Moving to the U.S. or starting your financial journey here can come with some challenges, especially when it comes to building credit. For those who are new to the country or simply haven’t had the chance to establish a credit history, applying for a credit card might feel like a hurdle.
Fortunately, there are several options for obtaining a credit card in the U.S. even with little or no credit history. Let’s look at the types of credit cards available, alternative ways to establish credit and tips for getting approved with confidence.
1. Understanding Credit in the U.S.: Why It Matters
In the U.S., credit history plays a significant role in financial transactions. From securing a loan to renting an apartment, having a solid credit history can make these processes easier and more affordable.
But when you’re new to the country or just starting out, it’s common to have no credit history. Thankfully, lenders understand this and offer specific credit card options tailored to those building credit from scratch.
2. Start with a Secured Credit Card
One of the best ways to get approved for a credit card with no credit history is by opting for a secured credit card. Here’s how it works: with a secured credit card, you provide a refundable security deposit that serves as your credit limit. For instance, if you deposit $500, your credit limit will generally be set at $500.
This security deposit reduces the risk for the bank, making it more likely to approve your application. Over time, responsible use of a secured credit card will help you establish a credit history. The bank reports your payment activity to the credit bureaus, and on-time payments can boost your credit score and demonstrate your reliability as a borrower.
When choosing a secured credit card, look for options with low fees and ones that convert to an unsecured card after a certain period of responsible use.
3. Consider Student Credit Cards
If you’re a student, you’re in luck! Many U.S. banks offer student credit cards designed specifically for young adults without a credit history. Student cards are generally easier to qualify for compared to standard credit cards and often come with benefits such as no annual fees, rewards programs, and even cash-back bonuses.
While a student credit card typically has a lower credit limit than other cards, it’s a great way to start building your credit. However, keep in mind that student cards require you to be enrolled in a U.S.-based college or university. To qualify, you’ll need to show proof of enrollment and meet any other requirements the issuer may have.
4. Try Out Alternative Options
If neither secured nor student credit cards are right for you, some credit card issuers and financial institutions offer alternative ways to determine creditworthiness for those without a traditional credit history. For example, instead of relying solely on credit scores, some issuers use other financial factors, such as your employment history, income, and even rental payment history, to assess your credit risk.
A notable option is the credit cards for newcomers designed to help international students and professionals build credit from day one. Some financial institutions, like Zolve, provide tailored financial solutions for those moving to the U.S. Zolve’s credit card, for instance, doesn’t require a U.S. credit history, making it ideal for newcomers who need credit access without a lengthy approval process.
5. Look into Credit Builder Loans
Though not a credit card, a credit builder loan can be a useful tool if you’re working to establish a credit history in the U.S. With a credit builder loan, you make monthly payments on the loan, and the amount is reported to credit bureaus, helping you build a credit score over time.
Once you have a few months of positive payment history, you’ll be in a better position to apply for a credit card with more favorable terms. Many community banks and credit unions offer these loans, and they often come with low interest rates and flexible terms.
6. Get Added as an Authorized User
A tried-and-true method for building credit without a credit history is to become an authorized user on a family member’s or friend’s credit card. As an authorized user, you can piggyback off the primary cardholder’s credit and payment history. If they have a strong credit score and make on-time payments, this positive activity will reflect on your credit report, too.
Keep in mind that being an authorized user doesn’t give you the same level of responsibility as being the primary cardholder, but it does help to establish your credit profile.
What to Expect When You Apply for Your First Card
When applying for your first credit card, it’s important to know what to expect. Typically, credit card applications for those with no credit history will have certain requirements:
- Proof of identity and U.S. residency: You’ll need to provide documents that verify your identity and legal status in the U.S.
- Proof of income: Many credit cards require proof of income, even if it’s part-time or from a side job. This helps show lenders that you can manage monthly payments.
- Security deposit for secured cards: As discussed, secured cards require a deposit that serves as collateral for the credit limit.
Be prepared to provide the necessary information, and always review your options before committing to a card.
How To Build Good Credit Habits Early
No matter which type of credit card you start with, building good credit habits is key. Here are a few tips:
- Pay on time: On-time payments are the foundation of a good credit score.
- Keep balances low: If possible, keep your credit card balance below 30% of your credit limit. This helps with credit utilization, a factor in your credit score.
- Use credit responsibly: Even small purchases paid off consistently can have a positive impact on your score over time.
Final Thoughts
Building credit in the U.S. may seem difficult when starting with no credit history, but with the right tools and responsible habits, you’ll be on your way to a solid credit profile.
While the process might feel slow, especially at first, remember that good credit is a valuable asset that can make your life easier in the U.S. Take advantage of the beginner-friendly credit cards available, monitor your progress, and don’t hesitate to explore newcomer-focused credit solutions like Zolve to make your journey smooth sailing.
By choosing a credit card that matches your situation, making on-time payments, and keeping balances low, you can quickly establish the foundation for a strong credit score.
How to get a credit card in the USA without a credit history?
To get a credit card without a credit history in the USA, consider applying for a secured credit card, a student credit card if you’re enrolled in college, or cards that use alternative credit assessments like income or rental history.
Will I get approved in the USA if I have no credit history?
Yes, many banks offer credit cards for those with no credit history. Options like secured or student credit cards can improve your chances of approval.
Can I get a US credit card as a foreigner?
Yes, many issuers provide credit card options for foreigners, especially if you have a U.S. address, a visa, and proof of income or deposits.
What credit card is easiest to get with no credit?
Secured credit cards are generally the easiest to obtain with no credit history, as they require a refundable security deposit. Newcomer-focused providers, like Zolve, also offer options tailored to individuals without a U.S. credit record.
Disclaimer: The products, services, and offerings mentioned in this blog are subject to change and may vary over time. We recommend visiting our official website for the most up-to-date information on Zolve's offerings.