Are you looking to get started building your credit? Everyone starts somewhere and your credit score is an important tool that can literally save you hundreds of thousands of dollars. However, it can be difficult to get approved for credit when you have no credit. Today we are going to be taking a look at the best no credit credit cards.
Discover It Secured
The Discover It Secured is our favorite choice for someone starting to building credit with no credit. This is a secured credit card, so with as little as $200 down you can start building your credit score to where you would like it to be. Discover gives you some real perks with this card as well. They offer 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter as well as 1% cash back on everything else.
The Discover It Secured card reports to all three credit bureaus helping you quickly establish a credit score. Discover even takes this one step better and starts automatically reviewing your account after month 8 to see if they can transition your account to an unsecured card. Just keep using the card responsibly and you will be on your way to a great credit score in no time.
The Discover It Secured card is one of the best no credit credit cards out there. They don’t raise your APR if you pay late and won’t charge you a late payment fee on your first late payment. If you are looking to increase your credit score, this is a great place to start.
Discover It Student Cash Back
The Discover It Student Cash Back is another great option for those looking for a no credit credit card. Discover states that all of their student credit cards don’t have a FICO history requirement. This card also comes with great cash back offers with rotating 5% cash back offering rotating each quarter. The student card also gives you a $20 statement credit each school year your GPA is 3.0 or higher.
With no annual fees, no late fee on your first late payment and no APR changes for paying late, it is a great card to get started with. Discover has 100% U.S. based customer service and gives you your credit score for free each month. Discover actively monitors your social security number for data breaches to give you peace of mind.
With 0% intro APR for 6 months on your purchases, this is a great card to get for all your dorm room essentials as you go back to school.
The Jasper Mastercard is a relatively newcomer to the credit card scene. They are looking to fill the gap for those who need to build credit but aren’t necessarily just starting out in their financial journey. The Jasper Mastercard has a $0 annual fee and no foreign transaction fees. If you are new the U.S. or a foreign exchange student, this might be a great opportunity for you. There is no credit score required, making it a no credit credit card.
The real benefit of the Jasper Mastercard is the relatively high credit limit. The Jasper Mastercard can give you a credit limit up to $5,000 which is perfect for young professionals who are new to the U.S.
The Jasper Mastercard only has two drawbacks that I could find. The first is that they don’t report to Experian, instead choosing to report to Equifax and TransUnion. However, this should be enough to get started on your credit journey. The second is that the card offers no form of cashback or rewards. If you are going to be using your credit card frequently, you definitely want something with rewards.
Building Credit with No Credit Credit Cards
These are three of our favorite no credit credit cards. No matter your situation, it is never too late to start building credit. If you are curious about how credit works and why there are different credit scores, we wrote a post on the most popular credit scores.
Once you get approved for a no credit credit card, it is important to use it safely and responsibly. The advice that we always give people is to your credit card like it was your debit card. Only spend money that you were planning to and you’ll be on to bigger and better scores. Who knows maybe one day you will get one of the most exclusive credit cards out there.
If you want to learn more about your personal credit situation, the two best resources are Credit Karma and Annual Credit Report. Credit Karma is a free service that helps you manage your credit and monitor changes in your credit score. Annual Credit Report is a free service that allows you to pull your credit report from each of the three bureaus for free every year. Take advantage of these resources, they can be life-saver.
How did you get started building credit? Did you use a no credit credit card? Let us know in the comments below!