Best Credit Cards for Beginners July 2024

Best Beginner Credit Cards in 2024

Best Secured Card With a Low Deposit: Capital One Platinum Secured Credit Card

Why we chose it: Like all secured credit cards, the Capital One Platinum Secured requires a security deposit. However, instead of providing a deposit that will equal your credit limit (as is standard for secured cards), qualified applicants can access a $200 initial credit line with a deposit of as little as $49 or $99. The minimum will be either $49, $99 or $200. Read our Capital One Platinum Secured Credit Card review.

Best for Simple Cash Back Structure: Capital One Quicksilver Secured Rewards Credit Card

Why we chose it: This card is made for credit newcomers who want to ease into the cash back game with something simple yet effective. The Capital One Quicksilver Secured Rewards Credit Card brings simple, everyday cash back rewards to those who can come up with a $200 security deposit.

Best for No Credit Check: OpenSky® Secured Visa® Credit Card

Why we chose it: If you’ve faced a few rejections already, you might be looking for a more forgiving credit card. The OpenSky Secured Visa Credit Card doesn’t even check your credit when you apply, so poor credit isn’t a problem. However, you will pay for the privilege in the way of a $35 annual fee.

Best for Students Overall: Discover it® Student Cash Back

Why we chose it: With low credit requirements, no annual fee and no penalty APR, the Discover it® Student Cash Back was made with students in mind. The rewards program is icing on the cake: Get 5% cash back on activated, rotating bonus categories each quarter (on up to $1,500 in spending per quarter, then 1% back).

Best Student Card With Simple Rewards: Discover it® Student Chrome

Why we chose it: The Discover it® Student Chrome is ideal for students who want to earn rewards but don’t want to think too hard about it. Earn 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter) and 1% back on everything else. Plus, you don’t need any credit history to apply for this card.

Best Secured Card With Rewards: U.S. Bank Cash+® Visa® Secured Card

Why we chose it: This card is the secured version of one of the best cash back cards available, and with responsible use, there’s an easy pathway to upgrading. Even with the secured version, you’ll earn a fantastic cash back rate: 5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose, plus 2% back on eligible purchases in your choice of one everyday category (like gas stations and EV charging stations, grocery stores and restaurants).

Best Secured Card With a Welcome Bonus: Discover it® Secured Credit Card

Why we chose it: Rewards are hard to come by in the secured credit card market, but the Discover it® Secured Credit Card breaks the mold in that way. Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, Discover will automatically match all of the cash back you’ve earned at the end of your first year.

Best for Foodies: U.S. Bank Altitude® Go Secured Visa® Card

Why we chose it: If you only saw this card’s rewards categories, you probably wouldn’t know that it’s a secured card. For a security deposit of $300, you can get 4X points on dining, takeout and restaurant delivery; 2X points at grocery stores, gas stations, EV charging stations, grocery delivery and streaming services; and 1X points everywhere else.

Best for Staying out of Debt: Chime Credit Builder Secured Visa® Credit Card

Why we chose it: This card has an impressive list of things it doesn’t have: no annual fee, no credit check, no interest* and no minimum security deposit required**. With no opportunity to carry a balance from month to month, it’s not possible to find yourself in a situation where you have a balance racking up interest charges month after month.

A Closer Look at the Best Credit Cards for No Credit

Best Secured Card With a Low Deposit: Capital One Platinum Secured Credit Card

Why we love this card: While most secured cards cap your credit limit at the amount you provide for a security deposit, the Capital One Platinum offers a better deal to select cardholders. Qualified applicants can access a credit line of up to $200 with a deposit of as little as $49 if eligible. Additionally, you’ll be automatically considered for a higher credit line in as little as six months.

Who should have this in their wallet: This card may be a great fit for someone who wants a little more bang for their buck in terms of a security deposit, or someone who’s got their mind set on building their credit score as quickly as possible.

Other cards to consider: You might also consider the Chime Credit Builder Secured Visa, as there’s no set minimum deposit amount**.

