August, 2011

Which Credit Card is Best for Beginners?

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Top Answer:Submitted by VernorLS

Credit card beginners may have limited or no credit score. Getting to that point requires using credit. It may seem like a vicious circle, but building your credit in a positive manner is important.  The average credit card holder has 3.5 credit cards, according to the Federal Reserve Bank of Boston.  Most have had their first credit card since they were 20 years old or younger. If you are ready to start building your credit, the right card matters.

Are You a Student?

Due to the CARD Act, in order to get a credit card, you must be at least 20 years old, have a cosigner or have the financial means to repay your debts. If you are a student, credit cards are available to you that meet these guidelines and provide you with a way of building credit.

If you’re still a student, consider the Discover More Student Card that offers 0% Intro APR and 13.99$ – 20.99% Regular APR. There is also no annual fee and you can earn 5% to 20% cash back when you shop within the Discover online shopping mall, while earning 1% for everything else you purchase with your card.

Not a Student?

If you are not a student, but need credit cards for beginners, consider those credit cards designed for individuals without a high credit score. Some are even designed for those with limited or no credit history.

You might want to consider the Orchard Bank Classic MasterCards that provides a Regular APR of 7.90% – 19.90% and can also be used by those who want to repair bad credit. This card will report to the three major credit cards bureaus monthly so you would be able to receive all the benefits of having good credit as soon as you achieve it. Also, since this is probably the first credit card you’ll have, this card will send you text messages and e-mails to remind you of your upcoming payment so that you don’t forget.

If you don’t qualify for these credit cards for beginners, check out the Capital One Secured MasterCard. It does require a deposit, but it is fully refundable. The company also reports to all three credit bureaus and works with you to increase your credit limit, depending on creditworthiness. It comes a low annual fee of $29.

In order to build credit, you need to use credit. These credit cards for beginners are just meant to be a springboard. Once you work to build your credit score, you can then apply for other credit cards with more lucrative offers.

*Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

*The content in this article is accurate at the publishing date, and may be subject to changes per the card issuer.

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