Getting your first credit card can be overwhelming. While credit card applications are straightforward, the challenge comes in picking the best first credit card for you.
The key is to know which cards will be most suitable for your situation. To help, we’ve put together this list of credit cards ideal for young adults, college students and first timers. Let’s see which one suits you the best.
Best Credit Cards for First Time Users
Capital One Platinum Credit Card
Best overall card for first time users
This credit card is a solid choice if you have little credit history. Since Capital One reports your credit history to all three major credit bureaus, it’s an ideal card to help improve your credit. To qualify for this card, you need a credit score of at least 580. Approval is based on your credit score and creditworthiness.
Pros:
- No annual fee
- No foreign transaction fees
- Has a $0 Fraud Liability
- Reports to all three major credit bureaus
- Allows you to set your preferred monthly due date
Cons:
- No introductory 0% APR
- No cash back or other rewards
By the way, if you spend more than $2,600 per year, have fair credit, and want a rewards card, the Capital One QuicksilverOne Cash Rewards Credit Card is a great alternative to check out. The Capital One QuicksilverOne card has an annual fee of $39, and offers unlimited 1.5% cash back on every purchase. To offset the annual fee, you would need to spend a minimum of $2600 per year.
Discover It® Student Cash Back Credit Card
Best student card for cash back
With 0% APR for the first six months and a waiver for the first late payment, this card is an ideal first credit card for students who do not have a credit score and do not want an annual fee.
Pros:
- 0% APR for the first six months
- No annual fee
- First year cash-back match (If you earn $200, Discover will match an additional $200)
- Annual $20 reward for good grades
- Waiver for the first late payment
Cons:
- Quarterly earning limits for 5% rewards
- Acceptance varies compared to Mastercard and Visa
Chase Freedom® Student credit card
Best student credit card for sign up bonus
Pros:
- No annual fee
- 1% cash-back on all purchases
- No security deposit needed
- $50 one-time bonus after making your first purchase within the first 3 months of your account being opened
- $20 annual bonus if your account is in good standing
Cons:
- Low rewards-earning rate compared to other cards
Petal 1 Visa Card
Best for those with no credit
Pros:
- No annual fee
- No foreign transaction fees
- Reports to all three major credit bureaus
- Earn 2%-10% cash back at select merchants
Cons:
- Low credit limit for those with no credit history
- No welcome bonus
Petal 2 Visa Card
Best no credit card requiring no security deposit
After approval, you immediately start earning 1% cash-back on all purchases, and you can earn more if you use your card responsibly. By making on-time monthly payments for six months, you begin earning 1.25% cash and will earn a 1.5% cash-back after 12 months of on-time monthly payments. Additionally, they offer 2-10% cash back at select merchants as soon as you sign up.
Pros:
- No annual, late, over-limit, or foreign transaction fees
- Requires no collateral
- No credit history required
Cons:
- No intro APR offer
- No balance transfers or cash advances
Jasper Mastercard
Best first card for high rewards
There are no security deposits, annual fees, or foreign transaction fees. With their unique auto payment option, you can conveniently build and maintain your credit score. You need a fair credit score (580 to 669) to qualify for this card. Read our in-depth review of the Jasper Mastercard here.
Pros:
- No annual fee
- No foreign transaction fees
- No security deposit
- Qualify with low or poor credit
- Up to 6% cash-back through the refer a friend program
Cons:
- No 0% APR promotion
Chase Freedom Unlimited®
Best first time card with good credit
Cash-back rewards include 3% on dining at restaurants, 5% on travel purchased through Chase Ultimate Rewards, 3% on drugstore purchases, and 1.5% on all other purchases. This no annual fee card also features a 0% intro APR for 15 months and allows for balance transfers.
