Best Beginner Credit Cards of 2024

What is a starter credit card?

A starter credit card is intended specifically for people who have limited or no credit history. Most come with relaxed approval criteria, making them easier to get than standard credit cards. The best starter credit cards give you access to credit, but more importantly, they help you build a credit profile.

How do beginner credit cards work?

Beginner credit cards give you access to a line of credit. You can charge purchases up to the credit limit and pay them back later. If you carry a balance, most card issuers charge interest on the unpaid sum. The interest depends on your annual percentage rate (APR) — the amount you pay to use credit.

Since beginner credit cards tend to have higher APRs than other cards, it’s a good idea to pay off your balance every month. That way, you won’t get hit with large interest fees. If you qualify for a card with 0% intro APR, remember that it will increase after the introductory period ends.

As you use your first credit card, the issuer reports your activity to the major credit bureaus — Experian, TransUnion and Equifax. If you make payments on time, stay within your credit limit and minimize the amount of credit you’re using, you can increase your credit score.

Pros and cons of starter credit cards

Thinking about opening a credit card for beginners? Make sure you’re aware of the pros and cons:

Why should I get a beginner credit card?

You might consider a beginner’s credit card if you’re new to credit; these cards are ideal if you’ve never had a credit card or a loan. They can also be useful if you need to rebuild your credit.

The goal of starter credit cards is to establish a solid credit history. That way, it’s easier to get approved for home loans, auto loans and have access to the best credit cards.

Better credit can also help you:

• Rent a home
• Get a job
• Get a cell phone contract

The best beginner credit cards also come with additional perks such as rewards and fraud protection. Many include car rental insurance, extended warranties and purchase protections.

Types of starter credit cards

If you’re searching for a first-time credit card, there are a few types to consider.

Student credit cards

Student credit cards are exclusively for students and you may be able to qualify with a very limited or nonexistent credit history. Shop around — credit card companies know that students can turn into long-term customers, so they often offer special products and perks.

Secured credit cards

Secured credit cards require you to put up a security deposit in cash. This money serves as collateral; if you don’t make payments, the card issuer keeps your deposit. These cards are relatively easy to get even if you have a low credit score or a spotty credit history. As long as you make payments on time, they offer an effective way to build credit.

Unsecured credit cards

Unsecured credit cards don’t require a security deposit. However, the issuer will assess your credit score, credit history, income and debt before making an approval decision. Starter cards often have fewer approval requirements, but they may have high APRs and lower credit limits.

How to choose the best starter credit card

To help you choose the best first credit card for your needs, keep the following factors in mind.

Credit building features

Make sure the card issuer reports to all three credit bureaus — that way, making timely payments will have the biggest impact on your credit score. While you’re at it, check to see if you can upgrade to a better card with the same issuer after a period of responsible use.

APR

The APR on starter cards is usually higher than the rates charged on standard cards, but it’s still a consideration. After all, the APR will have a big impact on how much you pay to carry a balance. If you have a good credit score, look for cards that offer lower rates for well-qualified applicants.

Fees

Read the card terms to understand the fees you’ll pay if you take a cash advance, make a late payment or transfer a balance from another card. Most beginner cards have a $0 annual fee, but it’s a good idea to verify the amount. If you’re a traveler, make sure to check foreign transaction fees; they can add up over the course of one vacation.

Rewards

Does the card offer a rewards program? If so, does it match your spending patterns? Look at redemption options carefully — some rewards cards will send a check or give you statement credits, while others have more limited options. It’s also important to look at welcome offers; if you can meet the spending threshold, these offers can pay off in extra rewards.

Benefits

Check the benefits that come with the card. Common options include:

• Travel insurance
• 24/7 travel assistance
• Purchase protection
• Extended warranties
• Fraud protection
• Credits for services

How to apply for a beginner credit card

You can apply for starter credit cards online — our card comparison tool, CardMatch, is a great place to evaluate offers and start the application process.

Here’s what you can expect to provide during the application process:

• Age verification. Most cards require you to be at least 18 years old.
• Social security number. You’ll need to provide your SSN during the application process.
• Income. Plan to provide information about your employment and income.
• Contact information. Be prepared to give your phone number and address.
• Credit history. You don’t need to worry about this part — the bank will pull your credit report and look at your history of payments and borrowing.

Every application you submit results in a hard credit pull; applying for multiple starter credit cards can hurt your credit score.

How to use a starter credit card

If you don’t use a credit card responsibly, having one can cause more harm than good.

Here are a few best practices to help you get the most value from your beginner credit card:

Alternatives to credit cards

If you’re struggling to qualify for a starter credit card, there are a few other ways to manage your finances.

Debit cards

A debit card lets you make purchases with a card using the funds in your bank account. However, it won’t help you build credit.

Store credit and charge cards

These cards can be used at a single retailer or family of brands. They’re easy to get approved for, but often have high interest rates. As long as you make your payments regularly, they can help you build credit.

Personal loans

Making payments on a personal loan is a good way to build credit. Your bank or credit union likely offers several options. If you can’t get approved, look for credit-building loans through brick-and-mortar and online banks.

Becoming an authorized user

Becoming an authorized user on a family member’s or friend’s credit card can help you build credit. However, the cardholder’s actions can impact your credit — missed payments or a high credit utilization rate can affect you negatively.