Credit cards from newer companies often promise no credit checks or fees. This is an excellent combination for people with bad credit. These are our top choices.
Because they don’t affect your credit score, credit cards that say “no credit check” may be attractive to people with poor credit. However, these cards often come with high-interest rates and fees.
Although they may allow you to skip the hard pull from your credit report, you will pay for it over time with time payments.
Some credit card issuers, especially those newer to the market, advertise no credit checks or fees. These so-called alternative credit cards use proprietary underwriting technology to evaluate creditworthiness. This is done by looking at other factors, such as your bank account and credit history, instead of credit scores.
Various types of credit cards are available in the market, such as student credit cards, business credit cards, and starter credit card options. When submitting credit card applications, it’s essential to consider your spending habits and credit profile.
Maintaining a low credit card balance, managing your credit utilization ratio, and having an excellent credit score is key to remember when choosing a card. These will help in building credit and securing your financial future.
If you need better credit, there may be better options than traditional secured and fee-harvester credit cards. These cards are low- or no-fee and don’t require credit checks. With limited Credit or fair Credit, consider other options.
Please check to cash may not be necessary with certain alternative credit cards that utilize unique underwriting methods to determine creditworthiness. Rather than solely relying on credit scores, factors like bank account and credit history are considered. Due to their fees and credit checks, there may be better choices than fee-harvester and secured credit cards for individuals with poor credit. It would be best to explore options like Balance transfer credit cards, cashback credit cards, or cards with Social Security benefits.
Chime Credit Builder Visa® Credit Card
Our choice for Chime users
CARD DETAILS
Credit check: None
Security deposit: There is no upfront security deposit. Your credit limit determines how much you transfer to your secured account.
Fees: None
APR: None (No Annual percentage rate)
WHY DO WE LIKE IT
With its unique features, this card allows you to make an eligible purchase without worrying about a Balance transfer fee. You can easily manage your monthly payments and avoid late payments or fees. It also offers a statement credit to help you monitor your credit card debt and improve your financial standing.
The Chime Credit Builder Visa® Credit Card eliminates many limitations associated with traditional secured credit cards for those with low average or no credit scores, helping people in various credit journeys. To get the unsecured card, you will need a Chime spending account, a free bank account that allows direct deposits. To prove that you have income and meet the minimum spending requirement, you must deposit at least $200 to the Chime Spending account within the last 365 days.
This card type does not require an upfront refundable security deposit like many secured credit cards, making it easier to manage your credit health. You won’t have to indefinitely pay $200 for an untouchable locked-up card.
Chime aims to improve your business credit score and credit range by offering a card that doesn’t have the constraints of traditional types of credit scores and annual credit fees. Your credit limit is determined by how much money you transfer from the Chime Spending account to the Credit Builder secured accounts, allowing you to make better financial decisions. You can also decide how much money you spend, making it suitable for every day and combined purchases.
If you transfer $25 to your secured bank account, you can spend $25 on the card. You can also use the money in your secured account to pay off the balance and build credit. If you spend $15 on gas using your secured card, you can use the same $25 to pay $15. All three major credit bureaus receive your payments.
DRAWBACKS
You must have a Chime Spending account to be eligible for the Chime Credit Builder Visa® Credit Card. Although it is free to apply, you must put in some effort. This card does not allow you to carry a monthly balance and does not offer months of purchases or bonus rewards like other rewards credit cards. Additionally, there are no benefits such as cash advances.
Tomo Credit Card
Our Choice for Rewards
CARD DETAILS
Credit check: None
Security deposit: None
Fees: None
APR: None
WHY DO WE LIKE IT
Community Federal Savings Bank issues the Tomo Credit Card. This card is perfect for people with various credit scores due to its flexibility. It can earn 1% cash back rewards and offer a credit limit of up to $10,000, depending on your eligibility. Furthermore, it provides benefits such as cell phone protection, purchase protection, and Extended warranties for the primary account holder. This card is suitable for everyday spending across any spending category and has the potential to increase your annual spending with its ongoing rewards.
