They say it’s not about how you start a race, but rather how you finish it — but that saying isn’t quite true in the credit world. If you’re just getting started on your financial journey, finding the best credit cards for new credit users could give you a nice head start.
The market offers so many different card options for new credit users, but it’s not unusual for the terms and conditions to easily confuse even veteran credit users. We’ve compiled a list of the top 15 cards for new credit users that can help you build a positive credit history with responsible use.
Overall | Cash Back | Business | Students | Secured | FAQs
Best “Overall” Cards for New Credit Users
We’ve included a classic unsecured card, a student-only card, and a secured offering in our best overall cards, so there’s something for every credit novice. These cards won’t weigh you down with fees and offer several perks to get your credit-building journey started on the right foot.
- No annual or hidden fees. See if you're approved in seconds
- Be automatically considered for a higher credit line in as little as 6 months
- Help build your credit through responsible use of a card like this
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One's mobile app
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
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Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
29.99% (Variable)
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$0
|
Average, Fair, Limited
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The Capital One Platinum Credit Card is a great entry-level credit card because it offers competitive interest rates, no annual fees, and Capital One often considers credit limit increases after you’ve made your first five payments on time. While you may not find a ton of added rewards with this card, you also won’t find the fees that often accompany the richer rewards cards.
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% - 27.24% applies.
- Terms and conditions apply.
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
0% Intro APR for 6 months
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10.99% Intro APR for 6 months
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18.24% - 27.24% Variable APR
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$0
|
Fair/New to Credit
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The Discover it® Student Cash Back is all about rewarding its cardholders. Students earn plenty of valuable perks including cash back, free FICO scores, low APRs, and, if a friend you refer applies and is approved, you’ll earn a statement credit for each approval.
- No annual or hidden fees. See if you're approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
29.99% (Variable)
|
$0
|
Limited, Bad
|
Secured credit cards offer one of the easiest routes to building a credit score, and the Capital One Platinum Secured Credit Card is the best of the bunch. While most secured credit cards require a refundable security deposit that matches your credit limit (for example, a $500 deposit yields a $500 limit), Capital One uses your credit history or verified income information to determine your required deposit amount. Based on the bank’s assessment, you’ll pay a deposit of either $49, $99, or $200 to access a $200 credit limit.
Best “Cash Back” Cards for New Credit Users
A good cash back credit card provides a chance for you to earn while you learn. That’s because the card issuer will pay back a percentage of every purchase you make when you use your card. The percentage you earn will depend on the card — but we’ve narrowed down the list to show you the best cards for new users.
- Earn unlimited 1.5% cash back on every purchase, every day
- No rotating categories or limits to how much you can earn, and cash back doesn't expire for the life of the account. It's that simple
- Be automatically considered for a higher credit line in as little as 6 months
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Help strengthen your credit for the future with responsible card use
- Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
29.99% (Variable)
|
$39
|
Average, Fair, Limited
|
With the Capital One® QuicksilverOne® Cash Rewards Credit Card, you can earn an unlimited 1.5% cash back on every purchase you make. The flat cash back rate makes this an excellent card for new credit users because it takes some experience to juggle rotating categories and bonuses. This card comes with a $39 annual fee, so make certain you’ll use the card often enough to offset the cost.
The Discover it® Student Cash Back offers one of the highest cash back rates for students, if not the highest cash back rate once you activate your bonus categories. These categories award bonus cash back for purchases made at popular merchants that change every three months.
You’ll typically only find secured credit cards that just offer the basics, but the Discover it® Secured Credit Card is one of the only cards on the market that offers cash back. After you put down a refundable security deposit to open your account (the amount of your deposit will match your credit limit), you can start earning rewards.
Best “Business” Cards for New Credit Users
Being approved for business credit is generally based on your personal credit rating. So, for those without a strong credit history – or no credit history at all – it can be difficult to obtain a business credit card. These cards offer budding entrepreneurs the chance to build their business empire and their credit history.
