I didn’t always have the financial experience I have today. As a consumer, I had to start at the beginning like everybody else. The problem is that starting at the beginning with credit cards can mean facing some pretty serious obstacles.
That’s because the lending industry works on reputation. More than anything, card issuers look at your credit history to determine how much to lend and at what cost.
But what do you do if you don’t have a credit history or your file’s too thin to judge? What if you have no credit history at all? Or what if you have a credit history, but have yet to apply for a credit card?
Fortunately for consumers (including students), issuers offer cards tailor-made for those new to credit. So, we reached out to experts in the financial services industry to get their in-depth recommendations on the best credit cards for beginners around.
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For No/Limited Credit
We mean it when we say lenders judge people by their reputation. The three major credit bureaus process billions of data pieces to maintain files on basically everyone who uses credit and other forms of financing — more than 190 million Americans, according to the U.S. Consumer Financial Protection Bureau.
FICO scores are one of the results of that data collection. Card issuers have products that can help consumers with no or limited credit, so let’s dive with our experts into some details about products that can help with financial management skills while building their scores.
Erica Sandberg: Discover it® Secured Credit Card
“As a newbie to the world of credit, you may find that getting your first credit card can be a bit of a challenge. With no history of borrowing and repaying money, a financial institution doesn’t know what kind of risk you may be. Many cards require a minimum credit score, which is based on established credit usage, for eligibility,” said Erica, Consumer Finance Expert and Journalist.
“But don’t get frustrated. There are cards you can get, and a particularly great starter account is the Discover it® Secured Credit Card.
4.7
- No credit score required to apply. No Annual Fee.
- Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
- Raise your credit score by 30+ points.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- 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. Activate by mobile app for free.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
- Terms and conditions apply.
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
N/A
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10.99% Intro APR for 6 months
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27.24% Variable APR
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$0
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New/Rebuilding
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“There are a number of reasons I’ve been a longtime fan of this card. The first feature I like is that you don’t have to worry about your credit score. This account doesn’t require you to have one at all, making it an automatic star for the unproven applicant.
“The low security deposit is another advantage. Because it is a secured account, you will be putting down a cash deposit with the company, which will guarantee the credit line. However, the minimum amount is quite small.
“After opening the account, as long as you make at least six consecutive payments on time (on this and any other Discover accounts you may have), your deposit may be returned to you and the account will become unsecured. Not only do you have savings set aside for a rainy day, you won’t have to be concerned about qualification.
“The Discover it® Secured Credit Card was developed specifically for people who are new to credit, so you probably want to use it to create a positive credit rating. No problem. Not only does Discover report your activity with the card to the three major credit bureaus — TransUnion, Experian, and Equifax — it will also provide you with your FICO® Credit Score for free so you can track your scoring progress.
“All in all, the Discover it® Secured Credit Card is a terrific first account. It’s easy to open, you will come out financially ahead when you pay your bills on time and in full, and it’s simple to create a positive credit history that will propel you to the next stage of your credit career.”
Ashley Fricker: Capital One Platinum Credit Card
“I like the Capital One Platinum Credit Card to help someone get their credit footing. It has no annual fee, and it isn’t secured, so it doesn’t require a deposit for approval. You may even qualify for a credit limit increase in as few as six months when you pay your bill on time, which is the most important thing you can do when building your credit,” said Ashley, Senior Editor at CardRates.
4.7
- 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)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
N/A
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N/A
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29.74% (Variable)
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$0
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Average, Fair, Limited
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“And, once you use the card responsibly for at least a year, you may begin to receive offers from Capital One to upgrade your account to a card with rewards and/or lower interest rates, such as the Capital One Venture Rewards Credit Card card.
“This card also allows you to see whether you’re preapproved before applying, so you can gauge your approval odds before submitting an application.”
Ryan Duitch: Arro Card
“I may be biased, but the best card for beginners is the /Arro Card. Whether you have no credit or low credit, it protects your score by not taking out a hard inquiry upon application,” said Ryan, Arro Founder and CEO.
4.3
- All credit types accepted.
- Arro’s soft credit pull does not impact your credit score.
- Through in-app personal finance activities, members receive real time credit limit increases and other rewards.
- Opportunities to decrease your interest rate.
