If you're applying for your first credit card, you might find yourself quickly overwhelmed by the number of options. On top of that, you might wonder if you'll qualify for the card of your choice or if you should even take the plunge and get a card in the first place. Credit cards can get you a wealth of bonuses you won't find elsewhere; things like cash back, air miles and extended warranties. That can all be had with the right card. In this article, we will break down five credit cards and help you decide which is the best first credit card for you.
Some of these cards are available only to students while others are available to everyone. Some have tons of great perks while others are more basic. The best first credit card for you will depend upon your situation and what you're looking for out of a card.
Product FAQ
1. Why Should I Get My First Credit Card?
2. Why Do I Need to Build My Credit?
3. How Does a Credit Card Help Build My Credit?
4. How Do I Get a Credit Card with No Credit History?
How We Reviewed the Best First Credit Cards
In reviewing these cards, we looked at several different criteria. Interest rates, fees, perks, bonuses and more were all taken into account. We also looked at how easy it is to qualify for each card. The cards below range from student cards packed with great rewards to bare-bones cards anyone can use to start building up their credit score. Each is useful for a slightly different reason. So read about each one, and find out which will be the best first credit card for you.
Overall Price Range of This Product (and Similar Products)
Credit cards aren't free. When you charge a purchase to your new card, you are in debt to the card issuer for that purchase, and the issuer will charge interest. If you leave a balance on your credit card, that interest will build over time. If the interest rate is high, you could end up paying a lot more for the purchase, to the card issuer, if you fail to pay off your balance quickly. In addition to interest, many card issuers charge a small yearly fee to card holders.
In reviewing, we looked for the best deals to save you money. Most of the cards below have no annual fee attached. Interest rates for first-time users tend to be higher than the national average though, so don't be surprised to see some very high numbers there. Keep in mind that the goal for your first credit card is to build credit so you can move on to a better card with more perks, a higher credit limit and lower interest.
What We Reviewed
Discover it® for Students
Features
The Discover it® card for Students is one of the student cards that's designed to help students build up their credit score. It has no annual fee and offers perks like 5% cash back on certain items from gas stations, restaurants and online retailers. In addition, users will get double cash back for the first year they use the card. That's 10% cash back for many purchases; it doesn't get much better than that. On top of that, students get a $20 bonus for keeping their GPA above 3.0, and Discover charges no interest for the first six months after activation.
It has a variable interest rate of 14.24%-23.24%, which puts it close to the national average. In addition, Discover is known to be extremely consumer-friendly, which makes them a great choice for a first-time credit card user. With this many perks plus great customer service, the Discover it® card for Students is hands-down one of the best first credit cards out there.
- Where to Apply
Pros
Cons
Bank of America Cash Rewards™ for Students
Features
This card, like the Discover card above, is designed for students who have never had a credit card. It comes with no annual fee, and users won't have to pay interest for the first 12 months they have it. In addition, you'll get $100 cash back for spending $500 on the card within the first 90 days of activation. Finally, you'll get 3% cash back at gas stations, 2% at grocery stores and 1% on all other purchases. The 3%and 2% are available only for the first $1500 spent on those purchases in any given quarter, though most users won't hit that limit. If you have a Bank of America account and redeem these rewards to it, you'll also earn a 10% bonus on rewards, making this card a good pick for Bank of America customers.
There are a lot of great bonuses here, and while the cash back may not quite match up to the Discover it® card for Students, it's still among the best first credit cards out there.
- Where to Apply
Pros
Cons
Deserve Edu Mastercard
Features
The Deserve Edu Mastercard is another card for students, but this one is unique in that you won't require a social security number to apply. This along with the lack of foreign transaction fees make it an excellent option for international students. The perks of this card include 1% cash back on every purchase and a free year of Amazon Prime Student, which includes access to Amazon Prime Video and Amazon Music. Its 20.49% variable interest rate is on the high side, but that isn't a deal breaker for international students.
There are some limitations that come with this card. You can't load it into a mobile wallet like Apple Pay, and you can't add any authorized users to it. These drawbacks are annoying but worthwhile if other student cards are unavailable. If you're an international student, this might be the best first credit card available to you.
- Where to Apply
Pros
Cons
Journey® Student Rewards from Capital One®
Features
The Journey® Student Rewards from Capital One® card is a good card for those who want to build their credit and earn a little cash back in the process. Although the word is right there in the name, you don't have to be a current student to apply for this card. It will earn you 1% cash back on every purchase, and cash back will be bumped up to 1.25% if you pay your bill on time every month. The card also comes with no annual fees, but the 26.99% interest rate is quite high for a card with limited rewards.
This is among the best first credit cards for those who aren't students; currently-enrolled students will find lower interest rates and better rewards elsewhere.
- Where to Apply
Pros
Cons
Deserve Classic Mastercard
Features
The Deserve Classic Mastercard is designed for people without a credit history rather than specifically for students. When you apply, it takes more than your credit history and current finances into account. Deserve will also look at your education, future earning potential, and more, giving those with no credit and/or an unstable financial situation a chance to build their credit. If you know others who could use a first credit card, you'll get $30 for every friend you refer and a $100 bonus if you refer ten friends.
This card lacks a rewards program and comes with a $39 annual fee and a high 24.74% interest rate. None of this is ideal, but if you need a very basic card so you can get started building your credit, this one will do the trick. It's not among the best first credit cards, but something this basic will be the right pick for some. If you have trouble being approved for other cards, this one will help you build credit.
- Where to Apply
Pros
Cons
Comparison
Product | Pros | cons | check online |
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Discover it® for Students | |||
Bank of America Cash Rewards™ for Students |
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Deserve Edu Mastercard |
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Journey® Student Rewards from Capital One® |
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Deserve Classic Mastercard |
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The Verdict
Looking for your first card? The best first credit card for you all depends on your current situation. If you aren't a student, some of the
very best first credit cards won't be available to you. In that case, you should consider cards like the Journey® Student Rewards from Capital One® or the Deserve Classic Mastercard. If you're an international student, the Deserve Edu Mastercard is easily attainable, lacks foreign transaction fees and can help you build credit here in the United States.
If, however, you are an American student, you have the best option available to you in the form of the Discover it® card for Students. Not only does this card have a lower interest rate than the other cards on this list, it has better cash back options, offering as much as 10% for some purchases. The $100 bonus for spending $500 or more in your first 90 days and the $20 bonus for a high GPA are just icing on the cake. For users who qualify, the Discover it® card for students is the best first credit card out there.
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