This card is currently not available. Additional Disclosure: Information for this card not reviewed by or provided by Capital One.7. Capital One® Spark® Classic for Business
Running a business is expensive — which makes it imperative to find a business credit card that doesn’t overcharge for membership. The Capital One® Spark® Classic for Business sports no annual fee or foreign transaction fees, and pays a flat 1% cash back on every purchase. Plus, the card helps you build a business credit profile — which is a major plus for any startup.
8. Wells Fargo Business Secured Credit Card
The amount of your refundable security deposit will equal the credit limit on your Wells Fargo Business Secured Credit Card. You’ll also earn 1.5% cash back on every purchase made using the card. Wells Fargo rewards cash back with quarterly statement credits or a direct deposit to an eligible business checking or savings account.
- Earn 1.5% cash back on every $1 spent
- $500 to $25,000 credit line
- No foreign transaction fees
- Issue up to 10 employee cards, $25 annual fee per card
Secured business credit cards aren’t as common as secured consumer cards. Many business offerings only operate in specific states or regions. But Wells Fargo is a national brand and offers acceptance anywhere Mastercard is accepted.
(The information related to the Wells Fargo Business Secured Credit Card has been collected by CardRates.com and has not been reviewed or provided by the issuer or provider of this product or service.)
9. BBVA Compass Business Secured Credit Card
The BBVA Secured Visa® Business Credit Card offers a tiered bonus structure that rewards business owners with 3x points for the purchases they make the most — such as office supplies, printing, gas, and restaurants. All other purchases earn a flat 1x point for every dollar spent on the card.
- Earn 3x points at office supply stores and 2x points at gas stations and restaurants
- Earn 1X point per $1 on all other purchases
- Pay no annual fee the first year, then $40
To obtain this card you must open a Secured Credit Card Savings Account with a minimum deposit amount of $500 — and your credit limit will equal 90% of your total deposit amount. This card is currently only open to residents of Alabama, Florida, Texas, Arizona, Colorado, California, and New Mexico.
Best “Student” Cards for New Credit Users
A student card is a great way to build credit while you’re still in school. Without an established credit history, it’s harder and potentially costlier to get an apartment or obtain a loan. Our top choices offer low or no fees as well as a chance to earn some cash back to help pay for pizza on those long study nights.
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% - 27.24% applies.
- Terms and conditions apply.
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
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|---|---|---|---|---|
0% Intro APR for 6 months
|
10.99% Intro APR for 6 months
|
18.24% - 27.24% Variable APR
|
$0
|
Fair/New to Credit
|
The Discover it® Student Cash Back is the current king of student cards, as it offers an unheard of cash back rate for students. Discover has a relatively unique signup bonus that can really expand your cash back potential if properly utilized. Pair this with the statement credit incentive for approved referrals, this card is great for students seeking robust cash back rewards.
Discover it® Student Chrome cardholders receive a competitive interest rate and can earn cash back rewards. As with its Student Cash Back sibling, students enjoy a statement credit reward for referring friends who apply and are approved for their own card. If you prefer to not deal with keeping track of a calendar and rotating categories, this card is best for you.
Best “Secured” Cards for New Credit Users
If you’re a cautious person who doesn’t want to make early financial mistakes, you may want to consider a secured credit card as the first piece of plastic in your wallet. These cards require a refundable security deposit to open your account, but they often charge lower fees and limit your spending to the amount of your deposit.
- No annual or hidden fees. See if you're approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
29.99% (Variable)
|
$0
|
Limited, Bad
|
Depending on your credit score and verifiable income, you may not have to pay a full security deposit to open your Capital One Platinum Secured Credit Card. That’s because Capital One uses your submitted data to determine the amount of required deposit you must pay — either $49, $99, or $200. All cardholders start with a $200 credit limit, but Capital One could raise your credit limit — with no additional deposit required — after you make your first five payments on time.
The amount of your refundable security deposit will equal your total Discover it® Secured Credit Card credit limit. Discover requires a minimum deposit to open an account, but offers a rare cash back feature in the secured card space.
The OpenSky® Secured Visa® Credit Card doesn’t require a credit check to open an account, which means your lack of credit history won’t hurt you when applying for this card. OpenSky reports your payment history to the three major credit reporting bureaus, which helps you build your credit score with responsible usage.