- Use your Arro Card anywhere Mastercard is accepted.
- Application takes as little as 5 minutes.
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
N/A
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N/A
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16% Variable
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$36 (discounted in Year 1 for starting credit lines under $200)
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All Credit Types Accepted
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“Customers start with a low credit line and are given an increase based on their performance in our gamified financial literacy app — you’re learning about money while you’re growing your credit line and building your credit score. Many first-time credit users quickly get into too much debt — we do our best to prevent that at Arro!
“That’s why new customers will get lines as low as $50 to start, making it difficult to accumulate too much debt.”
For Students
Most students are new to credit because they’re new to consumer life in general. Some parents and guardians introduce children living at home to credit as authorized users on their accounts. But their college years are the time when many transition to independent financial life.
A widely reported 2019 study by the private student loan provider Sallie Mae found that 57% of undergraduates owned at least one credit card and 38% owned more than one. Like all those with a limited or nonexistent credit history, students want cards to help them build their credit scores and provide financial flexibility and convenience.
The experts we spoke with highlighted cards that fit student priorities and lifestyles. Cards with great apps that charge no annual or hidden fees and offer cash back or points-based rewards are winners. One even offers fee-free international transactions — perfect for students studying abroad.
Erica Sandberg and Marcie Geffner: Capital One Savor Student Cash Rewards Credit Card
Erica said: “The Capital One Savor Student Cash Rewards Credit Card is a marvelous beginner card. It grows with you, so also meets your emerging needs. I recommended it to my daughter as her first account when she was a junior in college. She loves it.
4.5
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Early Spend Bonus: Earn $50 when you spend $100 in the first three months
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply
- Earn up to $500 a year by referring friends and family when they’re approved for a Capital One credit card
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
N/A
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N/A
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19.24% – 29.24% (Variable)
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$0
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Average, Fair, Limited
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Qualification was easy, even though she had no established credit history and was only working part-time.
“It began with a low credit limit — just $500 — but after she charged and repaid responsibly for a few months, Capital One automatically doubled the limit. Now, a year later, they raised it again, this time to $2,000.
“I really like this card as well because it enabled my daughter to travel internationally inexpensively. There are no foreign transaction fees. For anyone wanting the flexibility of making overseas transactions, that’s a major benefit that doesn’t come with all cards.
“The app is fantastic, too. As soon as you open it, you can see all relevant account information, such as how much of the credit line is left. It is very simple to make payments as you go along with the app. This is particularly important for novice users because it enables them to get into the habit of paying the bill off before debt accumulates.
“Cash back is another great feature. Not all accounts designed with new credit card users in mind are so generous.”
Marcie, Financial Reporter, Editor, and Writer, added: “Beginners have a lot of good choices for great credit cards. Students who are or will soon be enrolled at a four-year university, community college, or other higher education institution may want to consider the highly rated Capital One Savor Student Cash Rewards Credit Card card.
“This unsecured card has no annual fee, and it currently offers a nice cash back rewards program, plus a welcome bonus for new cardmembers.
“This card may come with a relatively low credit limit; that’s appropriate for beginners, who should take care to protect their credit scores by not using a high percentage of their limit or maxing out their card.”
Marcie Geffner: Chase Freedom Rise®
“Another card that’s easy to use and well-designed for beginners, whether students or not, is the Chase Freedom Rise® Credit Card. This card has no annual fee — a must for a beginner card — and it comes with a generous points-based rewards program.
Points can be used for cash, gift cards, travel, or purchases of products or services through the program. Just note that shopping at Amazon.com discounts the point value slightly.
“Having a Chase checking or savings account (or both) with a combined balance of at least $250 may improve your chances to be approved even if your experience with credit is limited. That’s a good incentive to have a savings account for emergencies, large purchases, medical expenses, car repairs, or holiday shopping.”
First Credit Card for Good Credit
We talked above about how the credit bureaus process billions of data points to compile your credit history and calculate your credit score. Your record contains data from all your past non-credit card loan transactions, including account information, public financial records, credit inquiries, and collections activity.
As if that weren’t enough, the bureaus and others may now even report records of on-time rent, utility, and other payments. All of that means you can compile a good (or better) credit score without ever having owned a credit card.
