Erika's Picks for Best Beginner Credit Cards
- Best overall:
Chase Freedom Unlimited® - Best for students:
Discover it® Student Cash Back - Best for no fees:
Petal® 2 “Cash Back, No Fees” Visa® Credit Card - Best for travel and entertainment:
Capital One Quicksilver Cash Rewards Credit Card - Best for earning cashback:
Bank of America® Customized Cash Rewards Credit Card
Getting your first credit card is an important step in your financial journey. Credit cards help you to establish a credit history, which is what's then used to determine whether you can qualify for a car loan, mortgage, or other type of financing in the future.
But because you're new to the world of credit, you'll likely have to start with a beginner credit card.
These won't have the flashy perks you hear about with premium cards, like airport lounge access, but many do offer straightforward rewards, an attainable welcome bonus, and easier eligibility requirements.
Best Overall
Chase Freedom Unlimited®
Rewards Rate
- 5% cashback on travel purchased through Chase Travel℠
- 3% cashback on drugstore purchases, restaurants, takeout, and eligible delivery services
- 1.5% on all other purchases
Welcome Offer
Limited Time Intro Offer: Earn a $250 Bonus after you spend $500 on purchases in your first 3 months from account opening
Annual Fee
$0
The Chase Freedom Unlimited® has no annual fee, an easy approval process, and excellent rewards, making it a good option for beginners. It comes with a competitive welcome offer and cashback bonus, and it can help you build credit on top of your everyday spending.
There are also several perks, including:- Six-month DashPass membership (must activate by December 31, 2027)
- Auto rental coverage
- Extended warranty protection for eligible purchases
- Purchase protection for items damaged or stolen within 120 days (up to $500 per item)
- Trip cancellation and interruption insurance (up to $1,500 per person, $6,000 per trip)
- 24/7 fraud monitoring
Few starter cards offer trip cancellation coverage or purchase protection, making the Freedom Unlimited stand out for beginners.
However, it does have some limitations. It doesn’t include bonus rewards on general travel or grocery purchases. It also doesn’t give you a way to transfer rewards between hotel or airline loyalty programs you may already be a part of.
That said, the card can be a useful starter card to work up to a higher reward Chase card like the Chase Sapphire Reserve®. There is a 1:1 transfer compatibility between the Freedom Unlimited and any other card that’s part of Chase Ultimate Rewards®. So, you can start with the Freedom Unlimited and pair it with a different Chase card down the road.
The Chase Freedom Unlimited® has a high rewards rate on everyday spending, no annual fee, and extra perks that are hard to find on fee-free credit cards.
The card is a flexible option if you want cashback or access to Chase Ultimate Rewards®. While there isn’t a cashback category for groceries (a common category in cards with fees), there is a flat 1.5% rate for all other purchases outside the bonus categories.
Overall, its range of benefits makes the Chase Freedom Unlimited a good card for new cardholders to begin building credit.
Best for Students
Discover it® Student Cash Back Card
Rewards Rate
- 5% cashback on select purchases each quarter (on up to $1,500 each quarter, then 1%; activation required) and 1% on all other purchases
Welcome Offer
Discover Cashback Match™ will double all cashback earned in the first 12 months
Annual Fee
$0
The Discover it® Student Cash Back card allows students to learn how to use a credit card and build credit while also earning rewards, with 5% cashback on rotating quarterly categories like going out to eat, buying groceries, or shopping on Amazon (up to $1,500 in combined purchases). Plus, you get 1% cashback on all other purchases.
Unlike most credit card companies, Discover matches all cashback earned at the end of the first year and doesn’t charge an annual fee.
The card reports to the three major credit bureaus, which means if you pay off your balance at the end of the month, you can use the card to build credit on your everyday purchases. Discover will also waive your first late payment as a courtesy — a nice perk that could otherwise ding your credit.
A few other nice perks that come with the card include:
- $0 fraud liability
- Free credit monitoring
- Dark web monitoring
- FICO score access
For students studying or traveling abroad, the card doesn’t charge any foreign transaction fees. That said, Discover isn’t widely accepted, so you might want to have a second card in your wallet.
While this is a great card for students, it does have some drawbacks. You’ll need to activate the bonus categories each quarter to earn the rotating cashback rate. If you forget, you won’t earn the higher rate. There isn’t a fixed bonus category either. All cards earn 1% cashback unless you’re spending in a rotating category.
All information about the Discover it® Student Cash Back has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
The Discover it® Student Cash Back provides great cashback rewards if you’re still learning to use a credit card, and there’s no annual fee. And thanks to Discover’s first-year match, you can double all cashback earned in the first year.
The card also comes with useful tracking tools and a missed fee waiver, helping you to better learn how to use credit cards responsibly.
All information about the Discover it® Student Cash Back has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
Best for No Fees
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
Rewards Rate
- 1% cashback on everyday purchases (up to 1.5% after 12 months of on-time payments)
- 2% to 10% cashback at select merchants
Welcome Offer
None
Annual Fee
$0
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is great for beginners who want to build credit without paying an annual fee. Cardholders can earn up to 1.5% cashback on eligible purchases after making consistent on-time payments. The card takes a look at your financial history – including banking data – to determine your creditworthiness. This makes the Petal 2 one of the most accessible cards for beginners who want to get started using credit cards.
