The Best Starter Cards for Building Credit — July 2022

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If your credit score isn’t great or you barely have any credit history, you’ll need to ease into the world of credit cards. Fortunately, there are cards specifically made for credit beginners, and with many of them, you can get approved with fair credit, bad credit, or no credit at all.

Here are some of the best options to consider if you’re new to credit cards — including several that earn rewards.

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Best for students who spend on dining, groceries, and entertainment: Capital One SavorOne Student Cash Rewards Credit Card

Best student card for maximizing rewards: Discover it Student Cash Back

Best secured credit card: Discover it Secured

Best for cash back: Capital One QuicksilverOne

Best for travel rewards: Capital One VentureOne

Best basic starter card: Capital One Platinum Card

Best for introductory APR: Discover it Student Chrome 

Best for building credit: Petal 2 Visa Credit Card

Best for international students: Deserve EDU Mastercard

Best for small businesses: Capital One Spark Classic for Business

Compare the best starter credit cards

Capital One SavorOne Student Cash Rewards Credit Card (jump to Capital One SavorOne Student card details »)

If you’re a college student who likes to go out, the Capital One SavorOne Student Cash Rewards Credit Card is hard to beat. Cardholders earn 3% cash back on dining, groceries, entertainment, and eligible

streaming

services with no limits, and 1% cash back on all other purchases.

This card is extra appealing because it currently comes with a welcome bonus offer of a $100 cash bonus once you spend $100 on purchases within 3 months of account opening. It’s possible to qualify with limited credit, so if you’re new to credit cards it’s a solid choice.

You’ll also receive surprisingly good benefits for a no-annual-fee student card, including:

• Price protection***
• Extended warranty***
• Car rental coverage***
• Roadside dispatch***
• Travel accident insurance***
• Complimentary concierge services

Read more about the Capital One SavorOne Student card:

Discover it® Student Cash Back (jump to Discover it Student Cash Back card details »)

Students who like to maximize rewards should consider the Discover it® Student Cash Back, which is typically available to consumers who don’t have an extensive credit history.

Once you’re approved, you can enroll to earn 5% cash back up to a quarterly maximum limit spent on purchases in categories that rotate each quarter, plus 1% back on everything else (from July 1 to September 30, 2022, you can earn 5% cash back at restaurants and PayPal on up to $1,500 in purchases after enrollment, then 1%). Like other

cash-back credit cards

from Discover, this card will also match all the rewards you earn at the end of the first account year.

This card also lets you see your credit score for free each month, and you’ll get Social Security Number monitoring, zero fraud liability, and no late fee on your first late payment. Consider signing up if you want to earn rewards and build credit at the same time without an annual fee.

Read more about the Discover it Student Cash Back card:

Discover it® Secured Credit Card (jump to card Discover it Secured details »)

If you have poor credit or no credit history at all, you may need to get started with a secured credit card. Unlike unsecured credit cards that extend a line of credit without collateral, secured cards require a small cash deposit upfront in order to secure an equally small line of credit.

The Discover it® Secured Credit Card is widely considered to be the top secured credit card since, unlike other cards in this niche, it doesn’t charge an annual fee or any hidden fees. You’ll also earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%), as well as 1% back on all other purchases. Discover will also match all the rewards you earn at the end of your first account year. 

Other top benefits include a free look at your FICO score each month, zero liability for fraudulent purchases, and no late fee on your first late payment. With this card, automatic reviews start at seven months to see if Discover can transition you to an unsecured line of credit and return your deposit.

Read more about the Discover it Secured card:

Capital One QuicksilverOne Cash Rewards Credit Card (jump to Capital One QuicksilverOne card details »)

The Capital One QuicksilverOne Cash Rewards Credit Card is available to consumers with “average” credit according to Capital One, which brings it into reach for individuals with limited credit or anyone who has made credit mistakes in the past.

This card does charge a $39 annual fee, but you’ll be able to earn 5% cash back on hotels and rental cars booked through Capital One Travel and a flat 1.5% cash back for each dollar you spend on other purchases. That’s not bad for a rewards credit card, and it’s especially good for cards available to consumers with average credit.

Capital One also promises to reconsider your credit limit and potentially boost it after you’ve made six on-time payments on your credit card. This card also comes with no foreign transaction fees and several benefits, which is a lot more than many credit cards for average credit offer.

Capital One VentureOne Rewards Credit Card (jump to Capital One VentureOne card details »)

The Capital One VentureOne Rewards Credit Card is typically only available to consumers with “good” credit or better, but it’s important to note that a good FICO score typically starts in the 670+ range. If you are able to qualify, this card can serve as a starter travel credit card that can help you get accustomed to earning this type of rewards.

Once you sign up, you’ll earn a flat 1.25 miles for each dollar you spend. You can also earn 20,000 miles after spending $500 on purchases within 3 months from account opening. On the redemption side of the equation, you can cash in your Capital One miles for any type of travel at a rate of 1 cent apiece, or for transfers to 18 airline and hotel partners. This card also comes with no annual fee and no foreign transaction fees.

Read more about the Capital One VentureOne:

Capital One Platinum Credit Card (jump to Capital One Platinum card details »)

If you have average credit and want to learn good credit habits without worrying about rewards, consider the Capital One Platinum Credit Card.

This card will likely start you out with a low credit limit, but Capital One says it will consider boosting your limit after you make six on-time payments on your card. This card also comes with no annual fee.

