Best Starter Credit Cards
If you are new to credit or have a limited credit history, you may be wondering how to get a credit card that suits your needs and goals. Credit cards can be a useful tool to build your credit score, earn rewards, and enjoy various benefits, but they also come with responsibilities and risks, such as interest charges, fees, and debt.
Fortunately, there are many credit cards designed for beginners or people with low or no credit. These credit cards are often called starter credit cards, and they offer features such as low or no annual fees, easy approval, rewards, and credit education. Some starter credit cards also allow you to upgrade to better products or terms if you demonstrate responsible credit behavior.
In this article, we will help you find the best starter credit cards of January 2024, based on different categories and criteria. We will also provide you with some tips on how to apply for a starter credit card and use it wisely.
How to Choose a Starter Credit Card
Before you apply for a starter credit card, you should consider the following factors:
- Your credit score: Your credit score is a number that reflects your creditworthiness, based on your credit history and behavior. It ranges from 300 to 850, with higher scores indicating better credit. Your credit score affects your eligibility, approval odds, and interest rates for credit cards and other loans. You can check your credit score for free at AnnualCreditReport.com or through various online platforms and apps.
- Your spending habits: You should analyze your spending habits and budget, and choose a starter credit card that matches your lifestyle and goals. For example, if you travel frequently, you may want a starter credit card that offers travel rewards, perks, and protections. If you carry a balance from month to month, you may want a starter credit card that offers a low or zero interest rate. If you want to save money on fees, you may want a starter credit card that has no annual fee or foreign transaction fee.
- Your rewards preferences: You should also consider what kind of rewards you want to earn from your starter credit card, and how you want to redeem them. There are different types of rewards, such as cash back, points, miles, and gift cards. Some starter credit cards offer flat-rate rewards, while others offer tiered or rotating rewards based on categories or seasons. Some starter credit cards allow you to transfer your rewards to other programs, such as airline or hotel loyalty programs, while others limit your redemption options to their own portals or partners.
Best Starter Credit Cards by Category
Based on the factors above, we have selected the best starter credit cards of January 2024 by category. These starter credit cards offer competitive rates, generous rewards, and valuable benefits for different types of consumers. Here are our top picks:
Best Starter Credit Card for Travel Rewards: Capital One VentureOne Rewards Credit Card
The Capital One VentureOne Rewards Credit Card is one of the best starter credit cards for travel rewards, as it offers a simple and flexible way to earn and redeem rewards for travel and more. You can earn 1.25 miles per dollar on every purchase, and a sign-up bonus of 20,000 miles after spending $500 on purchases in the first 3 months from account opening. That’s worth $200 in travel when you redeem through Capital One Travel.
The Capital One VentureOne Rewards Credit Card also offers a 0% introductory APR on purchases for 12 months (then 15.49% – 25.49% variable APR). It has no annual fee, no foreign transaction fee, and no blackout dates or restrictions on travel bookings. You can also redeem your miles for other options, such as cash back, gift cards, or Amazon.com purchases. You can also transfer your miles to over 15 airline and hotel partners, such as JetBlue, Air France, Marriott, and Wyndham.
The Capital One VentureOne Rewards Credit Card is best for beginners who want to earn and redeem rewards for travel and more, and who value simplicity and flexibility. It is also a good option for people who want to take advantage of the sign-up bonus and the 0% APR offer, and who don’t want to pay any fees.
Best Starter Credit Card for Dining Rewards: Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card is one of the best starter credit cards for dining rewards, as it offers a high and unlimited cash back rate on dining, entertainment, and grocery purchases. You can earn 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®), and 1% cash back on all other purchases. You can also earn a sign-up bonus of $200 after spending $500 on purchases in the first 3 months from account opening.
The Capital One SavorOne Cash Rewards Credit Card also offers a 0% introductory APR on purchases for 15 months (then 15.49% – 25.49% variable APR). It has no annual fee, no foreign transaction fee, and no rotating categories or enrollments to keep track of. You can redeem your cash back for any amount, any time, as a statement credit, a check, a gift card, or a charitable donation.