The card’s creator, TomoCredit, has proprietary technology that evaluates many data points, including income (or potential income), account balances, and contact information. The bank uses this data to determine if you are a suitable candidate for the card.
You must link at least one account through Plaid (a third-party service provider) to provide this information. A checking, savings accounts, investment, or other eligible accounts can be linked.
All major credit bureaus in the United States report payments to TransUnion, Equifax, and Experian. These companies collect information that can be used to calculate credit scores. This is a vital feature if you are trying to establish credit.
DRAWBACKS
Some features of the Tomo Credit Card might only be suitable for some. The card only allows you to carry a balance from one month to the next. It also requires starting with a seven-day schedule, in which payments will be automatically taken from your bank account. Though it’s not a typical cashback or rewards card, it might still suit some users.
Grow Credit Mastercard
Travel credit cards and airline credit card options are popular among users who love to explore the world while earning rewards. But if you’re a business owner or a student, the Grow Credit Mastercard might be your choice. With Student Cash benefits and an attractive sign-up bonus, this card helps young individuals build their credit history.
The card also offers balance transfers for those looking for an easier way to consolidate their debts. Dining rewards and online cash rewards bonuses are also available, making this card more versatile than a simple debit card.
Remember to make the most of your money by evaluating your needs and preferences when choosing between different types of cards, such as a rewards card, cash back card, or an Annual statement credits card.
Our choice of Subscriptions
CARD DETAILS
Credit check: The company does not run a credit check. This won’t affect your credit score.
Security Deposit: For most membership plans, there is no security deposit.
Fees: None for the free membership tier. (You will need to pay for any additional tiers).
APR: None
WHY DO WE LIKE IT
Sutton Bank’s Grow Credit Mastercard virtual card is open to all, including business owners with low or no credit scores. Grow credit uses proprietary technology to assess creditworthiness. It looks at income. Plaid will require you to link a bank account with Grow Credit to weigh this information.
You can choose from one of four membership options to help you build credit while you pay eligible monthly bills or subscriptions. The card also offers Membership Rewards and rewards on purchases such as grocery store purchases and purchases at gas stations. The card also has a bonus category for eligible delivery services and monthly cell phone bill payments. This makes it a great option for a balance transfer card if you frequently make gas and gas station purchases.
Look for unusual credit card purchases, and take advantage of the extended warranty protection for added security. Lastly, this card has a low Minimum interest charge, making it an excellent choice for everyday use.
The Grow Credit Mastercard allows you to pay $8.99 monthly for Netflix. If you make your payments on time and in full, the payments will build credit. (Qualifying subscriptions, bills, and other requirements vary depending on the membership plan. It reports all payments to the three major credit bureaus.
DRAWBACKS
The card can only be used for subscriptions and qualifying bills, such as popular streaming services. Also, you can’t transfer a balance from one month into the next, and it needs an intro balance transfer fee.
Two of the paid membership plans, the Grow membership tier (an annual cost of around $60) and Accelerate membership (an annual cost of almost $120 each), do not offer generous rewards such as gift cards or bonus cash you’d expect from other travel cards. That’s money you won’t get back. Grow credit’s secured or free membership plan is better for you.
Moreover, rental car insurance and protection against damage are not available.
Consider a secured card that offers the chance to get your deposit back and has better lending decisions and potential approval decision processes.
Secured Visa Credit Card OpenSky®
Our choice for Unbanked
CARD DETAILS
Credit check: None
Security deposit: A minimum of $200 is required.
This card doesn’t offer Ultimate Rewards or cash rewards, but it is a great option for those who need a bank account. However, the cashback rate could be more attractive compared to other cards for travel purchases.
Annual fee: $35. Other fees may apply depending on the nature of your transactions and payments.
APR: The current APR is 17.39% Variable.
WHY DO WE LIKE IT
The OpenSky®, Secured Visa® Credit Card is a traditional secured card for people with bad credit. It’s the only secured credit card that allows you to apply without having a bank account or credit check. With this card, you can also enjoy unlimited cashback rewards, maximum rewards points, and a dollar match program, making it an attractive option for users. You can also make payments to the three credit bureaus.
