If you’re a student, are new to credit, or are in the process of rebuilding your credit, you know how challenging it can be to qualify for a credit card. Many credit card companies have strict approval criteria and only want to deal with the most established consumers.
Thankfully, there are a number of credit cards that are easier to qualify for. To help you find a credit card that works for you, I’ve compiled a list of credit cards with more relaxed approval criteria. But first, here’s a closer look at how credit card approval decisions are made.
Table of Contents
- How Are Credit Card Approval Decisions Made?
- What Is the Easiest Type of Credit Card to Get?
- The Easiest Student Credit Cards to Get
- Credit Cards to Get With No Credit
- Credit Cards for Fair Credit
- Credit Cards For Poor Credit
- Best Secured Credit Cards
- Which Credit Card Should I Choose?
- Final Thoughts
How Are Credit Card Approval Decisions Made?
There are six factors that credit card and other loan companies make when deciding whether or not they will issue you a credit card:
- Your credit history
- Debt-to-income ratio
- Number of inquiries for credit
- Number of delinquencies on your credit bureau
- Your credit history
- Your income
Your Credit History
Your credit history, which is based on your credit report, tells a lender how you’ve handled credit in the past. It will let them know long you’ve had a credit account, how much credit you utilize and your credit mix (installment vs. revolving credit), how often you seek new credit, and your payment history on each account.
Debt-to-Income Ratio
Your debt-to-income ratio is your ratio of monthly debt payments to your gross monthly income, expressed as a percentage.
To calculate your debt-to-income ratio (also called a DTI), divide your total monthly loan payments by your gross monthly income.
For example, if your gross monthly income is $3,500, and you have $1,500 in monthly payments, including your mortgage and all other reported loans and credit cards, you have a debt-to-income ratio of 42.9 percent.
Number of Credit Inquiries
Each time you apply for credit, the prospective lender pulls what’s known as a hard inquiry of your credit bureau. Too many hard inquiries within a certain period of time will have a negative impact on your credit score, as it’s an indicator of credit-seeking behavior.
Note that there are both hard inquiries and soft inquiries on your credit report. A soft inquiry is made when you don’t apply for credit, as in the case of when you get an unsolicited credit card offer in the mail.
Soft inquiries don’t affect your credit score negatively, but hard inquiries can if there are too many.
Number of Delinquencies on Your Credit Bureau
Your approval for a credit card can be affected negatively if you have delinquencies (late payments) on your credit. Most credit issuers will report payments that are more than 30 days late to the credit bureau, negatively impacting your score. Multiple delinquencies of 30 days or more are considered a major red flag for lenders.
Your Credit History
Your overall credit history can affect your ability to get a credit card. Credit card issuers will look at how you’ve handled credit in the past or decide if you have sufficient credit history established. Remember that your credit record follows you. Whether your credit history is good, bad, or non-existent, it will affect your ability to get a credit card.
Your Income
Your income will also affect your ability to get a credit card. If you don’t have any income, it’s unlikely you’ll be approved for a credit card without a cosigner.
Similarly, if you’ve recently started a job, have a history of switching jobs frequently, or don’t have a long history of earning income, your ability to get approved for a credit card could be affected.
Note that other sources of income besides a job can be considered when applying for a credit card. For example, if you get alimony, child support, or get disability income, you could ask for that income source to be considered when you apply for a credit card.
What Is the Easiest Type of Credit Card to Get?
There are three types of credit cards that are easier to qualify for than traditional credit cards:
- Student Credit Cards
- Beginner Credit Cards
- Secured Credit Cards
Student credit cards are designed for students attending college or technical vocational schools. They often have student-specific benefits such as cash back rewards for stores and restaurants near their college.
Many credit card companies offer student cards with a school’s logo.
Beginner credit cards are geared toward those with little or no credit history. Companies that issue beginner credit cards may have looser credit scores and approval guidelines or may forego doing a credit check altogether.
Secured credit cards are secured by a savings account balance held at the credit card’s issuing bank. Typically, the balance of the savings account must remain equal to the credit limit given for the secured credit cards. The savings account funds are usually locked and unavailable for access as long as the secured credit card is open and active.
The Easiest Student Credit Cards to Get
Here are three student credit cards that are considered easy to qualify for. I’ve listed their key features, along with a link to apply:
Discover it Student Cash Back Card
Best feature: High cash back rate for a student credit card
- Annual fee: $0
- 25-day grace period
- 5% cash back at Amazon, grocery stores, restaurants, gas stations
- No late fee for the first late payment; after that, $41
- No credit score required
- Rolling promotional rates available
Learn more about the Discover It Student Cash Back card here.
Capital One SavorOne Student Card
Best feature: Cash back on entertainment and streaming services
- Annual fee: $0
- 25-day grace period
- Unlimited 3% cash back at grocery stores, dining, entertainment, and streaming services
- Up to $40 late fee
- Designed for students with minimal or no credit
- Other promotional benefits, such as travel discounts
Learn more about the Capital One SavorOne Student Card here.
Discover it Chrome for Students
Best feature: Unlimited cash back match
- Annual fee: $0
- 25-day grace period
- 2% cash back at restaurants, 1% cash back on all other purchases, unlimited cash back match
- No late fee for the first late payment. After that, it’s $41
- No credit score required
- Rolling promotional rates available
Learn more about the Discover It Chrome for Students card here.
Credit Cards to Get With No Credit
If you’re not a student but are new to credit, the following cards have relaxed approval requirements, and both offer cash back rewards. Note that the First Progress card does have an annual fee associated with it.
