Best Starter Credit Cards for Building Credit

Building credit from scratch can be a daunting task, but with the right starter credit card, you can start making progress in no time.

The Discover it Secured credit card has no annual fee and reports to all three major credit bureaus, making it a great option for those just starting out.

Having a credit limit of $200 can help you establish a positive credit history, and Discover's cashback rewards program can provide a nice bonus for your responsible spending habits.

One thing to keep in mind is that the Discover it Secured credit card requires a security deposit, which will be used as your initial credit limit.

Choosing a credit card can be overwhelming, especially if you're a beginner. There are hundreds of options to choose from, but narrowing it down can help. Consider why you want a credit card and how you plan to use it. This will help you focus on the right features.

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Many consumers find secured or student cards to be good first cards to carry. These types of cards often have lower requirements for approval and can help you build credit responsibly. With a secured credit card, your credit line will equal the amount of the required cash deposit after you are approved.

To make the most of your new card, look for features like low or 0% intro APR, low or no annual fees, rewards programs, and credit-building tools. These features can help you effectively manage your credit and take advantage of benefits like purchase protection and travel insurance.

Here are some key features to consider:

By considering these features and doing your research, you can find the right credit card for your needs and start building a strong financial foundation.

The Capital One QuicksilverOne Cash Rewards Credit Card is a great option for those with average credit or those who have made credit mistakes in the past. It's available to consumers with "average" credit, making it an attainable choice.

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This card offers a flat 1.5% cash back on all purchases, which is a decent rewards rate. You can also earn 5% cash back on hotels and rental cars booked through Capital One Travel, which is a nice perk.

The annual fee for this card is $39, which might be a bit steep for some. However, considering the rewards and benefits, it might be worth it for those who can take advantage of them.

If you're a student looking for a credit card, Bank of America offers a great option. The Bank of America Customized Cash Rewards credit card for students is a great idea for students concerned about getting approved for a starter card.

This card offers a welcome offer of earning a $200 cash rewards bonus after spending $1,000 in the first 90 days of account opening. This is a great incentive to start using the card and earning rewards.

Consider reading: Minimum Credit Score for Bank of America Credit Card

The rewards rates on this card are flexible, with the option to earn 3% cash back in the category of your choice, such as gas, electric vehicle charging stations, online shopping, dining, travel, drugstores, or home improvement/furnishings. You can also earn 2% cash back at grocery stores and wholesale clubs, with a limit of $2,500 in combined spending each quarter.

To maximize your rewards, make sure to choose your category wisely, as it's limited to $2,500 in combined purchases each quarter. Once you reach that threshold, all your purchases revert to 1% cash back.

This card is a great option for students who want a cash-back card that they don't need to replace when they graduate from college.

If you're just starting out with credit, it's essential to consider cards that don't require an excellent credit score to be approved. Business Insider chose the best starter credit cards by considering cards that appeal to those just starting out with credit, including credit cards for students with no credit and secured credit options.

Your credit score plays a significant role in determining which credit card you'll qualify for. Understanding your credit score will help you make informed decisions about which card features are best suited to your purchasing habits and needs.

To establish a good credit history, consider opening a card with a low or 0% intro APR, and no annual fees. The Capital One Platinum Credit Card is a practical choice for many looking to elevate their credit profile, especially for those with limited credit history or average credit scores.

If you're looking to build credit without a credit check, consider the OpenSky Secured Visa Credit Card. This card reports your payment activity to all three major credit bureaus, helping you boost your credit score when paying your balance off each month.

Here are some key factors to consider when choosing your first credit card:

Ultimately, the best credit card for you will depend on your individual financial goals and situation. Take the time to research and compare different options to find the one that best fits your needs.

When choosing a starter credit card, consider features like low or 0% intro APR, which can help you save money on interest charges.

Low or no annual fees are also a great feature to look for, as they can help you avoid unnecessary expenses.

Rewards programs can be a great way to earn cash back or other benefits on your purchases.

Credit-building tools can also be a valuable feature, helping you establish a positive credit history.

All of the cards we've reviewed offer perks that enhance your financial security and protect your investments.

