When it comes to establishing a good credit score, using a credit card responsibly is one of the most effective ways. However, if you are new to the world of credit, choosing the right credit card can be a daunting task. Here’s a look at what the best credit cards for beginners usually offer, plus five credit cards that can help you get your credit life started off right.
How to find the best credit cards for beginners
If you’re new to using credit cards, it’s hard to know what to look at to make sure the options you’re considering are a good fit based on your needs. However, there are some strategies that usually help.
First, check the interest rate. As a beginner, you may not qualify for the lowest rates available in the market. However, getting the rate as low as possible does make a difference, so don’t overlook the APR when evaluating your options.
Next, look for cards that report to all three credit bureaus. If you’re trying to build your credit history, having an account in good standing that appears on all of your credit reports helps you build a broadly positive credit history over time.
Next, consider rewards programs. Some credit cards come with a variety of perks, such as the ability to earn points or cash back on purchases.
Additionally, look at the company’s reputation, particularly when it comes to customer service. Good customer service can be vital if you have questions or problems with your card. You may also want to get recommendations from friends or family members who have credit cards, as they may have valuable insights to share.
Finally, always read the terms and conditions of any credit card you are considering before making a final decision. This ensures that you know the pros and cons that come with the card, allowing you to make sure it’s right for you.
5 credit cards that will help you start your credit life
1. Discover it a secure credit card
If you have a limited credit history or no credit at all, a secured credit card can be a great option to start building your credit. The Discover it Secured Credit Card is one of the best secured credit cards available, and an excellent option for people who are new to credit.
This card requires a security deposit that acts as security and sets your credit limit. You can choose a security deposit between $200 and $2,500, and your credit limit is equal to the deposit amount. With responsible use, you may eventually qualify for a higher credit limit and consider getting an unsecured credit card.
One of the best things about the Discover it Secured credit card is that it offers cash back rewards on eligible purchases. You’ll earn 2 percent cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1 percent cash back on all other purchases. Plus, Discover will match all the cash back you earn at the end of your first year.
The card has no annual fee, and it also offers free access to your FICO credit score, which can help you track your progress as you build your credit history.
2. Capital One QuicksilverOne Cash Rewards Credit Card
The Capital One QuicksilverOne Cash Rewards Credit Card is a premium option for people with average credit who want to earn cash back rewards on their purchases. It offers 1.5 percent cash back on all purchases, and rewards don’t expire as long as the account is open.
The fee for this card is $39 annually, but it also provides benefits like fraud coverage, travel accident insurance, and extended warranty coverage on eligible purchases. In addition, Capital One provides access to CreditWise, a credit monitoring tool that can help you monitor your credit score.
One thing to keep in mind with the Capital One QuicksilverOne Cash Rewards credit card is that it’s designed for people with average credit. If you have a limited or no credit history, this card may not be approved.
3. Petal 1 Visa Credit Card
The Petal 1 Credit Card is a solid option for people who are new to credit or who have little credit history. It has no annual fee, and it also offers cash back rewards on qualifying purchases. The card also provides access to a credit score dashboard, which can help you track your credit score over time.
What sets this card apart is that it uses an alternative underwriting process that takes into account factors beyond just your credit score, such as your income and spending patterns. This approach can help people who may not qualify for traditional credit cards get approved and start building their credit.
With the Petal 1 Visa Credit Card, you can earn 2 to 10 percent cash back on qualifying purchases. The card also offers a mobile application that makes it easy to keep track of your spending and payments.
4. Discover it as student cashback
The Discover it Student Cash Back card is an excellent option for college students who are new to credit or don’t have a great credit history. This card offers cash back rewards on qualifying purchases, and has no annual fee.
As a student, you can earn 5 percent cash back on rotating categories each quarter (up to $1,500 in purchases each quarter) and 1 percent cash back on all other purchases. Plus, Discover will match all the cash back you earn at the end of your first year. This card also offers a $20 statement credit for each academic year if your GPA is 3.0 or higher for up to the next five years.
One thing to keep in mind is that the Discover it Student Cash Back card is designed for students, so you’ll need to provide proof of enrollment when applying. Also, if you are under the age of 21, you may need a co-signer for this card. But on a good note, no credit score is required, making this a solid choice for students without a credit history.
5. OpenSky Secured Visa credit card
The OpenSky Secured Visa credit card is another great option for people with little or no credit history. This card requires a security deposit, which will determine your credit limit. The minimum deposit is $200, and your credit limit can be up to $3,000.
This card has no credit check, which means you can get approved even if you have a low credit score or no credit history. In addition, the OpenSky Secured Visa credit card reports to all three major credit bureaus, which can help you build your credit history over time.
The card fee is $35 annually, but it also offers benefits like fraud protection and the ability to set up automatic payments. This card can be a good option if you’re looking to establish credit and don’t have a lot of money to put down as a security deposit, so it’s worth considering.
Do you know of any other options that should be on your list of best credit cards for beginners? Do you use any of the above credit cards and want to tell others about your experience? Share your thoughts in the comments below.
Read more:
- Do you not have credit worse than bad credit?
- How to build credit without getting into debt
- What Credit Building Program Should I Use?
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