Best Credit Cards for Beginners in November 2024

• STUDENT CREDIT CARDS

  Student credit cards are geared toward college students with limited credit history, and most come with lower credit limits as a result. However, student credit cards are typically unsecured with no security deposit required, and many offer rewards for spending. In addition, these cards report to the three credit bureaus to help users build credit history over time.

• SECURED CREDIT CARDS

  Secured credit cards are designed for those with poor or limited credit who need to build or rebuild their credit history. This type of card requires you to put down a refundable security deposit, which typically starts at around $200. If you demonstrate responsible credit card usage, many will allow you to graduate to an unsecured card, and your deposit will be refunded.

• REWARDS CREDIT CARDS

  Not all credit cards available to beginners offer rewards. However, many student credit cards and secured credit cards do. Just remember that you really only benefit from rewards credit cards if you pay your balance in full each month and never pay credit card interest. If you carry a balance and wind up paying interest on your purchases, the rewards you earn won’t be worth the extra expense.

• BUSINESS CREDIT CARDS

  Small business credit cards are designed for business owners who want to have a separate credit card strictly for business purchases. It can be difficult to find a business card for people with fair credit, but the Capital One Spark Classic for Business is one available option.

• CREDIT CARD BENEFITS

  Many cards offer additional perks and benefits, which may include travel benefits or purchase protections. For example, credit card travel protections can include trip cancellation and interruption insurance and roadside assistance. Credit card purchase protections can include extended warranty coverage or protection against damage and theft.

Before you start applying for credit cards, you should figure out what kinds of cards you might be able to get. You can start to get an idea of the types of cards you could qualify for by looking at your credit score and credit history.

Credit score

Your credit score is a three-digit number that represents your credit health and typically falls between 300 and 850. The credit range you fall into — whether you have poor credit, fair credit, good credit or very good credit — will greatly impact your approval odds.

Credit history

Your credit history is another factor that can impact eligibility for a new credit card — but remember, there are other ways to build your credit history (and credit score) without cards. You may already have credit history due to student loans, auto loans or your authorized user status on another person’s credit card. Credit-builder loans and credit building apps are other ways of building credit that don’t require a credit card.

Look into student credit cards

If you’re a college student who wants to build credit for the first time, student credit cards can be a good fit. These cards are typically unsecured, and you may not even need a credit score to apply. Many student credit cards also offer rewards for spending, although they tend to come with low credit limits at first.

Prequalified credit cards

Some credit cards let you get prequalified online before you apply, and this step doesn’t result in a hard inquiry on your credit reports. While getting prequalified doesn’t guarantee you’ll be approved after you move forward with a full application, it lets you gauge your approval odds and get an idea of whether you’re a candidate for a card before you apply.

No credit check credit cards

There are also credit cards that don’t require a credit check at all. These cards may be a good choice if your credit score is very low, and you most likely wouldn’t be approved for other cards you may apply for. You can use these cards to build credit so you can get a better card in the future.

Become an authorized user

You can also become an authorized user on another person’s credit card. This move can help you piggyback off the positive credit history of the primary account holder, which builds your own credit history as they make on-time payments and use credit responsibly.

Becoming an authorized user also gives you the chance to use a credit card with your name on it, though the primary cardholder will be the only one legally responsible for repayment.

After you’ve checked your credit and figured out what type of card you might qualify for, you’ll want to get ready to apply for a card.

1. Decide where you want to apply. Determine which credit card you want to apply for. Applying online through an issuer’s website is the fastest and easiest way to apply for a credit card. However, some credit cards will also let you apply in-person at a bank branch, over the phone or by mail.
2. Gather the required information. Make sure you have all of the required information readily available before you start on your credit card application. Besides your name, birthdate, phone number, email and physical address, you’ll also typically need your Social Security number or Individual Taxpayer Identification Number (ITIN), gross income, monthly housing costs and additional employment and/or business information.
3. Apply for the card. Once you’re ready to put your hat in the ring for the credit card you want, you should complete and submit an application. You’ll typically get one of three typical responses: instant approval, application under review or immediate denial.
4. Be prepared to follow up. If you’re not instantly approved for a card, don’t worry. It may take several days for an issuer to review your application. You may also be able to check the status of your application online or over the phone. Sometimes issuers will request additional information from you before making a decision.
5. Don’t panic if your credit score drops. When you apply for a credit card or loan, the lender will perform a credit check that results in a hard inquiry on your credit reports. The number of hard pulls within the previous 24 months is one of the factors that influences your score, so you may see your score go down slightly after applying for a credit card.
6. Dealing with denial. If you aren’t approved for a card, it’s not the end of the world. You should also know that card issuers are legally required to provide a reason for the denial within 60 days if you request it. Asking why you were denied may provide some insight into steps you can take to turn the situation around and get a new credit card the next time you apply. For example, you may find that your credit score needs to improve through continued on-time payments of existing accounts, reducing your credit utilization by paying down balances or simply waiting.

Don’t rush into a decision.

There are plenty of credit cards for beginners to choose from, so take your time when comparing starter credit cards and making your selection. If a card doesn’t seem like it’ll work well for you after an initial review, move on to another one.

Look for $0 annual fee cards.

While there are many excellent cards out there with annual fees, it’s best to get started with a no-annual-fee card. This also means you keep your card open indefinitely, for free.

Use your student status.

If you’re a college student with little to no credit history, there are cards intended specifically for you. This may help you qualify for a better card than you could otherwise get, like the Discover it® Student Cash Back.

Use your card responsibly.

Building credit takes time, though you can demonstrate responsible credit card use by consistently making your monthly payment on time. Try not to run your credit balance up to the limit, either. Both of these will negatively affect your credit score.

Fully pay off your balance each month.

While paying on time is most important, it’s even better to pay off your balance in full each statement cycle. This means you won’t pay any interest on your purchases, which lets you truly benefit from any rewards you’re earning.

Don’t cancel your card.

Your first credit card is one that you’ll want to keep open. Issuers take into consideration the average age of your credit card accounts. Even if you move on to a better card once you’ve developed a good or excellent credit score, it’s helpful to keep your first card account open.