The best credit cards for beginners are credit cards designed for persons with bad or restricted credit to create and improve their credit position (including students and immigrants). You can establish credit and save money with the best credit cards for beginners.
The best credit cards for beginners often include a $300+ starting credit limit, annual fees as low as $0, and rewards of up to 1% cash back on purchases. This is based on research and years of experience.
To pay as little in fees and interest as feasible should be your goal while choosing between these starter credit cards. As long as you remember to pay your bills on time and in full each month, you may build credit cheaply with the correct first-time credit card. You might be able to qualify for one of the best overall credit cards on the market within a few years.
What’s the Best Credit Card for Beginners?
Each person’s particular situation and needs will determine the best credit card for beginners. If you have a limited credit history, bad credit due to loan default or bankruptcy, or if you are a college student or business owner, you may be eligible for a card. The following are the most common types of credit cards for beginners:
#1. Student Credit Cards
College students with a little credit history should apply for these cards. Most credit cards have a smaller limit than traditional cards. However, they are an excellent way to build credit.
#2. Secured Credit Cards
These cards are intended for people who have bad or restricted credit and need to build or rebuild their credit. A security deposit of at least $200 is required for secured cards. As you exhibit prudent credit card usage, the majority will let you migrate to an unsecured card and reimburse your deposit.
#3. Simple Rewards Cards
Most cash-back credit cards demand strong credit. Consider a simple cash-back card like the Discover it® Cash Back if you have a strong credit history and a good credit score.
#4. Business Credit Cards
These cards are intended for business owners who want distinct credit cards for business purchases alone. The Capital One Spark Classic for Business is one possibility. It’s uncommon to find a business card for folks with fair credit.
Best Credit Cards for Beginners
You should start slowly with credit cards if your credit score is low or you have a little credit history. Credit cards for beginners are specifically designed for credit novices, and many of them can be approved with medium credit, low credit, or no credit at all.
If you’re new to credit, here are some of the best credit cards for beginners to consider, including a few that provide perks.
The Best Beginners Secured Credit Cards to Build Credit of 2023
#1. Discover it® Secured Credit Card
The Discover it® Secured Credit Card outperforms the competition in the secured credit industry. We enjoy this card for folks who need to rebuild their credit since it offers an unlimited 1% cash back rate on all transactions, 2% cash back at petrol stations and restaurants on up to $1,000 in combined purchases per quarter, no penalty APR, and no annual fee.
Pros
- There is no annual fee.
- Earning cash-back rewards on a secured card is unusual.
- Free FICO score access each month
- Cashback Match will double your cash-back rewards after the first year.
Cons
- The rewards are limited.
- Many of the benefits offered by unsecured cards are not available with secured cards.
- Refundable deposits are required for secured cards.
#2. U.S. Bank Altitude® Go Visa® Secured Card
If you spend the majority of your money on eating and takeaway, this is one of the safest credit card offers available.
Pros
- All three major credit bureaus are alerted.
- There is no annual charge.
- It also includes a $15 annual streaming credit for qualifying services.
Cons
- A $300 minimum deposit is required.
- Non-bonus categories receive poor rewards.
- Other secured cards may provide benefits that are more in line with your spending habits.
#3. Capital One Quicksilver Secured Cash Rewards Credit Card
This card may be worth considering for those who don’t mind paying a security deposit to have access to rewards earning.
Pros
- you will receive an unlimited 1.5% cash-back reward On all qualified purchases.
- There are no foreign transaction costs.
Cons
- APR is high.
#4. U.S. Bank Cash+® Visa® Secured Card
It earns rewards, which is uncommon among secured cards, and you can choose your bonus adventure from a list of various everyday common spending areas.
Pros
- A protected card with a high reward possibility
- There is no annual charge.
- Convenience benefits
Cons
- A deposit is required as with any secured card.
- High variable APR
- Fees for Foreign Transactions: 3% of each foreign transaction
The Best Credit Cards for Beginners to Build Credit of 2023
#5. Petal® 1 “No Annual Fee” Visa® Credit Card
By appropriately using the Petal 1 Visa Credit Card, those with less-than-perfect credit may be able to improve their credit history. It’s one of a small number of credit cards available to people with bad credit that doesn’t need an upfront security deposit.
Pros
- There is no need for a security deposit.
- There is no annual charge.
- Limited rewards program
Cons
- Rewards are only accessible to certain merchants.
- There is no balance transfer option available.
#6. Tomo Credit Card
The Tomo Credit Card considers alternative metrics when evaluating your application, so it’s worth considering if you don’t have a prior credit history
The Tomo Credit Card considers alternative metrics when evaluating your application, so it’s worth considering if you don’t have a prior credit history Furthermore, because this card reports to the three major consumer credit bureaus, using it responsibly can assist you in establishing good credit.
Pros
- No credit check required
- There are no APR fees.
Cons
- Some financial institutions may not be easily linked to your account for approval.
- Spending using a credit card does not result in any benefits.
- Other credit cards might provide higher benefits.
- Preapproval is required before submitting a card application.
#7. Avant Credit Card
For people with low or poor credit, Avant offers an affordable solution. While there is an annual fee of $59, there are no extortionate charges such as processing or application fees or monthly maintenance fees. Because it is an unsecured card, no deposit is necessary, and they may offer to boost your credit limit if you use it responsibly. The APR is high, and there are no rewards, but this is standard for a card of this type.
