FIRST CREDIT CARD: What It Is and All You Need to Know

first credit card
PaySpace Magazine

Obtaining your first credit card for schools or young adults is a great idea because responsibly using a credit card is the simplest way to build a good credit score. The best first credit card for schools or young adults has no annual fees, has a high approval rate for inexperienced applicants, and reports monthly to the three major credit bureaus. So, good first-time credit cards are available, affordable, and capable of assisting you in saving money while building credit. This post will examine the best first credit card company for schools and young adults.

Getting the best first credit card for schools or young adults can be difficult, however, because there are so many first-time offers to consider. To assist, we compared over 1,500 credit card offers in search of the best first credit card for various types of people (students or young adults) with no credit history. As you’ll see, “secured credit cards” are some of the best first-time credit cards. To open an account, a refundable security deposit is required. However, because of the deposit, approval for a secured card is almost certain.

If you want to build a good credit score, you’ll need to use your first credit card responsibly, whether it’s secured or unsecured. So, each month, pay your bill on time and in full. You’ll be able to upgrade your first credit card in no time if you do this.

Best First Credit Card

The best first credit card for schools or young adults will be determined by a number of factors, including whether you’re just starting out with credit or already have some credit history, as well as factors such as your willingness to pay an annual fee and your employment status.

Your goal, regardless of who you are or how much money you make, should be to find the best first credit cards for your specific needs and financial situation. You want a card that will assist you in establishing and rewarding good credit card habits from the start.

#1. Tomo Credit Card

The Tomo Credit Card evaluates your application using alternative metrics, so it’s worth considering if you don’t have a prior credit history. Furthermore, because these cards report to the three major consumer credit bureaus, using them responsibly can assist you in building good credit.

Pros

  • No need for a credit check.
  • There is no annual fee.
  • No APR fees.

Cons

  • Not every financial institution can be easily linked to your account for approval.
  • Other credit cards may provide better rewards and other benefits.
  • Must be pre-approved before submitting a card application

#2. Petal® 1 “No Annual Fee” Visa® Credit Card

Those with less-than-perfect credit may be able to improve their credit profile by responsibly using the Petal 1 Visa Credit Card. It’s one of few credit cards available to people with bad credit that don’t require an upfront security deposit.

Pros

  • There is no need for a security deposit.
  • There is no annual fee.
  • A restricted rewards program

Cons

  • Rewards are only available at certain merchants.
  • There is no balance transfer option available.

#3. Avant Credit Card

Avant makes a reasonable offer to those with limited or poor credit. While there is an annual fee of $59, there are no other extortionate charges such as processing or application fees or monthly maintenance fees. Because it is an unsecured card, no deposit is required, and they may offer to increase 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

  • Determine whether you are pre-qualified for the cards without affecting your credit.
  • Intended for those with fair credit.
  • Submission of reports to all three major credit bureaus

Cons

  • Product terms may differ depending on where you receive your offer, making it difficult to determine whether you are receiving the best terms.
  • Balance transfers are not permitted.
  • There are no rewards or other meaningful perks.

#4. U.S. Bank Altitude® Go Visa® Secured Card

If you spend the majority of your money on dining and takeout, this is one of the best first-secured credit card offers available.

Pros

  • Submissions to all three major credit bureaus
  • There is no annual fee.
  • Includes a $15 annual streaming credit for select services.

Cons

  • A $300 minimum deposit is required.
  • Non-bonus categories receive mediocre rewards.
  • Other secured cards may offer rewards that are more in line with your spending habits.

#5. 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 gain access to rewards earning.

Pros

  • A 1.5% cash-back reward on all eligible purchases is available indefinitely.
  • There are no foreign transaction fees.

Cons

  • Excessive APR

Schools First Credit Card

Your first credit card for schools will not be a flashy card with a large signup bonus. They can, however, help you build credit quickly. One of the cards suggested is a first secured credit card for schools, which requires a refundable deposit to guarantee the amount borrowed.

#1. Deserve® EDU Mastercard For Students

The Deserve® EDU Mastercard for Students is an unsecured credit cards with no annual fee and no security deposit required. International students who do not have a Social Security Number are still eligible to apply for the card.

The Deserve® EDU Mastercard comes with a free year of Amazon Prime Student, 1% back on all purchases, and no international transaction fees. In addition, you’ll receive cell phone protection worth up to $600, which you can use if your phone is lost or stolen.

#2. Bank Of America Cash Rewards Card For Students

The Bank of America Cash Rewards Credit Card for Students provides rewards on par with many standard credit cards. Cardholders earn 3% cash back in their preferred category, 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases.

Other advantages of this card include a $0 annual fee and a 0% APR for 12 billing cycles. In addition, students who spend at least $1,000 on purchases with the card within the first 90 days will receive a $200 cash rewards bonus.

#3. Wells Fargo Cash Back College Card

The Wells Fargo Cash Back College Card offers 3% cash back at gas stations, supermarkets, and pharmacies. Every other purchase earns 1%. Rewards can be redeemed for travel, gift cards, merchandise, and other items in addition to cash. The Wells Fargo Cash Back College Card, like the other cards on this list, has no annual fee.

#4. Capital One Journey Student

Capital One’s Journey Student Credit Card has no annual fee and offers 1% cash back on all purchases. If you pay your bills on time, the cashback percentage increases to 1.25%. On-time payers will also receive a $60 credit for a streaming subscription ($5 per month).

