According to TD Bank’s annual consumer spending index for 2019, 23% of millennials do not have a credit card, meaning they lose the benefits that can improve their lives. So, should you go for any best credit cards choose available in the marketplace? Surely, no!
If you’re an aspiring career-oriented young adult and you are looking for Best first Credit Cards, you’ll need to consider the account that’s right for you. Just like an example, Would you buy a smartphone without comparing the prices and specifications with additional phones? The answer will be definitely no right? A credit card is no different.
- 1 Best Credit Cards For Beginners:
- 1.1 1. Discover it CashBack Card : First Best Credit card
- 1.2 2. Capital One: QuicksilverOne Cash Rewards Credit Card
- 1.3 3. Citi Rewards+ Student Card
- 1.4 4. Discover It Student Cash Back Card
- 1.5 5. Chase Freedom Unlimited Card: Best First time Credit card
- 1.6 6. Discover it Secured Card
- 1.7 7. Citi Double Cash Card
- 1.8 8. Capital One Secured Mastercard
- 1.9 9. Capital One Platinum Credit Card: Best Credit Card for new Users
- 1.10 10. Chase Freedom Card
- 1.11 How To Know If A New Credit Card Fits You?
Best Credit Cards For Beginners:
Nowadays, there are hundreds of credit card options on the market that would take a long time to validate. Everyone has their own benefits, and some may be more attractive than others.
Below we have mentioned 10 top credit cards that are suitable for young professionals depending on the various functions you desire.
1. Discover it CashBack Card : First Best Credit card
Discover It Card Benefits Overview:
- No Activation cost
- It does not charge any annual fee.
- You can redeem cashback of any amount at any time. Your rewards will never get expired moreover you can use your rewards at Amazon.com checkout.
- Discover automatically balances all refunds earned at the end of your first year. There is no registration process and there is no limit to the correspondence.
- It offers a quarterly reimbursement of up to 5% at various locations such as gas stations, supermarkets, restaurants, Amazon.com and more, up to the quarterly maximum when it is activated.
- Besides, you can automatically receive an unlimited refund of 1% on all other purchases.
- You will receive a notification if they find your social security number on one of the thousands of dark websites.
Discover It Pros:
Discover it credit card offers top-level services for beginners. Check it out. Refund is one of the best ones with this card for beginners, as the card has excellent earning potential and additional features facilitate borrower access. Moreover, A late payment does not increase the APR and there are no annual fees, overseas transaction fees or fee limits, and you will not be charged after your first default.
Discover it Cash Back not only offers easy-to-use payment features, but also an excellent refund rate. You’ll receive 5% off alternative categories each quarter for purchases of up to $ 1,500. To get the 5% rate, you must activate the categories online quarterly.
In the past these categories included gas stations, supermarkets, pharmacy chains, Uber, Lyft, etc. 2019 categories include supermarkets (January to March), gas stations, Uber & Lyft (April to June), restaurants and PayPal (July to September), Amazon.com, Target and Walmart.com (October to December).
Discover It Cons:
You may not qualify for this card if you have no or poor credit score. People who wish to enhance their credit score can consider Discover it Secured, and students with limited credit can apply for a cash refund with Discover it Student card.
2. Capital One: QuicksilverOne Cash Rewards Credit Card
CapitalOne: Benefits Overview:
- You can win an unlimited refund of 1.5% on every purchase every day.
- Easy daily cash rewards without signing up for rotation categories.
- You have access to a higher line of credit after making your first 5 monthly payments on time.
- You can control your credit profile with the CreditWise app, it’s free for everyone.
- $ 0 fraud liability if your card is lost or stolen.
- There is no limit to the amount of money you can earn and the repayment does not expire during the life of the account.
- It helps to strengthen your credit for the future with responsible use of the card.
- You get personalized alerts and you can manage your account with the Capital One mobile app.
Capital One: QuicksilverOne Cash Rewards Credit Card Pros:
The Capital One Quicksilver One Cash Rewards Credit Card is a refund card for those with limited or fair credit. For an annual membership fee of $ 39, you get an unlimited refund of 1.5% on every purchase.
