Building credit takes time, and there’s no better time to start than now. Credit cards can be a good way to build credit without paying any interest — as long as you use your card’s grace period, which usually means paying your full statement balance by their due date each month.
Whether you’re a college student, a recent graduate or someone looking to build credit for the first time, we think these are the best first credit cards to consider, which could help you build a healthy credit profile. Some of these cards will even give you rewards and perks along the way.
| Card | Best for |
|---|---|
| Petal® 2 Visa® Credit Card | No credit |
| Capital One Platinum Secured Credit Card | Low security deposit |
| Capital One QuicksilverOne Cash Rewards Credit Card | Limited credit |
Best for no credit: Petal® 2 Visa® Credit Card
Here’s why: You don’t necessarily need an established credit history to get approved. Instead, Petal will ask for access to your bank account. It will review that information to determine your credit health. Note that the card issuer will use the information on your credit reports if you do have a credit history.
If you’re approved for the Petal® 2 Visa® Credit Card, you’ll immediately begin earning 1% cash back on all purchases made using the card, with the chance to earn more if you use your card responsibly. After 6 months of on-time payments, you can earn up to 1.25% cash back and after 6 more months of on-time payments, you could earn 1.5% cash back. That’s not bad for a first credit card, especially considering there are no fees whatsoever.
The cash back card also offers an automatic credit limit increase after 6 qualifying on-time monthly payments.
Read our full review of the Petal® 2 Visa® Credit Card to learn more.
Best for a low security deposit: Capital One Platinum Secured Credit Card
Here’s why: If you’re having a hard time getting approved for an unsecured credit card, a secured credit card could be a good alternative. And the Capital One Platinum Secured Credit Card is a decent option. The card comes with an initial credit line of $200 with a refundable security deposit of $49, $99 or $200, depending on your credit. In contrast, most secured credit cards require that you make a deposit equal to your desired credit line.
The Capital One Platinum Secured Credit Card also may offer you access to a higher credit line if you deposit more money before your account opens. But the maximum credit limit is $1,000.
The Capital One Platinum Secured Credit Card isn’t a rewards card, and there aren’t any significant perks to speak of. But it does report to all three major credit bureaus, so if you use the card carefully (e.g., keeping your balance relatively low and making your monthly payments on time and in full), you can build a positive credit history. Plus, there’s no annual fee or foreign transaction fee.
Check out our Capital One Platinum Secured Credit Card review for more information.
Best for limited credit: Capital One QuicksilverOne Cash Rewards Credit Card
Capital One QuicksilverOne Cash Rewards Credit Card
Here’s why: If you’ve already started building credit but just haven’t gotten a credit card yet, the Capital One QuicksilverOne Cash Rewards Credit Card may be a good fit for you. It can be a good option if you started building positive credit — with other financial products, like student loans or an auto loan — within the past three years.
The card offers an unlimited 1.5% cash back on all purchases, which is better than most of the cards on our list, and it doesn’t require you to jump through hoops to get that rate. It does charge a $39 annual fee, but if you spend more than $2,600 per year on the card (that’s $217 per month), you’ll make that money back.
You’ll be automatically considered for a credit line increase after six months with the card. There’s also no foreign transaction fee.
Read our review of the Capital One QuicksilverOne Cash Rewards Credit Card if you’re interested in applying.
How we picked these cards
Getting a good credit card when you’re new to credit or have a limited credit history isn’t easy. As we researched the best first credit cards, we looked at various features, including fees, rewards and incentives designed specifically to help you build credit.
We also focused more on unsecured credit cards, which don’t require that you put down a security deposit in order to qualify. We still listed a secured card for people who are having a hard time getting an unsecured card, and we chose that one in particular because of its deposit requirements.
How to make the most of first credit cards
You likely won’t get a big sign-up bonus or elite benefits with your first credit card, but you’ll get an opportunity to learn healthy credit behaviors and establish your credit history. The sooner you start working on building your credit, the sooner you’ll be able to qualify for more-lucrative offerings with other credit card issuers or qualify for lower interest rates on other financial products like loans.
As you use your card, work on keeping your balance low by not using it for every purchase you make or by making multiple payments throughout the month. A credit utilization rate below 30% is generally a good thing for your credit scores. And the lower, the better.
Also, paying your bill on time every month is critical. Consider setting up automatic payments to avoid accidentally forgetting. And if you do miss a payment, pay as quickly as possible, because late payments are usually reported to the major credit bureaus once they’re 30 days late.
Unfortunately, there’s not much you can do about the high interest rates on some of these cards, other than taking advantage of the grace period each month to avoid interest charges.
As you work on these aspects of your credit, you’ll be on the right path toward excellent credit health.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the card shown, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.