Starter Credit Cards

Expert’s Answers

What is a Good Starter Credit Card?

By: Odysseas Papadimitriou, WalletHub CEO The best type of starter credit card is easy to identify: It’s an offer catered to people with limited or no credit that does not charge any fixed fees. After all, your top two priorities at this stage in your credit career should be: 1) Simply getting approved; and 2) Laying the foundation for a good credit score at the lowest possible cost.

Finding the best individual offer is a bit trickier. But don’t worry; we did the legwork for you. WalletHub’s editors compared more than 1,000 credit card offers, and here are their picks for the best starter credit cards:

2016’s Best Starter Credit Cards

Best For…	Card Name	Annual Fee	Editors’ Rating
College Students	Journey® Student Rewards from Capital One®	$0	5 Stars
Light Spenders	Capital One® Platinum Credit Card	$0	5 Stars
Heavy Spenders	Capital One® QuicksilverOne® Cash Rewards Credit Card	$39	4.4 Stars
High Approval Odds	Open Sky℠ Secured Visa® Credit Card	$35	4 Stars

If you’d rather do the search yourself, here are some helpful tips:

Start with a student credit card if you have an active university email address. Banks offer college students more attractive terms because they prize their above-average earning potential and the potential that exists for them to become lifelong customers. Students can expect to garner a card that does not charge an annual fee yet offers at least a 1% rewards earning rate or 0% for the first few months.

Non-students should consider unsecured credit cards for limited credit, store credit cards and secured credit cards. A secured card represents your best bet for approval, as you are essentially guaranteed to get one if you can place a security deposit of at least $200 – which will serve as your credit line and thereby prevent overspending.

Store credit cards can only be used at the particular retail chain they are affiliated with. For example, the Target REDcard can only be used to make purchases at Target. The appeal of store cards is that they tend to have fairly lenient approval standards (because the stores want more people spending more money at their locations) as well as some pretty lucrative rewards.

Unsecured credit cards for limited credit, on the other hand, will offer you more spending power but may end up charging the highest fees.

When in doubt, get the cheapest secured card. That way you can begin to build credit as soon as possible in a relatively low-risk environment where you can practice responsible habits without the temptation to overspend.

Get a boost from a store card. If you want to boost your credit building and rewards earning capabilities, you may also want to get a store card associated with one of your favorite retailers, as they are typically free to use.

Who Needs a Starter Credit Card?

By: Odysseas Papadimitriou, WalletHub CEO Most people consider their first credit card to be a “starter” credit card. As such, the types of people who typically use them include:

Young People
Immigrants
Divorcees & Widowers (who haven’t had credit under their own name in the last few years)

All of these groups tend to have minimal credit history, either because they haven’t been eligible to access credit for very long or because circumstances that previously allowed them to rely on another party’s credit standing have changed.

Some of us may also seek out starter credit cards when looking to start our financial lives over after previous mistakes – such as missed payments, account default, or even bankruptcy.

Why are Starter Credit Cards Necessary?

By: Odysseas Papadimitriou, WalletHub CEO Everyone has to start somewhere. That, in a nutshell, is why starter credit cards are necessary. Consumers need a way to prove that they’re responsible enough to handle more robust financial products, such as a substantial home loan or a high line of credit.

Starter credit cards offer the kind of low-risk environment in which unproven consumers can show what they’ve got without the potential losses being too high for banks. They tend to have modest credit limits, modest rewards, modest fees, and modest interest rates, but they do report usage information to the major credit bureaus on a monthly basis and therefore provide an exceptionally cost-effective means by which to build credit.

Jasmine Williamson @jasminew_7

October 8, 2015

I tried to get a starter credit with no credit and I got denied. Why?

Linda Parent @SacramentoLP

October 6, 2015

The Capital One secured card is a great starter card. Because it's secured, it guarantees that you can't get into trouble. By using a starter card for fixed monthly purchases such as gas or groceries, you can use the card and then set aside the money you usually spend on those items each month to pay the bill. This allows you to build you credit so you can qualify for unsecured credit and loans in the future. It's also a great way to get you disciplined to spending only what's within your budget.… read more

Gerald Lyon Jr @geraldlyonj

June 1, 2016

My employer is in a low season of the year, but hours will pick up soon. Meanwhile, I'm flat broke and homeless. I have fair to bad credit, I don't know the exact score. I do not have any money for a deposit. I would like an unsecured card so I can get a room for a few weeks. I am willing and able to pay later for a shower and gass today. What kind of plan can you recommend for me?… read more

@WalletHub

June 8, 2016

@Gerald Lyon Jr: The Credit One Visa is a solid choice if you need an emergency loan ( http://www.cardhub.com/d/credit-one-credit-card-676c/ ). Just note hat this card charges interest at a rate of 17.90% to 23.90%, depending on creditworthiness, and those charges begin to accrue immediately given the lack of a grace period.
You can also check our editors’ picks for the best “bad-credit” credit cards here: http://www.cardhub.com/best-credit-cards-for-bad-credit/ .

