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Best Starter Credit Cards If You Have No Credit History

If you’re wondering how to get credit cards for no credit history — it’s actually easier than you would think. Often these cards have high approval odds so that anyone can apply for a credit card with no credit, even those first starting on their credit journey.

While your first credit card for no credit may not provide a high credit limit or many rewards, it allows you to slowly improve your FICO score to enjoy lower variable interest and extended credit limits. A respectable credit score can help you finance a house one day or get pre-approved for a car loan.

When shopping around for a starter card, consider factors like annual or monthly fees, cashback rates, hidden costs, and whether your card lender will automatically consider you for a credit line increase. The most important factor to remember is that you must use your card responsibly from the very beginning.

If you’re interested in establishing a credit history, it can be as simple as having a credit account that’s in good standing. By paying off your card each month, your information will be sent to the three major credit bureaus regularly.

Our top credit card picks for people with no credit history

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Our Top Pick - Secured

Capital One Quicksilver Secured Cash Rewards Credit Card

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Up to 5% Reward Rate

Earn 1.5% cash back on all purchases and 5% back on hotels and rental cars booked through the Capital One Travel platform.

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Annual Fee
$0
Welcome Offer
N/A
Regular APR
29.99% variable
Recommended Credit
No Credit History
Why we like it
The Capital One Quicksilver Secured Cash Rewards Credit Card allows individuals with poor or limited credit to earn decent rewards without charging an annual fee.
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Card Details

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  • Put down a refundable $200 security deposit to get a $200 initial credit line
  • Building your credit? Using a card like this responsibly could help
  • Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
  • You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
  • Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
  • Monitor your credit score with CreditWise from Capital One. It’s free for everyone
  • Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
Pros
  • Can qualify with limited credit
  • No annual fee
  • Unlimited 1.5% cash back on all purchases
Cons
  • High APR
  • Limited cash back bonus categories
  • Requires a security deposit
Bottom Line

Especially for a secured card, this card offers a decent cash-back rate, so you can earn rewards while building your credit.

Best for Students with No Credit - Unsecured

Capital One SavorOne Student Cash Rewards Credit Card

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Up to 3% Reward Rate

Earn unlimited 3% back on eligible grocery, restaurant, streaming, and entertainment purchases. Earn 1% back on everything else.

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Annual Fee
$0
Welcome Offer
$50
Regular APR
19.99% to 29.99% variable
Recommended Credit
Limited, Fair/Good (580 - 740)
Why we like it
Capital One SavorOne Student Cash Rewards Credit Card offers no annual fee, great cash-back rewards for everyday spending, a high cash-back percentage in bonus categories, and no foreign transaction fees. Additionally, since this card is made for students, it only requires fair credit.
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  • Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
  • No foreign transaction fees or hidden fees
  • Earn up to $500 a year by referring friends and family when they’re approved for a Capital One credit card
  • Build your credit with responsible card use
  • Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you
Pros
  • Good cash back rewards & welcome bonus
  • No annual fee
  • No foreign transaction fees
Cons
  • Highest cash back requires booking through Capital One
  • Possible high APR depending on credit worthiness
Bottom Line

It’s difficult to do better than this card as a student, with high reward rates in very useful categories, no annual fee, and the ability to qualify with fair credit.

Best for Building Credit with Savings - Secured

Self - Credit Builder Account with Secured Visa? Credit Card

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No Rewards

This card doesn’t earn any rewards.

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Annual Fee
$25
Welcome Offer
N/A
Regular APR
28.74% variable
Recommended Credit
No Credit History
Why we like it
It can be difficult for some people to fund a security deposit, so the Self-Credit Builder Account with Secured Visa? Credit Card lets you skip that by allowing you to make small contributions instead. Additionally, it contributes to a stronger credit mix than traditional credit cards with its unique structure.
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Card Details

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  • Start with a Credit Builder Account, make at least 3 monthly payments on time, have $100 or more in savings progress in your Credit Builder Account, and be in good standing. Then, you’ll be eligible for the Self Visa? Credit Card, without a hard credit check.
  • Your savings progress from your Credit Builder Account acts as your security deposit for your secured Credit Card.
  • No credit score or hard credit check is needed to get started.
  • Can pay as little as $25/month
  • Reports to all 3 credit bureaus.

