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Show More Less Show More LessStarter credit cards are designed to help people with no, thin or bad credit establish a good credit history and learn responsible card use. (Don’t have credit just yet? Learn how to build a score.) Top features include waived fees, rewards for setting a routine of timely payments, low barriers to becoming a cardholder and lenient interest rates. Some starter credit cards also offer opportunities to upgrade to new products and better terms and conditions if you consistently pay your bills on time.
Starter credit cards are designed to help people with no, thin or bad credit establish a good credit history and learn responsible card use. (Don’t have credit just yet? Learn how to build a score.) Top features include waived fees, rewards for setting a routine of timely payments, low barriers to becoming a cardholder and lenient interest rates. Some starter credit cards also offer opportunities to upgrade to new products and better terms and conditions if you consistently pay your bills on time.
Our rating: 5.0 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Discover's secure site5% 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.
1% Earn unlimited 1% cash back on all other purchases - automatically.
Recommended credit (No Credit History) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 5.0 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Introductory Offer 3.0 Interest and Fees 3.6 Rewards Program 5.0 Features 4.0 Issuer Customer Experience 5.0This card rates as one of the best student credit cards on the market, thanks to its top-notch rewards program and consumer-friendly fee structure.
Students earn an industry-leading 5% cash back on up to $1,500 in purchases per quarter in rotating bonus categories (enrollment required), then 1%. As an added bonus, Discover matches all the cash back you earn during your first year at the end of that year.
Disciplined student credit cardholders will be hard-pressed to find a card that offers more lucrative rewards. The consumer-friendly terms make the Discover it® Student Cash Back a well-rounded choice.
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Our rating: 4.1 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Capital One's secure site5 Miles 5 Miles per dollar on hotels and rental cars booked through Capital One Travel
1.25 Miles 1.25 Miles per dollar on every purchase, every day
Annual fee $0 Balance transfer intro APR 0% intro on balance transfers for 15 months Regular APR 19.99% - 29.99% variable
Recommended credit 670-850 (Good to Excellent) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 4.1 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Rewards Value: 3.7 Annual Percentage Rate: 2.0 Rewards Flexibility: 4.0 Features: 3.5 Issuer Customer Experience: 4.0This starter travel credit card offers 1.25X miles on all purchases, and also gives you the flexibility to redeem your miles in a variety of ways. New cardholders also earn 20,000 bonus miles if they spend $500 in their first three months. Plus, there’s no annual fee or foreign transaction fees.
Learn the travel credit card ropes with this Capital One card, which offers lucrative-ish miles, a decent sign-up bonus and uber-flexible redemption options.
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Our rating: 4.9 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Capital One's secure site8% 8% Cash Back on Capital One Entertainment purchases
5% 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
3% 3% Cash Back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®)
1% 1% Cash Back on all other purchases
Annual fee $0 Balance transfer intro APR 0% intro on balance transfers for 15 months Regular APR 19.99% - 29.99% variable
Recommended credit 670-850 (Good to Excellent) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 4.9 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Rewards Value: 4.3 Annual Percentage Rate: 1.0 Rewards Flexibility: 4.8 Features: 3.0 Issuer Customer Experience 4.0A great card for night owls and food lovers, the Capital One SavorOne Cash Rewards Credit Card offers 5% cash back on hotels and rental cars booked through Capital One Travel, a competitive 3% cash back on dining and entertainment purchases (such as concerts or movie tickets), 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), 3% back on popular streaming services and 1% cash back on other purchases. Plus, you can earn 8% cash back on tickets on Capital One Entertainment purchases.
Foodies can really rack up rewards with this no-annual-fee credit card, but general spenders might want to opt for a flat-rate cash back credit card.
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Our rating: 3.9 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Capital One's secure site5% 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
1.5% Earn unlimited 1.5% cash back on every purchase, every day
Recommended credit 580-740 (Fair to Good) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 3.9 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Cost of Membership 5.0 Ease of Building Credit 3.0 Features 5.0For people with fair credit, the Capital One QuicksilverOne Cash Rewards Credit Card offers generous rewards (1.5% cash back on every purchase) in exchange for a reasonable $39 annual fee. Plus, you could receive access to a higher credit limit after six months of demonstrating responsible use via on-time payments.