Read more about the Capital One Platinum card:

Discover it® Student chrome (jump to Discover it Student Chrome card details »)

If you want to save money with low interest for a limited time, look into the Discover it® Student chrome. This card starts you off with a 0% intro APR for 6 months on purchases, then a 14.49% – 23.49% Variable APR.

You’ll also earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, plus 1% back on everything else you buy. Discover will also match all the rewards you earn after the first year.

Read more about the Discover it Student Chrome:

Petal® 2 “Cash Back, No Fees” Visa® Credit Card (jump to Petal 2 Visa card details »)

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card (card issued by WebBank, Member FDIC) could be ideal for anyone who wants to build

good credit

that lasts. This card comes with a minimum credit limit of $500, although there’s no annual fee and no fees on late payments. You’ll earn a flat 1% back on all your eligible purchases for the first year, but you have the opportunity to graduate to 1.5% back after you’ve made 12 on-time payments on your credit card.

This card also reports to all three credit bureaus like the other cards on our list, so it can help you build credit as your purchases and payments are reported. You’ll also get access to the powerful Petal® 2 “Cash Back, No Fees” Visa® Credit Card Card app, which can help you manage your money better, track your spending, and stay on top of all your bills.

Deserve® EDU Mastercard for Students (jump to Deserve EDU card details »)

The Deserve® EDU Mastercard for Students stands out because you don’t absolutely need a Social Security Number to apply, so it’s especially appealing to international students who wouldn’t usually qualify for a US-based credit card. New cardholders can earn a free one year Amazon Prime Student subscription ($59 value) after spending $500 in the first three billing cycles on the card.

The earning rate isn’t as high as some other starter cards (1% back on all purchases). However, you’ll receive a handful of valuable benefits, including cell phone protection. When you use the card to pay your wireless bill, you’ll be covered for damage or theft up to $600 with a $50 deductible, up to $1,000 per year.

You’ll also receive rental

car insurance

when you pay with your card, and there are no foreign transaction fees for international purchases.

Capital One®️ Spark®️ Classic for Business
(jump to Capital One Spark Classic card details »)

There aren’t many small-business cards geared to folks with average credit, but the Capital One®️ Spark®️ Classic for Business could be a good starting point. This no-annual-fee card offers 1% cash back on all purchases, and it doesn’t charge foreign transaction fees, either.

Employee cards are free, so you’ll earn rewards and qualify for protection on employee purchases. Other benefits include travel and emergency assistance services, secondary car rental insurance, purchase protection against damage or theft, and an extended warranty on eligible items.

Other credit card guides to read

If you already have a decent credit score and are looking for a new credit card to maximize your spending, check out the following guides:

Starter credit card frequently asked questions (FAQ)

When you’re ready to start building credit for the first time, it’s smart to have a basic understanding of how credit cards can help.

Read our step-by-step guide that shows you how to apply for a credit card and find out more about how to improve your chances of approval if you’ve never opened a card before. You can check your credit score online for free. From there, you can figure out which credit card can help you build credit that lasts.

The following questions and answers provide some basic guidelines to follow.

How do I choose the right starter card?

It really depends on your credit score and where you’re at in your credit journey. If you’ve never had a credit card before, it’s likely you’ll have to get started with a secured credit card that requires a cash deposit in order to shore up a small line of credit.

If your FICO credit score is at least “fair,” or above 580, on the other hand, you may qualify for a card geared to consumers with average credit.

What are the easiest cards to get approved for?

When you’re first starting out, secured credit cards are the easiest to get approved for. This type of credit card requires an initial cash deposit to secure a line of credit that is typically for the same amount. For example, you may put down a cash deposit of $500 in order to secure a $500 line of credit.

With the requirement for collateral in place, almost anyone can get approved for a secured credit card regardless of their credit score. Also note that, once you use your secured credit card to establish a reasonable amount of credit history, you can cancel or upgrade your card provided your account is in good standing. At that point, your initial security deposit would be refunded to you.

How do I build credit with a credit card?

Building credit with a credit card isn’t overly difficult, but you may have a better initial experience if you start the process off slowly. Use your credit card for regular purchases you can afford to pay off each month. When your bill comes due, make sure to pay at least the minimum payment and hopefully your entire credit card balance.

As you make payments each month, those payments will be reported to the three credit bureaus. Over time, you’ll build a history of responsible credit use that can help boost your credit score.

How many credit cards should I have?

You can have one credit card or several. It’s totally up to you.

When you’re first building credit, however, it makes sense to limit yourself to a single card. This way, you can spend time building responsible credit habits before you add more cards and complicate your finances.

How quickly can I raise my credit score?

How quickly you’ll raise your credit score depends on a whole host of factors including whether you have any credit history at all, whether you have negative marks on your credit report, and the way you handle credit in the short term.

Your best bet is signing up for a credit card that can aid you in building credit, then using it for regular purchases that you pay in full each month. This will help you build a history of on-time payments while keeping your credit utilization low.

What card should I get when I have excellent credit?

If you have excellent credit, or any FICO score above 740, it’s likely you can qualify for the best rewards and travel credit cards. Make sure to compare the top credit card offers of 2022 in terms of their rewards and cardholder perks. See our best rewards credit cards guide for more info.

Holly Johnson

Freelance Writer

Jasmin Baron, CEPF

Editor