The Best Rewards Credit Cards for First-Time Credit Card Holders

If you're new to the world of credit, getting a rewards credit card can indeed seem daunting, especially if you have no credit history to start with. However, there are specific types of credit cards designed to help you establish credit and earn rewards right from the beginning.

Secured Rewards Credit Cards: A Perfect Fit

If you're just starting to build your credit, secured rewards credit cards can be an excellent choice. These cards require a security deposit, which acts as a credit limit and helps you establish a credit history. Here are a few issuers that offer these types of cards:

BBT, SunTrust, Bank of America, and Discover

Both BBT and SunTrust offer cash rewards secured credit cards, while Bank of America and Discover provide travel rewards secured credit cards. While these cards require a deposit, they can provide an easy entry point for those new to credit and can help you start earning rewards right away.

Secured Credit Cards for a Better Future

If you have a FICO score of over 640, you might be ready for unsecured credit cards. Popular issuers such as Capital One and Citi offer cashback rewards cards. Discover, known for its affordability, also offers unsecured rewards cards that cater to new credit users. However, it's important to avoid cards with high annual fees if you're still very new to credit. Instead, starting with a secured credit card from either Discover or Capital One can be a wise decision.

Find the Right Card for You

There are many websites that can help you find the right credit card based on your FICO score and credit history. Websites such as Credit Karma and others can provide personalized recommendations. These platforms take the guesswork out of choosing a credit card by suggesting options that match your financial profile.

The secret to earning rewards with ease is to opt for credit cards that have fewer requirements and simpler application processes. The less you have to do to earn rewards, the better. Always make sure to read the terms and conditions of the card to understand any fees, interest rates, and reward structures before applying.

Conclusion

Getting started with credit can be challenging, especially if you have no credit history, but with the right choice of a rewards credit card, you can build your credit and earn rewards simultaneously. Whether you choose a secured card or a more straightforward unsecured card, the key is to build a positive credit history and make credit usage a regular part of your financial life.

Keywords

rewards credit cards, first-time credit card holders, secured credit cards