If you're just starting out on your credit journey, it can be tough to know where to begin. There are so many different credit cards on the market, each with their own set of benefits and drawbacks. How do you know which card is right for you? In this guide, we will outline the best credit cards for beginners, and help you understand how to choose the right one for your needs. So whether you're looking for a card with low interest rates or one that offers tons of rewards, we've got you covered!
Best Credit Cards for Beginners in 2023 Table of Contents
What Are Credit Cards?
Credit cards are a type of loan that allows you to borrow money from a lender and then pay it back over time. You can use credit cards for things like shopping, travel, and emergencies. Most credit cards have a minimum monthly payment that you must make, and if you don't pay your bill in full, you'll be charged interest on the outstanding balance.
What Are The Different Types of Credit Cards for Beginners?
There are four main types of credit cards for beginners: student, secured, unsecured, and co-signed. Each has their own set of benefits and drawbacks that you should consider before applying.
Student Credit Cards
Student credit cards are typically the best option for young adults just starting out. They usually have lower interest rates and credit limits, which can help you build up your credit score without accruing too much debt. Just make sure to pay off your balance in full each month to avoid paying interest!
Secured Credit Cards
Secured credit cards require a deposit, which acts as your collateral in case you default on your payments. This makes them a good choice for people with bad or no credit history, as it reduces the risk for the issuer. However, you will not earn any rewards or points with a secured card.
Unsecured Credit Cards
Unsecured credit cards are the most common type of credit card. They don't require a deposit, so they're easier to get approved for than secured cards. However, they often have higher interest rates and fees, so be sure to read the fine print before applying.
Co-Signed Credit Cards
Co-signed credit cards are another option for people with bad or no credit history. A co-signer is someone who agrees to make payments on your behalf if you can't afford them yourself. This can be a great way to build up your credit score, but it's important to remember that you're responsible for the debt even if you don't use the card.
What Are The Benefits of Getting a Credit Card for Beginners?
There are a few benefits of getting a credit card for beginners. One is that you can start to build your credit history.
A credit card can also help you establish financial responsibility.
Additionally, having a credit card can give you access to emergency funds and can help you make purchases when cash is tight.
Finally, some cards offer rewards programs that allow you to earn points or cash back on your spending.
What Are The Best Credit Cards for Beginners?
There are many different types of credit cards available, and choosing the right one can be confusing. The best credit card for beginners is one with low interest rates and no annual fee. Here are some of the best credit cards for beginners:
Capital One VentureOne Rewards Credit Card
This card has no annual fee and offers a 0% intro APR on purchases for the first 12 months. After that, the APR is 14.74%.
Citi Simplicity Card
This card has no annual fee and offers a 0% intro APR on purchases and balance transfers for 18 months. After that, the APR is 15.49%.
Discover it Secured Credit Card
This card requires a security deposit of $200, but you'll get a credit limit of at least $500. The interest rate is 24.99%, but there's no annual fee.
Wells Fargo Platinum Visa Card
This card has a 0% intro APR on purchases and balance transfers for 18 months (15.24%-26.24% variable after that). There's also no annual fee.
These are just a few of the best credit cards for beginners. Be sure to shop around and compare offers before you decide which card is right for you. And remember, always pay your bill in full and on time to avoid interest charges.
How to Decide Which Type of Credit Card for Beginners You Want?
There are many different types of credit cards for beginners available, so it can be tough to decide which one is right for you. The best way to figure out which card is best for you is to first understand your spending habits and what type of rewards you're looking for. Do you tend to spend more on gas or groceries? Do you travel often? Or do you simply want a card that has no annual fee?
Once you know what type of spender you are, then you can start looking at the different features each credit card offers. Some cards offer great cash back rewards, while others offer points that can be redeemed for travel or merchandise. There are even some cards that offer a combination of both cash back and points. It really just depends on what you're looking for in a credit card.
If you're a beginner, the best way to find the right credit card is to do your research and compare different cards before making a decision. There are plenty of resources available online that can help you compare different cards and their features side-by-side. Once you've found a few that interest you, be sure to read the fine print so that you understand all of the terms and conditions before applying.
