Anyone who has never had a credit card before may not know which ones offer the best deals. If your credit score is good to excellent, you need to have a few of these cards to keep your rating high. If it’s good or if you have no credit history, then a credit card can help you to build a history, but it pays to beware. Not all credit card companies offer good deals for first-time credit card applicants. We’ve done the research to compare the offers that are out there and have put together a list from among the hundreds of the five best credit cards for first-timers, and we also tell you why.
5. USAA® Secured Card American Express® Card
A good credit card for first-time applicants with a limited credit history is the USAA Secured Card issued by American Express. The minimum security deposit is $250 with an annual fee of $35 and no other fees. The regular APR on this card is 11.65% but depending on creditworthiness, it can go as high as 21.65%. This is still lower than all the other cards. This is not a debit or prepaid credit card. You can use the account to build a credit history and boost your credit scores. You choose the credit limit with the amount of the deposit that can range from $250 to $5,000 through CD that earns interest. This is a card that is designated for members of the military both active and former as well as their families. It extends travel benefits, insurances and a 4% APR for military members who are on active deployment for up to 12 months. It is secured with a chip and a pin that is required for use.
4. Capital One® Platinum Credit Card
This is a good first-time credit card because applicants only need to have a minimum credit history to qualify. While there are no cash back rewards offered with this card, there is also no annual fee required. Some cards charge high fees just for the privilege of being a cardholder. This is an unsecured card and it can help you to build your credit rating if you use it to make purchases and always make the payments on-time. The regular APR is 24.99% and if you’re late in making a payment, the maximum charge will be $38.
You can make cash advances with a minimum of $10 but there is a 3% fee for this. The card is secure because it has a smart chip and signature requirement to help prevent fraud. When you make five monthly payments on time, consecutively, you may qualify for a higher credit line. You can also access your account online or with their free mobile app on your phone. You can either pay online or by check with no additional transaction fee and Capital One allows to choose the due date for payments.
3. Capital One® QuicksilverOne® Cash Rewards Credit Card
If you have a limited credit history, the Capital One QuicksilverOne may also be a good starter card. Although the bank charges an annual fee of $39, the card comes with a cash rewards benefit for using it to make purchases. There are no limitations on the earnings potential. The reward is 1.5% for every purchase that you make and it is good for as long as you are in good standing with the bank and continue to use the card. You only need to have a minimal credit history to qualify. In addition to the once a year fee, the regular APR for this card is 24.99 percent. There is no balance transfer fee and the maximum late fee for a missed payment is $38. There is a minimum cash advance amount of $10 and a 3 percent fee is assessed for each cash advance made. This card is secured with a smart chip and a signature is required. One of the best benefits of this credit card is that when payments are made on time, it will help you to build your credit score.
2. Discover it® Secured
Although this is a secured credit card, it is still useful in helping you to build your credit score. The minimum security deposit required is $200. You can qualify for this card with a limited credit history so it’s not difficult to obtain. Discover Bank is the financial backer. There are no annual or one time fees associated with this card and it allows you to earn 2% cash back on purchases up to $1,000 every quarter and 1% after that. The regular APE is 24.74%. There is no limit to how much in cashback rewards you can earn. After using the card responsibly for a period of 8 months, the company will review your account and they may refund the amount to you and establish a credit line in the amount of your security deposit, or at least a minimum of $200 in unsecured credit. You may be transitioned to a completely unsecured card with responsible use of the card and a consistent on-time payment record.
1. Journey® Student Rewards from Capital One®
If you’re a college student, then the Journey Student Rewards from Capital One may be a good choice. This is one of the most highly rated student first-time credit cards on the market today. You may qualify with a limited credit history if you’re currently enrolled in college courses. This is a card that comes with a rewards program that pays you a minimum of 1% on all of your purchases and if you make every payment on time, they’ll throw in an additional .25% in cash back for each month. The regular APR is 24.99% but there is no annual or monthly fee to be a cardholder. The cash advance fee is set at 3% with a minimum of a $10 withdrawal. The APR is the same for cash advances. The card is secure with a smart chip and signature required. It can help you to build your credit history and score when all payments are made on time. You can also access your account via the internet or the free mobile app. After making five on-time payments, your credit limit may be raised.