What is a credit history?
Your credit history is a record of your past borrowing. It includes information such as when you applied for credit, when – or if – you paid it back, and how much credit you are currently able to access. This information shows how you use credit currently and how you have used it in the past, allowing lenders to make an informed judgement on how you might use credit in the future. This may mean that you are more or less likely to get a top credit card because a lender may see a good credit history as something you will keep up or bad credit history as something you will fall back into.
Having no credit history at all means that lenders do not have much data to go off when considering your application. In some cases no credit can be better than bad credit, but it still a barrier to accessing the best credit cards. Fortunately, there are credit cards specifically designed for and marketed at people who are not able to show a long history of borrowing.
Which credit card for no credit history is best for you?
Comparing different credit cards is a key part of getting the best deal for you. Money to the Masses has helped to simplify this process by partnering with Creditec*, an online comparison service. You do not need to trawl through countless different provider websites hunting for the best cashback or lowest fees, as Creditec’s personalised search results will show you the key details you need to know in one place. Your tailored list will also feature the cards that you are more likely to be accepted for, cutting down the chance of any applications you make being rejected. Your search results are built using a soft credit search, so there will be no damage to your credit score. You can start your search by clicking this link*.
The best credit cards for no credit history – October 2024
| Name of card | Representative APR (variable) | Annual fee | Perks | Best for |
| Tesco Bank Foundation Credit Card - Check eligibility | 29.90% | £0 | 5 Tesco Clubcard points for every £4 spent in Tesco, 1 point for every £8 spent elsewhere | Those looking for a card with a competitive interest rate |
| Asda Money Select Credit Card - Check eligibility | 34.90% | £0 | 5% Asda spending back in 'Asda Pounds' (up to £50) in the first 90 days, then 1%, via the ASDA app. 0.3% on spending elsewhere | Those who want to earn rewards while building their credit |
| Capital One Classic Credit Card - Check eligibility | 34.90% | £0 | Up to two optional credit limit increases per year (subject to eligibility) | Those wanting to gradually increase their credit limit over time |
| Post Office Credit Card - Check eligibility | 34.90% | £0 | None | Those looking for a card with a competitive interest rate |
| Virgin Money 12 Month All Round Credit Card - Check eligibility | 29.90% | £0 | None | Those looking for a card with a competitive interest rate |
| Barclaycard Forward Credit Card - Check eligibility | 33.90% | £0 | 3% reduction if you make all payments on time for first year, further 2% reduction if you then do the same in the second year. Plus discounts on live events with Barclaycard Entertainment | Those looking for a credit-builder credit card with interest-rate reduction |
Best credit card for no credit history with a low APR
- Best for: Those who frequently shop at Tesco
- Representative APR: 29.90% variable
- Credit limits: £250 to £1,500
- Perks: 5 Tesco Clubcard points when you spend £4 in Tesco, 1 Clubcard point when you spend £8 elsewhere, track credit score with Tesco Bank CreditView
- Annual fee: £0
- Why we like it: It has a reasonably low APR compared with other credit-builder cards, as well as the added bonus of letting you collect Tesco Clubcard points against your day-to-day spending
Read our full review: 'Tesco Foundation credit card review'
Best credit card for no credit history with rising credit limit
- Best for: Those who have defaults, CCJs or bankruptcy, if not in the past 12 months
- Representative APR: 34.90% variable
- Credit limits: £200 to £1,500
- Perks: No specific perks
- Annual fee: £0
- Why we like it: It offers the potential of two optional credit limit increases per year, if you demonstrate good management of the card
Read our full review: 'Capital One Classic credit card review'
Best credit card for no credit history with an interest-rate reduction
- Best for: Those who want to benefit from a lower APR by using the card responsibly
- Representative APR: 33.90% variable
- Credit limits: £50 to £1,200
- Interest-rate reduction: 3% reduction if you make all payments on time for first year, further 2% reduction after second year
- Perks: Discounts on live events with Barclaycard Entertainment
- Annual fee: £0
- Why we like it: It incorporates text and email alerts to help you manage your card and earn the interest-rate reductions over the first two years
Read our full review: 'Barclaycard Forward credit card review'
Best credit card for no credit history with rewards
- Best for: Those who want to earn rewards while building their credit
- Representative APR: 34.90% variable
- Credit limits: £250 to £5,000
- Interest-rate reduction: N/A
- Perks: Get 1% (5% for the first 90 days) Asda spending paid back in 'Asda pounds' via the ASDA app. 0.3% on spending elsewhere.
- Annual fee: £0
- Why we like it: It offers the potential to build credit and earn rewards via your weekly shop
Read our full review: 'ASDA Money Select credit card review'
How to make the most of credit cards for no credit history
Credit cards designed for people with no credit history may have a higher APR (annual percentage rate) and offer a lower credit limit than the best credit cards, but it is a good idea to pay off any outstanding balance on your card before the end of the billing period, which is usually 56 days, to avoid interest charges. This will also help to build your credit rating as it is an example of responsibly managing your finances. You can read more about building your credit rating using a credit card in our article 'How to build your credit score with a credit card'.
Another way to make the most of your credit cards if you have no credit history is to use the rewards and perks in the most efficient way possible. For example, making sure you shop at the supermarket linked to the card to earn the most points and spending those rewards points in a way that maximises their value. However, you should avoid spending more money chasing extra rewards points, as the points rarely outweigh the cost of the additional spending.
What to consider before you get a credit card for no credit history
The right credit card for no credit history can allow you to access much-needed credit and help you build a credit history. Making your repayments in full and on time and staying well within your credit limit will transform the range of options available to you next time you compare credit cards. However, overspending and missing payments will quickly do the opposite. A key part of using a credit card for no credit history is to show you can spend the money you borrow without exceeding your credit limit and without missing repayments. If you start to miss repayments or are regularly too close to your credit limit, you will quickly find yourself going from having no credit history to having bad credit.
The pros & cons of credit cards for no credit history
Pros of credit cards for no credit history
- Access to credit when you may not be eligible for most other credit cards
- First credit card option for young people or students
- The opportunity to build up a good credit history
Cons of credit cards for no credit history
- Higher APR compared to a low interest credit cards
- Lower maximum credit limit compared to the best credit cards
- Restricted choice of cards available
Alternatives to credit cards for no credit history
If you have no credit history, you could choose not to apply for a credit card at all. If you already have cash in your current account, simply spending on your debit card could be a good option. There are lots of benefits to using debit cards for everyday spending, including cashback, rewards and sign-up incentives. You can also avoid getting yourself into problematic debt, being charged for cash withdrawals and having to pay interest. Read our article ‘Best bank account switching offers, cashback & incentives’ to see what options are available.
You could also apply for an overdraft, which can be an expensive alternative but may work as a short-term option. Read our article 'Overdraft vs credit card: Which should you use, and when?' to learn more.
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