Credit cards are a great way to build credit but they can also be a useful tool for day to day spending. Having the right credit card for you is important and can save you money, or make you money, but with so many cards out there, it can be hard to find the one that’s right for you. This article will give you a list of the 5 best credit cards for beginners in June 2023.
“A credit card is a tool, like a hammer or a screwdriver. Used wisely, it can be an extremely useful tool. But used unwisely, it can be very dangerous.” – Suze Orman.
One interesting aspect of credit cards is how they were invented.
It all started with a lost wallet.
Before the invention of credit cards, people used to pay for goods and services with cash or checks. However, this system had several drawbacks. People had to carry large amounts of cash, which was only sometimes safe. In addition, merchants had to process each check manually, which was time-consuming.
In 1950, Businessman Frank McNamara was having lunch at a New York City restaurant when he realized he needed to remember his wallet. Embarrassed, he had to ask his wife to pay the bill. This incident inspired McNamara to devise a way to pay for things that didn’t require carrying cash or checks.
McNamara created the “Diners Club Card,” a small metal plaque that could charge purchases to a customer’s account.
The card was initially accepted at a few restaurants, but it quickly gained popularity and was eventually accepted by other businesses.
The Diners Club Card was the first modern credit card, and it laid the foundation for the credit card industry as we know it today. McNamara’s invention has significantly impacted how we shop and pay for goods and services and has helped revolutionize the finance world.
One of the main benefits of using a credit card is that it could be a convenient and secure way to pay for things. A wide range of merchants accepts credit cards, offering additional protections such as fraud protection and the ability to dispute charges.
Beginners can benefit a lot from credit cards; the only thing is, you need to find the right kind of credit card that suits your purpose and objective.
I know, I know… getting a credit card for the first time can be a pretty overwhelming task for you since you are still unaware of its “ifs” and “buts.”
But you don’t have to worry at all!
Lucky for you, I have come up with the 5 best credit cards for beginners with no credit, so you don’t have to stress and spend time researching easy-to-get credit cards on the internet.
But before that, I’ll help you understand what’s a credit card with no credit and why it is important to get it.
What is a Credit Card with No Credit?
I’m sure that you’re wondering, “can I get a credit card with no credit?” How will I prove my paying capacity to the credit provider?
You don’t need to worry at all since most banks have the option to apply for credit cards with no credit
A credit card for someone with no credit is specifically designed for people who need a credit history or limited credit history. These credit cards are sometimes referred to as “starter credit cards” or “student credit cards.”
There are a few different types of credit cards for people with no credit:
– Secured credit cards: These types of credit cards require a security deposit, which acts as collateral for the credit card issuer. The credit limit on a secured credit card is usually equal to the security deposit amount.
– Student credit cards: These types of credit cards are specifically designed for students who may not have a lot of credit history. They often have lower credit limits and may offer rewards or other benefits specifically tailored to students.
– Credit-builder credit cards: These types of credit cards are designed to help people build credit. They often have lower credit limits and may require a security deposit.
If you have no credit and want a credit card, shopping around and comparing different credit cards to find one that meets your needs is important. Using a credit card responsibly is also important to build a good credit history.
Why is it important for a beginner to have a credit card?
Beginners need to get a credit card for multiple reasons: –
To build a Credit History
– Building a credit history and getting a good credit score are the main benefits of getting a credit card as a beginner.
– A credit history records how you have borrowed and repaid the money. Lenders use it to determine your creditworthiness or ability to borrow money and pay it back.
– By responsibly utilizing a credit card and promptly paying your expenses, you can build a good credit history, making it easier to qualify for loans, credit cards, and other financial products in the future.
Convenience
Credit cards are a convenient and widely accepted form of payment. They can be used to make purchases or withdraw cash at a wide range of merchants, and they offer additional protections such as fraud protection and the ability to dispute charges.
Rewards
Many credit cards offer rewards for using them, such as cashback, points, or miles. These rewards can be a nice bonus for beginners starting to build their credit.
Online shopping
– A credit card is the best way to make an online purchase, with the buyer getting access to a wider range of discounts on products and services.
– Online shopping has become incredibly popular, and many vendors accept credit cards as payment. Having said that, if a beginner wants to purchase from one of these retailers, they will need a credit card.
– Many credit cards also offer purchase protection, providing coverage for eligible items in case of damage or theft during shipping.
– Many credit card companies also have fraud detection mechanisms that can help prevent unauthorized transactions, so using a credit card for online shopping can be more secure than using a debit card or cash.
Building a Budget
– Using a credit card responsibly can help beginners learn how to budget and manage their money more effectively.
