If you're just starting out and looking for your first credit card, you have a lot of options to choose from. It can be difficult to determine which card is the best for your needs. In this blog post, we will outline the best starter credit cards on the market today. We'll discuss the features of each card, and help you decide which one is right for you. So whether you're looking for a rewards card, a gas card, or a simple starter card, we've got you covered!
Best Starter Credit Cards in 2023 Table of Contents
What Are Starter Credit Cards?
Starter credit cards are designed for people with no or limited credit history. They offer low credit limits and often have higher interest rates than traditional cards. However, they can be a good way to build your credit if used responsibly.
There are a few things to consider when choosing a starter credit card, such as annual fees, interest rates, and rewards programs. It's important to compare offers and read the fine print before applying.
What Are The Different Types of Starter Credit Cards?
There are many different types of starter credit cards, but the two most common are secured and unsecured.
A secured credit card is one that requires a deposit, which is usually equal to your credit limit. This deposit acts as collateral in case you default on your payments.
An unsecured credit card doesn't require a deposit, but generally has a lower credit limit and higher interest rates.
What Are The Benefits of Getting Starter Credit Cards?
There are a few benefits of getting starter credit cards. One is that it can help build your credit score. Another benefit is that you may be able to get a lower interest rate on future purchases and loans if you have good credit. Finally, some starter cards come with perks such as cash back or rewards points.
If you're looking to build your credit history, then getting a starter credit card is a great way to do so. By using the card responsibly and making all of your payments on time, you'll be able to improve your credit score over time. This can open up opportunities for you in the future, such as qualifying for better interest rates on loans and leases.
What Are The Best Starter Credit Cards?
Here are some of the best starter credit cards available:
Capital One Platinum Credit Card
This card has no annual fee and offers a decent rewards program. You can also get your first year's annual fee waived if you spend $500 in the first three months.
Chase Freedom Unlimited Credit Card
This card has no annual fee and offers a 0% intro APR on purchases for the first 15 months. After that, the APR goes up to 16.74%-25.49% Variable.
Discover it Secured Credit Card
This card requires a security deposit of $200-$2000, but has no annual fee. You can also earn cash back rewards on your purchases.
Citi Secured Mastercard
This card requires a security deposit of $200-$5000, but has no annual fee. It also offers a decent rewards program and 0% intro APR on balance transfers for 18 months (then 13.99%-23.99% Variable).
Barclaycard Arrival Plus World Elite Mastercard
This card has a $89 annual fee, but offers a generous rewards program and a 0% intro APR on balance transfers for 18 months (then 16.74%-25.49% Variable).
As you can see, there are a few different options to choose from when it comes to starter credit cards. It's important to compare offers and find the one that best suits your needs. Be sure to read the fine print before applying so you know what you're getting into.
How to Decide Which Type of Starter Credit Cards You Want?
One of the best things you can do when you're trying to decide which type of Starter Credit Cards is right for you is to sit down and think about your financial goals. What are you hoping to accomplish by using a credit card? Do you want to build up your credit so that you can eventually qualify for a mortgage or a car loan? Or, are you simply looking for a way to make everyday purchases more convenient?
Once you have a good understanding of your financial goals, it will be much easier to narrow down your options and find the best Starter Credit Cards for your needs.
For example, if you're interested in building up your credit, you'll want to look for a card with low interest rates and no annual fees.
On the other hand, if you're just looking for a way to make everyday purchases more convenient, you might want to consider a card with rewards like cash back or points.
No matter what your financial goals are, there's a Starter Credit Card out there that's right for you.
How Many Starter Credit Cards Should Someone Have?
The answer to this question is, it depends. It depends on your credit score, how much debt you currently have, and your financial goals.
If you're trying to improve your credit score, then you'll want to get a starter credit card with a low annual fee and a high credit limit. This will help you keep your debt-to-credit ratio low, which is one of the key factors in determining your credit score.
If you're trying to pay off debt, then you'll want to get a starter credit card with a 0% introductory APR period. This will allow you to transfer your existing debt onto the card and save on interest payments. Just be sure to make all of your payments on time and in full, so you don't end up paying more in interest than you saved.
And finally, if you're just looking for a starter credit card with no annual fee and no foreign transaction fees, then you'll want to get a cards like the Discover it® Secured or the Capital One® Platinum Credit Card. These are great options for people who are new to credit or who don't travel frequently.
