There are credit cards that are tailor-made for new users. In order to choose the right one, you can take a look at these options and see which is best suited to your needs. Plus, if you have bad credit score, don't panic: we have two methods to help you get a credit card anyways!
This is considered the best option to initiate your credit card experience. It's designed to help you build your credit history and it offers monthly reviews starting at 8 months to see if you qualify to get your security deposit back. It doesn't charge an annual fee, and you'll also earn 2% cash back on up to $1,000 spent each quarter on gas and dining after activation as well as 1% cashback on all other purchases.
Secured cards can also help you build your credit from scratch.
This is a Cash Rewards Credit Card and it's available for consumers with average credit. Although you'll have to pay a $39 annual fee, it's worth it, as you'll be able to earn a flat 1.5% back for each dollar you spend. Other perks to consider: this card comes with no foreign transaction fees, extended warranties on eligible purchases, auto rental coverage, travel accident insurance, and 24-hour travel assistance.
You can sign up for free and you can earn 5% Cash Back Rewards each quarter on everyday purchases at different places like Amazon.com, grocery stores, restaurants, gas stations, and when you pay using PayPal up to the quarterly maximum when you activate. You'll also get a Good Grade Reward, that's $20 statement credit, each school year if your GPA is 3.0 or higher during the next 5 years.
This is a travel users oriented card. You need to have a good credit score -at least 670- to qualify. If so, don't hesitate, this is the best starter travel credit card that can help you get accustomed to earning this type of rewards.
Their New Cardmember Offer comes with 20,000 bonus miles once you spend $1,000 on purchases within the first 3 months from account opening. Once you sign up, you'll also earn a flat 1.25 miles for each dollar you spend. You can cash in your points for any type of travel at a rate of 1 cent per point, or for transfers to a handful of select airlines.
If your goal is to build good credit, you can start applying for a Petal Visa Card. This card comes with a minimum credit limit of $500, although there's no annual fee and no fees on late payments. You can use it with purchases up to $10,000. Higher limits can help you build credit when you keep your utilization low.
Your credit score can grow with responsible spending and on-time payments, as your information is reported to all three major bureaus— TransUnion, Experian, and Equifax. You'll also get access to the powerful Petal Visa Card app, which can help you manage your money better, track your spending, and stay on top of all your bills.
BAD CREDIT SCORE? HERE ARE SOME OPTIONS TO GET A CREDIT CARD
Most of the people think that those who have a bad credit history cannot have access to a credit card. Nevertheless, there are a two accurate methods that might help you not only to get a credit card but also to rebuild your credit score:
1. Getting a secured credit card
The first option you can try if you have a bad credit score is opening a secured credit card. It is quite easy, you just need to have your cash ready!
This kind of cards require a deposit to grant you a credit line. Some banks may even offer you a limit higher than the amount you initially deposit. You just need to make some research about the options you have.
While searching for the best bank you should also look for the interest rates, fees and conditions they offer. You can also check if the bank offers to report your payments to the credit reporting agencies. Choose one that grants this possibility. It will allow you to rebuild your credit score!
2. Sign on as an authorized user
If your score is bad, you can turn to a trusted friend or someone in your family who has a better score than you and can help you get a credit card. They can add you to their account as an authorized user!
This would give you access to a credit account despite the bad credit score. If you apply this method you will have to make sure you always pay your bills on time. Otherwise, it will impact in your friend or family member's good credit.
You should also ask the bank beforehand if the payments as an authorized user will affect your credit report. If this does not help you to rebuild your score, then you may want to ask another lender. Lastly, learn how you can remove yourself from the account once you can improve your score and access to your own credit card.