If you’ve got thin credit but are in the market for a cash back credit card, consider the Capital One QuicksilverOne Cash Rewards Credit Card a top pick. Steer clear of carrying a balance, though.
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Our rating: 4.6 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Discover's secure site2% Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.
1% Earn unlimited 1% cash back on all other purchases.
Recommended credit 670-850 (Good to Excellent) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 4.6 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Introductory offer 4.0 Rates & fees 5.0 Features 3.0 Issuer Customer Experience 2.0You’ll earn a generous 2% cash back on gas station purchases and a decent 2% cash back at restaurants on up to $1,000 in combined spending per quarter, then 1%, plus unlimited 1% cash back on all other purchases, with this popular Discover credit card. Plus, Discover will match all the cash back you earn at the end of your first year.
The Discover it® Chrome has two hallmarks of a great starter credit card: strong rewards and consumer-friendly terms and conditions. Just be sure you’ll spend enough on its bonus categories; otherwise, you might be better served by a different rewards credit card.
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Our rating: 4.2 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Capital One's secure siteRecommended credit (No Credit History) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 4.2 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Cost of Membership 5.0 Ease of Building Credit 2.5 Features 3.8This Capital One card is one of the strongest secured credit cards on the market, offering a low security deposit requirement ($49, $99 or $200), no annual fee and an opportunity to be considered for a higher credit limit after six months of on-time payments.
The Capital One Platinum Secured Credit Card is a top pick as far as secured credit cards go, but disciplined spenders might want a starter credit card that offers rewards.
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Our rating: 4.0 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Capital One's secure siteRecommended credit 580-740 (Fair to Good) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 4.0 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Cost of Membership 3.8 Ease of Building Credit 4.0 Features 2.5This simple, no-frills unsecured credit card from Capital One is a great option for people who want to focus on learning (and practicing) responsible use instead of earning rewards. While you’ll start off with a low credit limit, Capital One will consider you for a higher credit limit after six months of on-time payments.
If you’ve got thin-to-fair credit, but want an unsecured credit card, consider this straightforward option from Capital One.
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Our rating: 4.1 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Add to compare Apply now at Discover's secure site2% Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.
1% Earn unlimited 1% cash back on all other purchases.
Recommended credit (No Credit History) More information Close CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Editor's takeOur rating: 4.1 More information Close Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Cost of Membership 5.0 Ease of Building Credit 3.3 Features 2.5The Discover it® Secured Credit Card is one of the few secured credit cards that charges no annual fee and offers rewards. Cardholders earn 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases per quarter, then 1%) and 1% cash back on other purchases.
The card offers a number of other consumer-friendly terms, including no foreign transaction fees and no penalty APR. You are required to put down a refundable security deposit, though Discover lets you open an account with as little as $200.
The Discover it® Secured Credit Card is a top-notch secured credit card, combining a rewards program with newbie-friendly terms and conditions.
Card detailsAll information about the Credit One Bank Platinum Visa for Rebuilding Credit card has been collected independently by CreditCards.com. The issuer did not provide the content, nor is it responsible for its accuracy.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
| Credit card | Best for | Annual fee | Review score |
|---|---|---|---|
| Discover it® Student Cash Back | New users | $0 | 4.3 / 5 |
| Capital One VentureOne Rewards Credit Card | Travel | $0 ( See rates and Fees ) | 4.1 / 5 |
| Capital One SavorOne Cash Rewards Credit Card | Dining | $0 ( See rates and Fees ) | 4.9 / 5 |
| Capital One QuicksilverOne Cash Rewards Credit Card | Everyday spending | $39 ( See rates and Fees ) | 3.9 / 5 |
| Discover it® Chrome | Gas | $0 | 3.9 / 5 |
| Capital One Platinum Secured Credit Card | No Annual Fee | $0 ( See rates and Fees ) | 4.2 / 5 |
| Capital One Platinum Credit Card | No credit history | $0 ( See rates and Fees ) | 4.0 / 5 |
| Deserve® EDU Mastercard for Students | International students | $0 | 2.6 / 5 |
| Credit One Bank® Platinum Visa® for Rebuilding Credit | Bad credit | $75 first year, then $99 annually ($8.25 per month) | 2.2 / 5 |
| Discover it® Secured Credit Card | Secured card + rewards | $0 | 4.1 / 5 |
Why we picked it: This card has a few features that make it friendly for first-timers: You won’t be charged a late fee the first time you miss a payment due date (after that it’s up to $41), and Discover will never increase your APR if you struggle to pay on time. (Note: Late payments can still affect your credit score.)