What Credit Limit Do Starter Credit Cards Have?
Most starter credit cards will have a credit limit of $500 to $1000. This is the amount of money you'll be able to borrow from the card issuer. If you need to, you can always ask for a higher credit limit, but it's best to start small and build your way up.
Do Starter Credit Cards Report to The Three Major Credit Bureaus?
The answer is maybe. It all depends on the issuer. Some Starter Credit Cards will report to all three major credit bureaus, while others may only report to one or two.
What is The Best Way to Use Starter Credit Cards?
There are a few things to consider when using starter credit cards. The first is what your credit score is. If you have good credit, you can qualify for some great starter cards with low interest rates and lots of perks.
However, if your credit score is not so good, you may want to start with a secured card or a card with a higher interest rate.
Another thing to consider is how you plan to use the card. If you only plan on using it for emergencies, then you don't need a lot of bells and whistles. However, if you want to use it for everyday purchases, then you'll want a card that has cash back or other rewards.
Finally, consider the fees associated with the card. Some starter cards have annual fees, balance transfer fees, or other hidden costs. Make sure you read the fine print so that you know what you're getting into before you apply.
The best way to use starter credit cards is to carefully consider your options and choose the card that best fits your needs.
Do The Best Starter Credit Cards Have Any Annual Fees?
The annual fee on a credit card is one of the most important factors to consider when you're looking for the best starter credit card. You don't want to sign up for a card that has an annual fee that's too high, because it will eat into your rewards.
There are some great starter credit cards out there that don't have any annual fees. The Chase Freedom Unlimited® Card is one example. This card has no annual fee, and it comes with some great benefits like 0% APR for 15 months on purchases and balance transfers, and unlimited cash back on every purchase.
Do The Best Starter Credit Cards Have Rewards Programs?
The best starter credit cards will typically offer some sort of rewards program. Whether it's cash back on every purchase, or points that can be redeemed for travel or merchandise, these programs can help you save money and make your life more convenient.
Do The Best Starter Credit Cards Offer 0% APR?
The best starter credit cards offer 0% APR on purchases and balance transfers for a limited time. After the intro period, a variable APR applies. The average credit card interest rate is currently about 16%. So, if you carry a balance on your card after the intro period, you'll be paying interest on it. A 0% APR introductory offer can save you a lot of money in interest charges if you pay off your balance before the intro period ends.
Do The Best Starter Credit Cards Come With Sign-Up Bonuses?
The best starter credit cards will always come with sign-up bonuses. These bonuses can be in the form of cash back, points, or miles. They are designed to entice new cardholders to use their card more frequently. Many times, the bonus will be worth more than the annual fee on the card.
Best Starter Credit Cards With Bad Credit
Bad credit can feel like a weight around your neck, dragging you down and making it hard to get ahead. But there's good news: there are plenty of starter credit cards out there that can help you begin rebuilding your credit.
The best starter credit cards for bad credit will have low interest rates, generous limits, and fair terms and conditions. And while you're working on improving your credit score, these cards can also help you earn rewards or cash back on your purchases.
Here are the best starter credit cards for bad credit:
Capital One Platinum Credit Card
This card has no annual fee and a decent APR for those with bad credit. You can also earn rewards on your purchases.
Discover it Secured Credit Card
This card has no annual fee and offers a high credit limit with responsible use. You'll also earn cash back on your purchases.
This card has no annual fee and offers a low APR for those with bad credit. You can also get access to a higher credit limit after making your first five monthly payments on time.
Do Amex Have Starter Credit Cards?
American Express offers a range of credit cards for different spending needs and budgets. While they don't have a specific starter credit card, they do have a number of options that could be suitable for someone just starting out with credit cards.
The Amex Everyday Credit Card, for example, has no annual fee and offers rewards on everyday spend.
If you're looking for a starter card with low interest rates, the Amex Essential Credit Card could be worth considering. It has a low annual fee and offers 0% interest on purchases for the first six months.
Is It Easy to Qualify for Starter Credit Cards?
Starter credit cards are designed for people with limited or no credit history. If you have no credit history, it may be difficult to qualify for a starter credit card. However, if you have a limited credit history, you may be able to qualify for a starter credit card if you have a cosigner or can show proof of income.