Pros:
- 0% APR for the first 15 months
- No annual fee
- Cash-back rewards don’t expire
Cons:
- A balance transfer fee of either $5 or 3% in the first 60 days, whichever is greater, then $5 or 5% after that
- 3% foreign transaction fee
Chime Credit Builder Secured Visa® Credit Card
Best secured credit card
Since it’s a secured card, you must transfer money from your Chime Checking Account to your Credit Builder secured account. That amount will be your accessible credit limit. Chime reports your credit card payments every month to the three major credit bureaus in order to help build your credit score.3
Pros:
- No credit check
- No APR
- No annual fee
- No minimum security deposit1
- Reports to all three major credit bureaus
Cons:
- You need a Chime Checking account and $200 qualifying direct deposit to be eligible.2
- You can’t access a higher credit line than your deposit
The Chime Credit Builder Credit Card offers excellent credit building benefits without incurring annual interest charges or requiring a minimum security deposit.1 You can quickly start building your credit score by making on-time payments.3
The Chime Credit Builder Visa® Credit Card is issued by Stride Bank, N.A. pursuant to a license from Visa U.S.A.
1Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
2To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits
3On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Capital One Platinum Secured
Best secured card with small security deposit requirement
You can access a higher credit line of up to $1,000 by depositing funds into your account. By reporting your credit usage to the major credit bureaus, you can build a positive credit history by making on-time monthly payments and staying below your credit limit.
Pros:
- No annual or foreign transaction fees
- Qualify with low or bad credit
- Reports to three major credit bureaus
Cons:
- Higher APR
- No rewards
- Requires a minimum deposit
- Lower credit limit
This credit card is ideal for people new to credit since it has a $0 annual fee and no foreign transaction fees. While the issuer does report to all the credit bureaus, users should be careful about what percentage of the credit limit is used since a high usage rate will negatively impact your credit score. This is particularly problematic with lower credit limits on secured cards.
Secured vs Unsecured Credit Cards
Credit cards can be classified into two categories, secured and unsecured. Unsecured credit cards do not require collateral for approval. Many unsecured cards require a credit history for approval; however there are alternative credit cards and student credit cards that exist for those with no credit history. Secured credit cards, on the other hand, require an initial deposit that acts as collateral for the purchases made on the card.
Unsecured Cards
Unsecured credit cards are cards that do not require you to put down collateral or a security deposit against the credit limit. They are the most common credit cards available to consumers of all credit scores. Unsecured credit cards have lower interest rates, higher credit limits, and more rewards than secured cards. This offers you more flexibility when it comes to your spending. In general, unsecured credit cards are the best option for your first credit card if you can qualify. Factors to consider in selecting a good unsecured card: no annual fee, fraud protection aka $0 fraud liability, welcome offers, and cashback rewards.
Secured Cards
Secured cards are ideal for those with a bad credit history or no credit history. To obtain these cards, you must deposit a security deposit against your credit limit. This gives the credit card issuer assurance that you will repay your debt. A secured credit card is a great choice if you want a lower spending limit in order to reduce the likelihood of overspending and paying late fees. These types of card and an on-time payment history will help you improve your credit score too. Factors to consider in selecting a secured card: fees, how easy it is to increase your credit line, and the ability to convert the card to an unsecured card.
Application Requirements
You will need to meet certain requirements to get approved for a card. The typical age requirement to be the primary cardholder is 18 if you have earned steady income; otherwise you will need a co-signer. Once you’re 21, income requirements or a co-signer are no longer required to get your first card.
Research Methodology
It can be intimidating to apply for a credit card for the first time. Qualifying for a credit card without a credit score or limited credit history can be challenging. When analyzing the best first credit cards, we looked at several features, including annual fees, APR rates, and available rewards.
We reviewed the best unsecured credit cards without requiring a security deposit in order to find out which had the most beneficial features. In case you do not qualify for an unsecured card, we also listed several secured cards. Most of these cards don’t require you to have a credit history, or a minimum credit score. Because all of them report to the major credit bureaus, these cards will help you build a positive credit history if used properly.
FAQs
Final Verdict
Credit cards are an excellent way to build your credit if you use them responsibly by making on-time payments and staying under your credit limit. While you won’t get a big sign-up bonus or cream-of-the-crop benefits, these credit cards will help you develop healthy credit behavior necessary to establish and grow your credit history.
In our opinion, the best first credit card is the Capital One Platinum Credit Card for its no annual fee, low-interest rates, and a $0 fraud liability if your card is lost or stolen. You can qualify for this card with a FICO score of at least 580. Remember, staying below your credit limit (ideally using less than 30% of your credit line) and making on-time monthly payments is crucial for building a positive credit history.