Capital One also promises to start considering accounts for credit limit increases within 6 months. This is advantageous because a higher credit limit automatically results in a lower credit utilization rate as long as your spending remains constant.

#5. Capital One Secured Mastercard

Capital One’s Secured Mastercard could be an excellent first credit card for high schools. A minimum refundable deposit of $49, $99, or $200 is required. Your initial credit limit will be $200, regardless of the deposit you set. So you might be able to get approved for a partially secured version of this card right away.

The first credit card for schools is usually not as exciting as some of the most popular travel or cash-back cards. However, a low-key start can help you improve your credit and build a solid financial foundation.

It is critical to understand the risks of credit cards, particularly how they can lead to overspending and debt cycles. However, if you use your best first credit card for schools or young adults responsibly, you will build a positive credit history. And that could help you qualify for the best mortgage, car loan, or other types of financing rates in the future.

Best First Credit Card for Young Adults

We believe that these are the best first credit cards for schools or young adults to consider, whether you’re a college student, a young adult, or someone looking to build credit for the first time. Some of these cards will even provide you with rewards and perks as you use them.

#1. Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® Card is the gold standard in travel rewards, earning 5x points on travel purchases via Chase Ultimate Rewards®, 3x points on dining, and 2x points on all other travel purchases. And points are worth 25% more when redeemed for travel through Chase Ultimate Rewards®, so the 60,000 point sign-up bonus is worth $750 in travel.

#2. Citi® Double Cash Card – 18-month BT offer

The Citi® Double Cash Card – 18-month BT promotion includes one of the highest cash-back rewards rates available to cardholders. Earn $200 cash back after spending $1,500 on purchases within the first 6 months of account opening for a limited time.

#3. Ink Business Cash® Credit Card

The Ink Business Cash ® Credit Card is ideal for small businesses. Cardholders can earn rewards without worrying about an annual fee thanks to a large upfront bonus and an all-around excellent rewards program.

#4. Chase Freedom Unlimited®

The Chase Freedom Unlimited® card starts with a fantastic intro offer: earn an extra 1.5% cash back on everything you buy (up to $20,000 spent in the first year) – worth up to $300 in cash back! With a 0% intro APR on purchases and balance transfers for 15 months (standard 17.24%–25.99% Variable APR) and a robust everyday rewards program, it’s a fantastic option for anyone looking to save a lot of money on everyday purchases.

First Credit Card Company

The bank that extends the consumer’s credit line is known as the card issuer. In other words, the card issuer is the financial institution that can approve (or deny) your application for a new credit card.

Your credit card issuer also manages and oversees your credit card account, and they are the company you contact if you have a customer service question or are having difficulty repaying your credit card balance.

So, who are the major card companies? The top ten financial companies in the United States that issue credit cards are as follows:

  • American Express
  • Bank of America
  • Barclays
  • Capital One
  • Chase
  • Citi
  • Discover
  • Synchrony
  • U.S. Bank
  • Wells Fargo

There are numerous first credit card company options, but nearly all of them operate on one of four major networks: American Express, Discover, MasterCard, or Visa. Numerous card issuers provide revolving credit accounts and lend money to consumers in various forms through credit cards.

What is the oldest credit card?

The Diners’ Club, Inc. introduced the first universal credit card, which could be used at a variety of establishments, in 1950. The American Express Company established another major card of this type, known as a travel and entertainment card, in 1958.

What company invented the credit card?

BankAmericard

Bank of America introduced the BankAmericard in Fresno, California, in 1958, which became the first successful, recognizably modern credit card.

What was the first credit card in the United States?

The Diners’ Club, Inc. introduced the first universal credit card, which could be used at a variety of establishments, in 1950. The American Express Company established another major card of this type, known as a travel and entertainment card, in 1958.

Which bank gives credit cards easily?

Bank of America and Capital One are two of the more straightforward banks to obtain credit cards from. Both of these major banks are popular choices for first credit cards, most likely because they offer credit cards for all credit levels.

What were the first credit cards?

These products paved the way for the first true credit cards, the Diners Club charge card introduced in 1950 and the BankAmericard charge card introduced in 1958. These cards, unlike all previous credit products, could be used at multiple merchants. However, they were still limited in comparison to credit cards today.

Conclusion

Credit cards provide significant benefits in terms of rewards, fraud protection, spending power, and convenience when used responsibly and correctly. Because of the wide variety of credit cards and credit card issuers available, you’ll almost always be able to find a credit card that meets your specific needs, as long as you meet the application and approval requirements. Credit cards can help fund a comfortable and practical lifestyle by making regular payments, remaining vigilant about the risks of overspending, and finding cards with low APRs.

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First Credit Card FAQs

How much money does your first credit card have?

Average credit limits

Because many people apply for store cards as their first credit cards, your first credit limit will most likely be on the low side. Though Equifax reports that the average credit limit on these retail cards is $2,000 to $2,500, credit limits can be much lower — in some cases, as low as $1,000.

How long does it take to build credit?

It usually takes at least six months to obtain your first credit score. It takes longer to establish good or excellent credit.

Who invented debit card?

ATM cards were issued by Barclays in London in 1967 and Chemical Bank in Long Island, New York, in 1969. In 1972, Lloyds Bank issued the first bank card with a personal identification number (PIN) for security, in addition to the information-encoding magnetic strip.

References

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