How to get your first credit card in the US without a credit history

If you’re looking to get your first credit card in the United States but don’t have a credit history, it can seem like a daunting or even impossible task. But with some patience and research, you can find a credit card that will help you build your credit and provide you with the financial flexibility you need, even without previous credit history. In this article, we’ll share some options you can consider when applying for your first US credit card and some considerations for each.

I hope that the tips below are helpful, and that they help guide you further in your credit card research!

Is it possible to get a credit card without US credit history?

In short, yes it is. Every newcomer had to start somewhere, and there are now more and more options available to those looking to apply for their first credit card.

Understanding credit history and why it matters

Before diving into the potential ways you can get your first credit card, it’s important to understand what a credit history is and why it’s important. A credit history is a record of your borrowing and repayment habits, which is used by lenders to determine your creditworthiness. Lenders use this information to decide whether to approve your credit card application and at what interest rate. If you don’t have a credit history, lenders may be hesitant to approve your application, as they have no way of determining your creditworthiness.

4 Ways for getting a US credit card without a credit history

So, how can you get a credit card without a credit history? Here are some tips:

1. Consider Nova Credit if you have good credit history in your home country.

Since moving to the US, I’ve discovered the company Nova Credit, and have been recommending it ever since to all friends who have moved to the US for work. More specifically, I highly recommend using Nova Credit if you have a good or great credit history in your home country. It’s free for users, and Nova Credit enables you to take your international credit history with you when you move. At a high-level, Nova Credit will check with credit agencies in your home country, and will translate that credit history to help newcomers qualify for financial products like credit cards, student loans, etc.

As I mentioned above, this is the option I always recommend to my friends first and have always received positive feedback from their experiences. However, it’s still important for you to consider some of the potential pros and cons below, as everyone’s situation is unique.

Consider some of the pros and cons of this option, listed below.

Some advantages:

• This option can help you save some time, as you won’t need to build your credit score from scratch to qualify for the credit card you want, as your credit history from abroad will be shared with certain US-based partners and lenders.
• You may qualify for credit cards with great rewards and introductory offers, like the American Express credit cards. These cards are typically much harder to get unless you have a solid credit score, but you might be able to get access through Nova Credit. This is a huge pro if having good credit card rewards like high cash back offers or good introductory offers is important to you.
• Aside from credit cards, credit Nova can help get you access to other important financial products like student loans, auto loans, mobile phone financing, and more.

Some drawbacks:

• Not everyone will qualify for Nova Credit, depending on where your home country is. We recommend checking whether your home country is compatible on the Nova Credit website. At the time of writing this article, there are 15 eligible countries.
• Nova Credit might require a proof of identity. You won’t need a Social Security number to qualify, but depending on the creditor’s policies, this may include a driver’s license, utility bill, phone bill, or other official documents like government-issued identification. In some cases, you may be able to verify your U.S. home address through a bank account. It is important to note that you do not need a Social Security number to qualify for a credit card, but you may be required to answer questions about your foreign credit history.
• To qualify for Nova Credit’s card offerings, you generally need to have a good or excellent credit score in your home country. You can check your credit score on the websites of your home country’s credit bureau to see if you meet this requirement. This will give you an idea of where you stand and whether you are likely to be approved for one of Nova Credit’s card offerings.

Overall, I highly recommend checking if you qualify for Nova Credit, especially if you have a good credit history in your home country.

2. Consider applying for a secured credit card.

A secured credit card is a type of credit card that requires a deposit as collateral. This deposit acts as your credit limit, and you can build your credit by using the card responsibly and making on-time payments.

This is the option I went with when I first moved to the US, as I wasn’t aware of the other options available to me. I put a $800 USD deposit as collateral for my secured credit card. After just over a year of using my secured credit card and paying all my bills on-time, I finally qualified for a non-secured credit card and was refunded by $800 USD deposit.

Below are some other Pros and Cons to consider when going with a secured credit card.

Some Advantages:

• A secured credit card can help you build or rebuild your credit history. Because the credit limit on a secured card is typically based on a cash deposit you make with the issuer, it can be easier to get approved for a secured card than for an unsecured card.
• These types of cards help you improve your credit score. As long as you make your payments on time and keep your balance low, using a secured card responsibly can help you demonstrate to credit bureaus that you are a responsible borrower. This can lead to an increase in your credit score over time.
• It can also provide you with access to a credit card and the benefits that come with it, such as the ability to make purchases online and over the phone, and the ability to rent cars and reserve hotel rooms.