Read our review of the Capital One Platinum Secured Credit Card

Best for Simple Cash Back Structure: Capital One Quicksilver Secured Rewards Credit Card

Why we love this card: Baby steps build good habits, and this card makes it easy to get started with credit cards without diving in headfirst. Your credit limit will equal your security deposit (with a $200 minimum), so you can control the amount of credit you have access to. At the same time, the cash back structure is straightforward, without any bonus categories or limits. 

Who should have this in their wallet: If you’re somewhere in between wanting to earn rewards and being unsure whether you’ll find a cash back program to be too confusing, the Capital One Quicksilver Secured Rewards Credit Card might be the card for you. With this card, earning cash back doesn’t require a single thought—just know that every swipe earns 1.5% cash back.

Other cards to consider: The Discover it® Secured Credit Card is another no-annual-fee secured card that rewards everyday purchases, though it offers a higher rate in select categories (gas stations and restaurants).

Best for No Credit Check: OpenSky Secured Visa Credit Card

Why we love this card: You can be approved for this card with no credit check and no bank account, making it one of the easiest cards to qualify for. There’s a $35 annual fee on top of the security deposit, but that’s really not too bad compared to similar cards.

Who should have this in their wallet: If you’re starting more from a place of poor credit than no credit history—maybe you’ve let a checking account go negative or had some bills go to collections—you might not qualify for some starter credit cards. If you’ve already been rejected for other secured cards that don’t charge an annual fee, OpenSky’s lack of a credit check might be more forgiving. 

Other cards to consider: If there’s nothing too bad on your credit report, consider a secured card that doesn’t charge an annual fee, like the Capital One Platinum Secured. Another option that forgoes the credit check when you apply is the Chime Credit Builder Secured Visa—but instead of paying an annual fee like the OpenSky card, you have to open up a Chime Online Checking Account that your Credit Builder is linked to.

Read our review of the OpenSky Secured Visa Credit Card

Best for Students Overall: Discover it® Student Cash Back

Why we love this card: With a robust rewards program and no credit score minimum for applications, it’s hard to do better than the Discover it® Student Cash Back for an entry-level rewards card. And when you graduate, Discover will automatically upgrade your card to a non-student cash back card with the same rewards setup. 

Who should have this in their wallet: College students who are ready for a credit card and don’t feel like they’ll be distracted by the rewards program will love how quickly cash back stacks up with this card. Discover says there’s no credit score required to apply, so having a thin credit file isn’t a problem.

Other cards to consider: The Discover it® Student Chrome is a similar card with a slightly less complex rewards setup. Plus, you’ll get the same Cashback Match™ offer at the end of your first year.

Read our Discover it® Student Cash Back review

Best Student Card With Simple Rewards: Discover it® Student Chrome

Why we love this card: With a simple rewards structure and student-friendly terms, the Discover it® Student Chrome is a great way to ease into the world of credit card rewards without feeling overwhelmed. Discover says it does not require any particular score for applications, so a limited credit history doesn’t automatically put you out of the running.

Who should have this in their wallet: If you’re a student looking for cash back without the fuss of rotating categories, this card should be at the top of your list. It rewards everyday expenses that are applicable to college students who eat out often and have a car.

Other cards to consider: Students who don’t drive and do most of their cooking at home will fare better with a card that targets different bonus categories. The U.S. Bank Cash+ Visa Secured Card, for example, lets you choose your cash back bonus categories.

Best Secured Card With Rewards: U.S. Bank Cash+ Visa Secured Card

Why we love this card: The fact that this is a secured credit card with no annual fee doesn’t stop the U.S. Bank Cash+ Visa Secured Card from offering fantastic cash back rates. After you use the card responsibly for a while, you may be eligible to automatically upgrade to the unsecured version of this card. 

Who should have this in their wallet: The ability to graduate to the unsecured version of this card makes it an excellent option for cash back seekers who don’t want to bother with a new application when their credit score improves. Because the minimum security deposit is $300, it’s ideal for those who have a bit more cash to sock away.  

Other cards to consider: The Discover it® Secured Credit Card is another secured card that offers surprisingly good cash back rates with no annual fee, but it has a slightly lower security deposit ($200 instead of $300).