Other cards receive a 1.5% annual fee refund with every purchase, such as Chase Freedom Unlimited and Capital One Quicksilver Cash Rewards, but you are more likely to obtain Capital Card approval. One QuicksilverOne Cash Rewards If you are new to the lending business.
Capital One: QuicksilverOne Cash Rewards Credit Card Cons:
You may not want to apply for the QuicksilverOne Cash One Cash Rewards credit card as it charges an annual fee.
Once you’ve increased your balance, you may be able to switch from your card to another Capital One Quicksilver Cash Rewards credit card. If you are opposed to paying a general annual fee and your balance is limited, you may have to settle for a non-rewarded card such as the Capital One Platinum Credit Card.
3. Citi Rewards+ Student Card
Citi Rewards+ Student Card Benefits Overview
- The Citi Rewards + Student Card is the only first time credit card that is automatically rounded up to the next 10 points for each unlimited purchase.
- You can earn up to 2,500 bonus points by making purchases worth $ 500 within 3 months of opening the account using your card. Also, you can exchange a $ 25 gift card at thankyou.com
- 0% introductory APR for purchases of 7 months. The variable annual percentage will then be between 16.49% and 26.49% depending on solvency.
- You can earn 2X ThankYou points and then 1X points in supermarkets and gas stations for the first $ 6,000 a year. Additional 1X points on all other purchases.
- For the first 100,000 ThankYou points, which can be redeemed annually without a renewal fee, you will receive 10% return points.
Citi Rewards+ Student Card Pros :
The Citi Rewards + Student Card is one of our most popular student cards due to its unique revenue structure. As a cardholder, you get 2 points per dollar for the first purchases in supermarkets and gas stations and 1 point for every dollar. You will also receive at least 10 points per transaction.
This is especially beneficial if you make many small purchases and each transaction is rounded to the nearest ten. For example, you get 10 points for a $ 3 coffee purchase and 70 points for a $ 33 supermarket.
With the Citi Rewards + Student Card, you also get a small welcome bonus. 2500 Citi ThankYou points will be credited after spending $ 500 on the card within three months. You also receive $ 25 when redeeming gift cards. This is not a very competitive offer. However, many cards for people with limited or medium credit do not even offer a welcome bonus.
Citi Rewards+ Student Card Cons:
The annual spending limit of $ 6,000, with a 2% premium on purchases in supermarkets and gas stations, is limited to some companies. If you’re a student, and spending in these categories exceeds $ 500 a month, it may be better to pick a flat rate refund card of 1.5%, such as Chase Freedom Unlimited Card.
4. Discover It Student Cash Back Card
Discover it Student Cash Back Card Benefits Overview:
- The Discover Cash Student Back card automatically complies with all refunds you received at the end of your first year. You do not have to sign up for this. There are no limits to coincidence.
- Each time you activate it, you will receive it quarterly in different locations, such as Gas stations, supermarkets, restaurants, Amazon.com, etc., up to the quarterly maximum of 5% cash refund. Also, you can automatically receive an unlimited refund of 1% on all other purchases.
- Good Rewards: You will receive a credit of $ 20 per school year if your cumulative grade point average is at least 3.0 over the next 5 years.
- There are no annual fees, no late fees for the first late payment or a change of APR for late payment.
- You get 100% customer service in the United States. Also, you get your free credit card with your FICO credit score, several recent requests, and more.
- On / off counter for your account, which avoids new purchases, cash advances and balance transfers in seconds.
- You will receive a notification if your Social Security number will be on one of the thousands of dark pages. You can activate this service for free.
- A 0% launch for purchases for 6 months, then the standard variable purchase rate of 15.24% to 24.24%.
Discover It Student Cash Back Card Pros:
Discover it Student Cash Back has the same revenue structure as like Discover it Cash Back card. The main difference is that the card is addressed mostly to the students.
As with the standard version of the card, Discover it Student Cash Back generates a 5% refund quarterly upon activation of categories, up to a purchase value of $ 1,500. 2019 categories include supermarkets (January to March), gas stations, Uber & Lyft (April to June), restaurants and PayPal (July to September), Amazon.com, Target and Walmart.com (October to September).