Pros: You’ll earn 5% cash back in an array of rotating cash back categories each quarter (upon enrollment, up to $1,500 in combined spending per quarter, then 1%). This includes spending at places like gas stations, restaurants, grocery stores and on online shopping.
Cons: There is a shorter than average introductory APR offer on new purchases.
Who should apply? Anyone looking for a safer card with consumer-friendly terms, that doesn’t want to sacrifice rewards.
Who should skip? Someone that might get carried away with spending while seeking out lucrative rewards.
Why we picked it: The VentureOne is a great place to start your travel rewards journey, offering unlimited 1.25X miles on all purchases without charging an annual fee ( See rates and Fees ).
Pros: You can also score a sign-up bonus of 20,000 miles if you spend $500 in the first three months. Even better, your miles never expire and you have flexibility in how you redeem them: You can book travel through the Capital One Travel Center, cover travel booked via an outside site or redeem miles for gift cards or cash back.
Cons: Your miles are worth much less if you opt for a gift card, statement credit or check instead of redeeming for travel. If you aren’t sure whether you want to use your credit card rewards for travel or cash back, you may be better off sticking with a more general rewards credit card.
Who should apply? Cardholders who want to earn travel rewards without paying an annual fee.
Who should skip? Anyone unsure whether they want to opt for travel rewards or cash back.
Why we picked it: Offering 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), this is a great starter card for foodies.
Pros: You can set up automatic cash back redemptions or redeem manually as a statement credit, check or gift card in any amount, at any time. You’ll also get a $200 bonus if you spend just $500 in the first three months.
Cons: It isn’t the most versatile cash back credit card. Unless you spend heavily in the SavorOne’s bonus categories, you’ll likely earn more with a card that offers cash back at a flat rate on all purchases. This card also requires a good or excellent credit score (670 or higher). That may be a reach for someone looking for a starter credit card.
Who should apply? Anyone that frequently dines out and wants to take advantage of the card’s bonus on dining purchases.
Who should skip? Someone that focuses their spending on categories other than those offered by this card and anyone whose credit score falls outside the good-to-excellent range.
Why we picked it: Cardholders with average or thin credit will appreciate the QuicksilverOne Cash Rewards card, which offers some of the same benefits as its big brother (the Capital One Quicksilver Cash Rewards Credit Card), but comes with a $39 annual fee ( See rates and Fees ).
Pros: You’ll earn consistent and unlimited 1.5% cash back on every purchase, and your cash back never expires. You’ll also enjoy a number of great perks like $0 fraud liability for unauthorized charges, emergency card services if your card is lost or stolen, and identity theft protection.
Cons: Unlike many rewards cards, it offers no sign-up bonus and charges all cardholders the same very high variable APR, regardless of credit history.
Who should apply? Individuals seeking a straightforward card with a low-maintenance rewards program.
Who should skip? Anyone who may be unable to pay off their monthly balance in full, as the card carries a high variable APR (29.99%) ( See rates and Fees ).
Why we picked it: You’ll earn 2% cash back on gas station purchases and 2% back at restaurants on up to $1,000 in combined spending per quarter, plus unlimited 1% back on all other purchases.
Pros: This card offers consumer-friendly terms, charging no foreign transaction fee, no penalty APR and no late fee for the first late payment (after that it’s up to $41). It also comes with a free FICO credit score on every statement. When you factor in Discover’s first-year Cashback Match™, it offers one of the top cash back rates on gas station purchases available at no annual fee.
