When you are new to credit, there are certain credit cards that are better suited for you. The best are those that allow you to gradually build your credit and credit score. These cards can even help you to eventually move on to a better card down the line with responsible usage. If you are building your credit from scratch, these are the credit cards you should aim for as they are the best.
Citi Secured MasterCard
Generally speaking, secured credit cards are excellent if you are looking to build your credit. The Citi Secured MasterCard carries no annual fee and can help you build through monthly reporting to Equifax, Experian and TransUnion, the three major credit bureaus. You can build your own credit line through a deposit you make of a minimum of $200. The regular APR is 24.74 percent.
Discover it Secured Card
With the Discover it Secured credit card, you determine your own line of credit through a security deposit of at least $200. It has a zero annual fee and a 10.99 percent APR for balance transfers for the first six months. It is also a rewards credit card and allows you to receive 2 percent cash back on purchases you make at gas stations and restaurants of up to $1,000 per quarter of the year and an additional 1 percent on all other purchases. Over the course of eight months and with responsible use of the card, you can move up to an unsecured credit card.
Capital One Platinum Card
If you have limited credit and want to build it, another good option of credit card for you is the Capital One Platinum card. There is no annual fee and no balance transfer fees. You can gain access to a higher line of credit after you make timely in-full payments toward the card in the first five months. Feel secure with fraud protection in the event that you lose the card or it is stolen. The regular APR is 26.96 percent.
Bank of America Cash Rewards for Students
One of the best credit cards for students who are new to credit is the Bank of America Cash Rewards for Students card. It has no annual fee and a zero percent APR for the first 12 billing cycles on all purchases and balance transfers within the first 60 days of holding the card. After that time frame, the regular APR ranges from 16.24 to 26.24 percent depending on your creditworthiness. As a rewards card, students can earn 3 percent cash back on the category of their choice, such as online shopping, dining, drugstores, gas or travel. An additional 2 percent cash back is available on purchases made at grocery stores and wholesale clubs and you can earn 1 percent cash back on all other purchases. You can even earn a $200 cash reward bonus if you spend at least $1,000 on the card within the first 90 days of opening your account.
These are among the best credit cards if you are just starting out with building your credit. Compare the details to determine the best one for your needs.