If we compare it to the Citi Rewards + Student Card, the signup bonus for Discover it Student Cash Back is great. After the first year of using the card, Discover will provide you with all the refunds you have earned. If you maximize the 5% category every quarter, you will receive at least $ 300 for your Welcome Bonus.
Discover It Student Cash Back Card Cons:
If you are a frequent shopper and spending a lot of money or your spending does not match the bonus categories on this card, discover it student’s cash refund may not be the best option.
You may be able to earn more with an unlimited loyalty card, such as Chase Freedom Unlimited, which accounts for 1.5% of all purchases. In most cases, Discover it Student Cash Back is an excellent first credit card for students.
5. Chase Freedom Unlimited Card: Best First time Credit card
Chase Freedom Unlimited Card Benefits Overview:
- This is the only card that offers double cashback: You can earn 3% cashback on all first-year purchases when you spend $ 20,000. Then you will receive an unlimited refund of 1.5% on all purchases.
- It comes with an introductory annual rate of 0% for 15 months from account opening for purchases and balance transfers, then a variable annual interest rate of 17.24-25.99%. Your transfer fee is 3% of the amount transferred, or at least $ 5.
- There are no minimum criteria for a refund.
- Cashbacks do not expire until your account is open
- Your free credit score gets updated weekly with Credit Journey
- It also has no annual fees
Chase Freedom Unlimited Card Pros:
The Chase Freedom Unlimited Card is a compact entry-level credit card, especially if you’re looking to get into the world of credit cards and get rewards. You get 1.5% on all purchases and there is no limit on premiums or renewal fees. The newly announced welcome offer is excellent. It offers all users a 3% refund on all first-year purchases on purchases of up to $ 20,000, representing a potential value of $ 600.
One of the best features of this card is that, in combination with the Chase Sapphire Preferred or Chase Sapphire Reserve Card, you can transfer your points to travel partners as part of the Chase Ultimate Rewards program.
These include JetBlue, Southwest, United, and Marriott. If you use Chase Shopping, your points are worth 1.25 cents for Chase Sapphire Preferred and 1.5 cents for Chase Sapphire Reserve. If you have none of the sapphire cards, the points earned on your Chase Freedom Unlimited are worth 1 cent each.
Chase Freedom Unlimited Card Cons:
If you have no credit or existing banking relationships with Chase, you may not be able to claim Chase Freedom Unlimited as your first credit card. In this case, consider using Discover it Cash Back as your first card. After six months to one year of responsible credit management, the Chase Freedom Unlimited card is likely to be approved.
6. Discover it Secured Card
Discover it Secured Card Benefits Overview:
- It comes with no annual fees, easy repayments, higher credit limits for responsible use.
- It’s a real credit card. You can create a credit history with the three major credit agencies. Generally, debit and prepaid credit cards can not help you create a credit history.
- You can improve your line of credit by depositing a refundable deposit of at least $ 200 after approval. Bank details must be provided when submitting your deposit.
- It will do automatic revisions after 8 months to see if they can switch to an unsecured line of credit and return your deposit.
- A cash refund of at least 2% at gas stations and restaurants for combined purchases of up to $ 1,000 per quarter, automatically. You will also receive an unlimited 1% refund for all other purchases.
- You get 100% customer service in the US. UU. And you get your free credit card with your FICO credit score.
- Discover it, Secured Card automatically clears any cash rewards you earned at the end of your first year.
- You will receive a notification if they find your social security number on one of the thousands of dark websites. You can activate this service for free.
Discover it Secured Card Pros:
Discover It Secured cards are a good option for people without proof of credit. With a secured card you deposit a deposit and receive a credit line equal to this deposit. These card types are typically used to generate credit and do not provide rewards for spending.
However, is our preferred secure credit card as it comes with a rewards program that allows a 2% cash refund at gas stations and restaurants with combined purchases of up to $1,000 per quarter, then 1%.
Discover it Secured Card Cons:
You are only allowed to apply for a secured card if you do not have a credit history. You may be eligible for the regular version of this card if you already have a student credit card or credit history when you apply for a student loan.
