Best Beginner Credit Cards to Build Credit in July 2024

Embarking on your credit-building journey is easier with a secured or student credit cards. 

Credit cards can help you earn cash rewards, pay off other debt, or make a big purchase. However, you need a credit history to get a good credit score and a longer credit history can be even more beneficial. A good credit score unlocks various opportunities, including lower interest rates, mortgage approval, and better job prospects. Using credit cards responsibly is key to building a positive credit history.

Explore Benzinga’s guide to the best beginner credit card options for insights into credit building, credit scores, and the benefits of specific cards. 

Quick Look: The Best First Credit Cards to Build Credit

• Best for Overall Value: First Progress Platinum Prestige Mastercard Secured Credit Card
• Best for Fraud Protection: Citi Secured Mastercard
• Best for Online Access: Indigo Mastercard
• Best for a Low Deposit: Capital One Platinum Secured
• Best for Simplified First Card: Open Sky Secured Visa

The Best Beginner Credit Cards to Build Credit

Ready to embark on your credit-building journey? Most major credit card issuers, including Chase, Capital One, and Citi, provide suitable credit cards for beginners. Here are some of the best credit cards to initiate your credit-building process. 

The First Progress Platinum Prestige Mastercard is a comprehensive secured credit card offering a revolving credit line secured by a refundable security deposit. Your credit limit is contingent on your security deposit rather than your credit score or history. It’s accepted for car rentals, hotels, and millions of other transactions worldwide. This card offers the protection, convenience, and prestige of the Mastercard system, with an annual fee of $49.

With a secured credit line of $200 to $2,000, based on your security deposit, the card allows users to earn 1% cash back on monthly payments.

Why We Love It: With its low fees, credit-building benefits, and Mastercard benefits, this card provides a solid foundation for individuals to establish healthy credit habits and improve their financial well-being.

Citi’s Secured Mastercard is a great option if you have little or no credit history. The card provides free access to your online FICO score enabling you to monitor your credit progress. Additionally, features like Auto Pay and account alerts assist you in maintaining financial discipline.

Moreover, Citi’s Identity Theft Solutions can help solve the issues quickly and get your life back on track. Notably, you're completely protected against unauthorized charges on your card and won’t be responsible for any charge you didn't authorize.

Get a credit line between $200 to $2,500, based on your security deposit. The card has no annual fee and but does not offer cash back rewards.

Why We Love It: With its strong fraud protection measures, $0 liability on unauthorized charges, and access to Mastercard's Zero Liability Protection, you can feel confident knowing that your finances are protected while you work on building or rebuilding your credit.

3. Best Online Access: Indigo Mastercard

The Indigo Mastercard is an excellent opportunity for individuals with less-than-perfect credit. It does not require an upfront deposit before usage but has an annual fee of $75 the first year; $99 thereafter. The Indigo credit card offers a customer experience equal to or better than major credit card issuers. 

Best known for its accessibility, you can access your Indigo account anytime from your smartphone, desktop, or tablet. On the Indigo Account Management site, you can monitor your account activity, pay your bill, view transactions, and check your balance. You can activate your new Indigo Mastercard online before your first transaction.

Why We Love It: The Indigo Mastercard is definitely worth considering for its excellent online access options. With a user-friendly online portal, paperless statements, mobile app access, and alerts and notifications, managing your account has never been easier.

Capital One’s Platinum Secured card offers a no-annual-fee option. You can make refundable deposits to establish credit on your terms from $49 to $200 for an initial credit line of $200. There are no hidden fees, simplifying payment details. By using the card and making on-time payments, you can upgrade your credit limit or even inquire about converting to an unsecured credit card over time. Capital One offers automatic credit line review in as little as six months and reports to the three major credit bureaus.

Why We Love It: This is a great option for individuals looking to build or rebuild their credit with a low deposit requirement, making it more accessible for individuals who may not have a lot of money to put down upfront.

