Applying for a credit card for the first time is a daunting task. Many of us know how easy it can be to rack up credit card debt. Building credit at an early age is important to be able to make big financial decisions later on. In this post, I am going to discuss which credit cards are the best for a first time user with no credit history.
I was 20 when I applied for my first credit card through Wells Fargo. I was approved for $800 initially, and have grown my credit limit to $1400. There should never be a point in time where I need to spend $1400 in one go, however it is there as a safety net!
Discover it® Student Cash Back Card
The Discover it® Student Cash Back Card is a great credit card for someone with no credit history. You don’t need any history with Discover to apply for this card.
Pros:
- No credit history required
- No annual fee
- Good grade rewards $20 credit each school year
- 5% cash-back on everyday spending each quarter in rotating categories
- 1% cash-back on every other purchase
- 0% APR in first 6 months
- Unlimited cash-back match after first year
Cons:
- Increased APR after first 6 months to 12.99% – 21.99%
- Must actively sign up for and redeem rewards each quarter
- Foreign transaction fees
- Not everyone takes Discover because of high rates
Overall, the Discover it® Student Cash Back Card is one of the best starter cards. This card can only be a hassle due to some merchants not accepting Discover, however by this point in time almost everyone does. You also need to be proactive about making sure you activate your rewards every quarter, which some people won’t remember to do.
Discover it® Chrome Student Card
The Discover it® Chrome Student Card is similar in terms of rewards to Discover’s Student Cash Back Card. This card, however doesn’t need to be activated each quarter.
Pros:
- No credit history required
- No annual fee
- Unlimited cash back match after first year
- Good grade rewards $20 credit each school year
- 0% APR first 6 months
- 2% cash back each quarter at gas stations and restaurants
- 1$ cash back on all other purchases automatically
- No foreign transaction fee
Cons:
- Increased APR after first 6 months to 12.99% – 21.99%
- Not everyone takes Discover because of high rates
The Discover it® Chrome Student Card is a great choice if you aren’t able to stay on top of activating rewards. With the automatic 1% cash back on all purchases you will benefit. Having no foreign transaction fee is also important if you decide to study abroad or are an international student.
Wells Fargo Cash Back College Card
This card makes the list because this is the credit card I first applied for and still have. If you’re already a Wells Fargo customer, you can apply for this card.
Pros:
- No annual fee
- 3% cash back on gas, groceries and drugstore products for first 6 months
- 1% cash back on all other purchases
- 0% APR first 6 months
- Lower intro APR at 11.15% – 21.15%
Cons:
- Must be existing Wells Fargo customer
- Increased interest rate after first 6 months
- Foreign transactions fees when traveling
If you’re a Wells Fargo customer already, this card is a great starter. You’ll generally be approved for a low credit limit which will put you at less risk of overspending.
Deserve® EDU Mastercard for Students
The Deseve® EDU Mastercard for Students is a great starter card especially for international students. All you need to sign up is a passport, a United States Bank account and some other documentation.
Pros:
- Prime Student for one year
- No annual fee
- No foreign transaction fee
- 1% cash back on all purchases
- No Social Security Number required
- Low maintenance rewards
Cons:
- Higher APR for student card at ~18%
- No cash advance or balance transfers
The Deseve® EDU Mastercard credit card is an ideal starter for students especially international students. This credit card offers standard low maintenance rewards.
Jasper Mastercard®
The Jasper Mastercard is another great option for first time credit card users. With up to a $5,000 credit limit, you can be sure to have security without risking deep debt.
Pros:
- No annual fee
- Up to 5k credit limit
- No foreign transaction fee
- Lower APR at ~15%
Cons:
- 2-3 day approval process
- No rewards
This card is great for travelers, so for studying abroad perhaps. One big drawback I find with this card is no rewards. No rewards allows for a relatively low APR, so if this something that will benefit you more than rewards then that will be something to consider.
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