Can I get credit cards with no deposit?
Quick insights
- Many credit cards do not require a deposit to open the account.
- A credit card normally has a credit limit, which is the maximum amount that can be spent using the card.
- The credit limit is set by the card issuer when the account is opened, and the customer agrees to the terms and conditions.
Evaluating the variety of credit cards to determine which one is right for your first credit card can seem daunting. While the basics of applying for a credit card are discussed on consumer finance websites, deciding which is the best card for building your credit may not be so clear.
To help people new to credit cards, some issuers offer starter cards, which includes student credit cards. One difference between a starter card and a regular credit card may be the cardmember’s goal of building credit. Starter cards, including student credit cards, may initially come with fewer rewards or benefits than credit cards designed for more experienced consumers.
What is the difference between secured credit cards and other types of cards?
Secured credit cards, which require the prospective cardmember to deposit a sum of money as collateral, may be considered a kind of starter card. Secured credit card deposits can vary depending on the card and issuer.
By demonstrating an ability to make payments on time, the individual can typically move to an unsecured card with a potentially higher credit limit and benefits. Please note that Chase does not offer secured credit cards.
Unsecured credit cards explained
There are many starter credit cards that allow cardmembers to build up their credit without having to put money down as collateral. These include store credit cards, low-limit credit cards, and student credit cards. It might be important for students to understand the difference between student and other types of starter credit cards.
Student Credit Cards
A student credit card is a type of starter card designed for young people new to credit cards. While having taken on a student loan or demonstrating a history of using and paying down a store credit card can be helpful to your application, some cards can approve students without any credit history.
Besides standard identifying information such as an address, a phone number and Social Security number or driver’s license ID number, student credit card applications may ask for proof of being a university or college student. Such proof could include a scanned copy of your student ID, a college transcript or a certificate of enrollment.
The minimum age to apply for a student credit card is 18.
While many student credit cards come with a lower limit, using your card responsibly is a pathway to more and better credit card offers. One way to demonstrate responsible use of a card is to make consistent monthly payments that are not only on time but are above the minimum required payment. Over a period of months, best practices can lead to a steady improvement in your credit score. Please note that Chase does not offer student credit cards.
Unsecured credit cards with a co-signer
Having a parent, a working spouse, or other trusted figure act as the co-signer can help you qualify for your first unsecured credit card. However, please note that Chase does not offer credit cards with a co-signer.
Once you have your first card, some ways to help build up your credit history include paying your balances on time and making payments over the monthly minimum required. It also helps to keep your level of credit usage under 30% of your card limit. So as an example, if your card has a $1,000 limit, try to avoid carrying more than a $300 balance at the end of each month.
