Best credit cards for beginners: Editorial reviews
The Capital One SavorOne Student Cash Rewards Credit Card is available to students. It comes with unlimited cash-back rewards — 3% on restaurant, entertainment and grocery store purchases, and 1% on all other eligible purchases — and doesn’t have an annual fee. This card requires fair credit, so you must have at least some credit history to be approved.
Capital One SavorOne Student Card review
The Chase Freedom Unlimited® credit card has a $0 annual fee and a solid rewards program, which is why it’s one of the best beginner credit cards. You can earn 3% at restaurants and drugstores, plus 1.5% on all other purchases. It’s good for travelers; book through Chase Travel to earn 5% back. Unlike many starter credit cards, the Freedom Unlimited also has an intro annual percentage rate (APR) offer. It has the potential to be a one-stop shop, but if you spend a lot in specific categories, another card may provide more value.
Chase Freedom Unlimited Card review
The Capital One VentureOne Rewards Credit Card is designed for people with excellent credit. It doesn’t have an annual fee, and it offers a 0% intro APR. You can earn a welcome bonus of 20,000 miles if you spend a minimum of $500 in the first three months. This card is best if you’re a traveler — you’ll earn 1.25 miles per dollar spent, which you can redeem for bookings made through the Capital One Travel portal or other travel purchases. Other travel cards can easily provide more value, but if you don’t travel often and/or don’t want to pay an annual fee, the VentureOne could be a good option.
Capital One VentureOne Credit Card review
The Capital One Quicksilver Student Cash Rewards Credit Card has a $0 annual fee and offers cash-back rewards. It has a simple rewards structure where every eligible purchase earns 1.5%. Choose from flexible redemption options, including cash back and gift cards. You must be a college student to apply. If you’re willing to keep track of bonus categories, a different card may provide more value (depending on what you spend the most on).
Capital One Quicksilver Student Card review
The Blue Cash Everyday® Card from American Express helps you earn rewards on ordinary purchases. You can earn 3% cash back on purchases at U.S. supermarkets, U.S. online retailers and U.S. gas stations up to $6,000 per year (then 1%), plus 1% on everything else. The card has no annual fee and comes with a solid intro APR offer. You’ll already need to have a decent credit history and a good credit score to qualify, but if you’ve already done that hard work, this could be a good bridge into the world of cash-back credit cards.
Amex Blue Cash Everyday Credit Card review
If you can’t get approved for a traditional credit card, the zero-annual-fee Capital One Platinum Secured Credit Card could be a good option to help you build your credit history. You must make a security deposit of $49, $99 or $200 to open the card with a $200 limit. In as little as six months, Capital One will conduct a credit-line review. If you’re eligible, the bank may refund your deposit and move you up to a standard Capital One Platinum Credit Card. It doesn’t earn rewards and has a very high APR, but it could be a decent way for you to work on building up that credit score.
Capital One Platinum Secured Credit Card review
The Capital One Quicksilver Secured Cash Rewards Credit Card has a minimum deposit of $200 and is geared toward people with limited or fair credit. Purchases earn 1.5% cash back — an unusual perk for a secured credit card. Quicksilver Secured cardholders are also eligible for automatic credit-line reviews, so you could be upgraded to a standard Quicksilver card.
The Self - Credit Builder Account with Secured Visa® Credit Card offers one of the most unique beginner credit cards on the market. To get it, you’ll need to open a Self Credit Builder Account and make at least three on-time deposits. Once you have at least $100 in Self savings, you can open the Self Visa card without a hard credit inquiry. This process takes time, but it may be worthwhile if you don’t qualify for another card.
Self Secured Visa Credit Card review
The Chime Credit Builder Secured Visa® Credit Card is a standard secured card that doesn’t require a credit check. However, you’ll need to open a checking account with Chime and make direct deposits of at least $200. Move money into your Credit Builder account to determine the credit limit. Chime doesn’t charge interest or annual fees.
Chime Credit Builder Card review
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
What is a starter credit card?
A starter credit card is intended specifically for people who have limited or no credit history. Most come with relaxed approval criteria, making them easier to get than standard credit cards. The best starter credit cards give you access to credit, but more importantly, they help you build a credit profile.
How do beginner credit cards work?
Beginner credit cards give you access to a line of credit. You can charge purchases up to the credit limit and pay them back later. If you carry a balance, most card issuers charge interest on the unpaid sum. The interest depends on your annual percentage rate (APR) — the amount you pay to use credit.
Since beginner credit cards tend to have higher APRs than other cards, it’s a good idea to pay off your balance every month. That way, you won’t get hit with large interest fees. If you qualify for a card with 0% intro APR, remember that it will increase after the introductory period ends.
