered from Brittany Mayer, credit strategist at CardRates (https://www.cardrates.com).

“A consumer's ability to qualify for a credit card without a credit history will vary greatly based on the specific card. An applicant's income will play the biggest role in approval. Be sure to choose a card that provides a grace period on new purchases to avoid interest fees.”

• Secured credit cards will often readily accept applicants without a credit history provided they can make the required minimum deposit.
• Student credit cards and entry-level consumer cards are specifically designed for consumers with thin or nonexistent credit histories, making these fairly easy to qualify for as first cards.
• Credit union credit cards are a good choice for establishing and building credit while minimizing fees.
• Online bank credit cards (like Petal) use alternative data, such as bank account and bill payment history, to help evaluate applicants and gauge credit risk (vs. only traditional credit report data).

“When applying for most cards, a minimum income will likely be required. Age may also play a role; people under the age of 18 cannot be approved for their own credit card, and those under the age of 21 must have an independent income and/or a cosigner to be approved.”