Did you know that about 75% of American adults had at least one credit card? Getting your first credit card marks a great financial achievement. It is the start of your credit history and can have a significant influence on your financial destiny. However, with so many credit cards available, selecting the correct one for a first-time credit card user might be difficult. Your financial objectives, spending patterns, and credit score will all influence which credit card is ideal for you.
But before we get into the topic, it is recommended to first read in detail about the Top 19 Credit Cards of 2023 by Bright Money!
In this comprehensive guide, we'll explore the best credit cards for first-time users, covering various categories and providing you with the information you need to make an informed decision.
Understanding Credit Cards
Before we go into the finest credit cards for first-time users, let's go through the basics of credit cards. Credit cards are financial tools that let you borrow money from a credit card business or banks in order to make purchases. This borrowed money must be returned with interest, often monthly. You're effectively taking out a short-term loan when you use a credit card.
What are the Best Credit Cards for First-Timers?
The best credit cards for first-timers often include options like the Capital One Platinum Credit Card, Discover it Secured, and the Chase Freedom Flex. These cards are known for their beginner-friendly terms, low or no annual fees, and opportunities to build credit. It's essential to choose a card that matches your financial goals and credit history.
1. Capital One Platinum Credit Card
Credit Needed: Average/Fair
Annual Fee: $0
APR: Variable 26.99%
Why It's Great for Beginners: The Capital One Platinum is designed for those with average credit or limited credit history. It has no yearly charge and grants access to a larger credit line after paying the first five on-time monthly payments. This card is a fantastic option for establishing credit.
2. Discover it® Secured Credit Card
Credit Needed: Limited/No Credit
Annual Fee: $0
APR: Variable 23.24%
Why It's Great for Beginners: The Discover it® Secured card is a secured credit card, which means it requires a security deposit. However, it's a great option for those with no credit history or poor credit. Discover offers cashback rewards, and they match your cashback at the end of your first year.
3. Chase Freedom Unlimited®
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 14.99% - 23.74%
Why It's Great for Beginners: Although it's ideal for those with good to excellent credit, Chase Freedom Unlimited® offers unlimited 1.5% cashback on all purchases. Plus, it comes with a generous sign-up bonus, and you can transfer your rewards to other Chase cards.
4. Citi® Double Cash Card
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 13.99% - 23.99%
Why It's Great for Beginners: The Citi® Double Cash Card is an excellent choice for users looking for simplicity and cashback rewards. It offers 2% cash back on all expenses– 1% when you make the purchase and 1% when you pay your bill. This encourages responsible credit card use.
5. American Express® Cash Magnet® Card
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 13.99% - 23.99%
Why It's Great for Beginners: This card is known for its straightforward cashback rewards. It offers a flat 1.5% cashback on all purchases, and there's a welcome bonus for new card members. Additionally, American Express provides excellent customer service.
6. Petal® 2 "Cash Back, No Fees" Visa® Credit Card
Credit Needed: Fair/No Credit
Annual Fee: $0
APR: Variable 12.99% - 26.99%
Why It's Great for Beginners: The Petal 2 card is designed for those with limited credit history. It doesn't charge fees and offers cashback rewards that can increase over time with responsible use. This card is a great option for building credit and earning rewards.
7. Bank of America® Cash Rewards Credit Card
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 13.99% - 23.99%
Why It's Great for Beginners: The Bank of America Cash Rewards card offers cashback rewards and provides flexibility by allowing you to choose your 3% cashback category (e.g., gas, online shopping, dining). It's a great choice for those who want to personalize their rewards.
8. Wells Fargo Active CashSM Card
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 14.99% - 24.99%
Why It's Great for Beginners: The Wells Fargo Active Cash card offers unlimited 2% cash back on all purchases. It also comes with a generous introductory 0% APR period on purchases and balance transfers, which can be very beneficial if you plan to carry a balance.
9. Discover it® Student Cash Back
Credit Needed: Limited/No Credit
Annual Fee: $0
APR: Variable 23.24%
Why It's Great for Beginners: Specifically designed for students, this card offers cashback rewards, a good grade reward, and no annual fee. It's a valuable tool for students looking to build credit while earning rewards.
10. Capital One QuicksilverOne Cash Rewards Credit Card
Credit Needed: Fair/Average
Annual Fee: $39
APR: Variable 26.99%
Why It's Great for Beginners: The Capital One QuicksilverOne card is tailored to those with fair credit. It offers a simple 1.5% cashback on all purchases, which can help users establish a positive credit history.
11. Discover it® Miles
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 11.99% - 22.99%
Why It's Great: Discover it Miles is ideal for travelers who want simple, unlimited 1.5 miles per dollar spent on all purchases. Plus, Discover matches the miles you've earned at the end of your first year.