Petal 2 Visa
Best feature: Bonus cash back at select merchants
- Annual fee: $0
- 1% to 1.5% cash back on all purchases
- Additional cash back at qualifying merchants
- No late fees
- Automatic review for credit increases
Learn more about the Petal 2 Visa card.
Petal Credit cards are issued by WebBank, Member FDIC
First Progress Secured Credit Card
Best feature: Three different cards to choose from
- Annual fee: $29 to $49
- Minimum $200 security deposit required
- 1% cash back on all payments made to your account
- Reports to all three major credit bureaus
- Free credit score access
Learn more about the First Progress secured credit card.
Credit Cards for Fair Credit
Upgrade Cash Rewards Visa
Best feature: Rolling opening account bonuses
- $0 annual fee
- Credit limit between $500 and $25,000
- Promotional cash bonuses with tandem checking account opening
- 1.5% cash back on purchases
- No late fees
Learn more about the Upgrade Cash Rewards Visa here.
Capital One Quicksilver
Best feature: Travel and other additional benefits
- Annual fee: $39
- Travel benefits
- Unlimited 1.5% cash back on every purchase
- Redeem your cash back rewards for a check, statement credit, or gift cards.
- Automatic credit line reviews
Learn more about the Capital One Quicksilver card here.
Capital One Platinum
Best feature: No annual fee
- Annual fee: $0
- Travel and other benefits
- Late fees of up to $40
- Automatically upgraded credit line reviews
Learn more about the Capital One Platinum card here.
Credit Cards For Poor Credit
Without a good credit score, it can be hard to qualify for a traditional credit card. Here are three cards designed specifically for customers who are looking to rebuild their credit.
Open Sky Secured Visa
Best feature: No Credit Check
- No credit check and no impact on your credit score when you apply
- 87% approval rate
- Credit limits between $200 and $3000
- Reports to all three major credit bureaus
- Graduate to an unsecured card in as little as six months
Learn more about the Open Sky Secured Visa card here.
Credit One Bank Platinum Visa Card for Rebuilding Credit
Best feature: Up to 10% bonus cash back
- Annual fee $99 ($75 for the first year
- 1% cash back on most purchases
- Choose a new payment due date
- Automatic review for credit increases
- No security deposit required
Learn more about the Credit One Bank Platinum Visa Card here.
Surge Platinum Mastercard
Best Feature: Free monthly credit score
- $99 annual fee
- Initial credit limit of between $300 and $1000
- Instant credit decisions, in most cases
- Reports to all three major credit bureaus
- The credit limit will double when you make your first six payments on time.
- Free monthly credit score
- Knowledge center for learning credit ins and outs
Learn more about the Surge Platinum Mastercard here.
Best Secured Credit Cards
Secured credit cards require you to deposit funds in a locked savings account. The funds are used to secure the credit card account against any potential loss. And while having to pony up money for a credit card can be frustrating, secured cards are perhaps the easiest credit cards to qualify for.
Discover it Secured Credit Card
Best feature: Automatically qualify for an unsecured card in as little as seven months
- Annual fee: $0
- 200 to $2500 security deposit
- 2% cash back at gas stations and restaurants, 1% cash back elsewhere
- Free FICO score
- Automatic reviews to see if you qualify for an unsecured card
Learn more about the Discover it Secured card here.
Capital One QuickSilver Secured Cash Rewards Card
Best feature: Flexible cash back options
- Annual fee: $0
- Minimum $200 security deposit
- 1.5% cash back on every purchase
- Redeem your cash back rewards via check, a statement credit, or gift cards.
- Automatic credit line reviews.
Learn more about the Capital One QuickSilver Secured Cash Rewards card here.
Capital One Platinum Secured Credit Card
Best feature: Flexible minimum deposit requirements
- Annual fee: $0
- Deposit $49, $99, or $200 for a minimum $200 credit limit.
- No foreign transaction fees
- Reports to the three major credit bureaus
- Automatic credit line reviews.
Learn more about the Capital One Platinum Secured card here.
Which Credit Card Should I Choose?
We’ve covered no fewer than fourteen credit cards on our above list, so you may be wondering how to decide which card is the best one for you. Here are some factors to consider, which will help you narrow down your choices.
Annual Fee: Most of the cards on our list are no annual fee cards, which is what I recommend you choose. Unless you’re spending a lot of money with a premium rewards credit card (which none of these are), it’s not worth it to pay an annual fee.
Maintenance Fee: Be aware that some credit cards do charge maintenance fees as well. The types of costs of these fees vary with each card. Read the fine print of any credit card contract before you sign up so that you know what maintenance fees you may incur.
Interest Rate: Average credit card interest rates vary from 19.99% to 29.99%, and even higher in some cases. Look for a card with the lowest possible interest rate if you think that you may carry a balance on the card from time to time.
Grace Period: A grace period on a credit card is a period of time in which you won’t be charged interest on a purchase. Many credit cards will offer a grace period of between 21 and 30 days. If possible, choose a card with a longer grace period for maximum flexibility.
Rewards and Other Benefits:
Many credit cards offer cardholder benefits for users. Some examples of cardholder benefits you may find on a credit card can include:
- Cash back rewards
- Points rewards for prizes
- Discounts on popular products, websites, and stores
- Service discounts
Even if you need to get a card with subprime rates and terms, you will likely be able to find a card with at least some type of reward benefit.
Final Thoughts
Building credit with a credit card is not difficult, but it does take diligence and discipline. Once you get your credit card, it’s important to use it every month. Purchase gas, groceries, or other items that you’ve budgeted for with your new credit card. If you don’t have a budget, now’s the time to create a budget.
Lastly, make sure you pay the card in full every month. It’s very important not to adopt an “I can afford the minimum payment” mentality with your credit card. It will help you avoid taking on too much debt.
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