Points earning credit cards are a great way to earn rewards on your purchases. These cards offer a variety of redemption options, making them a popular choice for those who want flexibility.

You can earn points based on your spending, with some cards offering set earnings rates for specific categories, such as 3 points per dollar spent on groceries or 2 points per dollar on gas.

To get the most out of a points earning credit card, you should pay your bill in full each month, be mindful of which categories you spend the most, and be willing to crunch the numbers to find the most value.

Some points earning credit cards have quarterly bonus categories that change every three months, with the top category earning up to 5 points or higher per dollar.

Here are some ways to use your points:

The main fees and rates of a credit card are usually outlined in a boxed-off section at the top of the agreement, making it easy to spot potential costs.

The Annual Percentage Rate (APR) is a crucial term to look out for, as a higher APR can significantly increase the cost of carrying and paying off a balance.

Some credit cards have an APR range based on creditworthiness, with higher scores leading to lower APRs.

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A Balance Transfer Fee is typically around 3% to 5% of the balance if the card allows you to transfer a balance from another card.

Foreign Transaction Fees can range from 3% to more, and some cards may waive this fee altogether.

Penalty Fees, such as late fees, can go up to $40, and some cards may charge a lower fee the first time you're late.

Here's a breakdown of some common fees you might encounter:

Credit cards offer unparalleled convenience in today's digital age. They're accepted almost everywhere, making it easy to make purchases on the go.

Many major car rental companies and hotels require a large hold on a credit or debit card to reserve a vehicle or book a room, which can take several days or longer.

You can tap or hover your card or even use your cellphone to make purchases with just a few seconds of convenience.

Credit cards also increase your purchasing power by providing the necessary funds at the time they're needed, protecting you from overdraft in the event your paycheck doesn't clear immediately.

With credit cards, you can make purchases online, over the phone, or in person, giving you flexibility and freedom to shop wherever and whenever you want.

Having a starter credit card can offer numerous benefits and perks, making it an attractive option for those looking to establish or rebuild their credit.

You can earn rewards with a starter credit card, such as cash back or points, which can be redeemed for statement credits, gift cards, or other rewards. The Discover it Secured Credit Card, for example, offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases.

Some starter credit cards offer welcome bonuses, which can provide an initial boost to your rewards earnings. The Bank of America Customized Cash Rewards credit card for Students, for instance, offers a $200 cash rewards bonus after spending $1,000 in the first 90 days of account opening.

Starter credit cards can also provide flexibility in their rewards-earning structures, such as the Bank of America Customized Cash Rewards Credit Card for Students, which allows you to earn 3% cash back in the category of your choice and 2% cash back at grocery stores and wholesale clubs.

Here are some benefits and perks to consider when choosing a starter credit card:

A welcome bonus is a great incentive to get you started with a credit card. It's essentially a reward for applying and using the card, often in the form of additional points or cash back.

The type of welcome bonus can vary, but it's usually tied to meeting a spending threshold within a limited time frame. For example, the Discover it Secured Credit Card offers a welcome bonus of matching all the cash back you earned at the end of your first year.

To take advantage of a welcome bonus, you need to understand what it entails and what you need to do to earn it. This includes meeting the spending requirement and making timely payments.

The Bank of America Customized Cash Rewards credit card for Students, for instance, offers a $200 cash rewards bonus after spending $1,000 in the first 90 days of account opening. This is a great opportunity to earn rewards while you work to build your credit.

It's essential to review the fine print and eligibility requirements before signing up for a credit card. This will help you avoid any surprises or disappointments down the line.

Some credit cards, like the Discover it Secured Credit Card, automatically match all the cash back you earned at the end of your first year. This is a great perk that can help you maximize your rewards earnings.

The Citi Double Cash Card is a great option for those looking for a flat-rate cash back credit card. It earns 2% cash back on every purchase, with no rotating categories or spending limits.

This card is ideal for people who want a simple and straightforward way to earn cash back on their everyday purchases. The Citi Double Cash Card also has no annual fees, making it a great option for those who want to avoid paying extra for a credit card.

You can earn a cash bonus of $200 after spending $1,500 on purchases in the first six months of account opening. This is a great opportunity to earn some extra cash back and get started with the card.