Pros
- Check to see whether you can get the card without jeopardizing your credit.
- For people with fair credit
- Reports to all three major credit bureaus
Cons
- Product terms can differ depending on where you got your offer, making it difficult to determine if you’re getting the best deal.
- Balance transfers are not permitted.
- There are no incentives or other relevant benefits.
The Best Credit Cards for Beginners for Students to Build Credit
#8. Discover it® Student Cash Back
Here’s a wonderful opportunity for students with ordinary or limited credit to gain credit management expertise. This card gets an “A” from us since it has no annual fee, no penalty APR, and up to 5% cashback returns in rotating categories (up to a quarterly cap with enrollment, 1% back on other transactions).
Pros
- After enrollment, you will receive 5% cash back on rotating bonus categories.
- Cash-back match for the first year
Cons
- The 5% bonus cashback rate is restricted to $1,500 in spending per quarter.
- Bonus categories must be activated every quarter.
- Base reward rate of 1%
#9. Discover it® Student chrome
The Discover it® Student chrome is a great place to start if you’re a student trying to build credit. You’ll get a respectable rewards program and a modest APR, as well as no annoying annual fee.
Pros
- There is no annual charge.
- Earn rewards while building credit
- At the end of your first year as a cardholder, any cash back earned is automatically matched.
- APR Introductory Offer
Cons
- At the top level, reward earning is limited to $1,000 in purchases per quarter.
- In comparison to other student cards, the rewards are not as great.
#10. Deserve® EDU Mastercard for Students
The Deserve EDU Mastercard, which has no annual fee and a flat 1% cash-back incentive, is an appealing option for international students or students without a credit history. There are better student cards available for folks with a good credit history.
Pros
- There is no annual charge.
- There are no foreign transaction costs.
- Beneficial features such as cell phone protection
- Because it does not require a Social Security number to apply, international students are eligible.
Cons
- Cash-back benefits are limited to 1%.
- An unusual welcome bonus
Advice on Using Credit Cards for Beginners
- Don’t make a hasty decision. There are numerous products available. Comparing beginner credit cards should take some time. If, after a first review, a card does not appear to be a good fit for you, go on to the next one. Take your time and be sure about the card you choose.
- Search for credit cards with no annual fee. Although there are many fantastic cards with annual fees available, it’s best to start with one that doesn’t.
- Make the most of your situation. There are credit cards designed exclusively for college students with little to no credit history. Use your student status to your advantage, since it may qualify you for a better card than you would normally qualify for, like the Discover it® Student Cash Back.
- Use your card wisely. It takes time to build credit. Make your monthly payment on time to consistently exhibit prudent credit card use. Avoid bringing your credit card amount up to the limit as well. Your credit score will suffer as a result of both of them.
- Fully pay off your balance each month. While paying on time is essential, paying down your balance in full each statement cycle is much better. This means you will not be charged interest on your purchases.
- Don’t cancel your credit card. You’ll want to keep your first credit card open. The average age of your credit card accounts is taken into account by issuers. It’s a good idea to keep your initial card account open, even if you upgrade to a better card once you’ve established good or exceptional credit.
What kind of credit card should you start with?
If you plan to use your credit card for emergencies or if you have an irregular income and carry a balance from time to time, a card with an introductory 0% APR and ongoing low-interest rate could be a suitable fit for you. A balance transfer offer may enable you to repay a high-interest debt interest-free.
What are the easiest credit cards to be accepted for?
The OpenSky® Secured Visa® Credit Card, which requires no credit check for new applications, is the easiest credit card to get approved for.
How to open a credit card with no credit?
How to Get a Credit Card Even if You Have Bad Credit
- Request a Secured Card.
- Make yourself an Authorized User.
- Consider adding a co-signer.
Can I get a credit card without a salary?
Yes. For those with no income or credit history, a cosigner can assist in obtaining a credit card on their own through a secured or student credit card option. Before deciding on an option that would necessitate the help of another person, confirm that the individual being requested is comfortable entering into a financial relationship.
How can I get credit for the first time?
Here are four crucial actions to help you create a strong credit history.
- You must pay your bills on time and in full.
- Take into account credit-building tools.
- Use only a portion of your credit.
- Check your credit once a year.
How much is the first credit limit?
According to Equifax, the typical credit limit on these retail cards is $2,000 to $2,500, but credit limits can be substantially lower — in some cases as low as $1,000 — depending on the issuer. Because many people apply for store cards as their first credit cards, your first credit limit likely be minimal.
What is needed to apply for a credit card?
To apply for a credit card, you will need the following:
- Full legal name.
- Your SSN and/or ITIN.
- Mailing address.
- Your gross annual income.
- Employment status.
- Housing costs.
- Phone number.
- Determine your credit health
Conclusion
We continually examine over 1,500 credit card offers based on their rewards, fees, interest rates, special features, and approval requirements to discover the best credit cards for beginners. This allows us to have an up-to-date list of the best credit cards for beginners of all kinds, from student starter cards to the best rewards cards for novices.
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- BEST CREDIT CARDS WITH CASH BACK 2023
- The BEST CREDIT CARDS FOR FAIR CREDIT 2023 (Detailed Guide)
- WHAT IS A SECURED LOAN? How To Obtain One
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