Getting your first credit card isn’t that easy. First, you need to research and find the best card for your needs. Second, you need to get approved, which can be pretty tough considering you have never had a credit card before.
Fortunately for you, we have put together a list of the best first time credit cards. You can find various number of credit cards, specifically if you are choosing the credit card for the first time. There is several factors to look at while choosing the right first time credit card, but I would recommend you to look at rewards, the interest rate and the fees primarily. These three factors are the most important features for picking the best first time credit card. Keep reading to see the first time credit card comparison and apply today.
1. best beginner credit card
The Discover is most likely the best beginner credit card. You have the opportunity to earn 5% cash back rewards on purchases. Another great advantage is the 0% APR on purchases and balance transfers for the first 14 months.
No need to worry about paying the interest with the long introductory period. Discover reward program allows you to earn 5% on up to $1 500 on purchases in categories, rotating each quarter. You have to make sure to register prior to each quarter in order to receive the 5% cashback bonus. The rest of your purchases will earn 1% cashback.
At the end of your first year, Discover will automatically match all the cash back you have earned since you opened the account.
Discover credit card offers lots of perks for its customers. For instance, you can temporarily freeze your credit card to prevent unauthorized purchases or overview of your monthly FICO score statement, which is a great advantage when you are building your credit score with your first credit card.
Another great benefit is a 0% introductory APR on purchases and balance transfers for the first 14 months. After 14 months, the APR differs from 13,99% to 24,99%, based on your credit history. No annual fees required.
2. Best sign-up bonus
Chase freedom credit card offers you a possibility to earn a $150 sign-up bonus after spending $500 on purchases in the first three months. You will only get the sign-up bonus if you haven’t earned bonus in the previous 24 months.
With the Chase Freedom credit card, you have the possibility to earn 5% cashback on up to $1 500 in purchases categories, rotating each quarter. Similar to Discover, you have to activate it to earn the 5% in rewards. All your other purchases are covered by 1% cashback.
In addition, there is no annual fee and 0% introductory APR for first 15 months on purchases and balance transfers. After first 15 months, the APR varies from 17,24% to 25,99%.
3. Best for flat rate rewards
Capital One QuickSilverOne
The Capital One QuickSilverOne credit card offers a flat 1,5% cashback on all your purchases.
If you don’t want to keep up rotating categories and you think you might forget to register or activate the bonus, this is a great help.
Cashback rewards never expire and you can redeem them at any time.
If you make your first five monthly payments on time, Capital One will reward you by considering you for a credit limit increase.
The annual fee is $39 and the purchase APR is 26,97%.
4. Best for fair credit
Capital one Secured
The application process and getting approved for the first credit card can be tough, especially if you have a negative credit history.
It doesn’t have to be the whole credit history, but only one negative item, such as late loan payment or debt collection account.
If you have that problem, Capital One Secured might be the right option for you, however, credit card allows you to pay deposit to secure the credit limit for your account.
You can make a minimum security deposit of $49, $99 or $200 for a $200 credit limit. Capital One Secured will also consider you for a credit limit increase if you make your first five monthly payments on time. You can get access to higher credit line after successfully making your first five payments on time.
There is no annual fees and the APR is 26,99%
5. Best for no credit check
OpenSky Secured Visa card
The OpenSky Secured Visa doesn’t require a credit check at all! It means that you are virtually guaranteed to be approved.
You can make a minimum of $200 security deposit, up to $3 000 to secure your credit limit. With OpenSky Secured Visa, you don’t have the option to convert to an unsecured credit card.
However, it reports your account history to the credit bureaus. It means that if you are responsible enough to use the card, it can help you build the credit history and qualify for an unsecured credit card.
If you close the account, you will get a refund of the security deposit after four to six weeks.
The annual fee is $35 and the APR is 19,64%.