Credit Builder Accounts & Certificates of Deposit made/held by Lead Bank, Sunrise Banks, N.A., SouthState Bank, N.A., First Century Bank, N.A., each Member FDIC. Subject to credit approval.

Self Visa? Credit Card issued by Lead Bank or SouthState Bank, N.A., each Member FDIC. See self.inc for details.

*Sample loans: $25/mo, 24 mos, $9 admin fee, 15.92% APR; $35/mo, 24 mos, $9 admin fee, 15.97% APR; $48/mo, 24 mos, $9 admin fee, 15.72% APR; $150/mo, 24 mos, $9 admin fee, 15.88% APR. See self.com/pricing

Pros
  • No upfront deposit
  • No credit score requirement
  • Contributes to credit mix
Cons
  • Can’t use the card immediately
  • Have to commit to 2 years of payments
  • Doesn’t earn rewards

Best for a Flexible Deposit - Secured

Chime Credit Builder Secured Visa? Credit Card

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No Rewards

This card doesn’t earn any rewards.

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Annual Fee
$0
Welcome Offer
N/A
Regular APR
N/A
Recommended Credit
No Credit History
Why we like it
The Chime Credit Builder Secured Visa? Credit Card stands out for its simplicity — it doesn’t require an annual fee, doesn’t charge interest, has no minimum deposit requirement, and doesn’t require a credit check.
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Card Details

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The Chime credit card works like other secured credit cards in the sense that it requires a security deposit. However, it offers several features that put it in a league of its own. Chime essentially works like a prepaid card. You simply add money to your Chime Builder secured account from your checking account and can spend until your card balance reaches $0.00. This is great for people trying to build or rebuild credit**, as it works similarly to a debit card (It’s not a debit card, but Chime does offer a debit card— use code SAVE10 to get $10 when you activate your Chime Debit Card within 30 days of enrollment).

However, unlike a debit card, Chime reports to all 3 credit bureaus, so you build credit while you spend. Other noteworthy features of the Chime Credit Builder card include not requiring a credit check at sign-up or a minimum security deposit (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.)

To qualify for the Chime Credit Builder card, all you need is to open a Chime Checking Account and receive a qualifying direct deposit of $200 or more. After receiving that direct deposit you can apply for a secured Chime Credit Builder Visa? Credit Card!

*No Interest: Out of network ATM withdrawal fees and over the counter advance fees may apply. See here for details.

**No Minimum Security Deposit: 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.

The secured Chime Credit Builder Visa? Credit Card is issued 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 credit cards are accepted. Please see the back of your card for its issuing bank.

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.

**Safer Credit Building - 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.

Pros
  • No annual fee
  • No credit check required to apply
  • No annual interest charges
Cons
  • No credit limit greater than your deposit
  • Need direct deposit account with Chime
  • No option to upgrade
Bottom Line

This card offers a good alternative for people to build or rebuild their credit but doesn’t earn rewards and may be confusing to use.

Best for Cash Back - Unsecured

Capital One QuicksilverOne Cash Rewards Credit Card

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1.5% Reward Rate

Earn unlimited 1.5% cash back.

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Annual Fee
$39
Welcome Offer
N/A
Regular APR
29.99% variable
Recommended Credit
Fair/Good (580 - 740)
Why we like it
The Capital One QuicksilverOne Cash Rewards Credit Card might be the perfect fit if you have a limited credit history but are interested in a nice rewards rate. You earn 1.5% back on all purchases, and you can still qualify with less than 3 years of credit history.
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Card Details

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  • No rotating categories or limits to how much you can earn, and cash back doesn’t expire for the life of the account. It’s that simple
  • Be automatically considered for a higher credit line in as little as 6 months
  • Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
  • Help strengthen your credit for the future with responsible card use
  • Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
  • Monitor your credit score with CreditWise from Capital One. It’s free for everyone
  • Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you’re all set
Pros
  • Unlimited 1.5% cash back on all purchases
  • Can qualify with fair credit
Cons
  • Has an annual fee
  • High APR
Bottom Line

It’s not our favorite in the Quicksilver lineup due to its annual fee, but it’s an unsecured option for people with fair credit and it still earns rewards.

