Credit cards are a popular method of payment, but everyone starts as a beginner. If you’re new to credit cards, here’s what you need to know about the best cards for beginners.
Best Credit Cards for Beginners Compared
Best to increase credit limit: card_name
This card has no rewards and an annual fee, but it offers an automatic credit line review. In as little as six months, your credit line can increase without even having to ask. Plus, there are no foreign transaction fees.
Best secured card for beginners: card_name
Ideal for those with credit problems, this card requires a refundable security deposit. It offers a simple experience with no rewards, an annual fee, or foreign transaction fees.
Best for students who want to earn cash back: card_name
Designed for students, this card offers 3% cash back on dining, entertainment, popular streaming services, and grocery stores. It also features 8% cash back on Capital One Entertainment purchases, and 10% cash back on Uber and Uber Eats. There’s an annual fee for this card.
Best for building credit: card_name
Part of a program that includes a credit builder account, this card is for beginners with no credit check. Once you’ve made three on-time payments and have $100 or more in savings, you can qualify for this card with an annual fee.
Best for building credit with no deposit and annual fee: card_name
This card allows you to build credit without paying an annual fee. Simply transfer money to your account each month, and it becomes your credit limit.
Types of Credit Cards for Beginners with No Credit
There are several types of credit cards for beginners, including:
Unsecured Credit Cards
These standard cards don’t require a security deposit but may have an annual fee for people with bad credit or no credit history.
Secured Credit Cards
Similar to unsecured cards, these require a refundable security deposit that becomes your credit limit. They are designed for those with limited credit history or bad credit and often have no high annual fees.
Credit Cards for People with No Credit History
Typical credit cards for beginners with few features, benefits, and no annual fee. They are widely available to those without established credit history.
Credit Cards for Building Your Credit History
Similar to cards for people with no credit history, all credit cards report your balance and payment information to the major credit bureaus.
Minimum Requirements for Those Applying with No Credit History
To get your first credit card as a beginner, you’ll need a Social Security Number or Individual Taxpayer Identification Number, along with a U.S. street address.
Other Options to Get a Credit Card with No Credit
If you can’t qualify for the credit card you want, there are still options available:
Become an Additional Authorized User
By becoming an authorized cardholder, you can have a credit card in your own name to build credit. However, the primary account holder is responsible for repayment.
Gift Cards
While not building credit, reloadable and non-reloadable gift cards are secure and convenient methods of payment.
Alternatives to Credit Cards to Build Credit
If credit cards don’t work for you, consider these alternatives to build credit:
Debit Cards
Acting like credit cards, debit cards can’t be used to build credit.
Store Credit and Charge Cards
Store cards can make sense for beginners, but they often have high interest rates.
Personal Loans
Specific loans for people with poor credit can help build credit if payments are made on time.
Line of Credit
Similar to personal loans, a line of credit may be secured by property and allows borrowing as needed.
Credit Builder Loans
These loans allow you to add positive information to your credit history by repaying a loan designed to build credit.
Conclusion
No matter your credit, there’s a card for you. By understanding the different types of credit cards available to beginners, you can find the card that suits your needs.
Methodology
The best credit cards for beginners were chosen based on a thorough analysis of their rewards, benefits, and fees. The author, an expert with over 15 years of experience, has extensively researched and written about credit cards and personal finance.
The offers mentioned in this article may not include all financial services companies or products available. The author’s opinions, analysis, reviews, or recommendations expressed here are their own and have not been reviewed, approved, or endorsed by any credit card issuer.