Cons: The card’s purchase APR is variable so depending on your credit, you could end up with an interest rate on the high side. The 2% cash back is capped at $1,000 in combined spending per quarter and the sign-up bonus only boosts those earnings your first year.
Who should apply? People that spend a lot of time driving or eating out and want to capitalize on their spending.
Who should skip? Individuals seeking longer-term bonus value, as this card’s sign-up bonus only boosts cash back earnings in your first year.
Read our full Discover it® Chrome review or jump back to this card’s offer details.
Why we picked it: The Capital One Platinum Secured Credit Card charges no annual fee ( See rates and Fees ), monitors your credit score and credit information and allows eligible cardholders to graduate to an unsecured credit card.
Pros: Depending on your credit, the required security deposit could be as low as $49 (or as high as $200, which is still reasonable). After six on-time monthly payments, you’ll be considered for a higher credit line, which could boost your credit score. Plus, there’s no annual fee, so you don’t have to worry about that cost derailing your plan for on-time payments.
Cons: You won’t earn rewards with this card, which is fairly common with secured cards. However, some secured cards do offer cash back and other forms of rewards. Also common for secured cards, the ongoing APR is high: 29.99% variable.
Who should apply? Anyone looking to build or rebuild their credit with responsible use and who wants access to a higher credit line after making a handful of timely payments.
Who should skip? Those seeking out a rewards program will need to look elsewhere.
Why we picked it: The Capital One Platinum has several features that allow you to beef up your credit history without drowning in fees: It charges no annual fee, foreign transaction fee or penalty APR ( See rates and Fees ) and includes free credit monitoring.
Pros: You won’t have to tie up any money in a security deposit, and your account will be reviewed for a credit limit increase if you make your first 6 monthly payments on time.
Cons: If you have low or no credit, your credit limit may start out fairly low. Also, the card carries a very high variable APR of 29.99%.
Who should apply? Individuals with average credit looking to boost their credit history and avoid fees.
Who should skip? The high variable APR will give pause to those unsure about making payments on time.
Why we picked it: You don’t need a traditional credit history to be approved for this card; even international students are able to apply without a Social Security number. The card also charges a lower late fee than most and no penalty APR, making it a safe starter option.
Pros: One extra perk that students may find useful is one year of Amazon Prime Student (after spending $500 within the first 3 billing cycles – lifetime value of $59), with perks like free shipping and Prime Video streaming. It also charges no foreign transaction fee – which is perfect if you plan to travel or study abroad.
Cons: On the flipside, 1% cash back isn’t a competitive rate. There are starter cards with better cash back rates, which will be valuable for years after graduation.
Who should apply? Students looking for an option with a low barrier for entry and the benefits of an Amazon Prime subscription will enjoy the value that this card provides.
Who should skip? While 1% cash back can help during your college years, there are other options that offer greater long-term value.
Why we picked it: One of the few credit cards for bad credit with a cash back rewards program, it offers 1% cash back rewards on eligible purchases, including gas, groceries and services such as mobile phone, internet, cable and satellite TV. Terms apply.
Pros: The card also comes with free access to your Experian credit score, and you can check if you prequalify online.
Cons: You will have to pay an annual fee of $75 in the first year, then $99 annually ($8.25 per month), which will immediately reduce your credit limit and will be difficult to offset with cash back rewards. The card also carries a standard 3% foreign transaction fee ($1 minimum).
Who should apply? This card is a solid option for people with bad credit who are looking to rebuild their credit while simultaneously earning rewards on popular spending categories.
Who should skip? Anyone wanting to avoid fees should consider other options.
Why we picked it: With this card, there’s no need to choose between features that help build credit and the ability to earn rewards. You’ll earn 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter, then 1%), and all of your cash back will be matched at the end of your first year.
Pros: After seven months of having your card, you’ll be automatically considered for an unsecured line of credit and a return of your deposit. With several valuable perks and no annual fee, this is an excellent starter card.
Cons: There’s a required security deposit of at least $200, though it is refundable. (Note: The cash back is subject to a cap, but most secured cards don’t offer rewards, so that’s not truly a drawback in this instance.)
