Building Credit? The Best Credit Cards for Beginners
If you’re looking to build credit, getting a credit card can be a great way to start. But with so many options available, it can be tough to know where to begin. Here are some of the best credit cards for beginners to get you started.
Capital One Platinum Credit Card
The Capital One Platinum Credit Card is a great option for beginners who are looking to build their credit. It doesn’t have any annual fees, and you can qualify for a higher credit limit after making your first five monthly payments on time. Additionally, the Capital One Platinum Credit Card has fraud coverage and gives you access to your credit score for free.
Discover it Secured Credit Card
The Discover it Secured Credit Card is another great option for beginners. It’s a secured credit card, which means that you’ll need to put down a security deposit, but you’ll get that deposit back when you close the account or upgrade to an unsecured card. The Discover it Secured Credit Card offers cashback rewards, and you can earn 2% cashback at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Additionally, Discover will match all the cashback you’ve earned at the end of your first year.
Petal 2 Visa Credit Card
The Petal 2 Visa Credit Card is a unique option for beginners because it doesn’t require a credit history or a security deposit. Instead, Petal uses an algorithm to determine your creditworthiness based on factors such as income and expenses. The Petal 2 Visa Credit Card offers cashback rewards and has no fees, including no annual fees, no late fees, and no foreign transaction fees.
Chase Freedom Flex Credit Card
The Chase Freedom Flex Credit Card is a great option for beginners who are looking for a more versatile card. It offers cashback rewards, including 5% back on up to $1,500 in combined purchases in rotating categories each quarter, and 1% back on all other purchases. Additionally, the Chase Freedom Flex Credit Card has no annual fee and gives you access to your credit score for free.
Frequently Asked Questions
What is a secured credit card?
A secured credit card is a type of credit card that requires a security deposit. The amount of the security deposit is usually equal to the credit limit of the card, and it’s used as collateral in case you don’t make your payments. Secured credit cards are a great option for beginners who are looking to build their credit because they’re easier to get approved for than unsecured cards.
What is a good credit score?
A good credit score is usually considered to be around 670 or higher. However, the specific range of what’s considered a good credit score can vary depending on the lender and the type of credit you’re applying for. It’s important to aim for a good credit score because it can help you qualify for lower interest rates and better terms on loans and credit cards.
How do I build credit with a credit card?
To build credit with a credit card, it’s important to make your payments on time and keep your balance low. Aim to use no more than 30% of your available credit, and pay off your balance in full each month if possible. Additionally, avoid applying for too many credit cards at once, as this can have a negative effect on your credit score.
Can a credit card help me build credit if I have no credit history?
Yes, a credit card can help you build credit even if you have no credit history. Secured credit cards are a great option for beginners with no credit history, as they’re easier to get approved for than unsecured cards. Additionally, some credit cards are specifically designed for people with no credit history, such as the Petal 2 Visa Credit Card.
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