Getting Your First Credit Card When You Have No Credit History

You can get a credit card without a credit score by using a secured card, becoming an authorized user, or applying with a co-signer

A credit score requires credit history — accounts that report to the three major bureaus (Equifax, Experian, and TransUnion). If you have never borrowed money or opened a credit account, you have no score at all, not a low one. Banks see this as risk because they have no record of how you handle debt. The three most direct paths around this are a secured credit card, which requires a cash deposit; becoming an authorized user on someone else's account; or applying with a co-signer who has established credit and agrees to pay if you do not.

Each route has different costs and different effects on your credit building. Secured cards cost you money upfront but are designed specifically for people starting from zero. Authorized user status is free but depends on someone else's account staying in good standing. A co-signer puts someone else's credit at risk if you miss a payment. Understanding what each one actually requires helps you pick the right fit for your situation.

Key Takeaways

• Secured credit cards require a cash deposit (usually $200 to $2,500) that becomes your credit limit, and they report to all three credit bureaus to build your history.
• Becoming an authorized user on someone else's card costs nothing and can build your credit if that account has a good payment history, but you have no control over the account.
• A co-signer with good credit can help you get a regular unsecured card, but they are legally responsible if you miss payments.
• Secured cards typically charge annual fees ($0 to $95) and higher interest rates than regular cards, but many convert to unsecured cards after 6 to 18 months of on-time payments.
• Your first card should report to all three bureaus — check the issuer's website before applying, because not all cards do.

How secured credit cards work and what they cost

A secured card is a real credit card backed by a cash deposit you make upfront. You deposit money into a savings account held by the card issuer, and that amount becomes your credit limit. If you deposit $500, you get a $500 limit. You then use the card like any other card — swipe it, pay the bill each month — and the issuer reports your payment history to the credit bureaus. The deposit sits in the account untouched; it is there as collateral in case you stop paying.

The cost comes in two forms: an annual fee and a higher interest rate. Annual fees on secured cards range from $0 to $95 depending on the issuer. Interest rates (called APR, or annual percentage rate) are typically 18% to 24%, which is higher than regular cards but standard for this product. If you carry a balance, that interest adds up quickly. The strategy that works is to charge small amounts you can pay off in full each month — groceries, gas, a streaming subscription — so interest never kicks in.

After 6 to 18 months of on-time payments, many issuers convert your secured card to a regular unsecured card automatically. When that happens, your deposit is returned to you. Some cards require you to request the conversion; check your issuer's terms. A few cards never convert, so read the fine print before you apply. Issuers that convert are worth choosing because you get your money back and keep the card with an established history.

Becoming an authorized user on someone else's card

An authorized user is someone added to an existing credit card account. The primary cardholder — the person whose name is on the account — remains responsible for all payments. You receive a card with your name on it and can use it, but you have no control over the account. The primary cardholder can see all charges, set spending limits, and remove you at any time.

The advantage is that the account's entire payment history reports to the credit bureaus under your name. If the primary cardholder pays on time every month and keeps the balance low, that positive history builds your credit score. You do nothing except use the card responsibly. There is no cost to you, no deposit, and no annual fee.

The risk is that you depend entirely on the primary cardholder's behavior. If they miss a payment, your credit takes the hit even though you did not miss it. If they run up a high balance, your credit score drops because the account shows high utilization (the ratio of balance to limit). You have no way to prevent this. For this reason, only accept authorized user status from someone you trust completely — a parent, spouse, or close family member with a strong payment record. Before you agree, ask to see their recent statements to confirm they pay on time.

Using a co-signer to get a regular credit card

A co-signer is someone with established credit who signs the credit card agreement alongside you. Unlike an authorized user, a co-signer is legally responsible for the debt. If you do not pay, the card issuer can pursue the co-signer for the full amount. This is a serious commitment, and many people are understandably reluctant to do it.

The benefit is that you can get a regular unsecured card — one without a deposit requirement — because the co-signer's creditworthiness backs the application. You build your own credit history because the account reports under your name. The co-signer's credit also benefits because the account shows they have extended credit responsibly, though they do not use the card themselves.

The catch is that the account appears on both credit reports. If you miss a payment, both your credit and the co-signer's credit suffer. If you carry a high balance, both scores are affected. The co-signer cannot see the account or control it the way an authorized user's primary cardholder can — they are just liable if you fail to pay. This is why co-signers should only be family members or people you live with, and why you should discuss the arrangement clearly before applying. Make sure the co-signer understands they are on the hook if you default.