As you use your first credit card, the issuer reports your activity to the major credit bureaus — Experian, TransUnion and Equifax. If you make payments on time, stay within your credit limit and minimize the amount of credit you’re using, you can increase your credit score.
Pros and cons of starter credit cards
Thinking about opening a credit card for beginners? Make sure you’re aware of the pros and cons:
Why should I get a beginner credit card?
You might consider a beginner’s credit card if you’re new to credit; these cards are ideal if you’ve never had a credit card or a loan. They can also be useful if you need to rebuild your credit.
The goal of starter credit cards is to establish a solid credit history. That way, it’s easier to get approved for home loans, auto loans and have access to the best credit cards.
Better credit can also help you:
- Rent a home
- Get a job
- Get a cell phone contract
The best beginner credit cards also come with additional perks such as rewards and fraud protection. Many include car rental insurance, extended warranties and purchase protections.
Types of starter credit cards
If you’re searching for a first-time credit card, there are a few types to consider.
Student credit cards
Student credit cards are exclusively for students and you may be able to qualify with a very limited or nonexistent credit history. Shop around — credit card companies know that students can turn into long-term customers, so they often offer special products and perks.
Secured credit cards
Secured credit cards require you to put up a security deposit in cash. This money serves as collateral; if you don’t make payments, the card issuer keeps your deposit. These cards are relatively easy to get even if you have a low credit score or a spotty credit history. As long as you make payments on time, they offer an effective way to build credit.
Unsecured credit cards
Unsecured credit cards don’t require a security deposit. However, the issuer will assess your credit score, credit history, income and debt before making an approval decision. Starter cards often have fewer approval requirements, but they may have high APRs and lower credit limits.
How to choose the best starter credit card
To help you choose the best first credit card for your needs, keep the following factors in mind.
Credit building features
Make sure the card issuer reports to all three credit bureaus — that way, making timely payments will have the biggest impact on your credit score. While you’re at it, check to see if you can upgrade to a better card with the same issuer after a period of responsible use.
APR
The APR on starter cards is usually higher than the rates charged on standard cards, but it’s still a consideration. After all, the APR will have a big impact on how much you pay to carry a balance. If you have a good credit score, look for cards that offer lower rates for well-qualified applicants.
Fees
Read the card terms to understand the fees you’ll pay if you take a cash advance, make a late payment or transfer a balance from another card. Most beginner cards have a $0 annual fee, but it’s a good idea to verify the amount. If you’re a traveler, make sure to check foreign transaction fees; they can add up over the course of one vacation.
Rewards
Does the card offer a rewards program? If so, does it match your spending patterns? Look at redemption options carefully — some rewards cards will send a check or give you statement credits, while others have more limited options. It’s also important to look at welcome offers; if you can meet the spending threshold, these offers can pay off in extra rewards.
Benefits
Check the benefits that come with the card. Common options include:
- Travel insurance
- 24/7 travel assistance
- Purchase protection
- Extended warranties
- Fraud protection
- Credits for services
How to apply for a beginner credit card
You can apply for starter credit cards online — our card comparison tool, CardMatch, is a great place to evaluate offers and start the application process.
Here’s what you can expect to provide during the application process:
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Age verification. Most cards require you to be at least 18 years old.
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Social security number. You’ll need to provide your SSN during the application process.
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Income. Plan to provide information about your employment and income.
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Contact information. Be prepared to give your phone number and address.
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Credit history. You don’t need to worry about this part — the bank will pull your credit report and look at your history of payments and borrowing.
Every application you submit results in a hard credit pull; applying for multiple starter credit cards can hurt your credit score.
How to use a starter credit card
If you don’t use a credit card responsibly, having one can cause more harm than good.
Here are a few best practices to help you get the most value from your beginner credit card:
Alternatives to credit cards
If you’re struggling to qualify for a starter credit card, there are a few other ways to manage your finances.
Debit cards
A debit card lets you make purchases with a card using the funds in your bank account. However, it won’t help you build credit.
Store credit and charge cards
These cards can be used at a single retailer or family of brands. They’re easy to get approved for, but often have high interest rates. As long as you make your payments regularly, they can help you build credit.
Personal loans
Making payments on a personal loan is a good way to build credit. Your bank or credit union likely offers several options. If you can’t get approved, look for credit-building loans through brick-and-mortar and online banks.
Becoming an authorized user
Becoming an authorized user on a family member’s or friend’s credit card can help you build credit. However, the cardholder’s actions can impact your credit — missed payments or a high credit utilization rate can affect you negatively.
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