What is the Best Credit Card for Someone with No Credit?
Quite often, banks lump consumers with bad credit and no credit into the same category, but there are major differences between the two.
If you have bad credit, that means you have previous financial mistakes, delinquencies, or a bankruptcy recorded on your credit profile. If you have no credit, you’re what the finance industry calls credit invisible.
These consumers don’t have enough recent financial transactions on file to generate a reliable credit score. If that’s you, you’re not alone — there are more than 26 million credit invisible adults in the U.S. alone.
That doesn’t mean credit card issuers will line up to offer you their best cards, though.
Most credit-invisible consumers start with an entry-level credit card — such as the Capital One Platinum Credit Card. Credit card issuers carefully examine an applicant’s risk levels when deciding whether to extend a credit card offer. Since you don’t have any recent transactions that will help the bank determine your risk level, the issuer will likely take cautious steps when extending you credit.
The Platinum Card from Capital One is a great starter card because it has very competitive interest rates and no fees. Capital One will monitor your payment history and reward you with a credit limit increase after you make your first five payments on time.
And since Capital One offers many different types of cards, you can eventually upgrade to better cards as you work to establish your credit history.
That can happen quickly with responsible use. One consumer went from being credit invisible to having a terrific 745 credit score in less than two years.
Which Credit Cards Build Credit Fast?
Building credit is a marathon, not a sprint. While some companies claim they can raise your credit score overnight, there’s really no way to truly boost your profile that fast.
Several factors combine to determine your overall credit score. Among the most important are your payment history and credit utilization. No single credit card can improve those categories faster than others.
Every month, banks report your loan payment history to one or all of the three major credit reporting bureaus. On-time payments continue to strengthen your score. Late payments can slash dozens of points off your score immediately and sit on your credit report for as long as seven years.
Lenders want to see a long track record of financial success. They won’t necessarily punish you for having less credit history, but you may have to pay more fees or accept lesser terms until you have some credit history under your belt.
Credit utilization looks at how much revolving debt you carry in relation to your available credit. It is generally recommended to keep your utilization at or below 30%. In addition to always making on-time payments, the next best way to improve your score is to keep your card balances low. Again, no specific credit card can do this faster than others — this is the sole responsibility of the cardholder.
One thing you could do to quickly raise your credit score is to find a credit card with a high credit limit. By adding more available credit to your current credit mix, you decrease your utilization ratio.
What is a Good Credit Score?
Most lenders use FICO scores when determining loan eligibility. Thankfully, FICO breaks its scores down into easy-to-understand categories. You can quickly find where your credit score stands in the eyes of credit card issuers by referring to these categories.
While your FICO score can range from 300 to 850, a “good” credit score starts at 670.
You will reap many benefits once you fall into this range. The number of cards you’ll qualify for will grow, and the terms you’re offered will improve. You’ll also have access to higher credit limits and richer rewards on whichever card you choose to apply for.
And since you’ll find more options at your disposal, you’ll have the benefit of shopping for the best terms and rates to choose the card that best suits your needs.
But good credit isn’t just about getting better credit cards. Many employers now take into account an applicant’s credit score when making hiring decisions. Consumers with better credit scores also qualify for better personal loans, mortgages, or get better rates when renting an apartment.
The higher your score, the better your financial options will become. FICO considers “good” credit as any score between 670 and 739. Banks consider the range between 740 and 799 as “very good” and the rare air between 800 and 850 is considered “exceptional.”
Just be sure to keep your loan and credit card balances low and always make on-time payments. As stated above, if you miss one payment by 30 days or more, you can instantly lose between 90 and 100 points from your credit score. Regaining those points could take years.
Begin Your Credit Journey with the Right Card
We’re all running the same race, and though we all want to prove our responsibility and creditworthiness quickly, there’s no fast fix to get to the finish line before everyone else.
The only solution is to prove yourself over time — by making on-time payments, keeping your balances low, and not overextending yourself financially. If you stick to that path and consider one of our best credit cards for new credit users, you’ll get to your financial goals without having to jump over any hurdles.
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Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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