Issuers have those “no card, good credit” folks in mind when designing easy-to-use products with no annual fees and straightforward rewards and perks. Low-interest-rate offers are also likely to appeal to those new to cards but not new to having good credit.
Choncé Maddox: Capital One Quicksilver Cash Rewards Credit Card
“For the best beginner credit card, I like the Capital One Quicksilver Cash Rewards Credit Card. This card is great for anyone who’s just starting their credit journey or is building credit and looking for an easy card to manage,” said Choncé, a Certified Financial Education Instructor.
4.9
- Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- $0 annual fee and no foreign transaction fees
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won’t expire for the life of the account and there’s no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 19.24% – 29.24% variable APR after that; balance transfer fee applies
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
0% for 15 months
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0% for 15 months
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19.24% – 29.24% (Variable)
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$0
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Excellent, Good
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“This card has a low starting APR which can help you save money on interest, but the goal is to keep your total credit utilization low and pay your bill off in full each month. I like how this card has a sign-on bonus and offers cash back at a fixed flat rate, so there are no expense categories or spending caps to keep up with.
“The Capital One Quicksilver Cash Rewards Credit Card card also has no annual fee, making it an easy card to keep around long-term for everyday spending and to build a positive payment history on your credit report.”
Julian Kheel: Capital One Venture Rewards Credit Card or Chase Sapphire Preferred® Card
“If you’ve already established some credit, and you’re looking for a great beginner travel card, there are two options I recommend,” said Julian, Forbes Advisory Council Member and Founder and CEO of Points Path.
“The first is the Capital One Venture Rewards Credit Card card. What’s great about the Venture is that it earns 2 miles for every dollar you spend on anything — you don’t have to deal with complicated or rotating bonus categories. And the miles are easy to use because you can apply them as a credit against any travel purchases you make with the card.
4.8
- Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options
- Miles won’t expire for the life of the account and there’s no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
N/A
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N/A
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19.99% – 29.24% (Variable)
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$95
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Excellent, Good
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“But if you’re a little more adventurous, you can also transfer the miles to any of Capital One’s airline and hotel partners. Using miles as a travel credit makes them worth 1 cent apiece, but if you do some work to find the right flights or hotels and transfer them instead, you can get potentially much more than that in value. That flexibility is the best part of the card.
“The second travel card I recommend for starters is the Chase Sapphire Preferred® Card. Chase points are also easy to use because you can book any travel through Chase’s website and get 1.25 cents per point in value for them.
4.7
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 60,000 points are worth $750 toward travel.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
- Member FDIC
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
N/A
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N/A
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20.49% – 27.49% Variable
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$95
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Good/Excellent
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“But like Capital One, Chase also offers a roster of airline and hotel partners, including valuable domestic options. That can make Chase points some of the most valuable around, especially if you use them for first or business-class flights or high-end hotel rooms.”
About the Experts
The experts we spoke with have plenty of credentials to back up their opinions on the best credit cards for beginners. Here, you can get to know a little more about them and why their personal finance expertise is so valuable.
Erica Sandberg, Consumer Finance Expert and Journalist
Erica Sandberg is a consumer finance expert and journalist whose articles and insights are featured in publications such as the Wall Street Journal, Reuters, MarketWatch, Forbes, and MSN Money.
An experienced media host, she’s led many financial programs, including her podcast, “Adventures With Money.” She’s appeared on Fox, CNN, “EconTalk” and “The Dr. Drew Podcast,” and has been the resident money and credit authority for KRON-4 News in San Francisco for more than 10 years.
She’s also the author of “Expecting Money: The Essential Financial Plan for New and Growing Families”” and recipient of the 2024 Financial Literacy and Education in Communities (FLEC) Award for National Excellence.
Marcie Geffner, Financial Reporter, Editor, and Writer
Marcie Geffner is an award-winning reporter, editor, and writer.
Her stories about banking, credit cards, insurance, economics, small business, and other subjects have been featured by the Los Angeles Times, Washington Post, Bankrate, Credit Karma, Bookmarks Magazine, FOX Business, CNBC, Yahoo! Finance, and dozens of major U.S. newspapers.