Best Secured Card With a Welcome Bonus: Discover it® Secured Credit Card

Why we love this card: The Discover it® Secured Credit Card sets itself apart from the pack by offering cash back rates that are competitive with unsecured cash back cards. Not only does this add to the value you’ll get out of the card, but it’s also a great introduction to earning credit card rewards. Speaking of rewards, Discover will automatically match all of the cash back you earn at the end of your first year. 

Who should have this in their wallet: People with a limited credit history who want an efficient path to better credit cards should consider the Discover it® Secured Credit Card. After seven months of using this card, Discover will begin reviewing your account monthly to determine if you’re ready to upgrade to an unsecured card. 

Other cards to consider: This card is often compared to another secured card with superb cash back rates and the ability to upgrade: The U.S. Bank Cash+ Visa Secured Card. However, the U.S. Bank card allows you to choose your own rewards categories, which can be valuable or too much to remember, depending on the person.

Read our review of the Discover it® Secured Credit Card

Best for Foodies: U.S. Bank Altitude Go Secured Visa Card

Why we love this card: This card disproves the notion that fun cash back categories are reserved for premium cards. Cuisine connoisseurs and fast food frequenters alike will love how quickly their points stack up.  

Who should have this in their wallet: If your idea of treating yourself involves a fancy dinner, you’ll definitely want to consider this card for the 4X points you’ll earn on dining, takeout and restaurant delivery. Even if you’re on a budget and eating most of your meals at home, you’ll still earn an elevated rate (2X points) at grocery stores, among other categories.

Other cards to consider: U.S. Bank’s other secured credit card, the U.S. Bank Secured Visa® Card, doesn’t earn rewards (in case you’re worried about overspending). If you’re a student, also consider the Discover it® Student Cash Back, which offers rotating cash back categories that have, at times, included restaurants and grocery stores.

Best for Staying out of Debt: Chime Credit Builder Secured Visa Credit Card

Why we love this card: This unique card and bank account combination can be very useful for the right person. Since you have to pay your balance in full each month, the card doesn’t charge interest*, and it’s not really possible to rack up a balance that grows and grows over time.  

Who should have this in their wallet: If you’re okay with opening the Chime checking account that’s required with this card, it’s a great option that provides some guardrails for those who are worried about getting into debt. It’s also great for those seeking a flexible security deposit amount since you can choose your own, and there’s no minimum deposit requirement**.

Other cards to consider: If a low security deposit is what you’re after, also consider Capital One Platinum Secured Credit Card, which allows qualified applicants access to a $200 credit line for as little as a $49 deposit.

Read our review of the Chime Credit Builder Secured Visa Credit Card

How Do I Get a Beginner Credit Card With No Credit?

Credit cards are the first step of the credit-building journey for many people. It makes sense: Before you need a larger line of credit to buy a house or a car, it’s smart to create good financial habits and establish a positive track record by borrowing small amounts of money with a credit card and paying it off every month.

When you’re brand new to credit, though, many of the best credit cards are out of reach. The most generous rewards rates and welcome offers are reserved for people who already have good to excellent credit. If you’ve never had a credit card, student loan or other lending product, you may not have a credit score yet.

Luckily, starter credit cards exist for this reason. There are credit cards designed specifically for students and other people who have limited credit history. Some of the easiest credit cards to get are secured credit cards, which require an upfront, refundable security deposit (usually around $200) that serves as your credit limit. 

To get a beginner credit card, you’ll need:

• To be at least 18 years old
• A bank account
• A home address
• An income (if you’re over 21, you can include any income that you have a reasonable expectation of access to, including income from a spouse, partner or another member of your household)
• A Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)

