Credit Card Offers

A starter credit card is a great way for people with limited credit or bad credit to establish and improve their credit standing (including students and immigrants). Starter credit cards usually have a $300+ starting credit limit and an annual fee of $0 to $99, plus up to 1% cash back in rewards (some cards are from WalletHub partners). If you’d like a recommendation, you can check out WalletHub’s top picks for best starter credit cards below.

Your objective in picking between these beginner credit cards should be to pay as little as possible in fees and interest. As long as you remember to pay your bill on time and in full every month, you will be able to build credit inexpensively with the right first-time credit card. And within a few years, you may be able to qualify for one of the market’s best overall credit cards.

Best Starter Credit Cards (July 2022)

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WalletHub’s best tips for first-time credit card users are: 1) Get a credit card because it’s the easiest way to build credit; 2) set up automatic monthly payments from a bank account because on-time payments fuel credit score improvement; and 3) try to pay your bill in full every month because it will save you money and keep your spending under control.

In other words, it is important to get your first credit card as early as possible and then use it responsibly, by spending within your means and not missing due dates. If you do that, you’ll be able to graduate to a great second credit card sooner.

It all starts with picking the right first credit card, though. Most people looking for their first card have limited or no credit history, unless they’ve been an authorized user on a credit card or have a loan. As a result, cards that accept applicants with “limited credit” or “bad credit” are the most popular starter credit cards.

Below, you can find advice on which card to make your first as well as the steps to take for success with everything after that.

Here are some helpful first credit card tips:

1. Compare credit card offers thoroughly: Your main options include secured cards, which are the easiest to get and require a security deposit, and cards for limited credit, which tend to give slightly better terms and cater to people who have little/no credit experience. It’s important to find the right card right away so you only have to apply once.
2. Put your needs first: Start with a no annual fee credit card, if you can, and use other terms as a tiebreaker. Rewards are best if you plan to pay your bill in full every month. First credit cards usually have high interest rates, so it’s best to pay in full.
3. Never max out your spending limit: You don’t have to use your card to build credit. But if you do, it’s important to not overspend. Try to use less than 30% of your available credit. If you’re tempted to overspend, keep the account open but lock the card away.
4. Never miss a due date: Payment history is one of the most important portions of your credit score. Late payments will cause a lot of damage. But you can avoid ever paying late by setting up automatic monthly payments with your issuer.
5. Pay in full to avoid interest. Most first credit cards have very high interest rates. But you will only owe interest if you carry a balance from month to month. So, paying your first card’s bill in full each month is not only great for your credit, but it will also save you money.
6. Watch your utilization: While it is best to use 30% or less of your credit limit, the reality is that a lot of first credit cards have very low limits. Paying your bill multiple times per month can help keep your end-of-month utilization figure low.
7. Review your monthly statements: Getting into this routine will help you better understand your spending habits. And it will help you avoid getting overcharged if any of the merchants you bought from made a mistake (or if someone used your card fraudulently).
8. Stick to a budget: Figure out how much you can afford to spend each month and try keep your charges from exceeding that amount. If you do have to carry a balance between months at some point, make a plan for paying off what you owe as quickly as possible.

When you’re in the market for your first credit card, you probably don’t have a credit score yet. But it’s possible you’ve built a bit of credit history through other means. If that’s the case, you could have far more credit card options available to you. You can check your latest credit score for free on WalletHub. It’s also good to check your credit reports, just to make sure there’s nothing inaccurate or suspicious on them.

Once you get a card and begin using it on a regular basis, it’s even more important to monitor your credit to make sure everything is correct. Knowing your credit score will also help you decide when the time is right to graduate to your second credit card.

The best type of credit card is an unsecured credit card with rewards and no annual fee because it saves consumers a lot of money on purchases. The best credit card overall is Chase Freedom Unlimited®, which offers 1.5 - 5% cash back and an introductory APR of 0% for 15 months with a $0 annual fee.

For any individual person, though, the best type of credit card depends on their specific needs. Some people need cards that cater to low credit scores, while others need cards that give 0% financing on purchases or provide the best value at their favorite retailer. And some types of credit cards are the best for certain demographics only – like students or business owners.