Best for Simple Credit Building - Unsecured

Capital One Platinum Credit Card

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No Rewards

This card doesn’t earn any rewards.

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Annual Fee
$0
Welcome Offer
N/A
Regular APR
20.99% variable
Recommended Credit
Fair/Good (580 - 740)
Why we like it
The Capital One Platinum Credit Card is a decent option to help build your credit score responsibly. It has no annual fee or foreign transaction fees, and Capital One reviews your account automatically after six months to see if you’re eligible for a credit limit increase. The only thing you need to do is make sure you make your payments on time.
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Card Details

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  • See if you’re approved in seconds.
  • Be automatically considered for a higher credit line in as little as 6 months
  • Help build your credit through responsible use of a card like this
  • Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
  • Monitor your credit score with CreditWise from Capital One. It’s free for everyone
  • Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One’s mobile app
  • Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you’re all set
  • Pay by check, online or at a local branch, all with no fee – and pick the monthly due date that works best for you
Pros
  • You don’t need great credit to get approved
  • No annual fee
  • Backed by Capital One protections and cardholder benefits
Cons
  • No rewards opportunities
  • High APR
  • No introductory APR offer
Bottom Line

It’s an okay option if your credit is less than ideal and you don’t qualify for much else, but it doesn’t earn rewards and its APR is sky-high.

Best for No Credit Check - Secured

OpenSky? Secured Visa? Credit Card

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Up to 10% Reward Rate

Earn up to 10% cash back on everyday purchases. OpenSky Rewards links offers from merchants directly to your card, allowing you to automatically earn cash back.

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Annual Fee
$35
Welcome Offer
N/A
Regular APR
25.64% variable
Recommended Credit
No Credit History
Why we like it
For individuals with no credit history who may have a difficult time qualifying for other options, the OpenSky Credit Card is a great starter card. Unlike many cards, OpenSky does not run a credit check or require a bank account to qualify and it boasts an 85% approval rating, so your chances are pretty good.
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Card Details

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  • New feature! Earn up to 10% cash back on everyday purchases
  • No credit check to apply. Zero credit risk to apply!
  • Looking to build or rebuild your credit? 2 out of 3 OpenSky cardholders increase their credit score by an average of 41 points in just 3 months
  • Get free monthly access to your FICO score in our mobile application Build your credit history across 3 major credit reporting agencies: Experian, Equifax, and TransUnion
  • Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
  • Fund your card with a low $200 refundable security deposit to get a $200 credit line
  • Apply in less than 5 minutes with our mobile first application
  • Choose the due date that fits your schedule with flexible payment dates
  • Fund your security deposit over 60 days with the option to make partial payments
  • Over 1.4 Million Cardholders Have Used OpenSky Secured Credit Card To Improve Their Credit
Pros
  • High approval rating
  • Doesn’t require a credit check
  • No bank account required
Cons
  • Has an annual fee
  • Minimum $200 security deposit required

Best for Low APR - Secured

First Progress Platinum Prestige Mastercard? Secured Credit Card

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1% Reward Rate

Earn 1% cash back on payments.

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Annual Fee
$49
Welcome Offer
N/A
Regular APR
15.24% variable
Recommended Credit
No Credit History
Why we like it
If you’re looking for a card to help you build your credit without a high interest rate, look no further than the First Progress Platinum Prestige Mastercard? Secured Credit Card. With a variable APR as low as 15.24%, this card’s rate is even lower than many unsecured credit cards.
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Card Details

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  • Choose your own credit line – $200 to $2000 – based on your security deposit
  • Build your credit score. Reports to all 3 credit bureaus
  • No minimum credit score required for approval!
  • Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.
Pros
  • Earns cash back
  • Lower APR than many cards
Cons
  • Has an annual fee
  • No intro APR offer
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Compare our top credit cards for no credit history

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Best credit cards for limited credit history 2024: Editorial reviews

Capital One Quicksilver Secured Cash Rewards Credit Card

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Our Top Pick - Secured
For a secured card, the?Capital One Quicksilver Secured Cash Rewards Credit Card?holds up quite well against the competition. With 1.5% cash back on?everything?and 5% back on eligible travel purchases, along with no annual fee, its reward rate is comparable to some of the best credit cards out there. If you can fund the minimum $200 for a security deposit, this credit card could make a worthy addition to any wallet.

