Best First Credit Cards Methodology
Forbes Advisor analyzed dozens of cards aimed at credit newcomers and those just starting out with their first credit card to help you determine which might be a good fit for your needs. This list comprises the top unsecured cards, secured cards and student cards for those looking for their first credit card.
Cards on this list are graded against various factors, which vary depending on the card category (unsecured, secured, student). The factors considered include:
- Rewards: 20% to 50%
- APR and fees: 35% to 50%
- Accessibility and eligibility: 10% to 45%
We focused primarily on cards that offer opportunities to build credit by reporting to the major credit bureaus. Some cards are best for those with fair to average credit, while others target those with bad credit or no credit history.
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
Forbes Advisor reevaluates each credit card list at least every 12 months to determine if any cards need to be added and/or removed. However, a list could be updated sooner if significant changes are made to the mentioned cards or if a new credit card is announced that’s likely to impact the category.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates credit cards.
Which Type of Starter Credit Card Should You Choose?
| Situation | Recommended Card Type | Reason |
|---|---|---|
| You’re enrolled in college. | Student card | Oftentimes, card issuers offer the same benefits and fees on student cards as their nonstudent counterparts. If you’re a college student, a student card will almost always be your top choice for a first credit card. |
| You’re not enrolled in college, and you have no credit history. | Secured card | If you don’t have any credit history yet, you may struggle to get approved for many traditional credit cards. But you can boost your approval odds by providing a security deposit. |
| You’re not enrolled in college, and you either have some credit history or can improve your approval odds in other ways. | No-deposit card (unsecured card) | These may be your best choice if you’ve built a limited credit history, such as from being an authorized user or making student loan payments.
Some cards with no deposit requirements offer nontraditional ways to improve your chances of approval. For example, you’ll have a better chance of qualifying for the if you have a Chase checking or savings account. |
Don’t underestimate a secured credit card. They have the same power to build credit, and most issuers will return your deposit once you demonstrate consistent payments. Long term, it’s a much better option than a starter card with an annual fee.
— Jenn Underwood, Credit Cards Expert
What To Look for in Beginner Credit Cards
For All Beginner Cards
- No annual fee. Look for cards that don’t charge annual fees (or at least have the potential to upgrade to a no-annual-fee version). This allows you to keep the card account open to preserve its credit history without paying a price for the privilege.
- Three-bureau credit reporting. For responsible payment behavior to improve your credit score, it must be added to your credit reports. This is why it’s essential to make sure whatever starter card you apply for reports to all three main credit bureaus: Experian, Equifax and TransUnion.
- Rewards. Rewards shouldn’t be the main focus during your search for a first credit card, since you’ll likely start with a lower credit line that will limit your rewards potential. Still, earning some rewards can provide icing on the cake while you build credit.
For Secured Cards
- Upgrade path. Many of the best secured cards offer the opportunity to get your deposit back and upgrade to an unsecured version without requiring you to close your account.
- Affordable deposit. Both secured cards on this list require a minimum deposit of $200. If that amount would stretch your budget, you may want to consider a card without a minimum deposit, such as the Chime Visa® Credit Card or the Varo Believe Credit-Builder Card.
For No-Deposit (Unsecured) Cards
- Lenient credit requirements. Since you won’t get an approval boost due to your college enrollment status or a security deposit, it’s essential to look for cards that clearly state they will consider those with new, limited or fair credit histories.
- Preapproval tools. With these tools, you can see if you qualify for a card without impacting your credit. If you’re not preapproved, you can simply move on to another card—no harm, no foul. But if you do receive preapproval, you can more confidently submit your application, which typically involves a hard credit check.
How To Make the Most of a Starter Card
A beginner card can be a stepping stone to building better credit and gaining access to more lucrative credit cards. But using credit cards also involves the risk of going into debt. Here’s how to maximize the potential benefits of your first credit card while minimizing the dangers.
1. Always Make On-Time Payments
Not only is this the most important factor for building credit, but it also helps you avoid late payment fees. To protect against accidentally missing a payment due date, consider setting up autopay in your online account.
2. Avoid Using Too Much of Your Credit Limit
Credit utilization, the percentage of your total revolving credit you use, is the second most influential FICO scoring factor. With all things being equal, a lower credit utilization can improve your credit score. Using some of your credit is fine, but experts recommend keeping your utilization below 30% when possible.
3. Aim To Pay Off Your Statement Balance Each Month
While making the minimum payment is all that’s required to keep your credit card account in good standing, you’ll accrue interest if you don’t pay off your entire statement balance. And since credit cards are known for having high APRs, those interest charges can add up quickly. By paying back your full statement balance each billing cycle, you can build credit without putting your financial health in jeopardy.
What is your favorite starter card and why?
Kelly-Ann Franklin
Credit Cards Editor
Clint Proctor
Credit Cards Lead Editor
While it is a secured card requiring a deposit, I like the Bank of America® Customized Cash Rewards Secured Credit Card* because it can earn a solid 3% cash back in a category of choice, ranging from groceries to online shopping and home improvement stores while helping build credit.
Credit Cards Editor
I often recommend the Chase Freedom Rise® to people looking for a first credit card. It has a straightforward reward structure and no annual fee. Plus, with responsible credit behavior, cardholders can earn an upgrade to the even more rewarding Chase Freedom Unlimited®. However, the Freedom Rise isn’t a fit for international travelers since it charges a foreign transaction fee.
Credit Cards Lead Editor
Other Beginner Credit Cards To Consider
While we think the cards above are the best options for most people, you may be better off with a different card if one of the following situations applies.
You’re an International Student
You’re Under Age 21
Is a Beginner Credit Card Worth It?
The right beginner credit card can serve as a valuable tool in your credit-building journey. Regardless of your chosen card type, keeping your utilization low and paying your bills on time will set you up for success. By using your first card wisely, you can improve your credit score while opening the door to more rewarding financial opportunities in the future.
The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank.
First Credit Card FAQs
Why is it important to establish credit?
Using a credit card responsibly is one of the best ways to build a positive credit history and boost your credit score. The higher your credit score, the more you can save on various products and services, including credit cards, lines of credit, car loans and mortgages.
Do store cards make good beginner credit cards?
A store card can help you build credit, but this type of card often has higher interest rates than general-use credit cards. The Amazon Prime Secured Card* could be worth considering for those who often shop at Amazon.com. It earns 2% back at Amazon.com, Amazon Fresh and more for eligible Prime members, non members do not currently earn rewards with this card. It also has a lower-than-average 10.00% fixed rate APR on purchases.
What’s the difference between a beginner card and a bad credit card?
While a beginner credit card is designed for people new to credit, a bad credit card is tailored to those with damaged credit scores looking to rebuild. Bad credit cards, or cards for those with bad credit (580 or below in the FICO scoring model), tend to have less favorable terms and rewards than starter credit cards. While both types of cards can help you build credit, a beginner card should be your preferred choice if you don’t have a negative credit history that could stand in the way of your approval.
How can I monitor my credit score progress?
There’s a good chance that your credit card issuer may allow you to track your credit score from your online account. If not, there are several online credit monitoring services to choose from.
Is it bad to apply for multiple starter credit cards on the same day?
If each application adds a hard inquiry to your credit reports, applying for multiple credit cards at the same time can have a negative impact on your credit score. However, many cards on our list have preapproval tools that use soft inquiries, so you can check with as many of these as you’d like without impacting your credit scores.
