Best First Credit Cards

The first credit cards were issued in 1928 and were called Charga-plates. They weren’t electronic, though. They were metal plates engraved with information to identify customers, and merchants would ink impressions of them on paper to record transactions made on credit. If you want to go back even further, you might even consider the “merchant coins” used in the late 1800s to be an early form of credit card. They performed the same function as Charga-plates but were only stamped with an account number and were typically round.The first credit card that could be used at many merchants was issued in 1950 by Diner’s Club, but it still was not electronic like our cards today. The first credit cards that used electronic swipe machines didn’t appear until 1975.

So the date when the first credit card was issued depends on how specific your definition of “credit card” is. You can get a better sense of the different milestones below.

Here’s when the first credit cards were issued:

• Late 1800s: People have been buying items on credit since at least the Middle Ages. But in the late 1800s, merchants used coins with a person’s account number engraved on them to stamp that information on credit contracts.
• 1928: Charga-plates were invented. They were metal plates with embossed numbers and personal info, which merchants used to record credit transactions through making ink impressions. These could only be used at individual merchants.
• 1934: American Airlines released Air Travel Cards with individual numbers, allowing customers to book flights on credit. Other airlines soon followed suit.
• 1950: Diners Club released the first charge card that could be used at multiple merchants. The balance had to be paid in full every month.
• 1958: Bank of America created the first revolving credit card that could be used at multiple merchants. Customers could now carry balances from month to month.
• 1975: National BankAmericard, Inc. introduced the first electronic swipe machine for credit cards.

So as you can see, credit certainly isn’t a new concept, but credit cards have changed a lot as technology has become more sophisticated. Now, most credit cards come with chips for added security, and there are other smart cards that even use wireless technology. Who knows how many more firsts there will be for credit cards in the future?

A starter credit card is also called a beginner credit card or a first credit card and is designed for people with limited or no credit. The best starter cards tend to be secured credit cards and student credit cards as both are easy to get with no credit history and report monthly to the credit bureaus. There are some worthwhile unsecured options for beginners who aren’t in school, too.

Below, we’ll provide some more details on each type of starter card as well as some of the best starter credit cards to consider.

Best Starter Credit Cards

Types of Starter Credit Cards

Secured Credit Cards

Secured credit cards have some of the highest approval odds since they require a refundable security deposit as collateral. The security deposit will be equal to your credit card limit, keeping you from spending more than you can afford to repay. The security deposit also allows issuers to charge low fees.

Student Credit Cards

As the name states, student credit cards are geared to students and allow them the opportunity to build credit early. Since college and graduate students have high earning potential, card issuers also tend to give students favorable terms, such as low interest, no annual fees and good rewards. With some student cards, you may be required to provide proof of school enrollment.

Other Unsecured Credit Cards for No Credit

There are also some unsecured credit cards for people who have limited or no credit history but aren’t in school. Unlike secured cards, they do not require a security deposit to open the account, and some of them may even offer rewards. To check out those options, take a look at WalletHub’s list of the best unsecured credit cards for no credit.

The usual credit limit for a first credit card could be anywhere between $100 and $500, depending on which card you get. It could be as low as $100 for store credit cards, or up to $500 if your first credit card is issued by a bank or credit card company. Getting approved for a first credit can be difficult if you have little or no credit history.

If you qualify for a card, you may end up being disappointed with your starting credit limit. That’s because your credit history is one of, if not the key factor that goes into extending an applicant’s credit limit.

Here’s what you should know about your first credit card limit:

• Median credit card limits: The median credit card limit is $5,394, according to TransUnion data from 2021. And according to TransUnion records (released in 2021), the average credit limit for new accounts is $4,468. But there is no exact data on the average credit card limit for people that have limited credit history.
• Get a higher initial credit limit: It is possible to get a higher initial credit limit by applying for a secured credit card. In this case, the security deposit will count as credit limit. And for some cards you can put as much as $1,000, or even higher. You can also get a higher credit limit if you’re listed as an authorized user on a card with a stellar credit history.
• Get a credit limit increase:  Many credit card issuers review accounts regularly and raise credit limits automatically if the account is in good standing. So, in order to get a credit limit increase, make sure you use your credit card responsibly. That means paying your bill on time every month and keeping your credit utilization below 30%. 

The initial credit limit that you will get depends on several factors, such as your credit score and income. So, if you have a limited credit history, it’s hard to get a high credit line. But once you start building your credit, you will have a better chance at getting a higher credit limit.

If you already have a mortgage or loan in your name you may be extended a more generous credit limit, provided you’ve managed those accounts responsibly. If you’d like to know where you stand, you can check your credit score for free, right here on WalletHub.

It is not hard to get your first credit card if you choose the right type of credit card to apply for and do so at the right time. Most first-time credit card users have limited credit history, so the best type of credit card to apply for is a secured card, a student card, or another credit card for limited credit. As long as you are at least 18 years old and have enough independent income to afford monthly bill payments, you should not have a hard time getting approved.