Best Types of Credit Cards

Now that you know about the best types of credit cards, you can learn more about some of the best individual credit cards below.

Best Credit Cards in 2022

You can browse the market’s best credit cards on WalletHub. You can also join WalletHub for free to get personalized credit card recommendations.

Credit cards for bad credit help people with credit scores from 300 to 639 rebuild their credit and save money. The best credit cards for bad credit have annual fees as low as $0, and some even give rewards equal to 1% cash back or more on purchases. Plus, all major credit cards for people with poor credit will report account information to the credit bureaus each month (some offers are from WalletHub partners). Below, you can see WalletHub editors' picks for the best credit cards for people with bad credit right now.

The right credit card for most people with bad credit is going to be a secured card. Secured credit cards charge the lowest fees and offer the best approval odds. But if you need a small emergency loan, you’ll have to compare unsecured cards for people with bad credit, which tend to be pretty expensive. If you’re not sure which card to get, you can’t go wrong with one of our editors’ best credit cards for bad credit, which were selected from 1,000+ offers.

5 Best Credit Cards for Bad Credit (July 2022)

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The best credit cards for building credit charge low annual fees, accept applicants with limited or bad credit, and report to the credit bureaus monthly. Using a credit card responsibly is the best way to build credit, as on-time payments add a track record of positive credit history.

Best Credit Cards to Build Credit of  July 2022

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There are six types of credit cards:

1. Standard unsecured credit cards
2. Secured credit cards
3. Credit cards for students
4. Small business credit cards
5. Store credit cards
6. Charge cards

These six types of credit cards differ based on the type of user they’re intended for, where they can be used, and what’s required of applicants.

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Yes, you should get a credit card. You should get your own credit card account if you’re at least 18 years old, and you should get a parent to make you an authorized user on their credit card account when you are too young to get a credit card alone. There are many reasons to get a credit card, including convenience and earning rewards on purchases, but the best benefit is building the credit history needed to eventually land great interest rates when you need to borrow a lot of money, such as for a home or a vehicle.

Why Should You Get a Credit Card

• Credit cards help build credit. Every month you pay your bill on time and keep your account in good standing, credit cards report good information about you to credit bureaus – even if you don’t use the card at all.
• Credit cards are convenient. Credit cards – especially Visa and Mastercard – are accepted nearly everywhere in the world, and it’s much easier to keep track of a credit card than a wad of paper currency.
• Credit cards are better to use abroad than cash or debit cards. As long as you don’t get a credit card with foreign transaction fees, credit cards are a huge asset when traveling outside the U.S. You won’t have to worry about changing money into local currency because it happens automatically at a low rate with a credit card.
• It’s easier to deal with credit card fraud than debit card fraud. All credit card networks have $0 liability guarantees for fraudulent transactions. When credit card fraud takes place, it’s usually a simple matter of calling the card issuer to get the charges taken off your account. Debit card fraud isn’t as easy to deal with, because it involves money that was taken from your bank account.
• Many credit cards offer rewards on purchases. Most people welcome free money, and that’s exactly what credit card rewards are. With the best rewards credit cards, you can get up to 6% back on some types of purchases, or up to 2% back on every purchase with a flat-rate cash back card.

When used responsibly, credit cards are a win-win situation. Plus, many credit cards give the opportunity to earn bonus rewards and enjoy perks such as free airport lounge access or 0% introductory APRs. There are even credit cards for people with bad credit - some of which can help rebuild damaged credit.

It’s reasonable to be worried about the downsides of credit cards – namely, overspending. But don’t give up on building credit as a result. Tools like secured credit cards and automatic payment features can help mitigate the risks for people who are new to credit cards, and you don’t have to even use a credit card to make purchases for it to build your credit history.

If you aren’t quite ready to take on the risk yourself, ask a parent or good friend if they can add you to their card as an authorized user. As long as the primary cardholder uses the card responsibly, authorized users get to build credit history without having to remember to pay the bill.

Ultimately, remembering these three critical rules of credit card use can go a long way toward ensuring credit is a positive in your life: 1) Always pay your bill in full and on-time; 2) Don’t spend more than you can afford to pay every month; and 3) Always read the fine print before you apply. Do those things and your wallet will thank you.