7. Citi Double Cash Card
Citi Double Cash Card Benefits:
- This card is accompanied by a double refund, where you can win twice in cash. You can earn 2% on every purchase, with an unlimited money refund of 1% on purchase and 1% on paying those purchases.
- To receive a refund in cash, you must pay at least the minimum amount due on time.
- Balance transfer offer: 0% APR for the introduction of balance transfers over 18 months. According to this, the variable annual percentage is between 15.99% and 25.99%, depending on the creditworthiness.
- The default annual percentage rate for the Citi Flex Plan is 15.99% – 25.99%, depending on your credit rating.
Citi Double Cash Card Pros:
The Citi Double Cash Card is one of the most popular credit cards with no annual fee. You can earn an effective premium rate of 2% for every dollar, 1% on the purchase, and 1% on paying your bill. This is a great card for people who do not want to enable the activation of rotating categories and want to know if a purchase has a specific refund rate.
Citi Double Cash Card Cons:
If you do not have any credit score yet, you should consider a secured card before applying for the Citi Double Cash Card. Also, frequent international travelers may consider using a departure card to remit foreign transaction fees such as Chase Freedom or Chase Freedom Unlimited. Otherwise, it’s an excellent starter card for those who qualify.
8. Capital One Secured Mastercard
Capital One Secured Mastercard Benefits Overview:
- This is no annual fee, and all credit benefits are available for responsible card handling.
- Unlike a prepaid card, responsible use generates a loan that is routinely forwarded to the three major credit bureaus.
- You will receive an initial credit limit of $ 200 after depositing a $ 49, $ 99, or $ 200 security deposit.
- also you have access to a higher credit line after making your first 5 monthly payments on time and with no additional deposit.
- You can easily manage your account 24 hours a day, 7 days a week, online, by phone, or through our mobile application.
- It is the only credit card accepted in millions of locations worldwide.
Capital One Secured Mastercard Pros:
After Discover, It Secured credit card. The Capital One Secured Mastercard is one of the most popular MasterCard cards for young beginners. Though it doesn’t offer any rewards program, you will have the option to receive a credit line that is higher than the deposit you have left. Currently, the card offers a refundable minimum deposit of $ 49, $ 99 or $ 200.
Capital One Secured Mastercard Cons:
you need to keep in mind that this capital one card is intended for people who are rebuilding their credit. So, this is a great option if you’ve made a mistake in paying a car loan in the past and you do not have a credit card account with responsible credit management.
If you are new to lending but do not have a negative credit rating, you may be able to qualify for one of the unsecured cards in this list.
9. Capital One Platinum Credit Card: Best Credit Card for new Users
Capital One Platinum Credit Card Benefits Overview:
- You can access it without renewal fees.
- You have access to a higher credit line after making your first 5 monthly payments on time
- It comes with a chain that warns against fraud if your card is lost or stolen
- With their dedicated mobile app, you can also access your account via the online banking from your smartphone
- You can pay your bills by check, online or at a local agency. Also, you can choose the monthly due date that suits you best.
- You have access to your account 24 hours a day, 7 days a week.
- This will help to strengthen your credit for the future through the responsible use of the card.
Capital One Platinum Credit Card Pros:
The Capital One Platinum Credit Card is a great option if you have not been credible or committed credit in the past. The card does not pay any reward though. The only reason you apply is to build or replenish your credit score. The annual fee for the card is $ 0. If you make your first five payments on time, you can access a higher credit limit.
Capital One Platinum Credit Card Cons:
As mentioned previously, the Capital One Platinum Credit Card is only used to establish or restore credit. If you have a good credit rating for other financial products and would like to get a first credit card, we recommend that you look for other options. A refund card like Discover it Cash or Chase Freedom Unlimited, in this case, will add more value in the long run.
10. Chase Freedom Card
Chase Freedom Card Benefits Overview:
- You can earn a $ 150 bonus if you spend $ 500 on purchases in the first three months of opening the account
- For combined purchases in bonus categories, you will receive a cash refund of up to $ 1,500 each quarter you activate. You can also enjoy all-new categories of 5% per quarter!