– When you have a credit card, it’s important to set a budget for your spending and ensure that you don’t overspend.
– One way to do this is by creating a monthly spending plan that includes all your fixed and discretionary expenses. This can help beginners understand how much money they have available for credit card payments.
– Additionally, many credit card companies offer budgeting and expense tracking features, which can help beginners see where their money is going and identify areas where they can cut back on spending.
– Another way to use a credit card to build a budget is by setting up automatic payments for your credit card bill.
– Finally, beginners can use a credit card to build a budget by regularly reviewing their credit card statements to see where their money is going. This can help them identify areas where they can cut back on spending and adjust their budget as needed.
Financial Flexibility
– A credit card can allow a beginner to make unexpected purchases or handle unexpected expenses.
– A credit card can act as a financial safety net in an emergency, such as a medical expense or car repair.
For example, if a beginner’s car breaks down and needs repairs, they can use their credit card to pay for the repairs and then pay off the balance over time. This can help them avoid slipping into their savings or borrowing money from friends or family.
– Another way a credit card can provide financial flexibility is by allowing beginners to make unexpected purchases if they see something worth purchasing suddenly while they’re just exploring the shopping place.
It is important to note that credit cards can also be dangerous if used irresponsibly. It is important for beginners to understand how credit cards work and to use them wisely to avoid financial problems by overspending.
5 Best Credit Cards for Beginners in US
Capital One Secured Mastercard
The Credit Card from Capital One requires a security deposit, but it has no annual fee and offers a decent interest rate. It also has a rewards program, which is unusual for a secured credit card.
Let me tell you; Capital One is a well-known financial institution that offers a variety of credit cards to suit the needs of different consumers. One of their popular options is the Capital One Secured Mastercard, a credit card designed for people with no credit or limited credit.
Imagine you are a young adult just starting on your own. You’ve landed your first job and are excited to start building your financial future. However, if you have no credit history, that’s when the fabulous credit card from Capital One comes in that provides the best options for credit cards with no credit to young adults who are just starting out.
Capital one also provides customers with one of the best travel credit cards for beginners for those who love traveling or have traveling as a part of their job.
You should check it out now if you’re a newbie looking for an amazing credit card.
Contact Details :-
| Website | https://www.capitalone.com/ |
| Phone Number | 1-800-481-3239 |
Discover It Student Cashback
As a college student, you’re always on the go, juggling classes, studying, and extracurricular activities. The last thing you need is a complicated credit card that takes up space in your packed schedule. Try out the ‘Discover it Student Cash Back.’
This credit card is like your personal finance superhero to make your life easier and more rewarding. Still, the Discover It Student Cash Back isn’t just about making your life easier – it’s also about a credit card that helps you build credit.
Why wait? Apply for the Discover it Student Cash Back today and take control of your financial future!
Contact Details :-
| Website | https://www.discover.com/ |
| Phone Number | 1-800-347-2683 |
Petal 2 Visa Credit Card
Petal 2 Visa Credit Card is like a fresh, blooming flower in a field of dull, overused credit cards. This card is perfect for beginners, with no annual fee and a rewards program that lets you earn points on all purchases.
But the Petal 2 Visa Credit Card is more than just a pretty face – it’s also practical and convenient. With no foreign transaction fees, you can use it wherever you go, whether studying abroad or traveling for fun.
So why settle for a boring, generic credit card when you can have the Petal 2 Visa Credit Card?
Contact Details:-
| Website | https://www.petalcard.com/ |
| Email ID | support@petalcard.com |
| Phone Number | 1-855-697-3825 |
Credit One Bank Platinum Visa
Looking for a credit card that’s as reliable as it is rewarding? Look no further than the Credit One Bank Platinum Visa. It is considered one of the best credit cards for beginners with no credit!
It has no annual fee and a cashback rewards program that lets you earn money on all your purchases; it’s also packed with features to make your life easier. With fraud protection and the ability to dispute charges, you can have peace of mind when using your card.
With customizable account alerts, you can stay on top of your spending and make sure you never miss a payment.
Contact Details :-
| Website | https://www.creditonebank.com/ |
| Email ID | CAprivacy@creditone.com |
| Phone Number | 1-702-405-2042 |
First Progress Platinum Elite Mastercard
First Progress Platinum Elite Mastercard is like a shining beacon in the world of credit cards. With its gleaming platinum exterior and elite status, this card is the ultimate financial tool for those who demand the best.
