August 2023’s Top Starter Credit Cards
August 2023's Top Starter Credit Cards
Best Starter Credit Cards for Building Credit and Earning Rewards
If you are just starting to build your credit or have average credit, it can be challenging to qualify for the best credit cards. However, there are several beginner credit cards designed specifically for newcomers to credit. These cards provide an opportunity to establish credit history while offering rewards for your spending. In this article, we will explore the best starter credit cards to consider.
Why Trust Us: How We Reviewed the Best Starter Credit Cards
Before we dive into the best starter credit cards, let us explain our methodology for rating these cards. We focused on rewards, perks, and fees associated with each card. It is crucial to pay your balance in full each month and make payments on time to avoid unnecessary interest charges or late fees. Our goal is to provide you with credit card options that are valuable and beneficial to your financial journey.
Best Starter Credit Card Frequently Asked Questions
Before we begin discussing the best starter credit cards, let’s answer some common questions for credit beginners:
- How can credit cards help build credit?
- How do I apply for a credit card for the first time?
- What steps can I take to improve my chances of approval?
- How can I check my credit score online for free?
Having a basic understanding of these questions will provide a solid foundation for selecting the best starter credit card that suits your needs.
Best Starter Credit Cards
Capital One SavorOne Student Cash Rewards Credit Card:
If you’re a college student who enjoys dining out, grocery shopping, and entertainment, the Capital One SavorOne Student Cash Rewards Credit Card is an excellent option. Cardholders earn 3% cash back on dining, groceries, entertainment, and eligible streaming services without any limits. Additionally, until November 14, 2024, cardholders can enjoy 10% cash back on Uber and Uber Eats purchases and enroll for a complimentary Uber One membership.
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This card has a welcome bonus offer of $50 cash bonus when you spend $100 on purchases within 3 months of account opening. It is also packed with impressive benefits for a no-annual-fee student card, including price protection, extended warranty, car rental coverage, roadside dispatch, travel accident insurance, and complimentary concierge services.
Discover it® Student Cash Back:
For students looking to maximize rewards, the Discover it® Student Cash Back is an ideal choice. This card offers 5% cash back on rotating categories throughout the year, up to the quarterly maximum limit. It also provides 1% cash back on all other purchases. Furthermore, at the end of the first account year, Discover matches all the rewards you have earned.
The Discover it Student Cash Back Card also offers free credit score monitoring, zero fraud liability, and no late fee on your first late payment.
Discover it® Secured Credit Card:
For individuals with poor credit or no credit history, the Discover it® Secured Credit Card is an excellent option. Unlike other secured credit cards, this card does not charge any annual fees or hidden fees. Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, with 1% cash back on all other purchases. Discover will match all the rewards earned at the end of the first year.
Other benefits include a free monthly FICO score check, zero liability for fraudulent purchases, and the opportunity to transition to an unsecured line of credit after seven months.
Capital One QuicksilverOne Cash Rewards Credit Card:
If you have “average” credit, the Capital One QuicksilverOne Cash Rewards Credit Card is an excellent choice. This card offers 5% cash back on hotels and rental cars booked through Capital One Travel and 1.5% cash back on all other purchases. While it does charge a $39 annual fee, you can enjoy numerous benefits, including credit limit reconsideration after making six on-time payments.
Capital One VentureOne Rewards Credit Card:
Although typically available to consumers with good credit, the Capital One VentureOne Rewards Credit Card can serve as a starter travel credit card. Cardholders earn 1.25 miles for every dollar spent and receive 20,000 bonus miles after spending $500 within three months of account opening. This card has no annual fee or foreign transaction fees.
Chase Freedom Rise℠:
Ideal for individuals completely new to credit cards, the Chase Freedom Rise℠ caters specifically to those with no credit history. This no-annual-fee card offers 1.5% cash back on all purchases, making it a solid choice for a starter credit card.
To improve your chances of approval, it is recommended to have or open a Chase checking account with a $250 balance within two days of applying for the card. Additionally, enrolling in autopay within the first three months of account opening results in a $25 statement credit.
Capital One Platinum Credit Card:
If you have average credit and prioritize good credit habits over rewards, the Capital One Platinum Credit Card is an ideal choice. While it may provide a low credit limit initially, Capital One considers boosting your limit after six on-time payments. This card has no annual fee, making it suitable for individuals building credit history.
Discover it® Student Chrome:
For individuals interested in low introductory APR, the Discover it® Student Chrome is a great option. It offers a 0% intro APR for six months on purchases, which transitions to a variable APR. This card also provides 2% cash back on your first $1,000 in combined purchases each quarter at gas stations and restaurants, with 1% back on all other purchases.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card:
If your goal is to build good credit, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card is an excellent choice. This card comes with a minimum credit limit of $500, no annual fees, and no late payment fees. You can earn a flat 1% cash back on all eligible purchases for the first year, with the opportunity to graduate to 1.5% after making 12 on-time payments. The Petal 2 Visa Credit Card also offers powerful financial management features through the Petal Card app.
Capital One®️ Spark®️ Classic for Business:
While there aren’t many small-business credit cards available for individuals with average credit, the Capital One®️ Spark®️ Classic for Business is a solid starting point. This card offers 1% cash back on all purchases, no foreign transaction fees, and free employee cards. Other benefits include travel and emergency assistance services, secondary car rental insurance, purchase protection, and extended warranty coverage.
By carefully considering your needs and financial situation, you can select the best starter credit card that aligns with your goals for building credit and earning rewards. Remember to use credit responsibly by paying your balance in full each month and making payments on time. With time and responsible credit usage, you can strengthen your credit history and gain access to a wider range of credit card options.