Unlike many beginner cards, the Petal 2 “Cash Back, No Fees” Visa Credit Card doesn’t charge any fees whatsoever. This means not only no annual fee but also no late payment fees, no foreign transaction fees, and no returned payment fees (if you try to make a payment but have insufficient funds).
You won’t need to have an established credit history to get started with a Petal 2 card, and it comes with fairly high credit limits. This is a nice perk that isn’t common for unsecured credit cards. The card reports to the three major credit bureaus.
Some other perks include:
- Budgeting tools on the mobile app
- Opportunity to increase credit limit and rewards with on-time payments
- High cashback on purchases made with Petal Offers merchants
While the Petal 2 card has a lot of standout features, there are some trade-offs to be mindful of. You won’t find a sign-up bonus or cash advance options with this card. And depending on your creditworthiness, you could get hit with a steep APR as well.
All information about the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
The Petal 2 is a great option for beginners who want an unsecured credit card but don’t have a credit history.
Aside from not charging any fees, the rewards structure of the card incentivizes good habits. The more on-time payments you make, the more rewards you can earn. Plus, it comes with budgeting tools in the Petal 2 app, so it can really help you start your credit journey on the right foot.
All information about the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
Best for Travel and Entertainment
Capital One Quicksilver Cash Rewards Credit Card
Rewards Rate
- 5% cashback on hotels and rental cars booked through Capital One Travel
- 1.5% on everything else
Welcome Offer
Earn a one-time $200 cash bonus after spending $500 in the first three months
Annual Fee
$0
The Capital One Quicksilver Cash Rewards Credit Card has a simple rewards structure that’s easy to understand.
It gives you 1.5% cashback on all purchases and 5% cashback on hotels and rental cars booked through Capital One Travel. Beyond those bonuses, the card has a flat rewards structure — this means you don’t have to track variable or rotating categories.
The Quicksilver Cash Rewards also comes with a one-time sign-up bonus and no annual fee, making it a good option for accessing travel rewards without the cost of premium travel cards.
You can use points to book travel or to score exclusive concert tickets through Capital One Entertainment. You can also get cashback as a statement credit, redeem through PayPal, or put toward your next Amazon purchase.
Some other benefits include:
- Access to CreditWise credit score reporting
- No foreign transaction fees
- Virtual credit card numbers for online shopping
- 24/7 travel assistance and concierge service
However, unlike some of Capital One’s other credit cards, the Quicksilver Cash Rewards doesn’t come with lounge access or the ability to transfer points to airline or hotel partners. Also, while the 1.5% cashback reward is generous, it’s lower than you might find with cards that offer rotating categories.
The simple rewards structure makes the Capital One Quicksilver Cash Rewards Credit Card a good option for beginners who are new to earning cashback.
While it won’t get you the most rewards, it’s a good starter card for someone who wants to use credit cards to learn how to travel for free with credit cards.
Best for Earning Cashback
Bank of America® Customized Cash Rewards Credit Card
Rewards Rate
- 3% cashback on a category of your choice (including online shopping, dining, travel, gas, EV charging stations, drugstores, home improvement or cable, streaming, internet, and phone services)
- 2% at grocery stores and wholesale clubs (up to $2,500 combined spending in bonus categories each quarter, then 1%)
- 1% on all other spendings
Welcome Offer
Earn $200 cash after spending $1,000 in the first 90 days
Annual Fee
$0
The Bank of America® Customized Cash Rewards Credit Card makes it easy for you to align your rewards with your spending. You can select a 3% cashback category from options like gas/EV charging stations, online shopping, dining, travel, drugstores, or home improvement.
Beyond that, you get 2% cashback at grocery stores and wholesale clubs (up to $2,500 per quarter), and everything else earns 1% cashback.
The card offers some of the same perks as other beginner cards but with greater flexibility. By being able to select a category to earn more cashback, you can earn higher rewards where you spend the most money.
Some other benefits of the card include:
- Bonus rewards for Bank of America and Merrill account holders
- Sign-up bonus
- No annual fee
- Online rewards calculator
However, while the Customized Cash Rewards card offers the most flexibility, it has a complicated reward structure to navigate. It also doesn’t come with travel perks or other benefits that you might find with other cards.
All information about the Bank of America® Customized Cash Rewards Credit Card has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
Few beginner credit cards offer high rewards on things like groceries. Not only does the Bank of America® Customized Cash Rewards Credit Card do this, but it also gives you greater flexibility over how you earn rewards.
This is a good option if you want to earn high cashback on everyday purchases without all the bells and whistles of other types of reward cards.
All information about the Bank of America® Customized Cash Rewards Credit Card has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
What To Look for in a Beginner Credit Card
Here are some key things to consider when you’re picking your first credit card:
Eligibility requirements
If you’re new to credit cards, you likely won’t have a credit history. Everybody has to start somewhere, but limited credit history also means limited credit card options.