Capital One SavorOne Student Cash Rewards Credit Card

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Best for Students with No Credit - Unsecured
If you’re a student with limited credit, the?Capital One SavorOne Student Cash Rewards Credit Card?could offer you a way to earn generous rewards on your purchases. It offers 3% back in some of the categories students spend the most: dining, entertainment, grocery stores, and streaming services, and even offers 1% back on other purchases that are not in those categories. If you’re already spending money on those things, why not earn cashback?

Self - Credit Builder Account with Secured Visa? Credit Card

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Best for Building Credit with Savings - Secured
If you don’t qualify for many cards because funding a $200+ security deposit makes your head spin and you don’t have enough credit history for an unsecured card, the?Self-Credit Builder Account with Secured Visa? Credit Card?could provide an alternative. With Self, there are three components: a loan, a certificate of deposit, and a credit card. First, you open a Self Credit Builder Account, which is a secured installment loan. Then, you make small monthly payments to fund a certificate of deposit (CD), which earns interest. After successfully saving $100 or more in your CD and making at least 3 monthly payments on time, you could be eligible for the secured credit card. It may sound a bit confusing, but it provides a way for you to effectively build your credit without needing a credit check or to fund a large security deposit.

Chime Credit Builder Secured Visa? Credit Card

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Best for a Flexible Deposit - Secured
The Chime Credit Builder Secured Visa? Credit Card offers another non-traditional way for users to build credit. First, you need to open a Chime Checking Account and receive a qualifying direct deposit of $200 or more. Once they receive that $200 deposit, you can apply for the secured Chime Credit Builder Visa?. The way it’s different than a traditional credit card is that it works similarly to a prepaid card; you add money from your checking account to your Chime account, and then you can spend that money until your card balance gets to $0, then rinse and repeat. It doesn’t require a credit check either, has no annual fee, and reports to all 3 credit bureaus, so it could be a unique way to build or rebuild your credit.

Capital One QuicksilverOne Cash Rewards Credit Card

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Best for Cash Back - Unsecured
If you’re set on getting an unsecured card but have limited credit, the?Capital One QuicksilverOne Cash Rewards Credit Card?could be just what you’re looking for. It offers unlimited 1.5% cash back on all purchases, much like the other Quicksilver cards, but unlike them, it doesn’t offer an elevated rate on eligible travel purchases. It also charges a $39 annual fee and you may end up with a low credit line (as low as $300), so you might be better off with the secured counterpart until you can qualify for something even better.

Capital One Platinum Credit Card

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Best for Simple Credit Building - Unsecured
The?Capital One Platinum Credit Card?is another unsecured option for users looking to build their credit. It doesn’t earn rewards and has a high APR but it also has no annual fee. It’s pretty basic overall, but it can certainly do its job of helping you to build credit with responsible use.

OpenSky? Secured Visa? Credit Card

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Best for No Credit Check - Secured
Many credit cards for limited credit still require you to have?some?credit history, which can be frustrating when you’re just starting out. The?OpenSky Secured Credit Card?boasts a very high approval rating and doesn’t require a credit check or bank account, so you have a pretty good chance of qualifying for it even with no credit. It does have a $35 annual fee, but when your options are limited, something is still better than nothing.

First Progress Platinum Prestige Mastercard? Secured Credit Card

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Best for Low APR - Secured
Credit cards for bad or limited credit have notoriously high APRs, so if you tend to carry a balance, you’ll end up paying way more in the long run. While we never recommend carrying a balance, sometimes it’s inevitable. With a variable APR of as low as 14.49%, the?First Progress Platinum Prestige Mastercard? Secured Credit Card?can help you keep interest charges low while you build credit.

Why does credit history matter?

Your credit score and history show lenders whether you are trustworthy with your money, like if you’re likely to pay your bills on time. This helps them determine if they’re willing to take the risk of loaning you money.?

Your credit history starts the second you open a credit card or take out a loan, and it will then continue to grow with new account openings.

Having a credit history can make a big difference in your credit score. Creditors look for two main things: how long you’ve been using credit and the type of credit. The length of your credit history accounts for 15% of your FICO score, while a mix of your credit accounts makes up 10%.?

