Because so much of the economy in the United States and the rest of the world is predicated on borrowing money, having no credit history may be a significant barrier to achieving many ambitions. Not only will it be difficult for you to make significant purchases such as a car, house, or business if you do not have a significant amount of wealth or the capacity to borrow money, but phone companies, landlords, utility providers, and more will frequently use your credit to determine they will provide you with everything you require. So, what are the best alternative credit cards for no credit?
U.S. Bank Cash+® Visa® Secured Card
The establishment of credit may be done in a manner that is risk-free for the lender via the use of secured cards. This card is a secured credit card that needs a deposit like other secured cards. However, in addition to this requirement, the card provides rewards and other perks. This card is also our recommendation for the best cash-back card for folks with no credit history and the best no-annual-fee card.
Rewards
Get 5% cash back on the first $2,000 you spend each quarter in your preferred two categories, get 5% cash back on prepaid airfare, hotel stays, and rental car reservations made through the Rewards Travel Center, get 2% cash back on your preferred one everyday category and get 1% cash back on all other purchases.
Welcome Offer
There is no sign-up bonus associated with this card.
Annual Fee
$0.
Regular APR
The annual percentage rate (APR) for purchases and balance transfers is 29.24%. There is a charge for transferring balances equal to either 3% of the value of each transfer or a minimum of $5, whichever is larger.
Other Positives and Negatives
The U.S. Bank Cash+ Visa Secured card allows you to choose your own payment due date, and the minimum deposit amounts range anywhere from $300 to $5,000. Because of the card's high regular APR, you should avoid carrying a balance on it at all costs. Additionally, it provides a mobile wallet, autopay functionality, and the fraud liability protection of zero dollars. Note that by federal law, the most that a credit card issuer may hold you accountable for in the event of fraud is $50. This is the case regardless of how much fraudulent activity occurs on your card.
Discover it® Student Cash Back
This card rates well among the top student cards and provides a product superior to many other alternatives. This card is ideal for students who are actively pursuing higher education. This card does not need a deposit, earns rewards, and offers a welcome bonus and other benefits.
Rewards
Once activated, you can earn 5% cash back on purchases made at various establishments each quarter, such as Amazon.com, grocery shops, restaurants, and petrol stations, up to the quarterly limit. Additionally, automatically receive 1% cash back on any other transactions for an unlimited amount.
Welcome Offer
Discover will instantly match all the cashback gained at the end of the first year and allow you to earn unlimited cashback. There is neither a minimum required expenditure nor a maximum possible return.
Annual Fee
$0.
Regular APR
APR Variable Between 16.74% and 25.74% *Rates Current as of December 15, 2022.
Other Positives and Negatives
A notable advantage that the Discover it® Student Cash Back card offers that no other card on our list does is a 0% introductory annual percentage rate (APR) on purchases for the first six months, after which the usual variable purchase APR of 16.74% - 25.74% applies (rates as of 12/15/22). Discover's no-minimum, anytime reward redemptions perfectly complement the card's fantastic-for-a-student-card reward earning potential. In addition, the issuer makes available to cardholders free of charge both online and mobile banking capabilities, as well as Social Security Number notifications.
Capital One Quicksilver Secured Cash Rewards Credit Card
This card likewise requires a security deposit, but it provides an automated review of your credit limit as early as six months after the account is opened. It is touted that increasing credit lines do not need the deposit of any more funds.
Rewards
Gain 1.5% cash back on every transaction you make and 5% cash back on hotels and rental vehicles booked with Capital One Travel.
Welcome Offer
There is no sign-up bonus associated with this card.
Annual Fee
$0.
Regular APR
28.49% (Variable).
Other Positives and Negatives
Access to Capital One's travel agency, is one of the additional benefits of the card. Additionally, the card comes with standard benefits included with most Capital One credit cards, if not all. Auto-debit, account notifications, Creditwise monitoring tools, zero responsibility for fraudulent charges, and mobile/online banking are some of the perks that come with these features.