Some drawbacks:

• A secured card may require you to make a cash deposit with the issuer. This deposit acts as collateral and ensures that the issuer will be able to recover the funds if you default on your payments. The amount of the deposit may be equal to your credit limit, or it may be a fraction of your credit limit. In either case, you will need to have the funds available to make the deposit.
• These cards tend to have higher fees and interest rates than an unsecured card. Because secured cards are considered to be riskier for issuers, they may charge higher fees to compensate for that risk. Additionally, the interest rate on a secured card may be higher than the rate on an unsecured card, so you will need to be careful about carrying a balance on your card.
• It may not offer the same rewards and benefits as an unsecured card. Some unsecured credit cards offer rewards programs, cash back, or other incentives to encourage cardholders to use their cards. These rewards may not be available with a secured card, so you will need to weigh the potential benefits against the costs of using the card.

Overall, a secured credit card can be a good option if you are trying to build your credit and you are willing to make a cash deposit with the issuer. However, please carefully consider the fees, interest rates, and rewards offered by different secured cards before deciding which one is right for you.

3. Become an authorized user on someone else’s credit card.

If you have a family member or friend who trusts you and has a good credit history, you can ask them to add you as an authorized user on their credit card. This will allow you to use their credit card, and their credit history will be added to your credit report.

Some pros and cons for you to consider for this option are listed below.

Some advantages:

• As an authorized user on someone else’s credit card, you may be able to build or improve your credit history. If the primary cardholder has a good credit score and makes their payments on time, their positive payment history may be reflected in your credit report as well. This can help you demonstrate to credit bureaus that you are a responsible borrower and can lead to an increase in your credit score over time.
• Gives you access to a credit card and the benefits that come with it. You can use the card to make purchases, reserve hotel rooms, and rent cars, and you may be able to take advantage of any rewards or cash back programs offered by the card issuer.
• It can also be a convenient way to share expenses with someone else. For example, if you are a couple and both of you are authorized users on the same card, you can use the card to pay for shared expenses and keep track of your spending more easily.

Some drawbacks:

• As an authorized user on someone else’s credit card, you are not financially responsible for the account. This means that if the primary cardholder misses payments, goes over their credit limit, or defaults on the account, your credit score will not be affected. However, it also means that you do not have any control over the account and you cannot make decisions about how the card is used.
• If the primary cardholder abuses the card or mismanages their finances, it can reflect poorly on you and damage your credit score. Additionally, if the primary cardholder’s credit score declines, it can also lower your credit score, even if you have not used the card.
• It could limit your ability to get your own credit card in the future. If you are listed as an authorized user on someone else’s account, it may be difficult for you to get approved for your own credit card, since the issuer will not have a complete picture of your credit history and financial responsibility.

Overall, becoming an authorized user on someone else’s credit card can be a good option if you are trying to build or improve your credit and you trust the primary cardholder to manage the account responsibly. However, you should carefully consider the risks and limitations before deciding to become an authorized user on someone else’s account.

4. Look for credit cards specifically designed for people with poor or no credit history.

Sometimes credit card companies offer credit cards specifically designed for people in those situations. These cards will often have lower credit limits and higher interest rates compared to traditional credit cards, but they can be a good way to start building your credit.

Below are some specific pros and cons for you to consider.

Some advantages:

• Using a credit card specifically designed for folks with no credit history or low credit history means that you won’t need to use your own money as a deposit or collateral in order to receive a credit card. This can be helpful if you don’t have the necessary amount of funds at the moment, or if you prefer to use your money on other things.
• It’ll likely be easier for you to get approved, as these credit cards are specifically designed for those that have low or no credit history. As long as you make your payments on time and keep your balance low, using the card responsibly can demonstrate to credit bureaus that you are a responsible borrower and can lead to an increase in your credit score over time.
• If you are also someone curious about ways to build a strong credit score, these types of credit cards may offer additional resources, such as credit education resources or access to credit counseling services. These resources can help you learn more about how credit works and how to manage your finances responsibly, which can ultimately help you improve your credit score even further.

Some drawbacks:

• A credit card specifically designed for people with poor or no credit history, it may have higher fees and interest rates than traditional credit cards. Because these cards are considered to be riskier for issuers, they may charge higher fees to compensate for that risk. Additionally, the interest rate on these cards may be higher than the rate on traditional credit cards, so you will need to be careful about carrying a balance on the card.
• It can have lower credit limits than traditional credit cards. This might limit your ability to make large purchases or to take advantage of rewards programs that require you to spend a certain amount of money to earn rewards.
• They may not offer the same rewards and benefits as traditional credit cards. Some traditional credit cards offer rewards programs, cash back, or other incentives to encourage cardholders to use their cards.

Conclusion

In conclusion, it’s definitely possible to get a credit card in the United States without a credit history, everyone has to start somewhere! Building your credit history definitely requires consistency and time, but with enough research, I’m confident you will find a credit card to meet your needs while helping you build your credit history in the US.

For a complete financial checklist of things to do as a newcomer to the US, consider reading our Financial Checklist guide next.