If you're a first time credit card user, it can be difficult to know where to start. There are so many different credit cards on the market, each with their own set of benefits and drawbacks. How do you know which one is right for you? In this blog post, we will take a look at some of the best credit cards for first timers and help you figure out which one is right for you!
Best Credit Cards for First Timers in 2023 Table of Contents
What Are Credit Cards?
Credit cards are a type of debt instrument that allows consumers to borrow money from financial institutions in order to make purchases. Credit cards can be used for a variety of purposes, including building credit history, making large purchases, and earning rewards.
What Are The Different Types of Credit Cards for First Timers?
There are many different types of credit cards for first timers. The best credit card for first timers will depend on your individual needs and financial situation. Here is a breakdown of the different types of credit cards for first timers:
Secured Credit Cards
A secured credit card is a good option for first timers with bad or no credit history. With a secured credit card, you must put down a deposit that serves as your collateral in case you default on your payments. Your credit limit will usually be equal to your deposit amount.
Unsecured Credit Cards
An unsecured credit card does not require a collateral deposit. These cards are best suited for first timers with good or excellent credit history. However, unsecured credit cards usually have higher interest rates than secured credit cards.
Student Credit Cards
Student credit cards are designed for college students who are just starting to build their credit history. These cards usually offer low interest rates, no annual fees, and other perks such as cash back or rewards points.
Business Credit Cards
Business credit cards can be a good option for first timers with good or excellent credit history. Business credit cards often come with special perks such as travel rewards, cash back, and 0% introductory APR periods.
What Are The Benefits of Getting a Credit Card for First Timers?
There are a few benefits to getting a credit card for first timers. One of them is that it can help you build your credit score. Another benefit is that you can use it to earn rewards like cash back or points that can be used for travel. And lastly, having a credit card can give you peace of mind in case of an emergency.
What Are The Best Credit Cards for First Timers?
Now that we know the benefits of getting a credit card for first timers, let's look at some of the best options out there.
Capital One Platinum Credit Card
One great option for first timers is the Capital One Platinum Credit Card. This card has no annual fee and offers a 0% APR on purchases and balance transfers for the first 15 months. You'll also earn unlimited cash back on every purchase.
Chase Sapphire Preferred Card
If you're looking for a card with great travel rewards, the Chase Sapphire Preferred Card is a great option. With this card, you'll earn two points per dollar spent on travel and dining and one point per dollar spent on all other purchases. You can also transfer your points to a variety of airline and hotel loyalty programs. The Chase Sapphire Preferred Card has a $95 annual fee.
Citi Double Cash Card
The Citi Double Cash Card is another great option for first timers. With this card, you'll earn two percent cash back on every purchase - one percent when you buy and one percent when you pay your bill. There's no annual fee with this card either.
How Many Credit Cards Should First Timers Have?
The short answer is you should have at least two credit cards as a first timer. One for business expenses and one for personal use. But, the best number of credit cards to have as a first timer is three. This way you can begin to build up your credit history and establish a good credit score.
What Credit Limit Do Credit Cards for First Timers Have?
When you're looking for your first credit card, one of the main things you'll want to consider is the credit limit. Credit limits on cards for first timers can vary widely, so it's important to find one that best suits your needs.
Generally speaking, most credit cards for first timers will have a credit limit of anywhere from $500 to $1000.
However, there are some cards that may have higher or lower limits depending on your credit score and history. It's always best to check with the issuer before you apply to see what they're likely to offer you.
Do Credit Cards for First Timers Report to The Three Major Credit Bureaus?
The best credit cards for first timers will report your payment history to the three major credit bureaus: Experian, Equifax, and TransUnion. This is important because it will help you build a good credit history, which can lead to lower interest rates and better terms in the future.
What is The Best Way to Use a Credit Card?
There is no one definitive answer to this question. However, there are a few best practices that can help you make the most of your credit card.
First and foremost, always pay your bill in full and on time each month. This will help you avoid interest charges and late fees, and it will also help you improve your credit score over time.
