Best Credit Cards For Beginners

Dec 30, 2022 By Triston Martin

Even though the best credit cards are often designed for people with high FICO scores, there are still many opportunities for individuals with a weaker or nonexistent credit profile to receive worthwhile rewards on their purchases. Select discusses the top credit cards for those with little credit history, including the incentives and perks those cardholders may anticipate getting.

Petal 2 Visa Credit Card

WebBank's Petal 2 Credit Card is a good option for consumers who may not have a lengthy credit history, as the card's approval is based on several variables beyond just credit scores. Your credit limit, if accepted, will be at least $300.

No annual fee, late payment cost, international transaction fee, or over-the-limit fee is assessed by this card, as the name implies.

As a bonus, this card is among the most lucrative in its category. It delivers an initial 1% cash back on purchases that are increased to 1.5% after 12 consecutive months of on-time payments. In addition to the standard 1% to 2% cash back, you can earn an additional 2% to 10% cash back at certain stores.

The Altitude Go Secured Visa Credit Card from U.S. Bank

When comparing secured credit cards, the U.S. Bank Altitude® Go Visa® Secured Card stands out as one of the most lucrative options. For every dollar spent on dining out, cardholders will get 4 points; for groceries, petrol, and some streaming services, cardholders will receive 2 points per dollar; and for everything else, cardholders will earn 1 point per dollar.

You can get a rebate of 1 and 4 per cent of your purchase price in the form of rewards points, each worth 1 cent. When cardholders sign up for a year of approved streaming services like Peacock or Spotify, they'll get a $15 credit applied to their account.

There is no annual fee or additional charge for using your card outside of the country, and you may select the billing date that is most convenient for you.

Students Deserve EDU Mastercard

The Deserve® EDU Mastercard for Students is ideal for new cardholders since it doesn't necessitate a co-signer or a security deposit, and it's a perfect choice for overseas students because neither a social security number nor a credit history is required for approval.

Only three things are needed: Students must be above 18 years old and currently enrolled in an accredited U.S. higher education institution. You may get one per cent cash back on all transactions with this card, making its rewards program among the most straightforward available.

One of the finest perks is a free year of Amazon Prime Student after spending $500 on purchases during the first three months of account activation a $59. Cardholders are also covered for cell phone use when used to pay a qualifying phone bill. There are no setup costs, no monthly fees, and no fees for overseas transactions.

Secured Credit Card from Discover

Aside from a good cash-back program, the Discover it® Secured Credit Card also provides a significant welcome bonus: Discover will double the cash-back rewards you earn in your first year.

In the first year, Discover will double the cash back you earn, up to a maximum of $100. Besides the limitless 1% cash back on all other transactions, cardholders may get 2% cash back at petrol stations and restaurants for the first $1,000 spent each quarter. The credit limit on a secured credit card is equal to the deposit you make when you start the account, ranging from $200 to $2,500.

Explanation Of The Value of Establishing A Credit History

According to the Consumer Financial Protection Bureau, about 26 million Americans have no credit history at any of the three leading credit agencies. The information in your credit report is evidence of how responsible a borrower and credit user you have been.

Your ability to make payments on time and without any major blemishes on your credit report speaks volumes about your character as a borrower. However, loan providers can only evaluate your repayment abilities with a credit report.

Unsecured vs Secured Credit Cards?

A credit check is not required to apply for an unsecured credit card, but a security deposit is required for a secured credit card. The typical user of a secured credit card is someone with low or nonexistent credit. However, from no credit to great, those with a wide range of credit histories can choose from various unsecured credit card possibilities.

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