Here are the key benefits of the Citi Double Cash Card:

While the Citi Double Cash Card is a great option for flat-rate cash back, it does charge a 3% foreign transaction fee. This means you may want to use a different card when traveling abroad.

Overall, the Citi Double Cash Card is a solid choice for those who want a simple and straightforward way to earn cash back on their everyday purchases.

The Discover it Student Cash Back card is a great option for students who like to maximize rewards. It offers 5% cash back on everyday purchases at different places you shop each quarter, up to a quarterly maximum limit.

You can track your quarterly maximum limit using the Discover cash back calendar. This way, you can plan your purchases to maximize your rewards.

One of the best things about this card is that it matches all the rewards you earn at the end of the first account year. This means you can earn double the rewards in the first year.

The card also offers unlimited 1% cash back on all other purchases automatically. This means you'll earn cash back on everything else you buy, even if it's not one of the rotating categories.

You'll also get to see your credit score for free each month, which can be a huge help in building credit. Plus, you'll get Social Security Number monitoring, zero fraud liability, and no late fee on your first late payment.

This card is a great option for students who want to earn rewards and build credit at the same time without an annual fee.

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Capital One Travel offers some amazing perks. You can earn 5% cash back on hotels and rental cars booked through Capital One Travel with the Capital One QuicksilverOne Cash Rewards Credit Card.

With this card, you can also earn unlimited 1.5% cash back on all purchases outside of hotels and rental cars. This card is available to consumers with "average" credit, making it a great option for those with limited credit or past credit mistakes.

Capital One Travel also offers a convenient way to book flights, hotels, and rental cars with rewards, or pay with your card and earn 5 points per dollar on hotels and car rentals. This feature is available to most Capital One rewards cardholders.

If you're a college student, you can earn 3% cash back on dining, groceries, entertainment, and eligible streaming services, plus 1% on all other purchases with the Capital One Savor Student Cash Rewards Credit Card. This card also offers a welcome bonus of $50 cash bonus once you spend $100 on purchases within three months of account opening.

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Here's a summary of the benefits you can get with Capital One Travel:

If you're looking to earn cash back on your grocery purchases, consider cards like the Capital One Savor Student Cash Rewards Credit Card, which earns 3% back on groceries, among other categories.

Many cardholders swear by bonus rewards on supermarkets and grocery stores, and some cards offer as much as 6% back on groceries and streaming subscriptions.

The Blue Cash Preferred Card from American Express is a popular choice, earning 6% back on groceries and streaming subscriptions, as well as 3% back on gas and transit costs.

However, Amex cards can be harder to acquire for first-time applicants, so beginners might want to consider the Capital One Savor Student Cash Rewards Credit Card instead.

This card is a great option for students, young adults, and individuals new to credit, as it earns 3% back on restaurants, groceries, streaming services, and entertainment purchases.

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Here's a comparison of some popular cash back cards for grocery purchases:

Remember, responsible usage on this card will help build good credit over time, making it easier to qualify for premium cards in the future.

If you have a credit card with a low interest or low introductory rate, you can benefit from it. This can be a great option for those who want to save money on interest charges.

The regular purchase APR is something to consider, especially if you think you may revolve balances beyond the introductory period. Check the regular purchase APR before applying for the card.

People who can benefit from a low interest credit card are those who plan to pay off their balances in full each month. This way, they can avoid paying interest altogether.

You can benefit from a cash back credit card if you don't do much traveling and want a flat-rate cash reward. This type of card is best if your spending is varied across several categories, and you prefer simple redemption options.

If you have poor credit or no credit history, a secured credit card like the Discover it Secured Credit Card can help you establish credit. With this card, you'll earn 2% cash back at gas stations and restaurants and 1% back on all other purchases, with no annual fee or hidden fees.

You should consider a low interest or low introductory rate credit card if you think you may revolve balances beyond the introductory period. This type of card can help you save money on interest charges, but be aware that the regular purchase APR will still apply.

Here are some reasons to get a credit card:

Keep in mind that each credit card has its own benefits and drawbacks, so it's essential to choose the right card for your needs and financial situation.