Who should apply? This card offers a competitive rewards rate for this category and the opportunity to be considered for a credit line increase, which are great features for those looking to boost their credit.
Who should skip? Your cash back will only be matched at the end of your first year, which limits the long-term value of this card.
A starter credit card is a credit card with low credit requirements and other built-in features for first-time cardholders. Also known as subprime credit cards, they’re an option for students and general applicants with no credit history but can also be an important tool for people with fair-to-bad credit looking to rebuild their credit scores.
Some starter credit cards may lack a lot of features and benefits like enhanced rewards, lower APRs and more affordable fees. That’s why they’re not the first choice for people with good-to-excellent credit. But starter credit cards are a great choice for anyone who wants to build credit fast and show creditors their responsible financial habits.
Creditors use credit reports and credit scores to assess whether an applicant is likely to pay back a loan as agreed and if they should approve their application. As a result, you’ll need a credit history to get approved for most types of financing, including mortgages, auto loans and credit cards. Moreover, you need good-to-excellent credit to qualify for competitive interest rates and other favorable financing terms.
Starter credit cards can be a great way to build credit since they have low credit requirements. Plus, you can avoid paying interest on a credit card (as opposed to, say, a personal loan) by paying all your balances off in full each month. You can build credit by making on-time payments, keeping your debt levels low and limiting new credit inquiries. Learn more ways to build credit.
There are three types of starter credit cards: student credit cards, secured credit cards and unsecured starter credit cards.
Compared to traditional credit cards, student credit cards have lower credit and income requirements. College students as young as 18 are able to get approved with a limited credit history, as long as they’re able to show some form of income. Depending on the credit card, sources of income on a student credit card application can include a job, leftover financial aid or money deposited into your bank account (such as an allowance from your family).
As you use your credit card, your spending and payment habits will be reported to the three major credit bureaus (Equifax, Experian, and Transunion). So when you use a student credit card responsibly, banks and other financial institutions will notice your good credit-building habits. This will eventually give you access to credit cards and other loans with the best terms and benefits. Along the way, you’ll get to enjoy many of the benefits that come with having a credit card.
The right student credit card for you will fit your budget and lifestyle. Want to earn rewards? The Discover it® Student Cash Back card is a great option. You’ll earn 5% cash back in a variety of rotating cash back categories each quarter (upon enrollment, up to $1,500 in combined spending per quarter, then 1%). All other purchases earn 1%.
If you prefer something simpler, a flat-rate credit card may be more to your liking. The Capital One Quicksilver Student Cash Rewards Credit Card offers an unlimited 1.5% cash back on all of your everyday purchases. But you’ll need to pay your balances in full and on time to avoid this card’s high 19.99% – 29.99% variable interest rate ( See rates and Fees ).
One of the easiest credit cards to qualify for is a secured credit card. That’s because it’s designed for people who would struggle to get approved for a traditional credit card. This includes people with bad credit or a limited credit history.
Secured credit cards require a deposit, which typically acts as your credit limit. The minimum deposit for a lot of secured cards is $200, and you won’t be able to use the card until you’ve paid this minimum amount. This deposit is collateral in case you are unable to pay your balance. But most issuers refund that deposit if you close your account in good standing or upgrade to an unsecured credit card.
On top of the security deposit, secured credit cards may have any number of other limitations you’ll have to watch out for. These include:
To get the most out of your secured credit card, find one that fits your finances and needs. If you have a limited income, try the Capital One Platinum Secured Credit Card. You may be able to qualify for a $200 credit limit with a security deposit as low as $49. And after 6 on-time monthly payments, you’ll be considered for a higher credit line, which could boost your credit score. But if you want to earn rewards as you work on building up your credit score, check out the Capital One Quicksilver Secured Cash Rewards Credit Card. You’ll earn an unlimited 1.5% cash back on purchases.
Once you’re approved, try to only use 30% or less of the card’s limit each month, and pay your balance in full each billing period to avoid interest charges. Over time, this type of credit card use will result in your credit score rising, and you’ll be on your way to qualifying for better cards.
