Best First Credit Cards To Build Credit Of April 2024 (2024)

Forbes Advisor analyzed dozens of cards aimed at both credit newbies and those just starting out with their first credit card in order to help you determine which might be a good fit for your needs. Cards are graded based on numerous factors including:

• Annual fees
• Eligibility requirements
• Ongoing earning rates
• APR
• Additional cardholder benefits

We focused primarily on cards that feature opportunities for building stronger credit by reporting to the major credit bureaus. Some cards are best for those with fair credit to average credit, while others are targeted for those with bad credit or those with no credit history. Bonus points were awarded to credit cards without an annual fee and for cards that earn rewards on spending.

Forbes Advisor rates cards both as stand-alone products (the card rating on the review) and compared to others in a specific use case (the card rating you see on a specific “Best” list). The rating for each card changes on different “Best” lists according to how a person looking for a card in that category may value certain card features.

For instance, a card that might be considered mediocre on a list of best credit cards could be the top card on a list of best cards for building credit. That’s because the card might offer limited features compared to other cards, but after we remove cards that require a strong existing credit score, it’s the best card that remains.

Read more: How Forbes Advisor Rates Credit Cards

Beginner’s Guide to Credit Cards

• Should I Get a Credit Card?
• How To Get Approved for a Credit Card
• Credit Card Requirements
• What To Look for in Credit-Building Credit Cards
• How Many Credit-Building Credit Cards Should I Have?
• How To Get a Credit Card With No Credit
• How To Build Credit With A Credit Card
• What Is APR?
• Alternatives to Credit Cards
• Other Cards To Consider
• Frequently Asked Questions (FAQs)

Whether or not credit cards will be useful tools for you largely depends on your lifestyle and financial habits. Credit cards can be helpful for people who regularly use them for purchases and pay off the balance in full every month. This builds a solid credit history, which is important not only for approval for better cards, but also for other life expenses like renting an apartment or getting a car loan. Credit cards also provide some fraud protection, meaning cardholders are usually not liable for unauthorized charges made to their accounts.

Pros and Cons of Credit Cards

Pros of Credit Cards

• Opportunity to build credit: Using a credit card responsibly, by making on-time payments and avoiding high balances, can help you establish and improve your credit history. This can help you get approved for other forms of credit, like a mortgage, down the road.
• Rewards and cash back: Many credit cards offer rewards programs that allow you to earn points, cash back or miles for every dollar you spend. These rewards may be redeemed for things like statement credits, travel, gift cards and more.
• Fraud and theft protections: Most credit cards come with zero liability protection. So if your card is lost or stolen, you won’t be on the hook for any unauthorized purchases.
• 0% intro APR offers: Certain credit cards offer a 0% introductory APR period during which you can make purchases or transfer balances without accruing interest. These 0% intro APR offers, which may last for 15 months or longer, may be ideal for financing a large purchase interest-free.
• Travel perks: Frequent travelers will appreciate that some credit cards provide travel-related benefits and protections such as trip insurance, rental car insurance, airport lounge access and the ability to transfer rewards points to hotel and airline partners.

Cons of Credit Cards

• High standard interest rates: Outside of 0% APR promotional periods, credit cards are considered a high-interest form of debt. Standard APRs generally range from the mid-teens to high twenties. You can avoid interest charges by paying off your balance in full each month.
• Other fees may apply: In addition to interest charges, credit cards may come with other fees, such as annual fees, late payment fees, foreign transaction fees and balance transfer fees. These fees can add up quickly and eat into any rewards you may earn.
• Risk of overspending: Credit cards can make it easy to spend beyond your budget as you don’t need to have cash on hand to make a purchase. If a high credit card balance becomes difficult to pay off in full, this can lead to carrying a balance and accruing interest if you’re not within an introductory 0% interest period.
• Approval requirements: Some credit cards may have strict approval requirements, such as a minimum credit score or income level. This can make it difficult to qualify for them, especially if you’re new to credit.
• Risk of credit damage: If you miss payments or carry a high balance, this can negatively impact your credit score and make it harder to get approved for credit in the future.

When Should I Get a Credit Card?

The best time to apply for a new credit card depends on your financial position and goals. Generally speaking, the sooner you can start using a credit card to build stronger credit, the better. This being said, applying for a new card is a major financial decision and shouldn’t be done hastily. Though additional cards can be used for balance transfers and introductory APR periods can help finance larger purchases, credit cards have high interest rates and should be generally avoided as a means of borrowing large amounts for periods longer than a billing cycle.

Younger teenagers can become authorized users on parents’ or guardians’ cards in some cases, but must be 18 years old to become the primary account holder on a credit card. Very few issuers allow co-signers, so you’ll either need to qualify on your own accord or ask to be added as an authorized user on someone else’s account.

How Old Do You Have To Be To Get a Credit Card?

To become the primary account holder on a credit card, federal law requires you must be at least 18 years of age. Most card issuers also require the primary cardholder to show proof of independent income. Younger teenagers can become authorized users on parents’ or other adults’ cards in many cases and can present a way to help teens get a jumpstart on building credit and help teach your kids responsible financial habits.