The chart below shows what factors go into determining your credit score.

Alt Alt

How long you’ve had your accounts open can?directly impact your credit score. While it’s true that it may not be the most important factor when scoring your credit, having a long history of keeping up with cards and loans can make you more trustworthy when borrowing money.

Credit scoring agencies get the information they need to analyze your credit report from the three main national credit reporting companies: TransUnion, Experian, and Equifax. The detailed record of your financial history is called your?credit report.

Who should get a credit card for no credit?

There are a variety of reasons someone may benefit from a credit card for no credit. Credit cards are a big responsibility, though, so it’s important to understand?how credit cards work?before committing to your first card.

Students & young adults

College is a great time for students to begin building their credit history, and there are a variety of credit cards to help them do just that. Read more in our guide to the?best student credit cards.

Young adults who aren’t in college should also look to start building their credit history to help benefit their future. Note, however, that you must be 18 or older to become a primary credit account holder, and if you’re under 21, you need to either show proof of independent income or have a co-signer.

Immigrants

If you’ve recently immigrated to the United States, you may want to start building a credit history as soon as possible. This will help you have a better chance of approval when looking to rent or purchase a home, borrow money, etc.?

Credit beginners

It’s never too late to start building a credit history and it’s actually easier to build a positive history from the ground up than it is to fix a?bad credit score. Make sure you understand how credit cards work, what different terms mean, and how to keep your credit score high so you don’t end up needing to repair your score with a?credit card for bad credit.

Establishing your credit history

You shouldn’t wait until you need to be approved for a home, car, or loan to consider your credit history. However, starting can be tricky. How can you prove that you are a responsible card owner if you don’t qualify for most credit cards? Fortunately, beginner credit cards are meant for this!

Here are some tips as you’re starting to establish credit:

Establishing credit is a marathon, not a sprint, so it’s good to start as soon as you can so you can enjoy the rewards.

What to look for in a first credit card

Those new to credit likely won’t be eligible for?top-rated credit cards?with hefty rewards, large sign-up bonuses, or the?lowest interest rates. However, you can work your way up as you secure your credit history.

Your first credit card for no credit may be geared toward people with no history or low credit scores. However, some cards still provide rewards, no annual fees, and can be some of the easiest credit cards to get with no credit.

Things you should look for may include:

1

Rates and fees

Carefully look at the card’s interest rates, late fees, annual fees, balance transfer fees, and foreign transaction fees. The fewer fees a card has, the better.

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2

Security deposits

Secured credit cards are some of the easiest to get when you have a limited credit history, but they also require a security deposit to open them. Make sure you can fund this initial deposit if the card requires one.

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3

Application requirements

Starter credit cards tend to have easier qualification requirements, but will likely still require things like proof of income, housing status, and a social security number.

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4

Rewards programs

Some starter credit cards, like the Capital One Quicksilver Secured card, offer rewards as you spend. Although this can be an easy way to make money back on purchases, it can also encourage overspending, so make sure to evaluate your personal habits.

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Applying for your first credit card with no credit

Established credit is an important factor when applying for a card.

If you don’t have any credit history, your options can be limited. Your credit history won’t necessarily prevent you from being able to get a card, but it will impact the cards that are available to you.

That is what starter credit cards are for! You can use a limited credit card to build credit and ultimately raise your credit score.

When you first apply for a starter card, you may need certain information, depending on the card lender:

Some credit cards will need more information, and some starter cards will accept less.

Make sure you don’t apply for too many cards, as credit card applications lead to a hard inquiry on your credit report, which can temporarily damage your credit score.?

Tools like?CardMatch?or pre-approval tools from individual issuers can help you know your chances of being approved for certain cards.

How we selected our top cards

Credit cards for no credit can are designed to get you in good standing. If you don’t have any history of credit, there are certain features you should look for to help manage your spending and establish credit.

We looked for?cards with no annual fee, easy qualification standards, and lenders who report your monthly payments and credit limit to all three credit bureaus. Building credit works best to improve your score across the board, and not everyone reports to credit bureaus, so it is a good feature to look for in credit cards to build credit.