When you’re just starting out with credit cards, all the options might seem intimidating. But between secured cards, student cards, and other credit cards for first-timers, there’s an option that is right for you. If you remember to pay your bills on time, keep your utilization low, and spend no more than you can afford to pay off each month, having a credit card will be a positive experience.

The best credit cards for 20-year-olds (and 20-somethings more generally) depend on whether you've already built any credit and whether you're still in school. If you have limited credit, you'll want to get a starter card, like the Capital One QuicksilverOne Cash Rewards Credit Card. If you're still a student, you could get a better deal with Bank of America® Customized Cash Rewards Credit Card for Students.

But if you're no stranger to credit and you've already built up at least good credit, you can start setting your sights on more lucrative rewards cards such as Chase Freedom Unlimited® (5% cash back on travel through Chase, 3% back at restaurants and drugstores, and 1.5% back on all other purchases (plus an additional 1.5% cash back on everything, up to $20,000 spent the first year)) or Capital One Venture Rewards Credit Card (5 miles per $1 spent on hotels and rental cars booked through Capital One Travel, and 2 miles per $1 on all other purchases).

Here are the best credit cards for 20-somethings:

• No credit check: OpenSky® Secured Visa® Credit Card. Requires a refundable security deposit of at least $200. $35 annual fee. Open to applicants with bad credit.
• For students: Bank of America Cash Rewards for Students. $200 for spending $1,000 in the first 90 days. 3% cash back in a category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500 spent on these categories combined per quarter), and 1% on all other purchases. $0 annual fee. Can get this card with limited credit.
• For cash back: Capital One QuicksilverOne. Unlimited 5% cash back on hotel and rental cars booked through Capital One Travel, as well as 1.5% cash back on all other purchases. $39 annual fee. Accepts applicants with limited credit.
• For frequent travelers/young professionals: Capital One Venture. 75,000 miles for spending $4,000 in the first 3 months. 5 miles per $1 spent on hotels and rental cars booked through Capital One Travel, and 2 miles per $1 on all other purchases. $95 annual fee. Requires good credit or better.
• For good credit: Chase Freedom Unlimited. . 5% cash back on travel through Chase, 3% back at restaurants and drugstores, and 1.5% back on all other purchases (plus an additional 1.5% cash back on everything, up to $20,000 spent the first year). Introductory APRs of 0% for 15 months on purchases and balance transfers (17.24% - 25.99% (V), based on creditworthiness, thereafter). Balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days (5%, min $5 after). $0 annual fee.

Most of these cards will be aimed at those at the beginning of their credit journey. If you have bad credit, though, it’s definitely worth checking out the best secured credit cards. On the other hand, those with good credit or better will have access to the best credit cards on the market. Students are a special category, as the best credit cards for students tend to offer better deals than credit cards aimed at other consumers with similar credit scores.

A good APR for a first credit card is anything below 20%. The best low interest first time credit card is the Bank of America® Customized Cash Rewards Credit Card for Students because it offers introductory APRs of 0% for 18 months on purchases and 0% for 18 months on balance transfers, with a regular APR of 16.24% - 26.24% (V). It also has a $0 annual fee and a 3% (min $10) balance transfer fee. But there is a 3% foreign transaction fee. With non-student first time credit cards, it’s hard to find a regular APR below 25% and nearly impossible to get a 0% intro rate.

Most first-timers have no credit history, so they need to prove themselves as responsible borrowers before getting a really low APR. But there are exceptions. One way to get a good APR for a first credit card is to apply for a secured card. But because these cards require you to deposit the entire amount they allow you to spend, it doesn’t make sense to carry a balance. You would in effect being paying interest to borrow money from yourself. Student cards also give lower rates, but naturally only to students.

Therefore, the very best APR for a first credit card is one that never affects you. Since you’re unlikely to get approved for a low APR, you should pay your balance in full every month. And if you do that, you won’t have to pay interest. Still, it’s worth knowing what rates are available, just in case.

First-Time Credit Cards with Good APRs:

• Bank of America® Customized Cash Rewards Credit Card for Students: 0% for 18 months. 16.24% - 26.24% (V) regular APR. $0 annual fee.
• Capital One QuicksilverOne Cash Rewards Credit Card: 26.99% (V). $39 annual fee.
• Capital One Platinum Credit Card: 26.99% (V). $0 annual fee.
• Capital One Platinum Secured Credit Card: 26.99% (V). $0 annual fee.
• OpenSky® Secured Visa® Credit Card: 18.89% (V). $35 annual fee.
• First Progress Platinum Select Mastercard® Secured Credit Card: 16.24% (V). $39 annual fee.
• First Progress Platinum Prestige Mastercard® Secured Credit Card: 12.24% (V). $49 annual fee.

If you’re in the market for your first credit card, you probably don’t have much credit history, unless you’ve been able to build some as an authorized user on someone else’s card. So you probably won’t get a low APR. As a result, your aim should be to find a card with no annual fee that you can get approved for (rewards are a bonus). Then, pay in full every month by the due date to avoid interest. Paying your bill on time will also help you build credit and graduate to a card with a lower APR.

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.