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Are you new to the world of credit cards and looking for the best options to start building your credit? Based on your spending habits, various types of credit cards and rewards programs exist, including travel credit cards and other perks. So, we've put together a list of the best credit cards for beginners to help get you started.
The first step is choosing the right credit card to establish a good credit score and history as a beginner. If you don't have a history of having credit and making payments, it can be difficult to get that first approval. A credit score is a numerical representation of your creditworthiness; lenders use it to determine your creditworthiness for loans, mortgages, and other financial products. A good credit score is essential for future financial endeavors, such as buying a car or a house. By choosing the right credit card and using it responsibly, you can build a positive credit history and improve your credit score.
Before we dive into the best credit cards for beginners, let's first discuss the factors you should consider when choosing a credit card.
Now that you know what to look for in a credit card, let's explore the best beginner options.
The Discover it Secured credit card is an excellent option for beginners with no credit history or a low credit score. This card requires a security deposit, which becomes your credit limit starting at $200. It also offers cashback rewards on purchases and has no annual fee. After seven months, you can potentially qualify to upgrade to an ‘unsecured’ card and get back your deposit.
The Capital One Platinum Credit Card is another excellent option for beginners with a fair to good credit history. It has no annual fee and offers access to a higher credit limit after making your first six monthly payments on time. You're also protected by $0 Fraud Liability if your card is ever lost or stolen
The Citi Double Cash Card is an excellent option for beginners looking to earn cashback rewards. It offers 1% cashback on all purchases and an additional 1% when you pay off your balance. This card also has no annual fee. Also, you can earn up to $200 cash back after you spend $1,500 on purchases in the first six months.
The Chase Freedom Unlimited credit card is popular for beginners due to its generous cashback rewards. It offers 1.5% cashback on all purchases (on up to $20,000 spent in the first year) and has no annual fee. You can also earn 6.5% cash back on travel purchases through Chase Ultimate Rewards®, 4.5% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery), and 3% cash back on all other purchases for up to $20,000 spent in the first year.
The American Express Blue Cash Everyday Card is an excellent option for beginners looking to earn cashback rewards on everyday purchases. Cardholders earn $200 cashback in statement credits after spending $2000 in the first six months. It also offers 3% cash back on U.S. supermarkets, 3% cash back on U.S. gas stations and U.S. online retail purchases, up to $6,000 per category (then 1%), and 1% cash back on all other purchases. This card offers no annual fee and a 0% into APR on purchases and balance transfers within the first 15 months, then a variable APR of 19.24% to 29.99% (see rates and fees).
Choosing the right credit card as a beginner is crucial for establishing a good credit score and building a positive credit history. Consider your credit score, annual fees, interest rates, rewards and perks, and credit limit when choosing a credit card. The top credit cards listed above are great options for beginners, but it's essential to do your own research and choose the card that best fits your financial needs and goals. With responsible use, these credit cards can help you build a strong credit foundation for future financial endeavors.
Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved, or endorsed by any of the entities included in the post.