Additionally, we look at interest rates. Starter cards have notoriously high variable interest rates, but if you aren’t planning on exceeding your limit and know to pay your balance in full, this may not be a big deal.

Finally, we look at reward rates, which can be limited in this selection. However, they exist and can greatly benefit you if you make combined purchases. You can often redeem rewards for a statement credit,?cash-back, gift cards,?travel points, and more.

Learn more about credit cards

Credit cards for no credit FAQ

Can I get a credit card if I have no credit history?

Having no credit history can limit your options, but you can still be eligible for certain cards. Look for cards specifically for credit builders, like student cards or secured cards. There are some unsecured cards available to those without a credit history, like the Petal? 2 Visa? Credit Card.

Can I apply for a credit card with no income?

It is possible to apply for a credit card without income, but you still need to prove you have access to income — this doesn’t necessarily mean an annual salary.

In this case, having access to financial investments, your spouse’s income, or being an authorized user on an existing account are all options. The bottom line is meeting the income requirements.

You aren’t automatically overlooked if you are unemployed. Issuers often look at more than your income, including your credit score, credit history, and existing debt.

The Credit Card Act of 2009 allows you to list household income that you have access to, including Social Security payments, investment returns, unemployment benefits, and more.

How do I build credit without a credit card?

For most newcomers to credit, cards are often the quickest way to establish a history and a relationship with credit lenders, but what if your credit score is too low to qualify for a card?

You may be surprised to learn that many people have less-than-perfect credit, but there are ways to build credit without a card. While many agencies that report credit often evaluate your score using card payment history and combined purchases, that is not the only option.

Ways to build credit without a credit card:

  1. Apply for a credit-builder loan — Unlike a regular loan, the full amount of these loans often gets placed into a secured account that you cannot access. Whether your loan is anywhere from $300 to $1,000, applicants must make a fixed monthly payment until the entire loan is paid off and the amount is released. While not exactly quick, these loans can be an ideal way to build credit without spending money you may not have. Your activity will be reported to the three major credit bureaus throughout the process.
  2. Apply for a car loan — Car loans are another way to build credit while working on owning your own vehicle. The important element is to find a loan with an interest rate and monthly payment you won’t default on.
  3. Apply for a personal loan — You can easily get better credit by paying back your loan in full as soon as you can. While these loans may have a high-interest rate (at least higher than credit-builder loans), it can be a great jumping off point.
  4. Pay off old debt — If you have an existing loan, you can jump towards a better credit standing by not defaulting on your loan and paying every month.
  5. Keep track of payments you are making — Many creditors will consider alternative payments as a way to establish your credit narrative. While landlords may not report your monthly rent to credit agencies, you can provide proof as a way to demonstrate financial reliability. Other payments can include phone, internet, cable, and utilities.

Are credit scores and credit reports the same?

No, actually, your credit score and credit report are two separate things.

Your credit report displays information like your current credit debt, credit activity, history of loan payments, and the general status of your credit. Your credit score uses all the information in your credit report to calculate your standing.

Creditors look at your credit score and credit report to determine if you qualify for a card, mortgage, car loan, or other forms of credit and the interest rate you will pay.

It’s a good idea to keep an eye on your credit report to look for errors, especially before applying for a credit card or loan. It’s much easier to fight any errors before being disqualified.

The comparison team is a proud partner of the LA Times and is a combination of expert writers, editors, and contributors specially selected for their extensive experience writing and working in the financial industry. Every article written is thoroughly researched, edited, reviewed, and then fact-checked by a member of The LA Times staff before publication to ensure you receive accurate information.

More info from Chime

  • *No Interest: Out of network ATM withdrawal fees and over the counter advance fees may apply. See?here?for details.
  • **No Minimum Security Deposit: 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.
  • The secured Chime Credit Builder Visa? Credit Card is issued 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 credit cards are accepted. Please see the back of your card for its issuing bank.
  • 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.
  • **Safer Credit Building - 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.

* Opinions expressed here are those of the LA Times Compare Cards Team and have not been reviewed or approved by any advertiser or entities included within this content. See our editorial policy for more details.

All products or services are presented in this content without warranty. The information, including card details such as rates and fees, is accurate at the time of publish. Please visit each bank's website directly for the most current information.

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