Unsecured starter credit cards don’t require a security deposit. These no-deposit credit cards are also known as unsecured subprime credit cards because they are for people with credit scores that fall outside of the good-to-excellent range:
Compared to traditional credit cards or secured credit cards, unsecured starter credit cards may carry any or all of the following: higher interest rates, increased fees and lower credit limits. That’s because many lenders view borrowers with a lower credit rating as a greater risk to default and fail to pay back the money they owe. Fortunately, some unsecured starter credit cards try to limit these increased rates and fees.
If you have a limited credit history or fair-to-average credit, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card (issued by WebBank) makes it easy to focus on building up your credit score. This unsecured credit card charges no annual fee, no late payment fee, and no penalty APR. It also rewards good credit behavior by increasing the amount of cash back you can earn, up to 1.5% after 12 on-time monthly payments. But if you have a history of missed payments or delinquency, your chances of getting approved for this card drop significantly.
For people with no credit history, a better unsecured option is the Petal® 1 “No Annual Fee” Visa® Credit Card (issued by WebBank) . It has a higher variable APR (25.24% to 34.74%), as well as a late payment fee (up to $40) and returned payment fee ($29). But there’s no annual fee or security deposit required. And just like the Petal 2, it may use alternative data beyond what’s reported to the credit bureaus to determine your creditworthiness and also offers a chance to earn rewards.
Working toward excellent credit can open up a world of new opportunities, and a starter card can help make it possible. Choosing the right starter card can encourage responsible credit habits and offer benefits to help you get into a payment routine. But first, here are four questions you should ask before choosing one:
If you’re just starting out with credit cards, you may want to choose one that offers a 0% intro APR period, so that you won’t have to pay too much interest on your balance. If you plan on transferring a balance from an existing card, opt for a card that has a long zero-interest period on balance transfers. Also, not every card offers an equal intro APR period on both new purchases and qualifying transfers, so it’s important to check.
Do you want to use the card only briefly to pay off existing debt through a balance transfer and improve your credit score, or do you intend on keeping it for everyday purchases long after you’ve met your financial goals? Additionally, if you want to upgrade your card someday, you should look at the issuer’s roster of cards to see what is needed and whether those cards offer what you’re looking for.
Knowing what fees apply before signing up for the card can help you avoid surprises. For example, some credit cards charge a foreign transaction fee, cash advance fee, penalty APR for late payments or balance transfer fees ranging from 3% to 5%. Researching the card’s terms to determine what fees you’ll face as a cardholder. Also, if you want to pay off your balance quickly, consider a card with a lower-than-average interest rate.
While rewards may not be as important when you’re just getting started with credit cards, they can be a great way to earn cash back or points toward statement credit, travel discounts and gift cards. For some cardholders, it could be an important factor to have a card that gives you something valuable so that it’s worth the effort of paying down your balance each month (and using the card at all).
When you’re ready to get your first credit card, there are a few things you should do first before hitting the Apply button. Take a look at the following five steps, which can help increase your chances of getting approved for your starter credit card.
Before you’re approved for your first credit card, you’ll need to show that you have a steady income and are able to pay your debts. What counts as income varies and goes beyond money you receive at a current job. If you’re over 21, card issuers consider funds that you have reasonable access to. This includes public assistance, alimony or child support payments, as well as retirement benefits.
Your credit score helps determine what type of starter credit card you qualify for. Apply for a credit card above and beyond your score, and you’ll likely be rejected. Apply for a credit card you’re overqualified for, and you’ll miss out on money-saving features and benefits like lower interest rates and sign-up bonuses. Here’s how to get a credit score.
There are thousands of credit cards on the market but only a few that will meet your needs based on your credit score. To find the right starter credit card, know what features and benefits matter the most to you. Are you looking to build credit? Do you also want to earn rewards? Make interest-free payments for a limited time? All the above? Once you know your main reasons for using a credit card you’ll be ready for the next step.
Before you apply for your starter credit card, make sure it gives you the most value. To do that, compare the credit cards that fit your credit score and needs. You may find one offers fewer fees and lower rates. Or it may have additional perks that fit your lifestyle, like free cellphone protection, extended warranties on purchases or automatic reviews for credit line increases. Learn more about how to compare credit cards.