Thankfully, many beginner credit cards allow a lower credit score or don't check your score at all and instead use your income, bank balance, or other factors to decide your eligibility. Check the requirements of different cards, so you can find one you’ll be able to qualify for.
Interest rate
The annual percentage rate (APR) is the rate of interest you’ll be charged if you don’t pay your balance in full when your statement is due. Credit card interest rates are much higher than traditional loans. If you don’t have an established credit history, you'll likely end up on the higher end of a credit card’s APR range.
Keep the interest in mind when you swipe your card — overspending can quickly lead you into credit card debt.
Fees
Credit cards charge fees to make money. These can range from an annual fee to foreign transaction fees if you use your card abroad.
Read the card's terms to understand what fees you might be liable for and how they’ll be charged.
Rewards
Many credit cards offer rewards. You can earn cashback, points, or miles when you make purchases with your card. You can then use those rewards to score free vacations or redeem them as statement credits to offset large purchases.
If you want to earn rewards, look for a card that aligns with your spending habits so you’ll be rewarded for spending you’re already doing. Also, consider what type of rewards you’re interested in to make sure you’re earning the right rewards for you.
Reporting to credit bureaus
Using a credit card can help you establish credit and build your credit history. While many card issuers report to the major credit bureaus, some starter credit cards or secured credit cards might not.
Make sure the card you select reports your payments and credit utilization so you can establish yourself as a creditworthy borrower.
Perks
Aside from rewards, many beginner credit cards offer benefits like travel insurance, roadside assistance, and rental car insurance. Even if you don’t regularly use these perks, they can be nice to have and provide peace of mind knowing they’re there if you need them.
Pros and Cons of Beginner Credit Cards
Getting a credit card is exciting and is a significant step on your financial journey. But there are many factors to consider as you jump into the world of credit.
Pros
- Credit-building: Responsible credit card use is one of the easiest ways to build credit. Pay your balance in full and make on-time payments to show your creditworthiness.
- Rewards: Many credit cards offer rewards, which can help offset the cost of your next vacation or simply cover some of your regular expenses as a statement credit.
- Fraud protection: A credit card is a layer of protection between you and fraudsters. It isn’t connected to your bank account, which means your money is protected if your card gets stolen. Credit cards come with $0 fraud liability, so you won’t be on the hook for unauthorized charges.
- Consumer protections: If you used a credit card to purchase a product or service that doesn’t meet your standards, you can request your credit card company to work with the merchant to get your money back.
Cons
- High interest rates: Many beginner credit cards are designed for people with low credit. The interest rates on these credit cards tend to be higher than other credit cards.
- Risk of overspending: If you’re new to credit cards you might be tempted to spend more than you should. This is especially true if you opt for a rewards credit card or a card with a big sign-up bonus that requires you to hit a spending threshold.
- Approval requirements: Beginner credit cards have easier requirements than other cards, but you still may have to show proof of income or use a secured credit card until you’re able to meet them.
Bottom Line: Using Credit Cards as a Beginner
When used strategically, credit cards can help you earn rewards to maximize your spending. Know your perks and use them. If your card offers free car rental insurance, purchase protection, or extended warranty, don’t be afraid to take advantage of these benefits!
However, you must pay your bill on time and in full each month to avoid interest and fees. Also, only use your card for purchases you’d normally make and that you know you can pay off, to avoid slipping into credit card debt.
Aim to keep your credit utilization (the amount of available credit you’re using) below 30%. This is one of the biggest factors contributing to your credit score — the lower your utilization ratio, the more it helps your credit.
Frequently Asked Questions
Take a look at the eligibility requirements before you apply for a credit card. Some are designed for beginners who have limited or no credit history. See if you can pre-qualify before there’s a hard pull of your credit report.
If you don’t qualify, look for a credit-builder credit card instead. These are often secured credit cards that report on-time payments to the major credit bureaus. While it might take a while, it can help you establish a credit history and boost your credit score.
On-time payments and low credit utilization are two factors that make up almost two-thirds of your credit score. The best way to build credit with a credit card is to treat it like a debit card, meaning you only spend the amount of money you have in your bank account. This way you can ensure you’ll be able to pay your balance in full each month.
Keeping a credit card open even if you aren’t actively using it can also help you build credit. Length of credit history is another factor that impacts your score. The longer you have an account open, the better.
A credit card application is pretty straightforward. Typically you’ll need to provide the following information:
- Income
- Occupation
- Social Security number
- Housing expenses (i.e., rent or mortgage payments)
- Personal contact information (like a phone number and address)
You’ll usually find out whether you’ve been approved within a few seconds. If you’re declined, you’ll receive a letter in the mail explaining the card issuer’s decision.
Aside from your credit score, income is another important factor that credit card issuers take into account before approving you for a credit card. Not having an income will make it difficult to pay your balance each month, which means an issuer probably won’t approve your application.
There are some exceptions to this. For example, the income requirement might be a bit more lenient for full-time students who are trying to establish credit for the first time. If you don’t have income, find a co-signer who can help you get approved.
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