A moderate to high credit score is required to qualify for most credit cards in the United States. Card issuers use an applicant’s credit score, along with other factors, to determine if they are a worthwhile risk. Qualifying is not an issue for individuals who have spent years building their credit, but it is a challenge for recent college graduates or newcomers to the country. Below are four appealing credit cards for no credit applicants.
1. Capital One Secured MasterCard
The Capital One Secured MasterCard is appealing because it allows individuals to put down a modest deposit to secure a credit line. An applicant may be asked to submit a $50 to $100 deposit, which would give them a credit line of $200.
There are no annual fees on this card, while it has a variable APR that is presently 26.99%. Capital One stipulates that if a cardholder makes five timely payments, they are eligible for an increase in their credit limit. These increases do not require additional deposits.
The only downside to the card is that it requires a U.S. bank account to open. Individuals who have recently arrived in the country must have a valid bank account before they can apply for this card.
2. OpenSky Secured Visa Credit Card
The OpenSky Secured Credit Card is appealing because it does not have any credit check. Even if you have very poor credit or no score, you are eligible. There is an annual fee of $35, while a deposit is required to secure a credit line.
Some people may find it beneficial that you do not need a bank account to qualify for this credit card. If you rely on other means of storing your money, you can still apply for the OpenSky Secured Visa and start to build your credit score.
OpenSky does not offer any opportunities to upgrade the card to an unsecured one. The company does report to credit agencies, which means that you can apply for other credit cards when your score is high enough.
3. DCU Visa Platinum Secured Credit Card
The DCU Visa Platinum Secured Credit Card has a very competitive interest rate, which is presently an APR of 13.75% variable. It is significantly lower compared to other secured credit cards.
It is a helpful card not only for building your credit score, but also if you plan to carry some balance each month. Individuals who do not pay off their balance in full are still paying interest, but roughly half as much as they would with other secured cards.
The DCU Visa is, unfortunately, only available to members of the Digital Federal Credit Union. Membership comes through eligible employers or communities. But it is possible to become a member of an eligible nonprofit through a $10 donation, and then apply for the card.
4. Discover It Secured
The Discover It Secured Credit Card offers an intro APR of 10.99% on balance transfers for six months, while its regular APR is 24.49% variable. It is an appealing secured card for those who may have some balance on previous cards, as they can limit their interest payments for six months.
It is necessary to make a $200 deposit towards this card, but there are appealing rewards. There is also an option to upgrade to a regular card on the same account through Discover.
There is no annual fee, while the It Secured Credit Card offers 2% cash back on spending of up to $1,000 per quarter at American restaurants and gas stations, along with 1% cash back on other spending. It is almost impossible to find other secured cards with cash back offers.
These four cards are not the only options available to individuals who have no credit score, or a very low one. Learn about more credit card options for individuals with no to low credit by assessing this curated list care of the credit professionals at Nova Credit.
By obtaining a credit card, individuals with no to low credit can begin the process of building their credit history. Whether you are new to the country, starting your first job, or rebuilding your credit after some financial mishaps, these credit cards are the best way to move forward.