Limited or No Credit History Credit Cards
By Curtis Arnold updated on May 25, 2012
Having no credit or a limited credit history can be a pain when it comes to simple things like turning on utilities in your name. It can also make it nearly impossible for you to qualify for a mortgage. Credit cards are an excellent way to build your credit history. Credit cards for limited or no credit are a great solution for those who want to make day to day purchases and raise their credit score. Many of these cards are secured or prepaid credit cards. Find answers to your questions about the best ways to build your credit score using credit cards.
Capital One® Platinum Credit Card
There are no balance transfer fees. This card is for folks with average credit. Use Image Card to upload one of your favorite pictures or choose from one of Capital One for your own unique card. There is a 24-hour travel and emergency assistance if your credit card is lost or stolen, as well as 24 hour roadside assistance if your car breaks down or you get locked out. There is also auto rental insurance. Downside: purchase APR is high. Balance transfer APR is the same as purchase APR with no introductory rate.
Editor's Rating
3 out of 5
Who uses this card?
This card is best for consumers with average credit looking for a Plain Jane card to use to further build credit that never carry a balance.Capital One® Secured Mastercard®
This is a great card for those with limited credit histories that would like to further build their credit. It offers a low annual fee compared to other secured credit cards and there are no set up or processing fees. It reports to all three major credit reporting agencies and offers tools to help track your credit. As with most cards for people with limited credit histories, the APR is on the high side.
Editor's Rating
3 out of 5
Who uses this card?
This card is best for consumers with limited credit that do not qualify for an unsecured card and that never carry a balance.Journey (SM) Student Rewards from Capital One®
Parents, legislators and consumer advocates have debated the merits of student credit cards over the past few years, especially after allegations of questionable marketing practices on college campuses. That's why it's great to see how Capital One has promoted its Journey Student Rewards credit card as an effective tool for young Americans to build good financial habits. This credit card for limited credit uses Capital One's features, benefits and customer service as incentives to reward responsible saving and spending.
Teaching students the benefits of credit cards over prepaid debit cards According to research conducted by Auriemma Consulting Group, consumers born after the 1980s tend to rely more on checking account debit cards and on prepaid debit cards instead of on credit cards for daily purchasing. They tend to manage money well, but may be missing out on some of the biggest benefits of using credit cards. Journey Student Rewards offers Visa Platinum benefits that include:
Like other Capital One credit cards, Journey Student Rewards doesn't charge fees for foreign transactions or currency conversion, making it an ideal travel companion for quick overseas trips or extended stays abroad. You can even transfer a balance from another card at no charge, something for which other credit cards charge up to 5 percent.
Using today's technology to manage a student credit card Even with a strong slate of premium features, Journey Student Rewards really shines by connecting cash back rebates to responsible credit card use. In addition to the 1 percent rebate common among many of today's best cash back rewards cards, Journey Student Rewards offers a 25-percent bonus rebate for cardholders who pay their bills on time. To help keep you from missing your payment or exceeding your credit line, Capital One has set up an elaborate online system that triggers text or email alerts when your account's in danger. You can even help prevent fraud by enabling other notifications for daily card transactions.
Should you switch to Journey Student Rewards? You won't really be able to switch to Journey Student Rewards unless you're a young adult ready to trade in your authorized user status on a parent's account for your very first individual credit card. Capital One doesn't make Journey Student Rewards available to co-applicants, so you'll have to wait until you're at least 21 years old before you can complete their instant approval application. As you get older and gain more money management experience, you'll certainly qualify for credit cards with better interest rates. Until then, Journey Student Rewards is one of the best cash back credit cards you'll find.
Teaching students the benefits of credit cards over prepaid debit cards According to research conducted by Auriemma Consulting Group, consumers born after the 1980s tend to rely more on checking account debit cards and on prepaid debit cards instead of on credit cards for daily purchasing. They tend to manage money well, but may be missing out on some of the biggest benefits of using credit cards. Journey Student Rewards offers Visa Platinum benefits that include:
- $0 fraud liability. Debit cards that get lost or stolen can put your cash at risk, at least for a little while. Capital One protects its cardholders from paying charges made without permission.
- Travel assistance services. Studying abroad and setting out on spring break become safer and simpler with help from a 24-hour response team that can dispatch replacement credit cards and cash advances.
- Travel accident insurance. Purchase your train or plane tickets with Journey Student Rewards, and Capital One provides coverage for your trip.
- Rental car insurance. Occasional drivers will appreciate automatic collision, damage, and loss insurance included when you reserve your rental car with Journey Student Rewards.
- Extended warranty coverage. Even if you use some of your credit line to splurge on jewelry, electronics or appliances, you'll appreciate automatic warranty extensions that come with your Capital One credit card.