Her articles have been cited in seven nonfiction books and two U.S. Congressional hearings. She edits nonfiction, memoirs, and fiction, and contributes to Kirkus Reviews. Marcie holds a bachelor’s degree in English from UCLA and an MBA from Pepperdine University.
Choncé Maddox, Certified Financial Education Instructor
Choncé is a Certified Financial Education Instructor and a nationally recognized personal finance and budgeting expert.
She has paid off more than $50,000 of personal debt, and her debt story has been highlighted in Essence Magazine and on Good Morning America as part of its 2020 Debt-Free Decade series.
Choncé’s work has been featured on major media sites, including Business Insider, LendingTree, Credit Sesame, Barclaycard, and The New York Post. Choncé was named one of the top financial experts to follow on Instagram by Black Enterprise.
Ashley Fricker, Senior Editor at CardRates
Since joining CardRates in 2015, Ashley Fricker has worked closely with industry leaders in all sectors of finance to develop authoritative guides and advice articles read by millions of people.
Her expertise lies in credit cards and rewards programs, as well as credit reports and how credit scores affect all aspects of consumerism.
Ashley often serves as an expert source on financial topics for national media outlets, including CNN Money, MarketWatch, Money Matters, ABC News, and NBC News.
Ryan Duitch, Arro Founder & CEO
Ryan Duitch is the Founder and CEO of Arro, which underwrites credit cards to consumers with limited or no credit history using alternative data and income rather than traditional credit scores to approve applicants.
Before founding Arro, Ryan oversaw customers, product, sales, business development, and operations at the VC-backed startup Field Day and worked in business development and e-commerce analysis at Autodesk, producer of AutoCAD design software.
Ryan has also filled roles in asset management, strategic and financial consulting, business development, and marketing. His passion for entrepreneurship leads him to take on and solve complex challenges, which the Arro team has designed its creative underwriting practices to do.
Julian Kheel, Forbes Advisory Council Member and Founder and CEO of Points Path
Julian is the CEO and Founder of Points Path, a travel platform that automatically inserts points-based pricing alongside pricing from Google Flights. Points Path provides a fast and easy way for travel buffs to understand the financial implications of their frequent flier rewards.
Before creating Points Path, Julian was a television producer and director for World Wrestling Entertainment, flying more than 200,000 miles a year. Previously, as an editor and writer, he contributed to notable financial publications including CNN Underscored, The Points Guy, U.S. News and World Report, Travel Codex, and Frequent Miler.
Julian is also a member of the Forbes Advisory Council, and makes frequent media appearances to discuss travel and loyalty programs. He has been quoted in The Washington Post, The Wall Street Journal, and the Chicago Tribune on travel-related topics.
Expert Tip: You Can Prequalify Before You Apply
If you’re an experienced cardholder with a high credit score, you’re probably familiar with credit card prequalification or preapproval offers. In fact, if you’re like me, you’ve gotten plenty of offers through the mail. Preapproval offers outnumber everything I receive via snail mail except store advertisements.
These days, card issuers are likely to contact you via email and text, as well as through physical mail. You’ll also find preapproval offers on most issuer websites and on credit card comparison marketplaces, where you may get the chance to check with several issuers at once to pick the best deal.
Hard vs. Soft Pulls
What I want to get across immediately is that these prequalification and preapproval offers are just that: offers to apply for credit. They are not an indication that your prospective lender has looked deeply enough at your credit history to make a final decision.
A prequalification inquiry helps lenders get to know certain information about borrowers and determine whether they would likely have a good chance of qualification if they apply. It doesn’t impact your credit score because it only requires what the financial services industry calls a “soft pull” on your credit report — in contrast to the “hard pull” lenders perform when making formal credit decisions.
Here are some of the differences that set hard and soft inquiries apart:
| Hard Credit Inquiry | Soft Credit Inquiry |
|---|---|
| Visible to anyone who pulls your credit reports | Not visible to others who pull your credit |
| Can impact scores for up to 2 years | Won’t impact your credit scores at all |
| Requires your direct permission or an application for credit | Does not require your direct permission or an application for credit |
A soft pull, also known as a soft inquiry, for prequalification has no impact on your credit score, but it also doesn’t include all the information credit card issuers use to make a final decision.
Prospective borrowers must consent before a creditor can perform a hard pull — also known as a hard inquiry.
