How to Get Your First Credit Card When You Have No Credit History
You can get a credit card without an existing credit history by using a secured card, becoming an authorized user, or applying with a co-signer
A credit card company wants proof that you pay back money you borrow. If you have never borrowed before, you have no proof to show them. The three main routes around this are: put down a cash deposit upfront (a secured card), have someone with good credit add you to their account (authorized user), or have someone with good credit promise to pay if you don't (co-signer). Each works differently and has different costs and risks.
The fastest option is usually becoming an authorized user on someone else's card, because it takes days and costs nothing. The most common option is a secured card, because you control it entirely and it does not depend on anyone else's credit. A co-signer card works but puts someone else at financial risk if you miss a payment.
Key Takeaways
- A secured credit card requires you to deposit cash with the bank, and your credit limit equals that deposit — this is the most straightforward path when you have no credit history.
- Becoming an authorized user on someone else's card can build your credit history in days without any deposit, but you are using someone else's account and their payment history affects you both.
- A co-signer card lets you borrow in your own name, but the co-signer is legally responsible if you fail to pay, which can damage their credit and finances.
- Your first card should have a low annual fee or no annual fee, because you are paying to build credit, not for rewards you cannot yet access.
- After six to twelve months of on-time payments, most card issuers will convert your secured card to a regular card and return your deposit.
How a Secured Credit Card Works
A secured card is a real credit card that works like any other, except you give the bank a cash deposit first. That deposit sits in a savings account at the bank. Your credit limit is usually equal to your deposit — if you deposit $500, you can charge up to $500. The bank holds your deposit as insurance in case you do not pay your bill.
You use the card to buy things, just like a regular card. You get a monthly bill. You pay it on time, and the bank reports your payment to the credit bureaus (Equifax, Experian, and TransUnion). After several months of on-time payments, your credit score starts to build. Most banks will convert your secured card to a regular card after six to twelve months and return your deposit to you.
Banks that offer secured cards include Capital One, Discover, and U.S. Bank. Some have annual fees ($39 to $95 per year), and some do not. Compare the annual fee against how long you plan to use the card — if you will convert to a regular card in six months, a $95 annual fee costs you money you do not need to spend. Look for cards with no annual fee or a low fee ($25 or less).
Becoming an Authorized User on Someone Else's Card
An authorized user is someone added to another person's credit card account. You get your own card with your name on it, but the account belongs to the primary cardholder. When you use the card, the bill goes to them. When they pay the bill, the payment history shows up on your credit report.
This is fast — you can be added to an account in a phone call, and the credit bureaus usually see the account within 30 days. It costs nothing. The main catch is that you are using someone else's credit. If the primary cardholder misses a payment, it hurts your credit score too. If they carry a high balance, it can hurt your score even if they pay on time. You also have no control over when the account closes or how it is managed.
This works best when the primary cardholder has good credit, pays on time every month, and keeps their balance low. A parent, spouse, or trusted family member is the typical choice. Before you ask someone, be clear about what you will charge to the card and when you will pay them back. If you miss a payment, it affects their credit, not just yours.
Using a Co-Signer to Get Your Own Card
A co-signer is someone who signs a legal promise to pay your credit card bill if you do not. Unlike an authorized user, you get your own account in your own name. The card issuer reports your payment history to the credit bureaus under your name. You build your own credit score.
The risk falls on the co-signer. If you miss a payment, the card company can pursue the co-signer for the full amount. A missed payment shows up on both your credit report and theirs. If you carry a high balance, it counts against their debt-to-income ratio if they apply for a loan later. Many people are reluctant to co-sign for this reason.
Some card issuers offer co-signer cards, but they are less common than they used to be. Discover and some regional banks still offer them. Before asking someone to co-sign, understand that you are asking them to take on real financial risk. If you cannot get a secured card or authorized user account, a co-signer card is an option — but it should not be your first choice.
What Happens After Your First Card
Your goal with a first card is to build a credit history, not to earn rewards or cash back. Use the card for small, regular purchases — a gas station visit, a grocery trip, a subscription you already pay for. Charge only what you can pay back in full each month. Set a phone reminder to pay before the due date.
After six to twelve months of on-time payments, your credit score will start to rise. You will become able to open better cards with lower interest rates, higher credit limits, and actual rewards. At that point, you can close the secured card (and get your deposit back) or keep it open to show a longer credit history. Closing it does not hurt your score as much as it used to, but keeping it open and unused does not hurt either.
Do not open multiple cards at once. Each application creates a small, temporary dip in your credit score. Space applications out by at least three to six months. One card with on-time payments for a year is far more valuable than three cards opened in the same month.
Comparing Your Three Routes
Each path to your first credit card has different tradeoffs. A secured card gives you full control and costs nothing beyond the deposit you get back, but it requires money upfront. An authorized user account costs nothing and works fast, but you depend on someone else's payment habits. A co-signer card is your own account, but it puts someone else at real financial risk.
The table below shows how these three options stack up against each other. Most people start with a secured card because it is straightforward and does not involve anyone else. If you do not have deposit money available, an authorized user account is the next best option.
| Route | Cost | Speed | Your Control | Risk to Others |
|---|---|---|---|---|
| Secured Card | $0–$95 annual fee; your deposit is returned | 1–2 weeks to receive card | Full control; your own account | None |
| Authorized User | $0 | Days to be added | Limited; primary cardholder controls the account | Their payment history affects your credit |
| Co-Signer Card | Varies by issuer | 1–2 weeks to receive card | Full control; your own account | Co-signer is legally liable for your debt |
Things to Avoid When Building Your First Credit
Do not carry a balance on purpose to "build credit faster." Paying interest does not build credit faster than paying in full. It just costs you money. Your payment history is what matters — whether you pay $50 or $500, on-time payment counts the same.
Do not max out your card. Using more than 30 percent of your credit limit hurts your credit score, even if you pay on time. If your limit is $500, try to keep your balance below $150. This is called your credit utilization ratio, and it makes up about 30 percent of your credit score.
Do not close your first card immediately after converting it to a regular card. The length of your credit history matters. Keeping the card open (even unused) shows lenders you have a long track record of responsible borrowing. The older your oldest account, the better it looks to future lenders.
Frequently Asked Questions
How long does it take to build credit with a first card?
Most credit bureaus need at least six months of payment history before they generate a credit score. You will see your score start to rise after that point. After one to two years of on-time payments, your score will be high enough to open regular cards and get better loan terms.
Can I get a credit card if I have been denied before?
Yes. A denial does not permanently block you. Wait at least three to six months, then try a secured card from a different issuer. Each application is reviewed separately. A secured card is designed for people with no credit or poor credit, so denial is rare if you have the deposit money available.
What if I cannot afford a deposit for a secured card?
Ask a family member to add you as an authorized user instead. This costs nothing and builds your credit in the same way. Once your credit score rises, you can open your own secured card with a smaller deposit, or you may open a regular card without a deposit.
Will being an authorized user hurt the primary cardholder's credit?
No. Adding you as an authorized user does not hurt their credit. However, if they carry a high balance or miss payments, it will hurt your credit score. Make sure the primary cardholder has good payment habits before you agree to this arrangement.
Can I remove myself from an authorized user account if I need to?
Yes. You can ask the primary cardholder to remove you, or you can contact the card issuer directly and request removal. Once you are removed, the account stops showing up on your credit report. If you have built credit in the meantime, your score may dip slightly because you have less credit history showing, but the effect is usually small.