Best Beginner Credit Cards

Applying for your first credit card is one of the first steps you’ll take in your financial journey.  It will help you establish a credit history and lay the foundation to help you with future financial decisions.  Responsible credit card habits are key to making credit cards work FOR YOU and not against you.  

I have five kids and my third will be turning 18 this summer – when my kids turn 18 they open their own bank account (parents are not on the account) and their very first credit card.  

I often get asked which credit card I’d recommend for first time applicants and I’m sharing my recommendations and tips in this post.  

KEY GROUND RULES

The conversation about how credit works and the dangers of getting in debt happen long before age 18.  If used wisely, opening a credit card will help you get better rates on future home or car loans.  If you use credit unwisely, you can be setting yourself up for challenges.

There’s a few key ground rules:

PAY IN FULL – Always pay your credit card balance in full EVERY month.  Use your credit card like you would a debit card and only purchase what you can afford to pay for.  If you can’t pay off your credit card balance every month, don’t use a credit card!

PAY ON TIME – 35% of your credit score is based on your credit history.  If you pay your bill late your credit score will decrease.  Set up autopay as soon as you get your credit card!  

You can read more about how your credit score is calculated HERE.

USE A REFERRAL LINK – Always try to use a referral link when applying for a new credit card.  You get the same offer either way and they get a referral bonus in return.  I always appreciate your support when you use my links as it allows me to keep my resources and tips FREE for all! 

BEFORE AGE 18

One of the best gifts I’ve given my kids is adding them as an authorized user on one of our credit cards.  Because my husband and I have high credit scores they benefit from that – so by the time my kids turn 18 they have a solid credit score already which increases their chances of being approved for a credit card in their own name.

Here’s a post with more information on adding your kids as an authorized user.

AT AGE 18

Chase credit cards are a favorite for anyone interested in being able to travel on points so it’s great to develop a relationship with Chase as soon as possible.  Chase cards can be more difficult to be approved for first time applicants especially if you don’t have any credit history.  

One of the first things we do when our kids turn 18 is to open a Chase checking account in their name only.  Having their own Chase account will get a relationship started with Chase and improve their chances of being approved for a Chase card in the future. 

There’s always some sort of bonus offer to open a new checking account with Chase; however, you will not qualify for the bonus if your child already has a bank account at Chase.  You can use the referral link of a friend or family member to open the bank account and they will earn a referral bonus.  If you don’t have a referral link to use, please use my link.  

The current offer gives the new applicant a $300 bonus after meeting certain requirements.  Pay attention to the fine print of any deposit and minimum balance requirements to earn the bonus and to avoid monthly fees. 

BEST FIRST CREDIT CARDS

OPTION 1

Once you’ve reached “adulthood” (aka 18 years old) you can apply for your own credit card.

One of the best cards to start with at Chase is the Chase Freedom Unlimited®.  Chase just increased the welcome offer on this card to $250 cash back after spending $500 in the first 3 months from account opening and there is NO ANNUAL FEE.  A 50% return is fantastic!  This offer is currently only available through affiliate links.

WELCOME BONUS – $250 (25,000 points) with $500 of spend in 3 months

CARD EARNING RATES – 

• 5% cash back on travel purchases through Chase Travel^SM
• 3% cash back on drugstore purchases
• 3% cash back on dining at restaurants, including takeout and eligible delivery service
• 1.5% on all other purchases

The offer is listed as cash back; however, the bonus is awarded as 25,000 points.  If someone in your household has a Chase Sapphire card or the Chase Ink Business Preferred card you can combine these points with any other Chase points in your household and they will be transferrable to travel partners.  Being able to transfer your points to travel partners is where you can maximize their value!

If the Chase Freedom Unlimited is your first credit card I recommend that you keep the 25,000 points bonus in your account and let the points accumulate.  You’ll more than likely apply for the Chase Sapphire Preferred^® Card in the future, earning an additional welcome bonus of 60,000+ points which will be enough for a great redemption!

Because of the ability to use these points for travel, the Chase Freedom Unlimited is a worthwhile card not only for beginners but even for experienced points and miles enthusiasts.  

You can read more about why the Chase Sapphire Preferred^® Card is the MOST recommended card HERE

You can find more information about applying for the Best Travel Credit Cards HERE

NOTE:  Chase cards can be more difficult to be approved for first time applicants especially if you don’t have any credit history.  If you are denied for a card I always recommend calling the bank and asking if there’s anything you can do to get the application approved.  One of my daughters applied for the Chase Sapphire Preferred at 18 (yes, we shoot for the stars) and was denied; however, we were able to get her application approved by jumping through a few hoops (income verification and proof of identity).

NOTE:  The Chase Freedom cards charge a 3% foreign transaction fee if used outside of the U.S.  The next two card options do NOT charge foreign transaction fees.

___________

OPTION 2

The Discover it® Cash Back Credit Card tends to be easier than Chase to get approval for first time cardholders including individuals without any credit history.  Discover was one of my first cards and I still have it 25 years later because there’s no annual fee and that long credit history helps keep my credit score high and healthy.  

The bonus on the Discover it card is $100 after making one purchase in the first 3 months from account opening and there is NO ANNUAL FEE.  The Discover card offers rotating 5% back categories each quarter and they match the cash back you earn during the first year.  It’s not a points and miles card, but a really great starter card nonetheless. 

WELCOME BONUS – $100 with ANY purchase in 3 months

CARD EARNING RATES – 

• 5% cash back on quarterly spend categories (examples include restaurants, Amazon, Grocery, Gasoline, etc…)
• 1% on all other purchases

IN ADDITION Discover is offering an UNLIMITED DOLLAR-FOR-DOLLAR MATCH of all the cash back you earn at the end of your first year!

If you need a referral link for Discover, here’s mine. 

___________

OPTION 3

Another card to consider is the Capital One Savor Cash Rewards Credit Card.  The welcome offer is $200 cash back after spending $500 within 3 months from account opening and there is NO ANNUAL FEE.  

WELCOME BONUS – $200 (20,000 miles) with $500 of spend in 3 months

CARD EARNING RATES – 

• 8% cash back on Capital One Entertainment purchases
• 3% cash back at grocery stores (excluding superstores like Walmart & Target)
• 3% cash back on dining, entertainment and popular streaming services
• 1% on all other purchases

This is a cash back card; however, miles can be transferred to any Capital One Venture account and they will become transferrable to travel partners.

Apply for the Capital One Savor card, HERE.

___________

Three great credit card options for first time credit card holders!

If you’re ready to apply for a new card I’d be grateful if you use my links to apply – it costs you nothing and allows me to continue to provide FREE content and resources.  Thanks for your support!