The easiest way to compare credit cards is to use a comparison tool like our CardMatch™ service. Depending on your credit profile, you may get a personalized list of offers – with no impact to your credit score. Just answer a few questions, and within seconds, you could receive a pre-qualified match from one or more of our partners like Discover, which has some of the best starter credit cards around.
Once you’ve narrowed down your choices to the best credit card for you, you’re ready to apply. This is typically done online, at the card issuer’s website. Just make sure to only apply for one credit card at a time. According to Experian, multiple credit card applications within a six-month period could lead to a potentially significant drop in your credit score and suggest to lenders that you’re not a responsible borrower.
When you apply, you’ll need to provide information like your legal name, birth date, address, Social Security number, annual income, how long you’ve lived at your current address, your monthly housing payment and what type of bank account you have. Knowing this information ahead of time will help make the process a lot easier.
Once you’re approved for your starter credit card, the real work begins. If you don’t use your card responsibly, you could end up buried in credit card debt or do long-term damage to your credit score. Here are our top tips to help credit card beginners create healthy habits:
Research methodology: We analyzed credit cards available to people with no-to-thin credit histories to determine the best starter credit cards on the market. The major factors we considered include:
Other criteria we considered include overall value, ancillary benefits, customer service, APRs and security features.
For more information on all things about starter credit cards, continue reading content from our credit card experts:
You generally need to be at least 18 to get a credit card. However, there are still restrictions for applicants under 21; namely, you’ll need proof of your own income or a willing co-signer. Once you are over 21, your ability to get a credit card will hinge primarily on your income and credit profile.
There are a number of ways a credit card can affect your credit. When you apply for a new credit card, a hard inquiry will be added to your credit history. This will drop your credit score by a few points but only for the short term of a few months.
If you’re approved for a new credit card, the average age of your credit card accounts will go down, possibly leading to a drop in your credit score. But since the length of your credit history only makes up 15% of your FICO score, the drop is minimal and outweighed by other factors.
Payment history has the biggest impact, making up 35% of your credit score. So responsible use of your credit card will grow your credit score over time. But missed payments and defaulting on your credit card debt will cause a significant drop in your credit score.
Another big factor is your credit utilization ratio – the percentage of your total available credit being used. This makes up 30% of your FICO score. When you open up a new credit card account, you grow your total amount of available credit, which helps your credit score – until you use too much of that available credit.
If you max out your credit cards, your credit utilization rises to 100%. This will lead to a significant drop in your credit score, as it suggests to lenders that you don’t have a handle on your finances. Instead, try to keep your credit utilization ratio under 30% – preferably lower, 10% or less to have the best impact on your credit.
Yes, there are credit cards designed specifically for applicants that have yet to build a credit history. These credit cards include starter credit cards, student credit cards and secured credit cards.
It’s difficult to get a credit card without proof of income. You will likely need a willing co-signer. Alternatively, you could become an authorized user on someone else’s account.
Building good credit can be long and arduous, but with the right starter card, you can start on the right foot and begin to establish your credit history. Depending on how you use your starter card and other factors, such as payment history, it can take anywhere from six months to one year to build good credit with a starter card.
Jeanine Skowronski is a credit card expert, analyst, and multimedia journalist with over 10 years of experience covering business and personal finance. She has previously served as the Head of Content at Policygenius, Executive Editor of Credit.com, Deputy Editor at American Banker, Staff Reporter at TheStreet and a columnist for Inc. Magazine.
Tracy Stewart is a personal finance writer specializing in credit card loyalty programs, travel benefits, and consumer protections. He previously covered travel rewards credit cards, budget travel, and aviation news at SmarterTravel Media. His money-saving tips have appeared in the Washington Post, the Wall Street Journal, Consumer Reports, MarketWatch, Vice, People, the Zoe Report and elsewhere.
Ana Staples is a staff reporter and young credit expert reporter for CreditCards.com and covers product news and credit advice. She loves sharing financial expertise with her reader and believes that the right financial advice at the right time can make a real difference. In her free time, Anastasiia writes romance stories and plans a trip to the French Riviera she'll take one day—when she has enough points, that is.
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