This distinction has arisen in the lending industry because the act of applying for a credit card can harm your credit score. That’s because credit score models — including the familiar FICO scoring model — consider the rate at which you apply for new credit accounts a reflection of your financial stability and risk as a customer.
Pro tip: You may freeze your credit report to prevent fraudsters from applying for credit in your name, which may result in hard inquiries and potentially damage your finances and reputation.
When you think about it, it makes sense that FICO considers the number of times you apply for new credit to be a mark of your creditworthiness. Research shows, and common sense agrees, that if you’re constantly applying for credit, you may be financially overextended.
Structure of Your Credit Report
Each of the three bureaus works with thousands of data furnishers, including pretty much every lender and creditor you’ll encounter, to gather all the data proving your credit status. Your credit report may contain hundreds of individual data points:
- Personal information: Name, address, Social Security number, date of birth, employment information
- Credit accounts: The status, limits, balances, and payment history for all your loan and credit accounts
- Payment history: How well you’ve kept up with your payments
- Credit inquiries: Number and frequency of new credit applications
- Public records: Bankruptcies, civil judgments, and other records the models judge as relevant
Naturally, lenders want to see it all before they deposit cash into your bank account or give you a high credit limit. When you fill out an official application, credit card issuers perform a hard pull on your credit data, and they get down to the nitty-gritty of asking the bureaus for everything they’ve got on you.
It makes sense — a hard pull marks the point when the lender officially sits down to decide how much to lend you and at what interest rate. In contrast, a soft pull looks at the top layer of your data — perhaps just your credit score and a summary of your record — to assess whether you’re a good fit to apply.
Prequalification Protects Your Score
Let’s segue for a second to mention that lenders aren’t the only outside parties interested in your financial data. The credit bureaus make credit scores and high-level credit report summaries available to employers, landlords, property managers, insurance companies, utility and service providers, and others.
For example, a health and fitness center would likely perform a soft pull on a prospective customer to evaluate payment risk and determine the deposit amount. If you rent your home, your landlord my have done the same before offering you a lease.
That’s because how well you treat lenders and creditors says something about your reliability as a customer. The highly regulated lending industry makes credit report data available to these financial stakeholders to increase decision-making confidence, which in turn can help make lower-cost credit more accessible.
So, please remember what prequalification and preapproval offers really are: marketing materials to put you in touch with folks who think you’re a good credit customer. They’re just itching to find out for sure when you formally apply.
FAQs: What is a Beginner Credit Card?
Everyone starts at the beginning. In the credit card industry, that often means starting with little or no credit history.
A beginner credit card can allow individuals with limited financial credentials (including students) to access credit and build a record of responsible use and on-time payments. Credit card issuers may tailor beginner credit cards to these novice users and may include some of the following terms and features:
- Secured options to allow credit building through collateral.
- Lower eligibility requirements for easier approvals.
- Lower credit limits to minimize creditor risk and possible overspending.
- Simple rewards for earning cash back or points.
- Credit-building features such as payment reporting to the credit bureaus.
What all of this means is that it’s up to you, the consumer, to prove to issuers that you’re creditworthy — meaning they can trust you with their money. While it may feel like a challenge, we hope you consider it an opportunity to demonstrate your qualifications — just as you’d want if you could turn the tables and be in charge.
It’s often worth it because credit cards can give you convenience and financial flexibility. They’re safer and more secure than cash, may offer rewards and perks, and have many built-in benefits. What’s more, they may be your ticket to earning a higher credit score and saving significantly on other milestone purchases (like buying a home or financing a car).
What’s the Easiest Credit Card for Beginners to Get?
I remember this one time in college when a friend needed to borrow some money and gave me his bike to keep until he paid me back. He knew I could sell the bike for significantly more than he borrowed. It was just his way of guaranteeing payback.
That’s how secured credit cards work, and it’s also why they may be the easiest option for beginners. A secured credit card requires the cardholder to deposit cash as collateral, and that deposit usually equals the card’s credit limit.
The cardholder gains the flexibility and convenience of using a credit card, along with the opportunity to build a record of on-time payments and other hallmarks of responsible use.