Furthermore, you can check your credit score and full credit report on our sister site WalletHub -- the only website that offers daily updates to both: https://wallethub.com/free-credit-score/ .
Hope this helps. Best of luck!… read more

Scotch Tape @jassi.ghlou

October 6, 2015

The best starter car is the Capital One® Platinum Credit Card. I loved using it when I first was building up my credit. I first used it as a college student. I made my educational purchases and regular shopping using the card. It didn't even have an over limit fee so when I did go over my budget a bit I didn't face any charges against me. The only thing that I didn't like about it was that its regular APR was pretty high compared to those of other starter cards in the market. Overall I liked using the card and would recommend it to others.… read more

Dennis Tomic @dennist_9

October 3, 2015

The best starter credit card is the Wells Fargo Cash Back College Visa Card. When I was in college I often had lost of expenses where I needed a credit card. I had to buy books, school supplies and food. I always had to borrow my parent’s credit card so it became a bit of a hassle. So I applied for this card and I instantly fell in love with it. Not only was I building my credit, I was also getting cash back every time I use the card. Just make sure to use the card responsibly and pay it off in time. Use it for gas and for your everyday needs while you are in college.… read more

Elle Cab @ellec2

September 27, 2015

I used the Journey card from Capital One for college. I think that the best way to use a student credit card is for essentials that you already have the money for. I also think it's a good idea to only spend what you can afford to pay back at the end of the month and pay the card off. Student credit cards should only be used to build your credit and not used to buy concert tickets or go on shopping sprees.… read more

Pete Bruno @peteb2

July 20, 2015

I just read the comments and EVERYONE saying APR doesn't matter if you pay it off in full is DEAD wrong. Now even if you pay off the card in full every month you still pay interest, just not as much. The APR is factored by a average of how much you spend per day. Say you average spending $10.00 every day in a given month, and your APR is %20.00 percent. They divide your annual APR by 365, (days in a year) and then you pay that much intrest based on your daily average spending per day which is say $10.00. Now its not much but you are paying something so if your annual APR is 20% your monthly APR is about 1.66% do the math… read more

Ann Adam @anna_3

September 28, 2015

Pete, it would only be 1.66% on any balance that you did not pay in full...I've had one credit card for ten years-- I don't even know the APR is, because I pay it off every month. Each statement clearly shows "$0.00" interest charged. Are you saying this about this particular card? Because normally, most cards do not charge interest for balances paid in full before their due date.

Amy T @amyinindy

July 8, 2015

It is very important to start good credit habits with your very first credit card. It is so easy to get caught up in using a credit card for every purchase, feeling like it is "free money" for those who have never had a credit card before. But, by doing this, a person can face a lifetime of bad credit decisions, especially if they are uneducated.

Instead, it is important to view a starter credit card as a tool -- mainly as one to build credit for larger purchases like a car or a home later in life. Thus, it is not BAD to use the starter card for items like a new outfit, school supplies, or other things. But the user should definitely have the funds to pay in full at the end of a billing cycle. Also, I would recommend NOT using it for things like gas or food -- there is nothing tangible to show at the end of the month.

Starter cards can be a very helpful tool if used correctly, and a very dangerous obstacle if used frivolously. But with a bit of common sense and a little self control they can help young people or students get off to a great start on building credit while still in school!… read more

Guy Emerson @guy.emerson.7

July 8, 2015

When I first had a credit card, I used it the same way I do now. I paid for things I could still afford with cash, and paid off the card at the end of the month. I've heard people express that this won't help your credit score, but it has helped mine just fine by not letting a card acquire interest from debt. This both builds credit and, if the card has rewards, garners those as well. This is the best way I've found to use a credit card period, whether a beginning card or any other.… read more

Jessika Carcano @jessikac_2

June 18, 2015

I never had a credit card before how do I go about getting a first timer credit card?

@WalletHub

June 18, 2015

We recommend comparing the cards listed above and applying for whichever offer provides the best terms for your individual needs. If you don’t get approved, find a secured card with no annual fee and place a security deposit. This will get positive information flowing into your major credit reports as soon as possible, making it easier to get a better credit card down the road.