Like other Capital One credit cards, Journey Student Rewards doesn't charge fees for foreign transactions or currency conversion, making it an ideal travel companion for quick overseas trips or extended stays abroad. You can even transfer a balance from another card at no charge, something for which other credit cards charge up to 5 percent.
Using today's technology to manage a student credit card Even with a strong slate of premium features, Journey Student Rewards really shines by connecting cash back rebates to responsible credit card use. In addition to the 1 percent rebate common among many of today's best cash back rewards cards, Journey Student Rewards offers a 25-percent bonus rebate for cardholders who pay their bills on time. To help keep you from missing your payment or exceeding your credit line, Capital One has set up an elaborate online system that triggers text or email alerts when your account's in danger. You can even help prevent fraud by enabling other notifications for daily card transactions.
Should you switch to Journey Student Rewards? You won't really be able to switch to Journey Student Rewards unless you're a young adult ready to trade in your authorized user status on a parent's account for your very first individual credit card. Capital One doesn't make Journey Student Rewards available to co-applicants, so you'll have to wait until you're at least 21 years old before you can complete their instant approval application. As you get older and gain more money management experience, you'll certainly qualify for credit cards with better interest rates. Until then, Journey Student Rewards is one of the best cash back credit cards you'll find.
Editor's Rating
3 out of 5
Who uses this card?
This card is best for students and other young adults who want to get a head start on a solid credit history without the help of a co-signer. Sure, Journey Student Rewards offers many of the same features as other Capital One credit cards. However, it wraps those rewards and benefits into language designed to ease first-time credit card users into a money management system that's not restrictive. The program's emphasis of rewards and benefits helps students learn the reasons why you might choose to swipe credit cards instead of debit cards at the checkout counter, without running the risk of going deeply into debt.CapitalOne® Cash Rewards for Newcomers
If you're new to the United States, especially on an H1B Visa or another work-related program, it may be hard for you to establish a credit history. Capital One wants to help, with the Capital One Cash Rewards for Newcomers, a special version of its Cash Rewards MasterCard designed for recent immigrants to the country. This basic card offers an easy and inexpensive way to jumpstart your U.S. credit score, as long as you plan to pay off the balance every month.
Travel rewards
Capital One Cash Rewards for Newcomers uses the same online rebate tracking system that powers the bank's other popular rewards credit cards. You'll earn 2 percent cash back on all travel purchases and 1 percent rebates on everything else, which you can easily redeem for statement credits through Capital One's website. Like other Capital One credit cards, this account charges no foreign transaction fees, saving you up to 5 percent when you travel overseas.
Not the lowest APR card
However, access to credit comes at a price if you want to carry over a balance from month to month. Capital One Cash Rewards for Newcomers comes with an annual percentage rate well into the double digits, far higher than most cash back rewards cards and comparable to many credit cards for bad credit. Although the card charges no fee for balance transfers, it's unlikely that you'll save money by consolidating your debt with this account.
Should you switch?
Not if you already have a Capital One credit card, or a credit card from any other major United States lender. Capital One designed the Capital One Cash Rewards for Newcomers for people who may already have credit cards in their former home countries, or may not have used a credit card before.
Travel rewards
Capital One Cash Rewards for Newcomers uses the same online rebate tracking system that powers the bank's other popular rewards credit cards. You'll earn 2 percent cash back on all travel purchases and 1 percent rebates on everything else, which you can easily redeem for statement credits through Capital One's website. Like other Capital One credit cards, this account charges no foreign transaction fees, saving you up to 5 percent when you travel overseas.
Not the lowest APR card
However, access to credit comes at a price if you want to carry over a balance from month to month. Capital One Cash Rewards for Newcomers comes with an annual percentage rate well into the double digits, far higher than most cash back rewards cards and comparable to many credit cards for bad credit. Although the card charges no fee for balance transfers, it's unlikely that you'll save money by consolidating your debt with this account.
Should you switch?
Not if you already have a Capital One credit card, or a credit card from any other major United States lender. Capital One designed the Capital One Cash Rewards for Newcomers for people who may already have credit cards in their former home countries, or may not have used a credit card before.
Editor's Rating
3 out of 5
Who uses this card?
This card is best if you've been living and working in the U.S. for less than a year and you want the security and convenience of carrying a credit card from a trusted lender. This card is also ideal if you intend to remain loyal to Capital One, since the bank often allows customers to graduate from subprime terms into its credit cards for good credit. Capital One enjoys a strong reputation for reporting to all three credit bureaus, enabling you to establish a credit profile that will qualify you for other lenders' standard credit card offers.This card is best for consumers with limited credit that never carry a balance. And who want to build credit and earn cash back.We scour. You save
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