Here are some important differences to keep in mind when deciding between a secured and unsecured credit card:
| Secured Credit Cards | Unsecured Credit Cards |
|---|---|
| Refundable deposit required to open an account | No deposit or collateral required to open an account |
| Lower risk to the issuer | Higher risk to the issuer |
| Low-fee cards available to most credit types | Low-fee cards require at least fair credit |
| Credit limit is based on the size of the deposit | Credit limit is based on your credit profile and income |
If you don’t think about credit cards for a living like we do, you may never stop to realize that they are revenue-generating products for financial institutions. They earn money from fees and interest when cardholders carry balances.
But it’s not a trap — it can be a pathway for consumers to start building for the future they want. Secured cards also help individuals who have suffered past credit setbacks and need a fresh start.
The bottom line is that secured cards provide a reliable way to demonstrate creditworthiness while enjoying the benefits of a credit card. We think they’re the most obvious, most practical first step toward establishing financial independence.
Can I Get a Credit Card With No Credit History?
There’s no doubt about it — lenders want to know everything there is to know about how you handle money before they agree to give you some of theirs. But that doesn’t discourage them from working with students and other consumers who haven’t proven themselves in the financial world.
That means you can obtain a credit card even if you have no credit history. But you may have to lock in your ability to repay by depositing cash collateral up to the amount in your credit line.
That’s what you’ll need to do if you’re approved for a secured credit card, which will give you the flexibility and convenience of using a credit card without much risk for the issuer.
At the same time, you establish a favorable credit history along the way. All you have to do is hold up your end of the bargain by using your card responsibly and paying your balance on time.
You can qualify for an unsecured credit card with no credit history, but you’ll likely face low credit limits and high interest rates.
Some students may also qualify for certain credit cards with no credit history. Although, without a score to guide them, issuers may require much more information on your application. In these cases, having no credit history may not disqualify you from getting approved for the card, but it could require a lot more work on your part to prove that you can handle it.
If you are approved and start using your card, the issuer should report your commendable behavior to one or all of the three major U.S. credit bureaus — Equifax, Experian, and TransUnion.
If you own a secured credit card, you could receive a collateral refund as your credit score rises. That’s because some issuers convert you to a conventional unsecured card if you meet certain credit thresholds.
Keep up the good work, and you could get a credit limit increase, a break on interest, or both as your credit score increases. More and better prequalification and preapproval offers may filter in from competitors.
What is the Credit Limit on a Beginner Credit Card?
The credit limit on a beginner card is typically low. But that might mean different figures in different situations. The limit may be a few hundred dollars, give or take, whether we’re talking about a secured card that requires cardholder collateral or a conventional unsecured card designed for students and others with limited credit history.
Secured cards are available to most consumers — regardless of credit history. You’re often approved if you are who you say you are and don’t have bankruptcy or fraud concerns on your record. Limits may start as low as $100.
Usually, unsecured cards that don’t require collateral start with a higher limit than that — typically $300 or more. Although unsecured cards may provide a faster route to credit score success, card companies tend to reserve those types of opportunities for those with at least a modest credit history to match.
Some consumers manage to earn an excellent credit score without ever having owned a credit card. They accomplish that because credit bureaus take other lending behaviors into account, not just your transactions associated with credit cards.
With those exceptions aside, it pays to start with a low limit, build a strong track record of financial responsibility, and let your issuer reward your good behavior with a higher credit limit. It works out best for everyone: Lower credit limits mean lenders risk less capital, and borrowers risk fewer assets.
If you play your cards right, you’ll become a seasoned credit card veteran in less time than you may think. Credit card companies want customers, and with a little effort, you can start from scratch and build a lasting credit relationship with an issuer.
Start Your Credit Journey Off Right with the Best Card for Your Situation
There you have it: a deep dive into some of the best credit cards for beginners today. Beginner cards help keep the credit industry healthy and accessible to as many consumers as possible.
When used responsibly, the right secured or low-limit unsecured credit card — including the ones our expert friends in the financial services industry recommend here — can help take your ambitions to the next level.
You’ve just got to handle your business and keep making your payments on time. Whether you’re new to credit, have a limited credit history, or are looking for a first card as a consumer with a high credit score, your card company wants you to succeed.
All of us here at CardRates.com want to help, so stick around. After all, we know some people!
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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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