Did you know that the average American had approximately 3.1 credit cards? Credit cards are becoming an indispensable financial tool in the United States. They offer convenience, security, and various perks. However, with many credit cards available, choosing the right one for beginners can be daunting. This article aims to guide you through the process of selecting the best US credit card to get started with.
But before we get into the topic, it is recommended to first read about the Top Credit Cards for First-Timers in detail by Bright Money!
We'll explore the key factors to consider different types of credit cards and provide recommendations based on your financial goals and needs.
1. Discover it® Student Cash Back
APR: Variable 22.99%
Annual Fee: $0
Credit Needed: Limited, No Credit History
Best Feature: Geared towards students, this card offers cash-back rewards and a rewards match for the first year, making it an excellent option for young adults looking to establish credit.
Intro Bonus: Discover matches all the cash back you've earned at the end of your first year, effectively doubling your rewards.
2. Chase Freedom Unlimited
APR: Variable 14.99% - 23.74%
Annual Fee: $0
Credit Needed: Good to Excellent
Best Feature: This card offers unlimited 1.5% cash back on every purchase. It's a good choice for beginners looking to earn rewards without the hassle of rotating categories.
Intro Bonus: Chase often offers a welcome bonus, such as extra cash back or a statement credit, after spending a certain amount in the first few months.
3. Citi Double Cash Card
APR: Variable 13.99% - 23.99%
Annual Fee: $0
Credit Needed: Good to Excellent
Best Feature: This card provides 2% cash back on every purchase (1% when you buy and 1% when you pay), making it an excellent option for earning rewards on all spending categories.
Intro Bonus: While it doesn't typically have a traditional intro bonus, the ongoing 2% cash back is its standout feature.
4. Bank of America Cash Rewards Credit Card
APR: Variable 13.99% - 23.99%
Annual Fee: $0
Credit Needed: Good to Excellent
Best Feature: You can choose your 3% cash back category, including gas, online shopping, dining, travel, drug stores, or home improvement/furnishings. Plus, you get 2% cash back at grocery stores and wholesale clubs.
Intro Bonus: Bank of America frequently offers cash rewards as an intro bonus, typically after meeting specific spending requirements in the first few months.
5. Deserve® Edu Mastercard for Students
APR: Variable 18.74%
Annual Fee: $0.
Credit Needed: Limited, No Credit History.
Best Feature: This card is designed for students and offers 1% cash back on all expenses. It also has no foreign transaction fees, thus making it a good option for studying abroad.
Intro Bonus: There is no traditional introductory bonus, but it's a solid choice for students looking to start building credit.
6. Indigo Platinum Mastercard
APR: Variable 24.90%
Annual Fee: Varies depending on creditworthiness.
Credit Needed: Poor to Fair.
Best Feature: This card is tailored for those with less-than-perfect credit. It provides an opportunity to rebuild your credit with responsible use.
Intro Bonus: There is no traditional introductory bonus, but it can help build your credit score over time.
7. PNC Cash Rewards® Visa® Credit Card
APR: Variable 14.99% - 24.99%
Annual Fee: $0
Credit Needed: Good to Excellent
Best Feature: This card offers 1.25% cash back on all purchases, with the potential to earn more when you have a PNC Virtual Wallet account.
Intro Bonus: PNC often provides a welcome bonus, typically as extra cash back or a statement credit after meeting initial spending requirements.
8. Citi Rewards+® Card
APR: Variable 13.99% - 23.99%
Annual Fee: $0
Credit Needed: Good to Excellent
Best Feature: This card rounds up to the nearest 10 points on every purchase, making smaller purchases more rewarding. It's an excellent choice for everyday spending.
Intro Bonus: Citi often offers a welcome bonus, which may include bonus points after meeting initial spending requirements.
9. American Express Cash Magnet® Card
APR: Variable 13.99% - 23.99%
Annual Fee: $0
Credit Needed: Good to Excellent
Best Feature: This card offers unlimited 1.5% cash back on all purchases, and it's known for its user-friendly rewards and benefits.
Intro Bonus: American Express frequently offers a welcome bonus, typically in the form of extra cash back or a statement credit after meeting spending requirements.
10. Bank of America Travel Rewards Credit Card
APR: Variable 13.99% - 23.99%
Annual Fee: $0
Credit Needed: Good to Excellent
Best Feature: This card offers travelers a simple and flexible rewards program, earning 1.5 points per dollar spent. It's also known for its travel-friendly features.
Intro Bonus: Bank of America often provides a welcome bonus, such as extra points, after meeting initial spending requirements.
Conclusion
Selecting the best US credit card for beginners involves careful consideration of your financial goals and needs. Whether you're looking to build credit, earn rewards, or consolidate debt, there's a credit card tailored to your situation. Cashback rewards were among the most popular credit card rewards, with over 60% of cardholders having a cashback card.
Responsible credit card usage is essential for building a positive credit history and avoiding debt. Whichever card you select, read the terms and conditions, pay your bills on time, and stay within your credit limit to make the most of your credit card experience.
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.
Recommended Reads
How to check your credit score?
5 mistakes to avoid while building credit
FAQs
1. Which is the best credit card to start with if I have no credit history?
The best credit card for somebody with no credit history is typically a secured credit card. Cards like the Discover it Secured and Capital One Secured Mastercard are popular options as they require a refundable security deposit, making them accessible to individuals with limited or no credit.
2. What if I have limited credit history or a low credit score?
In this case, you can consider credit cards designed for individuals with fair or average credit, like the Capital One Platinum Credit Card or the Capital One QuicksilverOne Cash Rewards Credit Card. These cards are tailored to help you build or rebuild credit.
3. How do I know which credit card is right for me?
The right credit card depends on your financial situation, spending habits, and credit score. Consider factors like your credit score, annual fees, interest rates, rewards, and additional perks when making a decision.
4. Are there credit cards specifically for students?
Yes, there are credit cards designed for students, such as the Discover it Student Cash Back, Citi® Secured Mastercard® for College Students, and Deserve® Edu Mastercard for Students. These cards often have features and benefits tailored to student needs.
5. What should I look for when choosing a starter credit card?
When choosing a starter credit card, look for low or no annual fees, reasonable interest rates, and rewards or cash-back programs. Also, consider the issuer's reputation and the opportunity to upgrade to a better card.
References
https://www.cnbc.com/select/best-cash-back-credit-cards/
https://www.cnbc.com/select/how-many-credit-cards-does-the-average-american-have/