Applying for a credit card is easy and only takes a few minutes. You'll simply need to provide some basic information about yourself and your finances. Be sure to have your Social Security number handy as well as your most recent pay stub or tax return. Once you're approved, you'll receive your new credit card in the mail within a few weeks.
How Many Credit Cards Should Beginners Have?
The best credit cards for beginners will depend on how many credit cards the beginner already has. If the beginner only has one credit card, then he or she should consider a cash back or rewards credit card.
However, if the beginner has multiple credit cards, then he or she should consider a balance transfer credit card. A balance transfer credit card can help the beginner save money on interest payments.
The best way to find the best credit card for a beginner is to compare different offers and find the one that best suits the beginner's needs.
What Credit Limit Do Credit Cards for Beginners Have?
The best credit cards for beginners typically have a credit limit of $500. However, some cards may have a higher credit limit if you have a good credit history. If you're just starting out, it's best to get a card with a low credit limit so you don't end up in debt.
Do Credit Cards for Beginners Report to The Three Major Credit Bureaus?
Most credit cards will report to at least one of the three major credit bureaus, but not all of them do. You can check with your card issuer to find out which bureau they report to. If you're just starting out, you'll want a card that reports to all three so you can start building up your credit history.
What is The Best Way to Use a Credit Card?
When you're first starting out, it's best to use your credit card for small purchases that you know you can easily pay off each month.
This will help you build up a good payment history and keep your balances low, which are both important factors in your credit score.
Once you've established a good track record, you can start using your card for larger purchases. Just be sure to keep making your payments on time and in full to avoid damaging your credit score.
Do The Best Credit Cards for Beginners Have Any Annual Fees?
The best credit cards for beginners will have no annual fees. This is because annual fees can add up and eat into your credit limit. If you're just starting out, you want to keep your expenses low so that you can build your credit score without having to worry about paying high interest rates.
Do The Best Credit Cards for Beginners Have Rewards Programs?
Yes, the best credit cards for beginners typically have rewards programs. These programs allow you to earn points for every dollar you spend on your card.
You can then redeem these points for cash back, merchandise, or travel expenses.
Rewards programs are a great way to get started with credit cards because they give you an incentive to use your card regularly.
Do The Best Credit Cards for Beginners Offer 0% APR?
The best credit cards for beginners offer 0% APR on all purchases for the first year. After that, the APR will be between 13% and 22%.
Do The Best Credit Cards for Beginners Come With Sign-Up Bonuses?
The best credit cards for beginners usually come with sign-up bonuses. These bonuses can be in the form of cash back, points, or miles. They are a great way to get started with using credit cards and can help you build your credit history. However, it is important to read the fine print before signing up for any card. Some cards may have annual fees or other restrictions that could make them not worth it for you.
Best Credit Cards for Beginners With Bad Credit
Unfortunately, if you have bad credit, you're not going to be eligible for the best credit cards on the market.
However, there are still some decent options available for people with less-than-perfect credit.
Look for cards that don't have an annual fee and offer a reasonable APR.
You may also want to consider a secured credit card, which requires a deposit but can help you rebuild your credit over time.
Can Beginners Get An Amex Card?
The short answer is yes, but it might not be the best option for you. American Express is known for their great rewards programs and benefits, but they also have a reputation for being difficult to get approved for. If you're just starting out with credit, you might want to consider a different card issuer.
Is It Easy to Qualify for a Credit Card for Beginners?
Qualifying for a credit card as a beginner can be difficult if you don't have any credit history.
However, there are a few things you can do to increase your chances of being approved.
One option is to apply for a secured credit card, which requires you to put down a deposit that acts as your credit limit.
Another option is to get a co-signer on your credit card application, which means someone with good credit will vouch for you. Finally, you could try applying for a store credit card, which may be easier to qualify for than a traditional credit card.
Once you've been approved for a credit card, it's important to use it wisely. Begin by only charging what you can afford to pay off each month.
This will help you build up your credit history and improve your credit score. Additionally, be sure to make all of your payments on time and keep your credit utilization low.