How To Apply for a Starter Credit Card

1. Check your credit score. It always helps to know your credit rating, even if you’re pretty sure it’s low or that you don’t even have one. Plus, you can usually check your credit score for free through your bank. Experian, one of the three major credit bureaus, also offers free credit scores.  
2. Try to increase your score. If your score is low or on the border between credit ranges, enroll in a service like Experian Boost. This service uses alternative data that traditionally isn’t collected for your credit report—such as rent payments, utility bills and credit card payments—to instantly increase your credit score. It’s not a guarantee, but every positive payment record helps when you have a thin credit file.
3. Do your research. Now that you know your score, it’s time to start shopping around. Even though you’re just starting out, you don’t have to sacrifice card perks like cash back. 
4. Apply. Each time you submit a credit card application, you can expect a small dip in your credit score, which is why you want to get approval on the first try—especially if your credit score is already low. Choose just one card that you think you have a good chance of being approved for.
5. Pay your security deposit if applicable. Many starter cards are secured credit cards, which require a security deposit. In those cases, you won’t be able to start using your card and building your credit until you pay your deposit.

Maximizing Your Beginner Credit Card

Think of your first credit card as a tool for gaining access to some of the best credit cards and other financial products on the market. Like any tool, it can be helpful when used the right way—or destructive when used incorrectly. If you use your card responsibly, you’ll see your credit score rise steadily over time. 

Here’s how to get the most out of your starter card.

• Always pay on time. If you can, set up autopay so that you never miss a payment. Getting in the habit of paying your credit card bill each month takes practice, and you want to make it easier on yourself where you can.
• Always pay in full. Your monthly credit card statement will show a “minimum payment” or “payment due,” but that’s not the ideal amount to pay. To avoid interest charges, pay the entire statement balance every month. 
• Stay well below your credit limit. Being trusted with a credit line in the thousands might be exciting, but your credit score will take a hit if you actually approach that limit. Your credit utilization ratio is a measure of how much of your available credit you’re using at any given point. For example, a credit card balance of $100 when you have a $1,000 credit limit would mean a credit utilization ratio of 10%. There’s no magic number, but generally, it’s a good idea to keep your credit utilization ratio under 30%. 
• Keep the account open. When your credit score increases to a level that gives you access to better cards, don’t immediately cancel the card. You may be able to “graduate” to a better card with the same credit card issuer. Even if you want a brand-new card, you should still keep your first credit card open. The length of your credit history is another factor that determines your credit score, and older accounts work in your favor.

How Do I Choose the Best Beginner Credit Card for Me?

Credit-Building Features

You want a card that makes it easy to move forward. First and foremost, your first credit card should report to all three of the major credit bureaus: Experian, TransUnion and Equifax. These credit bureaus collect financial activity like payment history and new accounts to generate credit scores. When a lender is deciding whether to give you a loan, it will pull your credit report from at least one of these bureaus. You want to make sure all three of them have a record of your credit card’s activity. 

Secondly, look out for beginner-friendly card features. For example, some cards offer a path to “graduation.” You might start out with a secured card with few perks or rewards, but the issuer could review your account after six months and possibly allow you to upgrade to a card that offers better benefits.

Other common starter card perks include the ability to choose your own due date, autopay and incentives for timely payments.

No Annual Fee

Paying an annual fee can make sense when you’re getting luxury perks, like airport lounge access or ultra-high rewards rates. But when you’re looking for a first credit card that likely has barebones benefits, there’s no reason to pay an annual fee. Plus, having no annual fee makes it easier to justify keeping the account open for years, which benefits your length of credit history.

Low Interest Rate

It’s ideal if you never carry a balance, because that way, you’ll avoid interest charges entirely. But if you do anticipate carrying a balance, prioritize getting a low APR. 

If you have a large purchase planned—maybe you need a laptop for school, for example—look for a card with a 0% introductory APR offer. These cards charge no interest on purchases for a set period of time after you first open the account—maybe six months or so. If you’re able to pay off your large purchase entirely by the time the introductory period ends, you get the benefit of splitting up payments without the additional cost.

Rewards

Credit-building features and beginner-friendly terms are the most important factors to consider, but rewards can be an excellent cherry on top. And a lot of beginner-friendly credit cards earn cash back or travel points. Just be sure that the rewards don’t entice you to overspend—it’s an easy trap to fall into when first getting the hang of credit cards.

Travel-Friendly Features

If you’re planning on using this card while traveling abroad, be sure to select a card that does not charge foreign transaction fees. These fees are common, and they tend to add an additional 1% to 3% fee on every purchase.