How to choose a credit card for the first time?
If you want the easiest approval odds, get a secured card, but just remember that your credit limit will match your security deposit. If you want the ability to borrow money without a deposit, get an unsecured card for limited credit with a $0 annual fee.
If you want the easiest approval odds, get a secured card, but just remember that your credit limit will match your security deposit. If you want the ability to borrow money without a deposit, get an unsecured card for limited credit with a $0 annual fee.
All cards come with monthly credit limits. If you plan to use your card extensively for travel, dining and entertainment, you might want to opt for one with higher credit limits. If you use your card infrequently, choose a card with a lower credit limits.
The best credit card overall is the Wells Fargo Active Cash® Card because it gives 2% cash rewards on purchases and has a $0 annual fee. For comparison purposes, the average cash rewards card in 2024 gives about 1% back. Cardholders can also earn an initial bonus of $200 cash rewards after spending $500...
Pay off high-interest credit cards first
This is called the “debt avalanche method.” While some advocate for paying off your smallest debt first because it seems easier, you may save more on interest over time by chipping away at high-interest debt.
Check your credit score before applying for a credit card, as it can affect your chances of approval and the types of cards you qualify for. There are four broad types of credit cards to choose from depending on your goals: credit-building cards, balance transfer cards, low-interest cards and rewards cards.
Always Make Payments on Time
One of the most essential rules to owning a credit card is paying bills on time. A single late payment within a year of on-time payments might not seem to be much, but it could be a slippery slope that leads to debt and low credit scores and it will impact your credit.
The best Chase starter credit card is the Chase Freedom Rise℠ because it accepts applicants with limited credit history and reports to the three major credit bureaus on a monthly basis. The Chase Freedom Rise℠ also rewards cardholders with 1.5% cash back on all purchases, and it has a $0 annual fee.
The Chase Freedom Rise℠ Credit Card is ideal for beginners and is marketed to students and others new to credit. It offers 1.5% cash back on all purchases and has no annual fee.
Annual Percentage Rate (APR).
This is the cost of borrowing on the card, if you don't pay the whole balance off each month. You can compare the APR for different cards which will help you to choose the cheapest. You should also compare other things about the cards, for example, fees, charges and incentives.
What is a good credit card to use?
Most credit experts advise keeping your credit utilization below 30 percent, especially if you want to maintain a good credit score. This means if you have $10,000 in available credit, your outstanding balances should not exceed $3,000.
Joyce Brown, WalletHub Credit Card Analyst
The usual credit limit for a first credit card is $100 to $500, on average, depending on which card you get. The credit limit could be as low as $100 for store credit cards or up to $500 if your first credit card is issued by a bank or credit union.
Best Unsecured Starter Credit Card
A rating of 5 is the best a card can receive. Why We Like It: The best credit card for beginners is the Chase Freedom Rise℠ because it gives you above-average rewards at a below-average cost and keeps things simple as you're just starting out.
Bottom line. If you have a credit card balance, it's typically best to pay it off in full if you can. Carrying a balance can lead to expensive interest charges and growing debt.
Pay your balance every month
Paying the balance in full has great benefits. If you wait to pay the balance or only make the minimum payment it accrues interest. If you let this continue it can potentially get out of hand and lead to debt. Missing a payment can not only accrue interest but hurt your credit score.
But Capital One's cards are more than hype — they include generous rewards cards as well as excellent products for business owners, students and those with average or poor credit. What won't you find on any Capital One card? Foreign transaction fees.
Technically there is no minimum income, although credit card companies are legally required to ensure the applicant's income will be sufficient to support the card's monthly payments. They will also look at other factors like your credit score. Can you lie about your income on a credit card application? No.
One rule of thumb for building a strong credit history is to spend no more than 30 percent of your credit limit. If you regularly use your card to cover purchases that you haven't budgeted for, you can burn through your available credit in a hurry.
Key takeaways: Closing a credit card can hurt your scores because it lowers your available credit and can lead to a higher credit utilization, meaning the gap between your spending and the amount of credit you can borrow narrows. Canceling a card can also decrease the average age of your accounts.
If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix.
What is the golden rule of credit card use?
Pay Off Your Balance
The golden rule of credit card usage is to do everything you can to pay off your entire balance each month.
Chase does not require a prior credit history to qualify for a Freedom Rise card. Something else that may help is opening a Chase checking account and depositing at least $250 within three days of submitting the credit card application.
While there isn't a specific income requirement for a card, evaluating your access to income allows a bank to determine your credit health and whether or not they want to lend you money based on their confidence in your ability to make your payments.
Discover it® Student Cash Back: Best first credit card. Discover it® Student Chrome: Best first credit card for students for gas and restaurant spending. Chase Freedom Rise℠ *: Best first credit card with a path to increased approval odds.
The Discover it® Secured Credit Card is our top pick for easiest credit card to get because it's geared toward those with limited/poor credit. It offers great rewards and charges a $0 annual fee. Plus, Discover will conduct monthly account reviews after seven months to see if you qualify to get your deposit refunded.