Is It Okay To Never Have a Credit Card?

While it is not necessary to carry a credit card, giving up on credit cards completely may forfeit a number of opportunities for financial growth and benefit. Credit cards provide a relatively easy way to build a credit history which in turn is a requirement for borrowing money to make large purchases (houses, cars, etc.).

By foregoing credit cards, consumers may also miss out on rewards programs, fraud protection and any service requiring you to have a credit card on file—for example, renting a car or booking some hotel rooms. Debit cards can be used to do some of these things, but using a debit card comes with other disadvantages, such as tying up funds in your bank account. If you’re committed to living a life without credit cards you can certainly use a mix of cash, checks and debit cards and avoid the risks credit cards may pose.

Why Can’t I Get Approved for a Credit Card?

Several factors may make it more difficult for you to obtain a credit card. If you do not have a steady job or provable source of income, you are less likely to receive approval for a credit card. Similarly, if you have too much debt, a bad credit score and history, are under 18 or do not have a Social Security number, getting a credit card in your name can be very difficult. While there are ways to work around these issues—like becoming an authorized user or getting a secured card—it can take some persistence and patience while working through the process.

How To Get Approved for a Credit Card

To get approved for a credit card, start by checking your credit score with one of the top credit monitoring sites. Then search for cards that match your credit rating. While credit card companies don’t generally disclose the exact credit score that they require for their cards, some will provide a range such as Excellent, Good, Fair or Rebuilding.

Even if you don’t yet have a credit score, you might still be able to get approved for a secured card. Alternatively, you could wait to apply until you’ve had time to build credit through other means such as being added as an authorized user to someone else’s card.

Here are some of the most common eligibility requirements you’ll need to meet in order to be considered for a credit card:

• Minimum age: You must be at least 18 years old to apply for a credit card on your own. Some credit cards may have a higher minimum age requirement. If you’re applying for a credit card under the age of 21, you’ll need to verify that you have an independent source of income.
• Social Security number: Most credit cards will require you to provide a Social Security number when you’re applying for a credit card. However, many card issuers will accept an Individual Taxpayer Identification Number (ITIN) instead.
• Contact information: You’ll need to provide personal information including your full name, address and date of birth. It’s also common for credit card issuers to ask for your email address and phone number.
• Income: Credit card issuers will typically require you or someone in your household have a certain level of income to qualify for a credit card. This helps ensure that you have the ability to pay back any debts you incur on the card. Those with income that normally be below the card issuer’s minimum requirement, may still be able to qualify for a card by providing a security deposit.
• Credit history: If you have information on your credit reports, it might be a major deciding factor in the issuance of a credit card. Depending on the card that you’re applying for, it may have a minimum credit score requirement.

Some of these requirements are more universal than others. For example, the minimum age requirement will always be 18 regardless of the credit card that you’re applying for. However, minimum income and credit score requirements can vary widely depending on the issuer and the type of card.

What To Look for in Credit-Building Credit Cards

What makes a credit card a good credit card? First, ensure the card has a low interest rate. If you do ever have to carry a balance (we never recommend carrying a balance) you’ll want to have as low a rate as possible—and credit credit cards are notorious for high rates. Though in some cases you may want to trade a low rate for rewards options or other benefits, be sure you’re aware of the financial consequences if you can’t pay in full, on time, every time.

If you are looking for rewards, whether cash back, points or miles, there’s more than likely a card out there that will fit your needs. But don’t forget about benefits; a card with benefits like rental car insurance or trip cancellation coverage can come in handy if you ever need them and in some cases could save you much more money than you’d ever earn in rewards.

Most importantly, make sure you choose a credit card to meet your needs. If you need to build your credit, then applying for a fancy credit card with an extensive rewards program is unlikely to make much sense. You’re likely better off sticking to credit cards designed with credit score rebuilding in mind—think secured and student cards. If you’re a frequent traveler, you might prioritize travel benefits over cash rewards or interest rates. You can get started on finding the perfect credit card for you:

• The Best Credit Cards
• The Best Student Cards
• The Best Secured Cards
• The Best Travel Rewards Cards
• The Best Cash Back Cards
• The Best 0% Intro APR Cards
• The Best Balance Transfer Cards
• The Best Airline Cards
• The Best Hotel Cards
• The Best Business Cards

How Many Credit-Building Credit Cards Should I Have?

There is no magic number of cards when it comes to building credit. Much more important is consistent on-time repayment. To this point, you will probably fare best getting one card to start and diligently paying down your balance. Doing this will demonstrate to issuers that you can handle credit responsibly, which can lead to more credit opportunities down the line.

Once you have one card that you feel comfortable using and paying down, you may begin to explore better options should they become available to you. Upgrading to an unsecured card with a higher credit limit, for example, can improve your credit by increasing your total available credit and thus decreasing utilization rate. But even with a higher total credit limit you should never charge more to your cards than you can pay off each billing cycle to avoid carrying a balance and accruing interest.