5. Best for Simplified First Card: Open Sky Secured Visa

The OpenSky Secured Visa is a card for those serious about improving their credit score. After six months of on-time payments, you can request an increase in your credit line with no additional deposit or get approved for an unsecured credit card.

On-time payments are reported monthly to all three reporting agencies. Initially, your credit line equals your deposit. Furthermore, this card offers the potential for a significantly high credit line, up to $3,000, with a matching deposit. You must keep your credit utilization below 30% to maximize your credit-building. The card has an annual fee of $35 and offers up to 10% cash back rewards.

Why We Love It: With its simplicity, low fees, and credit-building benefits, this card can help you take the first steps towards a healthier financial future.

How Can a Credit Card Help You Build Credit Fast?

A credit card is a powerful tool for building your credit score if you use it for that purpose and not as a “spend all you want” opportunity. Responsible use includes making on-time payments and staying well below your credit limit. To maximize the credit-building effect, aim to:

• Keep utilization low: To keep credit utilization at 30% or less, don't charge more than 30% of your available credit. For example, if you have a $600 credit line, don't charge more than $180. 
• Total payments: Pay off the credit card in full each month
• On-time payments: Setup automatic payments to pay on time

However, there are only some complete shortcuts to building a positive credit history. Instead, you'll need to focus on firm financial habits that can carry you long-term. If you set up the systems now, you'll reap the benefits within a year and continue to benefit when it comes time to apply for a mortgage or take other big financial steps. 

By building your credit score now, you could get better rates on loans and mortgages. It can help you secure a rental, get a business loan, or even get specific jobs. Choosing a secured or student card for beginners can establish a credit score or build a positive credit history. 

What Do You Need to Qualify for a Credit Card

The card issuer's requirements to qualify for a beginner credit card vary. Some credit card issuers don't have any specific income or credit score requirements, but usually, you'll need to demonstrate some income and ability to repay the card. 

Standard requirements to qualify for a credit card include:

• Proof of income, minimum income, or proof of assets to pay off the card
• A specific credit score — although some don't require any minimum or credit history
• In the case of student credit cards, you may need to approve you're enrolled in school 
• You'll need to be at least 21, although you can become an authorized user on your parent's credit account from age 18.
• For a secured credit card, you'll need a deposit equal to your credit line.

How to Choose the Best Beginner Credit Card

When choosing a beginner credit card, you'll want to consider the credit limit, fees, and required deposits. Compare any minimum income or credit score requirements. When choosing the right beginner credit card, look at the following:

• Do I need a credit score or a minimum credit score?
• What is the minimum income to qualify?
• Is there a security deposit?
• What is the minimum deposit?

If you're starting the credit-building journey, you can start with a student or secured credit card with the lowest available deposit and use it responsibly for six months before upgrading to a credit card with better rewards and lower fees. If necessary, you can then apply for a new credit card and cancel the beginner credit card. 

What to Look for in a Starter Credit Card

A starter credit card comes with certain benefits. While the primary objective is to build a positive credit history, look for a starter credit card that has the following:

• No (or low) annual fee
• Low APR
• Reports to all three credit bureaus
• Rewards of at least 1% back on purchases

In addition, some starter credit cards allow you to convert the credit card to a non-secured credit card after six months to a year of responsible use. This can open the door to a new credit card with better rewards or benefits without a new credit card application. 

Choosing the Best Credit Cards for Beginners

Applying for a credit card for the first time can seem overwhelming, but it can have long-term positive effects on your financial health. If you're still unsure of the best beginner credit card, you can choose between a student or a secured credit card with a minimum deposit. After six months to a year, you can apply for a credit card with no annual fee and higher rewards bonuses, like cash back. 

Do you need more credit-building ideas? Consider the best credit cards for people with no credit. As you build a strong credit score, check out the best travel cards or hotel credit cards to earn enough rewards for a free vacation!

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