The very idea of getting a credit card can be intimidating, especially when you don’t have any real credit to speak of or you have credit that is very limited. There are so many different things that you have to think about when getting a credit card that it can be a daunting task, especially when you don’t really have any experience with this type of thing. There’s no doubt that there are a number of benefits to having one or two credit cards in your possession, especially when it comes to needing money for emergencies. With that being said, there are also quite a few pitfalls that you have to be careful not to become a victim of. It all starts with finding the right credit card from a reputable company and knowing what to look for. That way, you don’t end up getting taken by a company that charges a ridiculous interest rate or fees that are through the roof without understanding exactly what it is that you’re getting into in the first place.
Below are five of the best credit cards you can get if you’re new the credit game. All of them offer a few different advantages so it’s important to see which ones best fit your needs. While there’s nothing wrong with getting two or even three different credit cards to make sure you’re covered when something unexpected happens, don’t get in the habit of getting too many at one time or you might not be able to make your minimum monthly payments.
Capital One Secured Credit Card
Just as the name implies, this is a secured credit card. That means that you have to make a certain deposit in order to initiate a line of credit with this card. This is a great way to build credit when you don’t really have any to speak of and may not qualify for an unsecured line of credit. The minimum deposit you’re asked to make is $49 and you might be issued a credit line of up to $200, depending on your credit rating. The card doesn’t charge an annual fee and has a fairly reasonable interest rate of 24.99%. As is the case with most credit cards, it reports to all three major credit bureaus, giving you a chance to build your credit as quickly as possible. In addition, if you make your first five payments on time, there’s a chance that you can get an increase in your credit limit.
Discover It Secured Credit Card
This is another secured credit card that works well for first-time credit card holders. The interest rate on this one is 24.74% and just as the one discussed in the paragraph above, there is no annual fee. If you make your first eight payments on time, you might qualify for a credit line increase. The thing that makes this one stand out is that you get 2% cash back for all gasoline and restaurant purchases and 1% cash back on all other purchases. If you complete your first year of payments on time, the company will match all of your cash back rewards after that first year as a one-time benefit.
Capital One Platinum Credit Card
This card is fairly easy to get if you have even a little bit of a credit history. Even if you have some dings on your credit, you might still be able to get it. Both your interest rate and the credit line you can expect will depend on your credit history. With that being said, you don’t have to pay an annual fee and if you make your first five payments on time, you’re likely to qualify for an automatic credit line increase.
Capital One Quicksilver One Credit Card
This particular card does charge an annual fee, but it’s set at a more than reasonable amount of just $39. Like many of the other cards discussed here, you’ll probably qualify for an additional line of credit after you make your first five payments on time. The card also offers 1.5% cash back on every purchase you make. That might not sound like a lot, but it can add up to quite a bit over the course of a year, especially if you’re using the card on a regular basis.
Citi Thankyou Credit Card
This is a great card for first-time credit card holders, especially if you’re a college student. You can get it without paying an annual fee. However, the interest rate and the amount of credit that you are initially granted will depend on your credit history and rating. With this card, you can earn points that you can later redeem for cash back or certain items. You get two points for every dollar you spend at restaurants, movie theaters or other entertainment venues. For every dollar you spend on other items, you get one point. This tends to add up quickly and as you know, every little bit counts when you’re just getting started.