Tech Insider

Our experts answer readers' credit card questions and write unbiased product reviews (here's how we assess credit cards). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

You can get a credit card with average credit, bad credit, or no credit at all. But if your credit score isn't great or you barely have any credit history, you'll have a hard time qualifying for many of the best credit cards. Fortunately, there are beginner credit cards specifically made for credit newcomers, and anyone can apply.

Best Starter Credit Cards Summary

Here are some of the best starter credit cards to consider if you're a credit beginner — including several that earn rewards.

Best Starter Credit Card Details

Best Starter Credit Card Frequently Asked Questions

How do I choose the right beginner credit card?

Choosing the right beginner credit card for you depends on your credit score and where you're at in your credit journey. If you've never had a credit card before, it's likely you'll have to get started with a secured credit card that requires a cash deposit to shore up a small line of credit.

If your FICO credit score is at least "fair," or above 580, on the other hand, you may qualify for a card geared to consumers with average credit.

What are the easiest cards to get approved for?

The easiest cards to get approved for are secured credit cards, if you're just starting out. This type of credit card requires an initial cash deposit to secure a line of credit that is typically for the same amount. For example, you may put down a cash deposit of $500 in order to secure a $500 line of credit.

With the requirement for collateral in place, almost anyone can get approved for a secured credit card regardless of their credit score, even if they're rebuilding credit. Also note that, once you use your secured credit card to establish a reasonable amount of credit history, you can cancel or upgrade your card provided your account is in good standing. At that point, your initial security deposit would be refunded to you.

How do I build credit with a credit card?

To build credit with a credit card, it's best to start the process off slowly, even though it isn't overly difficult. Use your credit card for regular purchases you can afford to pay off each month. When your bill comes due, make sure to pay at least the minimum payment and hopefully your entire credit card balance.

As you make payments each month, those payments will be reported to the three credit bureaus. Over time, you'll build a history of responsible credit use that can help boost your credit score.

How many credit cards should I have?

You can have one credit card or several. It's totally up to you. When you're first building credit, however, it makes sense to limit yourself to a single card. This way, you can spend time building responsible credit habits before you add more cards and complicate your finances.

How quickly can I raise my credit score?

How quickly you'll raise your credit score depends on a whole host of factors including whether you have any credit history at all, whether you have negative marks on your credit report, and the way you handle credit in the short term.

Your best bet is signing up for a credit card that can aid you in building credit, then using it for regular purchases that you pay in full each month. This will help you build a history of on-time payments while keeping your credit utilization low.

What card should I get when I have excellent credit?

You can likely qualify for the best rewards and travel credit cards if you have excellent credit, which means a FICO score above 740. Make sure to compare the best current credit card bonuses of 2023 in terms of their rewards and cardholder perks, and see our best rewards credit cards guide for more info.

Best Credit Cards for Beginners Reviews

When you're ready to start building credit for the first time, it's smart to have a basic understanding of how credit cards can help.

Read our step-by-step guide that shows you how to apply for a credit card and find out more about how to improve your chances of approval if you've never opened a card before. You can check your credit score online for free. From there, you can figure out which credit card can help you build credit that lasts.

Best for Students Who Spend on Dining, Groceries, and Entertainment

If you're a college student who likes to go out, the Capital One SavorOne Student Cash Rewards Credit Card is hard to beat. Cardholders earn 3% cash back on dining, groceries, entertainment, and eligible streaming services with no limits, and 1% cash back on all other purchases. In addition, until November 14, 2024, cardholders earn 10% back on Uber and Uber Eats purchases, and can enroll for a complimentary Uber One membership.

This card is extra appealing because it currently comes with a welcome bonus offer of a Capital One SavorOne Student Cash Rewards Credit Card. It's possible to qualify with limited credit, so if you're new to credit cards it's a solid choice.

You'll also receive surprisingly good benefits for a no-annual-fee student card, including:

  • Price protection***
  • Extended warranty***
  • Car rental coverage***
  • Roadside dispatch***
  • Travel accident insurance***
  • Complimentary concierge services***

Capital One SavorOne Student Cash Rewards Credit Card Review

Best Student Card for Maximizing Rewards

Students who like to maximize rewards should consider the Discover it® Student Cash Back, which is typically available to consumers who don't have an extensive credit history.

Once you're approved, you can enroll to earn 5% cash back up to a quarterly maximum limit spent on purchases in categories that rotate each quarter, plus 1% back on everything else Discover It Cashback rotation. Like other cash-back credit cards from Discover, this card will also match all the rewards you earn at the end of the first account year.

This card also lets you see your credit score for free each month, and you'll get Social Security Number monitoring, zero fraud liability, and no late fee on your first late payment. Consider signing up if you want to earn rewards and build credit at the same time without an annual fee.

Discover it Student Cash Back Card Review

Best Secured Credit Card 

If you have poor credit or no credit history at all, you may need to get started with a secured credit card. Unlike unsecured credit cards that extend a line of credit without collateral, secured cards require a small cash deposit upfront in order to secure an equally small line of credit.

