As a young adult, getting your first credit card can be an exciting yet daunting experience. Choosing the right credit card is crucial in establishing a solid credit history and learning responsible financial habits. If you’re in search of the best starter credit cards of July 2023, we’ve got you covered. Here are our top picks for credit cards that cater to beginners and offer great rewards and benefits.
1. Discover it® Student Cash Back:
The Discover it® Student Cash Back credit card is specifically designed for students looking to kickstart their credit journey. This card offers 5% cash back on rotating categories and 1% cash back on all other purchases. What sets it apart is Discover’s Cashback Match program, which doubles all the cash back you earn in the first year of card membership. Additionally, the card has no annual fee and provides a free monthly credit score update, helping you keep track of your credit progress.
2. Capital One Platinum Credit Card:
The Capital One Platinum Credit Card is an excellent choice for those with limited credit history. It comes with no annual fee and doesn’t require a high credit score for approval. While it doesn’t offer rewards, this card serves as an excellent tool for building credit. Responsible use and consistent on-time payments can lead to credit line increases. Furthermore, Capital One provides access to their CreditWise® tool, which helps you monitor your credit score and receive credit-building tips.
3. Chase Freedom Unlimited®:
The Chase Freedom Unlimited® card is another top option for beginners. It offers a flat rate of 1.5% cash back on all purchases, making it easy to earn rewards without worrying about rotating categories. Additionally, this card has no annual fee and provides a sign-up bonus for new cardholders. Chase also offers a wide range of redemption options, including statement credits, gift cards, and travel rewards, giving you flexibility in how you use your rewards.
4. Citi® Double Cash Card:
If you are looking for a straightforward cash back card, the Citi® Double Cash Card is worth considering. It offers 2% cash back on all purchases, with 1% earned when you make a purchase and an additional 1% when you pay it off. Unlike other cards, it doesn’t have any spending categories or limits on how much cash back you can earn. While it does not provide a sign-up bonus, this card has no annual fee and can help you build credit while maximizing your cash back potential.
5. Petal® 2 “Cash Back, No Fees” Visa® Credit Card:
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is an ideal choice for those with limited credit history or no credit at all. It doesn’t require a credit score for approval, making it accessible to beginners. The card offers up to 1.5% cash back on all purchases, with the potential for higher rewards as you develop a positive payment history. Moreover, Petal provides additional benefits such as reporting your payments to all three major credit bureaus, helping you establish credit.
Choosing the right starter credit card is an important decision that can shape your financial future. These credit cards offer various benefits, from cash back rewards to tools for building credit. Remember to use your credit card responsibly, pay your bills on time, and avoid carrying high balances to make the most out of your credit card experience.
