Capital One has a new credit card for consumers with a limited credit history. The CapOne card is a bit better than the kind of offer you typically see in the category of bad credit credit cards, because Capital One is not faulting you with a prior bankruptcy or non-payment of loans. Instead, they’re giving you a card with a high APR, but decent rewards, and taking a flyer on you being capable of spending responsibility.
This is a much better option than scoring a secured credit card, which is another option for people with little or no credit history, because secured credit cards tend to require you to deposit quite a bit of collateral upfront, usually an amount equal to the credit line they will extend you. After that, even though you are sort of spending “your own money”, you’ll still be penalized for not paying off what you spent at the end of each month.
Pros: The card has no annual fee, which is great for a card in this category, and also has an above average rewards program, with 2% on travel and 1% on everything else.
Cons: The card has a high APR, but this is to be expected when you have limited credit.