The Discover it® Secured is widely considered to be one of the best secured credit cards because, unlike other cards in this niche, it doesn't charge an annual fee or any hidden fees. You'll also earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%), as well as 1% back on all other purchases. Discover will also match all the rewards you earn at the end of your first account year. 

Other top benefits include a free look at your FICO score each month, zero liability for fraudulent purchases, and no late fee on your first late payment. With this card, automatic reviews start at seven months to see if Discover can transition you to an unsecured line of credit and return your deposit.

Discover it Secured Credit Card Review

Best for Cash Back

The Capital One QuicksilverOne Cash Rewards Credit Card - Product Name Only is available to consumers with "average" credit according to Capital One, which brings it into reach for individuals with limited credit or anyone who has made credit mistakes in the past.

This card does charge a Capital One® QuicksilverOne® Cash Rewards Credit Card annual fee, but you'll be able to earn 5% cash back on hotels and rental cars booked through Capital One Travel and a flat 1.5% cash back for each dollar you spend on other purchases. That's not bad for a rewards credit card, and it's especially good for cards available to consumers with average credit.

Capital One also promises to reconsider your credit limit and potentially boost it after you've made six on-time payments on your credit card. This card also comes with no foreign transaction fees and several benefits, which is a lot more than many credit cards for average credit offer.

Capital One QuicksilverOne Card Review

Best for Travel Rewards

The Capital One VentureOne Rewards Credit Card is typically only available to consumers with good credit or better, but it's important to note that a good FICO score typically starts in the 670+ range. If you can qualify, this card can serve as a starter travel credit card that can help you get accustomed to earning this type of rewards.

Once you sign up, you'll earn a flat 1.25 miles for each dollar you spend. You can also earn Capital One VentureOne Rewards Credit Card. On the redemption side of the equation, you can redeem Capital One miles for any type of travel at a rate of 1 cent apiece, or for transfers to airline and hotel partners. This card also comes with no annual fee and no foreign transaction fees.

Capital One VentureOne Rewards Card Review

Best If You Bank With Chase

The brand-new Chase Freedom Rise℠ - Product Name Only should be on your shortlist if you're completely new to credit cards, because it's geared specifically toward folks with no credit history at all. This no-annual-fee card earns 1.5% cash back on all purchases, which is a solid rate of return for a starter credit card.

However, the card is only officially available in Chase bank branches for now, and to improve your chances of approval, you should have or open a Chase checking account with a $250 balance within two days of applying for the card (you won't need to maintain a minimum checking account balance after approval).

There's no traditional welcome bonus, but if you enroll in autopay within the first three months of account opening, you'll earn a $25 statement credit. 

Chase Freedom Rise credit card launch details

Best Basic Starter Card

If you have average credit and want to learn good credit habits without worrying about rewards, consider the Capital One® Platinum Credit Card.

This card will likely start you out with a low credit limit, but Capital One says it will consider boosting your limit after you make six on-time payments on your card. This card also comes with no annual fee.

Capital One Platinum Card Review

Best for Introductory APR

If you want to save money with low interest for a limited time, look into the Discover it® Student chrome. This card starts you off with a Discover it® Student chrome, then a Discover it® Student chrome APR.

You'll also earn 2% cash back on your first $1,000 in combined purchases each quarter (then 1%) at gas stations and restaurants, plus 1% back on everything else you buy. Discover will also match all the rewards you earn after the first year.

If you're torn between the two Discover student cards, read our comparison of the Discover it Student Cash Back and Student Chrome for a closer look at both cards.

Discover it Student Chrome Card Review

Best for Building Credit

The Petal Visa (card issued by WebBank) could be ideal for anyone who wants to build good credit that lasts. This card comes with a minimum credit limit of $500, although there's no annual fee and no fees on late payments. You'll earn a flat 1% back on all your eligible purchases for the first year, but you have the opportunity to graduate to 1.5% back after you've made 12 on-time payments on your credit card.

This card also reports to all three credit bureaus — Experian, Equifax, and TransUnion — like the other cards on our list, so it can help you build credit as your purchases and payments are reported. You'll also get access to the powerful Petal Visa Card app, which can help you manage your money better, track your spending, and stay on top of all your bills.

Petal 2 Visa Credit Card Review

Why Trust Us: How We Reviewed the Best Started Credit Cards

Insider chose the best starter credit cards by first considering credit cards that don't require an excellent credit score to be approved. From there, we focused on cards that appeal to those just starting out with credit, including credit cards for students with no credit and secured credit cards.

We then narrowed down the list by evaluating the card's features, including rewards earning, annual and other fees, simplicity, and benefits. Here's our methodology for rating credit cards.

Read the original article on Business Insider
Personal Finance, Credit, Credit Cards, best-starter-credit-card, best-first-credit-card, personal-finance-insider, best-first-credit-cards, pfi-guide, pfi, discover-it-student-cash-back-card, discover-it-secured-card, discover-it-student-chrome, pfi-capital-one
Source
Best Starter Credit Cards of October 2023