12. Citi® Secured Mastercard®
Credit Needed: Limited/No Credit
Annual Fee: $0
APR: Variable 22.49%
Why It's Great: The Citi Secured Mastercard is an option for those with no credit history or a limited credit history. It's a secured card, and it can help you establish or rebuild your credit.
13. Wells Fargo Platinum Card
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 16.49% - 24.49%
Why It's Great: The Wells Fargo Platinum Card is a good choice if you're looking for an introductory 0% APR period for both purchases and balance transfers. This can help you in saving on interest if you have large purchases or existing credit card debt.
14. Blue Cash Preferred® Card from American Express
Credit Needed: Good/Excellent
Annual Fee: $95
APR: Variable 13.99% - 23.99%
Why It's Great: This card is excellent for cashback enthusiasts. It offers generous cashback rewards, especially on supermarket and streaming service purchases.
15. Citi Custom CashSM Card
Credit Needed: Good/Excellent
Annual Fee: $0
APR: Variable 13.99% - 23.99%
Why It's Great: The Citi Custom Cash Card lets you earn cashback in your highest spending category each month. It's a versatile choice for those who want to maximize rewards.
16. American Express Green Card
Credit Needed: Good/Excellent
Annual Fee: $150
APR: Variable 15.24% - 22.24%
Why It's Great: This card is designed for travelers and offers rewards for travel and dining. It also provides credits for various travel-related expenses.
17. Chase Sapphire Preferred® Card
Credit Needed: Good/Excellent
Annual Fee: $95
APR: Variable 15.99% - 22.99%
Why It's Great: The Chase Sapphire Preferred is a top choice for those who love to travel and dine out. It offers valuable travel rewards, and points can be transferred to partner loyalty programs.
18. Bank of America® Premium Rewards® Credit Card
Credit Needed: Good/Excellent
Annual Fee: $95
APR: Variable 15.99% - 22.99%
Why It's Great: This card is perfect for those seeking versatile travel rewards and features, including a generous sign-up bonus, statement credits, and a competitive rewards program.
19. Capital One Venture Rewards Credit Card
Credit Needed: Good/Excellent
Annual Fee: $95
APR: Variable 17.24% - 24.49%
Why It's Great: The Capital One Venture card offers valuable miles for travel and a host of travel-related perks, making it an excellent choice for frequent travelers.
20. USAA Secured Card® Platinum Visa®
Credit Needed: Limited/No Credit
Annual Fee: $35
APR: Variable 6.90% - 23.90%
Why It's Great: USAA is known for its military-focused financial products. The Secured Card is designed for members with limited credit and can help build or rebuild credit while enjoying lower APRs.
Conclusion
As a first-time user, selecting the best credit card for your requirements is a significant financial choice. Each credit card included in this guide has its own set of rewards and features, so it's critical to consider your own financial circumstances and goals before making a decision. Cashback rewards were among the most popular credit card rewards, with over 60% of cardholders having a cashback card.
Remember that using credit cards responsibly is critical. Pay your payments on time, try to pay your amount in full each month to prevent interest charges, and utilize your credit card to help you create a good credit history. You'll be able to qualify for credit cards with even better conditions and more generous rewards if you continue to handle your credit carefully.
Bright Money offers an innovative solution for individuals looking to build and improve their credit scores, even after acquiring their first credit card with Bright Builder. Through its smart, data-driven approach, Bright Money provides personalized recommendations and insights to help users make informed financial decisions.
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FAQs
1. What should I consider when choosing my first credit card?
Consider your credit score, financial goals, spending habits, and the types of rewards or benefits you want. Make sure to select a card that matches your specific needs and financial situation.
2. What credit score do I need to get my first credit card?
Many credit cards designed for first-time users or those with limited credit history may accept applicants with fair or even no credit history. However, it's essential to check the specific credit requirements of each card.
3. Should I get a secured or unsecured credit card as my first card?
The choice between a secured or unsecured credit card depends on your credit history. If you have no credit or poor credit, a secured credit card can be a good starting point. If you have fair to good credit, you may qualify for an unsecured card with better terms.
4. What are the benefits of using a credit card for the first time?
Using a credit card responsibly helps you in building a positive credit history, which is crucial for future financial opportunities. It also provides a convenient payment method, offers purchase protection, and often includes rewards or cashback.
5. Do credit cards for first-time users typically have annual fees?
Many credit cards designed for first-time users or those with limited credit history do not have annual fees. However, some cards with better rewards or benefits may have an annual fee. It's essential to compare the costs and benefits of different cards.