Here are a few strategies that may help you get a credit card with no credit:

• Become an authorized user: One simple way to obtain a credit card despite a lack of credit is to become an authorized user on someone else’s credit card. Becoming an authorized user involves finding a trusted and trusting friend or family member to add you to their credit card account as an authorized user. This usually gives you access to many of the same benefits as the primary cardholder, including your own card with your own name on it. Many banks report authorized user activity to the three major credit bureaus.
• Apply for a starter card or student card: Starter credit cards are designed for people with little or no credit history while student credit cards are designed for college students. Both types of cards tend to have lower credit limits and fewer rewards than other cards, but they can be a good way to start building your credit history as they may be easier to get approved for.
• Provide a security deposit: Secured cards tend to have more lenient credit requirements since the security deposit reduces the card issuer’s risk. If you’re unable to qualify for an unsecured card but you can afford to set aside money for a deposit, applying for a secured card could be an option.

Why Is It Important To Establish Credit?

Good credit is a sign to vendors, banks and companies that you are a trustworthy, low-risk leasee or borrower capable of paying off your bills or loans on time. Great credit makes up a major part of your financial identity and comes with many advantages including lower interest or insurance rates, approval for large purchases or loans and increased rewards on shopping and travel.

Building credit with a credit card is simple, but that doesn’t necessarily mean easy. The key is to keep your card in good standing. This primarily means making all your payments on time and in full—payment history is 35% of your FICO score, after all. If you do this consistently, you should see your credit score improve.

Do this long enough and your score may rise to a point where you can qualify for better cards. Obtaining those better cards will increase your total available credit, which could further raise your score by reducing your credit utilization ratio.

No matter what cards you hold or the amount of credit that’s available to you, if you don’t make your payments, your score will suffer. This is why it’s important to have a budget in place to ensure you can always meet your financial obligations.

What Is APR?

Annual Percentage Rate (APR) is the interest rate applied to the carried balance of a credit card. Your exact APR will depend on the bank, the type of credit card and your credit score at the time of application. It will also depend on the U.S. prime rate, which is a standard rate used by banks to establish a baseline APR. Though you will often see APR referred to as an annual rate, any interest being charged is actually calculated every month based on your current balance.

What Is a Good APR for a Credit Card?

APRs vary greatly from bank to bank and even from card to card. Many banks offer APRs ranging from 16% to 30% or higher and some issuers will offer a 0% introductory APR to help new credit card holders start building credit. If you look for the lowest rates possible and stay on top of your credit card payments, you can usually avoid interest entirely.

Several alternatives to credit cards offer some of the benefits. Though having a credit card comes with clear advantages, it is by no means the only way to conveniently or safely handle your money.

Debit Card vs. Credit Card

While there isn’t a big difference in how you use a credit card versus a debit card when making a purchase in a store, the money used to make transactions is drawn from two entirely separate sources. With a debit card, money is taken directly from your checking account. Purchasing a $20 book, for example, will lower your account balance by $20. On the plus side, you do not run any risk of going into debt: Generally speaking, once you run out of money in your account, you will not be able to make any more purchases. If you are making a big purchase or expect more money to arrive in the future (from a paycheck, for example), this limit can be much more of a hindrance.

Credit cards draw from a line of revolving credit extended to you by a card issuer. You will be able to make payments up to your credit card limit regardless of whether or not that money is available in your checking account. At the end of the monthly billing cycle all relevant charges will appear on your billing statement and you will need to make at least the minimum payment in order to keep using the card. While the obvious disadvantage is that you can go into debt by spending money you don’t have (or racking up astronomical interest if you cannot pay off your total bill), having a credit card allows you to still make purchases—from emergency to everyday to expensive—without the limitation of your current checking account balance.

Charge Cards vs. Credit Cards

Charge cards offer another alternative where credit is extended, but the balance must be paid in full each month. Charge cards do not typically have interest rates in the same way a normal line of revolving credit on a credit card does and do not necessarily come with a preset spending limit. This makes them an adaptable, efficient type of credit card useful for a variety of purchases. Charge cards also come with a lot of risk: if you cannot pay off your balance at the end of the month, you can quickly get into some serious trouble with your issuer.

Due to this risk, charge cards or pay-in-full cards are a specific product offered by companies such as American Express and generally require a good to excellent credit score in order to be approved. These cards are also usually subject to annual fees.

Personal Loan vs. Credit Cards

Personal loans and credit cards are both forms of credit, but the two vary in several significant ways. With a personal loan, you receive all your money at once in a lump sum. You then pay off this loan in steady installments over time, with a set end-date for your final payment. These payments include interest. Thanks to lower interest rates, these loans are useful for making large, one-time purchases or consolidating high-interest debt. For smaller and more frequent purchases—especially when building your credit score—a credit card remains the better choice.

Forbes Advisor also has curated a list of secured card recommendations and a list of best student credit cards. An option from one of those lists may be right for your particular circ*mstances.

• Best Credit Cards 2023
• Chase Sapphire Preferred Credit Card
• American Express Platinum Credit Card
• Best Rewards Credit Cards
• Can I Add My Child To My Credit Card?
• How Many Credit Cards Should I Have?