You can learn more in our Credit Card Newcomers Guide: http://www.cardhub.com/edu/new-to-credit-guide/… read more

Adrienne Macklin @pinkied

June 17, 2015

The best way to go about using your very first card, from my experience, is to get yourself familiar with how payment timing can affect your score, and how things such as carrying a high balance and not paying on time can severely affect your credit score down the road. Your first card should be the card you screw up a little on so that you fully understand the power of credit!

Zillow Reed @zillowr

June 17, 2015

My very first credit card - the BOA Platinum Secured Credit Card - taught me a variety of things throughout my first year of financial independence many years ago; the most important being that paying your bill on time is paramount in ensuring that your credit score is always high and mighty. I took that into account since the beginning and I still have perfect credit to this day, with the only negatives being the occasional inquiry. Don't spend more than what you can handle, pay your bills MONTHLY in FULL and you'll be on your way!… read more

Thomas Busch @thomasb_38

May 25, 2015

I agree with the previous post by Bre Fujimoto -- don't worry about APR because you should be paying this thing off before it become a factor. Look instead for good rewards. Even if you get a low APR if you aren't paying it off then you are literally giving your money away and the only thing you get is something you could have bought anyway if you'd have waited a few weeks. Spend some time thinking about what you'll pay for with the card. Choose things that you would be buying anyway. Then, set your account to automatically pay the full balance of that card each month so that it makes it much harder for you to carry a balance (since you'd have to cancel your payment to do it).… read more

Bre Fujimoto @bre_fujimoto

May 4, 2015

Don't look at APR. If you think you won't be able to pay off every statement in full, you probably shouldn't be getting a credit card. If you pay off your balance in full on time, you'll don't pay the APR. You can set up autopay so you never forget to pay on time, but always make sure to have enough in your bank account to cover your credit card purchases. Trust me, I learned the hard way.… read more

Nika Turnbull @nika_turnbull

April 6, 2015

The first credit card that I obtained was from Capital One. The card, while not bad, was not good either. The card had an extremely high APR, that at the time, was 18 percent. If I knew then what I knew now, I would have waited until I established a bit more credit before obtaining this credit card. There are other ways to build credit, than to obtain a credit card.

Ray Josephson @ray.josephson.5

March 16, 2015

My starter credit card was through Capital One. I was approved out of high school with a credit limit of $300. After making payments on time for a decent amount of months I was given a credit limit increase to $500. I used card seldomly, only in cases where cash wasnt available. Considering I had no credit at the time I was approved, I can say I was extremely satisfied with how the process worked out. Capital One is a good company to deal with.… read more

Joey Okstone @joey.okstone

November 18, 2014

I did have a starter card when I was in college and I needed a credit card to buy books. I hated having to keep borrowing my parent’s credit cards. Mine was a student card from WellsFargo and my limit was $500. The interest rate was pretty high as well. It was fine to me at the time since I needed to build credit and I usually paid of my balance by the end of the month. I would recommend doing this to young people who need to build some credit.… read more

John Hardy @john.hardy.90260

October 7, 2014

I just applied for and received a new starter credit card two months ago. It is going well so far. I try to only use it for gas purchases. My limit is $200 right now. Hopefully I can get to $1,000 by the time summer hits. It is great getting a new card regardless of all the strings attached to it. It is what it is; I am going to work real to keep and maintain this card. Hopefully I can apply for a better card in a few years.… read more

Niko Arenas @niko2

November 14, 2014

great post john!

Peter Mandell @peter.mandell

August 28, 2014

I just cleared Bankruptcy and am looking for a Credit Card to rebuild credit. Any advice? Several have turned me down.

Christina Cortez @christinadcortez

August 21, 2014

My first card was when i had just got into college, i Had gotten it just incase i didn't have enough money for books and expenses. The limit was only 500 and the interest was a little high. It wasn't a terrible card non the less. I did pass the limit one time because of a emergency but the company was nice enough to excuse it for me which was great. After a few months the amount when up to 750$. I do think there are some great starter credit cards out there but they are few and hard to find.… read more

Niko Arenas @niko2

November 14, 2014

glad to hear you were able to buy your books chris!

Lenny Deadski @lennyd1

July 30, 2014

I have truly awful credit. If i were to go to a loan officer and ask for a minuscule loan they would laugh in my face. Yet Capital One seems to approve my applications and hold me down. They approve almost anyone and give solid rates and fees. I remember my first Capitol One card it had a $500 dollar limit and a low introductory fee. They later raised the fee and I wasn't able to keep up on payments but it wasn't unreasonable; I just hit hard times. Go to Capitol One if you have bad credit.… read more

Brit Tan Why Romero @brittanwhyr

July 3, 2015

I have no credit and they didnt approve me

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