Second, be sure to use your credit card for everyday purchases like gas and groceries. This will help you earn rewards points that can be redeemed for cash back or merchandise.
Third, be sure to keep an eye on your credit card balance so you don't get caught off guard by high interest rates. You can do this by signing up for text or email alerts from your credit card company.
Finally, remember to use your credit card responsibly and only charge what you can afford to pay back. By following these simple best practices, you can make the most of your credit card and use it to your financial advantage.
Do The Best Credit Cards for First Timers Have Any Annual Fees?
The best credit cards for first timers typically have no annual fees. However, some cards may offer an introductory fee waiver for the first year.
After that, you'll likely be responsible for paying the annual fee. But don't let that deter you from signing up for a card with an annual fee - sometimes the benefits of having the card outweigh the cost of the fee.
Just make sure you're aware of all the costs associated with your card before you apply.
Do The Best Credit Cards for First Timers Have Rewards Programs?
The best credit cards for first timers typically don't have rewards programs. The reason is because these cards are designed for people who are new to credit, and the last thing you want to do is get in over your head with debt.
That being said, there are a few exception. Capital One and Discover both offer great cash back rewards programs that can be beneficial for first timers.
Just make sure you're using the card responsibly and not spending more than you can afford to pay back.
Do The Best Credit Cards for First Timers Offer 0% APR?
The best credit cards for first timers offer 0% APR on purchases and balance transfers for the first year.
After that, the interest rate will vary depending on the card issuer, but it will usually be between 13% and 22%.
There are also cards that offer 0% APR for 15 months or more.
These offers can help you save a lot of money if you keep your balance low and make your payments on time.
Do The Best Credit Cards for First Timers Come With Sign-Up Bonuses?
The best credit cards for first timers come with sign-up bonuses because they are the best way to get started with using credit.
Many people think that they need to have a lot of money in order to get a credit card, but this is not the case.
There are many credit cards that have no annual fee and no balance transfer fee. You can use these cards to build your credit history and then switch to a card with more perks once you have established good credit.
Just make sure you pay off your balance in full every month so you don't incur any interest charges.
Best Credit Cards for First Timers With Bad Credit
If you have bad credit, you might think that getting a credit card is out of the question. But there are plenty of options for best credit cards for first timers with bad credit. Here are a few to consider:
Capital One® Secured Mastercard®
This is a great option for people with bad credit because it requires a security deposit equal to your desired credit limit. That means that if you put down $200, you’ll get a $200 line of credit. The best part? There’s no annual fee.
Discover it® Secured Card
Another option for people with bad credit is the Discover it® Secured Card. Like the Capital One card, this one also requires a security deposit. But your deposit can be as low as $49, and you’ll get a $200 line of credit. The best part? There’s no annual fee, and you can earn cash back on your purchases.
Credit One Bank® Unsecured Platinum Visa®
This is a good option for people with bad credit because it has a relatively high credit limit (up to $500). And while there is an annual fee, it’s not too high at $39. The best part? You can get pre-qualified for this card without affecting your credit score.
These are just a few of the best credit cards for first timers with bad credit.
Can First Timers Get An Amex Card?
The short answer is yes! Anyone can apply for an American Express card. However, there are a few things to keep in mind if you're a first-timer.
First, Amex cards generally have higher credit limits and rewards than other cards. This is great news if you're looking to build your credit or earn rewards, but it also means that you'll need to be extra careful with your spending.
Second, Amex cards tend to have annual fees. These fees can range from $95-$450, so be sure to factor that into your budget before applying.
Third, Amex cards usually require good or excellent credit for approval. If you don't have established credit yet, you may want to consider a different card.
If you're still interested in an Amex card, we've compiled a list of the best options for first timers:
- The American Express Blue Cash Everyday Card
- The American Express Gold Card
- The American Express Platinum Card
- The American Express Green Card
- The American Express Blue Business Plus Credit Card
Each of these cards has its own unique benefits and perks, so be sure to compare them before applying.