- Get unlimited 1% discount on all other purchases – it will automatically get applied
- 0% of start APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24-25.99%.
- The initial bank transfer fee is 3% if you transfer a balance of at least $ 5 within the first 60 days of opening your account.
- It comes without renewal fees.
- Cashback will not expire while your account is open and there is no cashback for cashback.
- Free credit score updated weekly with Credit Journey
Chase Freedom Card Pros:
Chase Freedom is another very popular credit card among young adults. With Chase Freedom card you get 5% off in rotation categories per quarter, and up to $ 1,500 in purchases. With this card, you get 1% cashback on purchases outside the bonus categories. If you maximize the categories each year, you will receive a total of $ 300 in bonus spend.
Besides, Chase Freedom may be linked to the Chase Sapphire Preferred Card and Chase Sapphire Reserve if you wish to transfer your points to Chase Travel Partners. These cards come with an annual fee and require a more thorough credit check. So you can open one if Chase Freedom is close by for a few months.
Chase Freedom Card Cons:
Your Chase Freedom will not be much of use if you do not invest in bonus categories. However, most people should have no trouble finding value on this map, as bonus categories are usually found in popular spending areas. The categories included in the past department stores, gas stations, supermarkets, hardware stores, mobile wallet purchases, restaurants, wholesale clubs and more.
How To Know If A New Credit Card Fits You?
Getting a new credit card can be a bit daunting task, especially when you are new into the business and looking for your first credit card. It’s easy to ask for new cards, but if you have not already done so, you may want to learn more about the application process.
As a young adult, you may have a credit history. Even if you’ve never had a credit card before, student loans, car loans, and home loans will boost your credit profile once the three major credit agencies are informed. So a good first step is to check your credit reports and results to see where you are on the verge to get a good credit card.
If you already have good credit, it is perfect! This means that most credit cards are standard, although factors such as income and monthly rents also play a role in your overall credit rating. Today, banks consider many factors hence card issuing is certainly not guaranteed only with good credit.
If you have not started collecting credit or your credit is low, you still have enough credit card options. Some cards are designed for people with limited or no credit, while others are designed for people with bad credit.
Regardless of your creditworthiness, you should check to see if you qualify in advance for a credit card offer before submitting your application. This will give you an idea of the types of cards that are being approved, and you may even find a private offer with a better sign-up bonus than usual.
If you already have one or two credit cards and you are worried that opening new cards will affect your credit rating. You are not required to worry, as long as you use your cards responsibly.
Using Multiple Credit Cards Will Affect Your Credit Rating or not?
This usually works positively as it reduces your credit usage, a measure of the total amount of credit limits you use. Less use is better for your credit scores.
No matter what type of card you receive or how many you have, you will maintain a good credit score. It means understanding the terms and always paying your bills on time. We recommend that you pay the balance in full each billing period so that you can avoid interest on purchases altogether. It’s also good for your credit.
Treat your credit cards a bit like debit cards and keep them up to date. Pay your bills every month and never let any balance outstanding. Once you start collecting interest on a credit card, the balance can easily get out of hand.
What Makes A Credit Card a Great Choice for Young Adults and Professionals?
Low-cost annual fees: Many cards come with minimum to no annual fees. However, if you pay for a credit card, make sure you get the value of your money.
It adjusts to your credit rating: If you have limited or no credit, the options on your card are also limited. However, you should look for pre-approved offers as you can qualify for unexpected cards.
Great Rewards: Always find a card that will give you the best reward for your daily expenses. Here, Sign-up bonuses can also be very valuable.
Cost-cutting travel benefits: Anyone spending a lot of money on travel each year can take advantage of travel reward cards to access the airport lounge, earn travel bonuses, and enhance the airline’s membership and hotels.
0% introductory fee: Avoid charging a credit card balance unless you use a card with an APR of 0%.
No Transaction Fees Abroad: If you are traveling overseas or paying in foreign currency, look for non-transactional cards abroad. This feature is not very important otherwise.
Trustworthy Customer Service: Poor customer service can be a nightmare, especially if you do not have a credit card experience. Major credit card companies generally enjoy good customer service.