Launching Your Credit Journey
Living in the US without needing credit for essential life goals is practically impossible. Good credit has many benefits, including qualifying for mortgages, getting car loans and applying for insurance.
However, it’s possible to have no credit at all or a poor credit history that needs a rebuild. Whether you’re just beginning your credit journey or seeking a second chance at building credit, getting a credit card is an effective option.
Our comprehensive guide explores the best beginner credit cards to build your credit score over time. Read through to learn how to get started with credit-building cards and weigh your options to set off on the right path.
Best Credit Cards for Building Credit
Here are the top recommended credit cards to boost your credit limit and your chances of securing loans, potential tenant screenings and mortgages.
Chase Freedom Unlimited
The Chase Freedom Unlimited credit card is a beginner-friendly card for people looking to earn valuable rewards while building credit. It stands out among its competitors with flexible redemption options, no annual fees, a 15-month APR introduction (20.49%–29.24%) and a $200 cash bonus within the first three months.
Existing Chase customers and credit card beginners can leverage the Chase Card to rebuild credit and enjoy various perks. These include a 3% cashback on restaurant and drugstore purchases, 5% cashback on Chase-booked travels and 1.5% cashback on other purchases.
However, the card’s different rewards rates make the Chase Freedom Unlimted Card more complicated than cards with fixed cashback rates on every spending.
Mission Lane Visa Credit Card
The Mission Lane Visa Credit Card is another viable option for beginners or people rebuilding credit. The credit-building unsecured card is ideal for people with bad credit scores and limited credit histories who don’t have unlimited funds to tie up in a security deposit.
With no hidden fees or annual charges, you can boost your creditworthiness using the Mission Lane credit card. The card also has a relatively low variable APR between 19.99% and 33.99%.
However, the Mission Lane card doesn’t come with additional perks or rewards, making it a less desirable option if those are important to you. Moreover, the card has a starting credit score of 300, which is a significant drawback for people with bad or no credit history.
Discover it® Student Cash Back Card
Students with no credit history looking to build up their credit scores and enjoy rewards can opt for the Discover it® Student Cash Back Card. The card offers a free FICO score, forgiveness for first late payment and low fees.
Furthermore, you will get generous cashback rewards, such as 5% cashback on everyday purchases at restaurants or drugstores. There’s also an unlimited dollar-to-dollar match with no annual fees.
Another reason the Discover it® credit card is great for students is its 6-month 0% intro APR and low ongoing variable APR of 18.24% to 27.24%. Your payments will also be reported to three major credit bureaus Equifax, TransUnion and Experian. So, maintaining good credit habits will help you speed up your credit-building process.
Chime Secured Credit Builder Visa Credit Card
The Chime Secured Credit Builder Visa Credit Card is a reputable essential beginner credit card for building strong credit. It comes with no credit check, APR or minimum deposit requirements.
Like the Discover it® Student Card, Chime reports your credit activities to the credit bureaus, allowing you to enjoy higher credit limits and opportunities over time.
However, the Chime Secured Credit card does not rank high among the best rewards cards because it offers no welcome bonus or additional benefits. You must also open a Chime checking account to get one.
Chase Freedom Rise
The Chase Freedom Rise credit card is another top beginner credit card for starting or improving your credit journey. The credit-builder card is the latest addition to the Chase Freedom credit card collection and is an unsecured card with no security deposit requirements.
One of the perks of choosing the Chase Freedom credit card is that you can apply for it with no credit history. You’ll also enjoy perks like 1.5% cashback on all purchases, a $0 annual fee and variable APR capped at 26.99%.
The cashback and no recurring fees can help put some money back in your pocket. A good credit record can also get you a potential credit card upgrade within the company’s suite of products.
Meeting the credit card application’s basic requirements doesn’t guarantee success. Chase recommends that applicants open a Chase checking account and deposit at least $250 to boost their approval chances.
Best Beginner Credit Cards to Build Credit: Comparison
We compare our recommended credit cards to see how their pros and cons.
Chase Freedom Unlimited
- Recommended credit score: 670+.
- Annual fee: $0.
- Welcome bonus: $200 Cash Reward Bonus.
Mission Lane Visa Credit Card
- Recommended credit score: 300+.
- Annual fee: $0.
- Welcome bonus: N/A.
Discover it® Student Cash Back Card
- Recommended credit score: No Credit Score is Required.
- Annual fee: $0.
- Welcome bonus: Unlimited Cashback Match.
Chime Secured Credit Builder Visa Credit Card
- Recommended credit score: No Minimum Credit Score.
- Annual fee: $0.
- Welcome bonus: N/A.
Chase Freedom Rise
- Recommended credit score: No Minimums.
- Annual fee: $0.
- Welcome bonus: $25 Statement Credit + 1.5% Cashback.
Should You Get a Credit Card?
Getting a credit card significantly depends on your needs and financial habits. However, credit-building cards are essential tools for solidifying your credit history, which is pivotal to securing cards with higher limits, getting an apartment or accessing a car loan. Moreover, you can rebuild with a good credit card if you have a poor credit score.
In this guide, we’ve reviewed the best beginner credit cards for building credit. You can apply for a new credit card, depending on your financial status and goals.