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What’s the best type of credit card for people with no credit?

Secured credit cards are designed for individuals new to credit or with limited credit history, like students, recent graduates, immigrants, or those rebuilding credit. This often means they don’t require a traditional credit check or a specific credit score for approval, which makes them easier to get. If you don’t meet the criteria for a traditional credit card, a secured card can also help you rent a car, book a hotel, or make any other transactions that require a credit card. Plus, using your secured card regularly can help you build and improve your credit over time. 

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What’s the best type of credit card for people with no credit?

Secured credit cards are designed for individuals new to credit or with limited credit history, like students, recent graduates, immigrants, or those rebuilding credit. This often means they don’t require a traditional credit check or a specific credit score for approval, which makes them easier to get. If you don’t meet the criteria for a traditional credit card, a secured card can also help you rent a car, book a hotel, or make any other transactions that require a credit card. Plus, using your secured card regularly can help you build and improve your credit over time. 

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Obtain a secured credit card in five simple steps

If a secured credit card sounds like the right choice for you, follow these five steps to apply:

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Step 1: Determine how much you can afford

Because secured credit cards require an upfront cash security deposit, assessing your finances before applying is crucial. If you need help deciding how much to put down, starting with a smaller deposit, like a couple hundred dollars, is always a good approach. As you build confidence, you can add more to your deposit to increase your credit limit over time.

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Step 2: Determine how much you can afford

Because secured credit cards require an upfront cash security deposit, assessing your finances before applying is crucial. If you need help deciding how much to put down, starting with a smaller deposit, like a couple hundred dollars, is always a good approach. As you build confidence, you can add more to your deposit to increase your credit limit over time.

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Step 3: Determine how much you can afford

Because secured credit cards require an upfront cash security deposit, assessing your finances before applying is crucial. If you need help deciding how much to put down, starting with a smaller deposit, like a couple hundred dollars, is always a good approach. As you build confidence, you can add more to your deposit to increase your credit limit over time.

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If you’re considering opening a secured credit card with OpenSky, all three of our options feature an 89% approval rate¹ and do not require a credit check. See which one best suits your needs.

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Step 4: Apply for the secured card of your choice

Many card issuers allow applicants to apply online in minutes. When filling out your application, have this information on hand:

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• Full legal name
• Social security number (SSN) or individual taxpayer identification number (ITIN)
• Street address
• Phone number
• Employment status
• Annual income before taxes
• Monthly housing expense (rent or mortgage)

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Step 5: Fund your card

Keep in mind that, in addition to the cash security deposit, additional fees, such as application, processing, or annual fees, may be required to open your account. You can pay these with a debit card, so make sure you have enough funds to cover the total amount owed.

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Be responsible to increase your credit score

Once you’re approved and your card is activated, using it responsibly can help you build a strong credit history and boost your credit score. Here are the actions you can take to set yourself up for success.

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1. Make small purchases every monthUsing your secured card regularly and paying off the balance on time is critical to building your credit. To establish your credit history, start with small purchases, such as paying for a monthly streaming service subscription.

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2. Keep your credit utilization lowYour credit utilization ratio is the percentage of available credit you currently use. Aim to use 30% of your available credit limit at most. This shows lenders that you can stay on top of your spending, which can help raise your credit score.

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