A good way to start a credit history is with a credit card. Finding a credit card that does not require a prior credit history means that you need to compare different offers and apply for the credit card that is right for you. Gas stations and department stores are a good place to start.
These issue cards more easily without many requirements. However, you can only use them to buy in their stores in limited amounts, but they will help you build your credit history. Additionally, there are a number of major credit card companies that have programs available for those that have very limited or even no credit history. These cards may not come with many benefits since their main purpose is to give customers the chance to build a credit history. Never miss a payment, and pay off your balances, and you will soon have an excellent credit rating. In time, you will be eligible to apply for credits with great rewards.
Capital One Cards
The Capital One Platinum Credit Card is a great option for those with limited credit. It has no annual fee which is a plus. When you make your first five payments on time, you will be eligible for a higher line of credit. In addition, it offers free and unlimited access to your credit score and other educational tools to help you keep track of your credit. Also, it comes with fraud protection so if your card is stolen or even lost, you will not be charged for unauthorized purchases.
The Quicksilver Card from Capital One is another great credit option to help you establish credit. The great thing about this card is that it offers a 1.5% cash reward on every purchase. You can receive a check or have it applied to your balance. There is no limit on how much you are allowed to earn and the rewards do not expire. Also, there is no annual fee.
Journey Student Rewards from Capital One
The Journey Student Rewards from Capital One is a great way for college students to begin their credit history. No annual fee is charged and it even has a 1% cash reward for every purchase. When you make payments on time your rewards will increase to 1.25%. If you are studying overseas, there will not be a foreign transaction fee as with most other credit cards. After 5 timely payments, a higher credit line will be established.
Wells Fargo Cash Back College Visa Card
The Wells Fargo Cash Back College Card allows college students to pay their basic and entertainment needs while establishing a credit history. There is no annual fee and has a 3% cash reward offered for 6 months on purchases of groceries, gas and drugstore. After 6 months, you will continue to receive a 1% cash reward on nearly all your purchases. Rewards are given for every $25 you earn and you are given a variety of options for receiving your reward. You will receive special promotions and discounts for students. In addition, you will receive quarterly newsletters with monthly credit education tips to improve your credit status. Importantly, Wells Fargo offers free online courses to educate students on managing their credit wisely.
Below are the top two discover cards for easier approvals as well as rewards cash back options.
Discover Card offers an interesting option for students that are building a credit history. No annual fee is charged and even no fee for going over-limit. If you happen to make a late payment there will be no fee for the first time. Also, no foreign transaction fee is charged.
Discover It Rewards
For the student that keeps a grade point average of 3.0 or higher, the Good Grades Rewards Program gives $20 cash back every year for up to five years. In addition, a 5% cash back reward is given on purchases in selected categories that change every quarter. The first quarter it may be gas or restaurants with 1% cash reward on all other purchases. For new card owners, there is an outstanding offer. At the end of your first year of card use, Discover It will actually double back your cash reward. In other words, if you have earned $105 in rewards, they will double it to $210!
Bank Of America Cash Rewards
Bank of America has several options for students who are interested in starting or building their credit history. Their cash rewards Visa card offers 1% back on all purchases, 2% for grocery store purchases and 3% for gas purchases. Again, there is no annual fee with this card and when you deposit your cash back rewards into an existing Bank of America checking or savings account, you will receive a 10% bonus.
Bank of America Travel Rewards
This credit card offers some great travel rewards for students. For example, for every one dollar purchase made, you receive 1.5 points in travel credit. Points can add up fast and can be used on any airline or at any hotel with no dates that are blacked out. Additionally, no fees for foreign transactions are charged. Also, when you have an active bank account with Bank of America you will receive 10% in bonus points on every purchase that you make with the card.
Citi Secured Mastercard
If you have limited credit history, a secured credit card may be the choice for you. Citibank offers a good program to help you establish credit. A Citi Secured Master Card has only a $25 annual fee and only $200 is required to secure the card. When you make on time monthly payments, CitiBank will report to the three major credit bureaus and you will be on your way to building a good credit history.
If you simply do not want any credit check at all, then try Open Sky for a secured credit card. You can choose your own deposit with a minimum of only $200. Since this company reports to the three major credit bureaus, you will be able to quickly build your credit. Your deposit is eligible for a refund. However, there is a $35 annual fee for this card which we consider a reasonable fee while you are building your credit.