The First Progress Platinum Elite Mastercard is the perfect companion for those just starting on their financial journey. With its gleaming platinum exterior and elite status, this card will give you a taste of the good life while helping you build a strong foundation for your credit.
Its low-interest rates and lack of annual fees make it a budget-friendly option, and its generous credit line will give you plenty of room to grow.
Contact Details : –
| Website | https://www.firstprogress.com/ |
| Email ID | customerservice@firstprogress.com |
| Phone Number | (866) 706-5543 |
How to apply for Credit Card with no credit? (Simple steps)
You may need help as a beginner in the world of credit. But don’t worry – plenty of options are still available! Here’s how you can get started on your journey to credit success.
- Start by doing some research on the various credit cards that are available to people with little or no credit history. Look for options with low fees and reasonable interest rates to ensure you get a good deal.
- Once you’ve found a card that seems a good fit, it’s time to gather all the necessary documents. This may include proof of your identity, such as a driver’s license or passport, and proof of your income, like a pay stub or tax return.
- Next, fill out the credit card application. This can be done online or by filling out a physical application that you can get from the credit card issuer.
- Now comes the waiting game. The credit card issuer will review your application and decide whether to approve you for a card. This process can take a few days to a week, so BE PATIENT!
- If you’re approved, it’s time to activate your credit card and start using it responsibly. This means paying your bills on time and keeping your balance low to help build your credit. With a little discipline and some smart financial decisions, you’ll be well on your way to credit success in no time!
Conclusion
As a beginner, finding the right credit card can be a daunting task. But with so many options available, it’s important to research and finds a card that will work for you.
These five credit cards are some of the best options for those with no credit, offering low fees, reasonable interest rates, and plenty of perks.
So why wait? Take the first step towards financial success and choose the right credit card for you today! And remember, the earlier you start building your credit, the better off you’ll be in the long run.
A credit card can be a valuable financial tool for beginners. It can help them establish credit, build a budget, earn rewards, and access discounts and promotions.
It can also act as a financial safety net and protect against fraud. However, it’s important for beginners to choose a credit card with a low-interest rate and to use it responsibly.
It can help them establish credit, gain financial flexibility, earn rewards, and make purchasing online shopping and big-ticket items easier.
What do you think? Did I leave any good credit cards that you’ve been using as a beginner?
Also, did you get some wonderful insights about credit cards for newbies in the blog post?
Let me know in the comments.
FAQs
Can I get a credit card with no credit?
Yes, absolutely, but it may be more difficult. Some options for obtaining a credit card with no credit include:
● Secured credit card: It requires a cash deposit as collateral, which becomes the credit limit for the card.
● Student credit card: Some issues offer credit cards specifically for students with more lenient credit requirements.
● Cosigner: A cosigner with great credit increase the chances of getting a credit card.
● Apply for a credit card from a local credit union or community bank, as they may be more willing to approve someone with no credit history.
With these options, it may still be difficult to get approved for a credit card with no credit history, and if approved, the terms and conditions may not be as favorable.
What are the best credit cards for building credit?
Several credit cards are well suited for building credit in the US. Some of the best options include:
– Secured credit cards
– Discover It Secured credit cards
– Capital One Secured Mastercard
– Credit-Builder Loans
– OpenSky Secured Visa Credit Card
It is important to remember that these cards can help you build credit, but it is important to use them responsibly by keeping balances low and paying on time.
What’s the lowest credit card limit?
The lowest credit card limit in the US for beginners is often around $500. However, the exact limit can vary depending on the specific credit card and the individual’s credit history and income. Some credit card issuers may also offer lower limits for secured credit cards, which require a deposit to be made before the card can be used.
Why is it complex to get a credit card for the first time in the US as a beginner?
It’s tough for beginners to get a first credit card in the US because they typically have little to no credit history. Lenders use credit scores and credit reports to assess an individual’s ability to repay a loan.
Without a credit history, it can be difficult for lenders to determine if an individual is a responsible borrower and if they are likely to repay the loan. This can make it harder for beginners to get approved for a credit card. Additionally, some credit card issuers have stringent requirements for credit scores and income for credit card approval.
How many credit cards can you own as a beginner?
There is no set limit on how many credit cards a beginner can own in the US. However, it is generally recommended for beginners to start with one or two credit cards and use them responsibly. This can help them establish a positive credit history and increase their credit score over time.
If you have a lot of cards, it’s a sign of financial strain and can lead to increased credit utilization, which can hurt your credit score. Additionally, having too many credit cards can be difficult to keep track of and may lead to missed payments or other mistakes that can negatively impact your credit score.
It’s important to manage the credit card responsibly and pay the full balance off every month.