DRAWBACKS
Although the $35 annual fee may seem high, secured credit cards that do not charge a yearly fee are available. Some may need help finding the minimum $200 deposit to be a problem. There might also be a cash advance fee and restrictions on future balance transfers.
OpenSky®, Secured Visa®, and Credit Card don’t allow you to upgrade to an unsecured card until you have a solid payment history. However, this card offers bonus miles, monthly time offers, and discounts on prepaid hotels to make up for it. Moreover, it boasts clock monitoring on purchases in the everyday category and a solid bonus cashback program. If you wish to receive your security deposit back, you will need to close your account.
GO2bank Secured Credit Card
Enjoy the benefits of a secured credit card with GO2bank Secured Credit Card, offering months of balance transfers and an introductory APR for the first month Regular. Check the Benefits for details and explore your options for building your credit with this card.
Our choice for A low-security deposit
CARD DETAILS
Credit check: None
Security deposit: A minimum $100 deposit is required.
Fees: A $0 per year fee. Other fees may apply depending on the nature of your transactions or payments. Intro plan fees may apply.
APR: As of the writing, the current APR is 22.99%. An Intro APR is not offered.
WHY DO WE LIKE IT
The GO2bank Secured Card Credit Card is a good option for those with bad credit. Enjoy one-time $200 cash bonus offers and prices on thousands of items through the card’s network. You will need a GO2bank bank account and direct deposits of at least $100 within the last 30 days to be eligible for this card.
You won’t need to have a credit check to apply. There is a $100 minimum security deposit requirement for secured credit cards. Your credit limit is determined by the amount you deposit.
This card offers impressive travel rewards, such as earning miles on hotels and no blackout dates. It has decent rewards rates on popular categories like Gas Stations and Restaurants. It’s an excellent student card option as well.
Additionally, this card offers protection against unauthorized charges and discounts on phone services. The card also has a reasonable quarterly maximum limit on rewards earnings to make it more appealing.
As with regular credit cards, spending less than 30% of your credit limit can improve your credit score. Your payments are also reported to the three credit bureaus by the GO2bank Secured Credit Card. This helps you build credit.
DRAWBACKS
The GO2bank Secured Credit Card requires that you have a GO2bank Account to be eligible. Once you have a solid payment history, upgrading to an unsecured credit card is impossible. You will need to close your account to receive your security.
Below is a table of statistics about credit cards from newer companies:
| Card | Company | APR | Introductory APR period | Fees | Rewards program |
|---|---|---|---|---|---|
| Apple Card | Apple | 12-24% variable | None | None | 3% cash back on all Apple purchases and 2% cash back on all other purchases |
| Citi® Double Cash Card | Citi | 22.4%-26.4% variable | None | None | 2% cash back on all purchases, 1% when you buy and 1% when you pay your bill |
| Chase Freedom Unlimited | Chase | 15.74%-24.49% variable | 0% for 15 months | $0 | 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% cash back on dining and drugstores, and 1% cash back on all other purchases |
Frequently Asked Questions
What criteria should I consider when choosing a credit card if I have no credit history?
Search for cards with no annual fee and guaranteed approval, low security deposits, opportunities to build credit through timely payments, and benefits such as cashback or rewards.
How can I increase my chances of being approved for a credit card with no credit history, and what steps should I take to build credit responsibly?
Having steady income will help approval odds. After getting the card, use it sparingly, pay the balance in full each month, don’t overspend, review statements regularly.
How do I build credit fast if I get approved for my first credit card with no history?
Using a small portion of the limit and paying on time each month builds credit quickly. Limit use to 30% or less and pay in full. Check statements for accuracy.
Should I consider a secured credit card if I have no established credit score?
Yes, secured cards help build credit when you have no score yet. Just be sure to make more than the minimum payments and keep utilization low.
What are the pros and cons of becoming an authorized user on someone else’s credit card to build credit with no history?
Pros are quick credit score boosting. Cons are risk if primary user mishandles card. Ensure on-time payments from primary user to avoid issues.