What to look for when comparing your first card

Not all secured cards report to all three credit bureaus. Some report to only one or two, which means your payment history does not reach all the places that calculate your credit score. Before you apply, visit the issuer's website and confirm they report to Equifax, Experian, and TransUnion. This detail matters more than the annual fee or interest rate because it determines how fast your credit builds.

Look for cards with no annual fee if possible, or fees under $35. A $95 annual fee on a $300 deposit is a significant cost. Check whether the card converts to unsecured status and what the timeline is. Some cards convert after six months of on-time payments; others take 18 months or longer. Faster conversion means you get your deposit back sooner.

Read the fine print about credit limit increases. Some issuers allow you to request a higher limit after a few months of good payment history without requiring an additional deposit. Others require you to deposit more money. A card that raises your limit without extra deposits is more useful because it improves your credit utilization ratio (the percentage of your limit you are using) without costing you more cash.

How to use your first card to build credit

The goal of your first card is not to borrow money — it is to create a record that you pay your bills on time. The best strategy is to charge a small recurring expense each month and pay it off in full before the due date. This could be a subscription service, a gas station fill-up, or groceries. Charge the same amount each month so the pattern is clear and predictable.

Pay the full balance before the due date, not on the due date. Payments take a few days to process, and if your payment arrives after the due date, it counts as late even if you sent it on time. Set up automatic payments from your bank account if the card issuer offers it. This removes the risk of forgetting and missing a payment, which is the single fastest way to damage new credit.

Do not charge more than 10% to 30% of your credit limit in any given month. If your limit is $500 and you charge $400, that high utilization ratio hurts your score even if you pay it off on time. Stick to small charges you know you can pay in full. After six months to a year of perfect payments, your credit score will improve enough to may have access to for a regular unsecured card or a higher limit on your secured card.

Alternatives if you cannot get a secured card

Some banks require a minimum deposit higher than you can afford, or they have other barriers. If a secured card is not an option right now, a few alternatives exist. Some credit unions offer credit-builder loans, which are small loans designed specifically to build credit. You borrow a small amount (often $500 to $1,000), and the money goes into a savings account you cannot touch until you repay the loan. As you make payments, the credit union reports your history to the bureaus. This costs less than a secured card and builds credit just as effectively.

Another option is to become an authorized user on a family member's card if you have access to someone with good credit. This costs nothing and can jump-start your score if the primary account has a long, clean payment history. The downside is that you depend on their behavior, but if you trust them completely, it is a low-cost way to start.

If neither option works, wait and save. A secured card is the most direct path, and having the deposit ready means you can apply as soon as you are able. In the meantime, you can check your credit report for free at annualcreditreport.com to make sure there are no errors holding you back.

Frequently Asked Questions

Will getting a secured card hurt my credit score?

No, but applying for the card will cause a small, temporary dip. When you apply, the issuer performs a hard inquiry, which lowers your score by a few points for a few months. This is normal and expected. The score recovers as you make on-time payments, and the positive payment history quickly outweighs the initial dip.

Can I use my secured card to build credit if I never carry a balance?

Yes. Paying off your balance in full each month is actually the best way to build credit. The issuer reports that you used the card and paid it on time, which is all the bureaus need to see. You do not need to carry a balance or pay interest to build credit — in fact, avoiding interest is smarter.

What happens to my deposit if I miss a payment?

The issuer will not automatically take your deposit. Instead, they will charge you a late fee and report the missed payment to the credit bureaus, which damages your score. If you continue to miss payments, the issuer may eventually close the account and use the deposit to cover what you owe. Avoid this by setting up automatic payments.

How long does it take to build enough credit for a regular credit card?

Most lenders want to see six months to a year of on-time payments before they will approve you for an unsecured card. Some will approve you after three to four months if your payment history is perfect. The exact timeline depends on the lender, but six months is a reasonable target to aim for.

Can I have both a secured card and be an authorized user at the same time?

Yes. Having multiple accounts reporting to the bureaus actually helps your credit score because it shows you can manage different types of credit. Just make sure you can afford the deposit on the secured card and that you trust the primary cardholder on the authorized user account.