The Capital One SavorOne Cash Rewards Credit Card is best for beginners who want to earn cash back on dining, entertainment, and grocery purchases, and who enjoy a simple and straightforward rewards program. It is also a good option for people who want to take advantage of the sign-up bonus and the 0% APR offer, and who don’t want to pay any fees.
Best Starter Credit Card for Everyday Spending: Capital One QuicksilverOne Cash Rewards Credit Card
The Capital One QuicksilverOne Cash Rewards Credit Card is one of the best starter credit cards for everyday spending, as it offers a flat and unlimited cash back rate on every purchase. You can earn 1.5% cash back on every purchase, with no categories or limits to worry about. You can also access a higher credit line after making your first 5 monthly payments on time.
The Capital One QuicksilverOne Cash Rewards Credit Card has an annual fee of $39, but it offers a lower credit score requirement than most cash back cards, making it easier to qualify. It also has no foreign transaction fee, and offers various benefits, such as fraud coverage, personalized payment options, and credit monitoring tools.
The Capital One QuicksilverOne Cash Rewards Credit Card is best for beginners who want to earn cash back on every purchase, and who have average, fair, or limited credit. It is also a good option for people who want to improve their credit score and access a higher credit line, and who don’t mind paying a small annual fee.
Best Starter Credit Card for Gas Rewards: Discover it® Chrome
The Discover it® Chrome is one of the best starter credit cards for gas rewards, as it offers a high and consistent cash back rate on gas and restaurant purchases. You can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. You can also earn a sign-up bonus of Cashback Match™, which means that Discover will match all the cash back you’ve earned at the end of your first year, automatically.
The Discover it® Chrome has no annual fee, no foreign transaction fee, and no penalty APR. It also offers a 0% introductory APR on purchases for 14 months (then 13.49% – 24.49% variable APR). You can redeem your cash back for any amount, any time, as a statement credit, a direct deposit, a gift card, a charitable donation, or an Amazon.com purchase. You can also use your cash back to pay with PayPal at millions of online stores.
The Discover it® Chrome is best for beginners who want to earn cash back on gas and restaurant purchases, and who appreciate a simple and reliable rewards program. It is also a good option for people who want to take advantage of the sign-up bonus and the 0% APR offer, and who don’t want to pay any fees.
Best Starter Credit Card for Building Credit: Discover it® Secured
The Discover it® Secured is one of the best starter credit cards for building credit, as it offers a secure and rewarding way to establish or improve your credit history and score. You can apply for this card even if you have no credit or bad credit, as long as you can provide a security deposit of at least $200, which will serve as your credit limit. You can also request to increase your credit limit or graduate to an unsecured card after 8 months of responsible credit use.
The Discover it® Secured also allows you to earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. You can also earn a sign-up bonus of Cashback Match™, which means that Discover will match all the cash back you’ve earned at the end of your first year, automatically.
The Discover it® Secured has no annual fee, no foreign transaction fee, and no penalty APR. It also offers a 0% introductory APR on purchases for 6 months (then 24.49% variable APR). You can redeem your cash back for any amount, any time, as a statement credit, a direct deposit, a gift card, a charitable donation, or an Amazon.com purchase. You can also use your cash back to pay with PayPal at millions of online stores.
The Discover it® Secured is best for beginners who want to build or rebuild their credit, and who want to earn cash back on gas and restaurant purchases. It is also a good option for people who want to take advantage of the sign-up bonus and the 0% APR offer, and who don’t mind providing a security deposit.
Conclusion
Starter credit cards are credit cards that are designed for beginners or people with low or no credit. They offer features such as low or no annual fees, easy approval, rewards, and credit education. Some starter credit cards also allow you to upgrade to better products or terms if you demonstrate responsible credit behavior.
In this article, we have helped you find the best starter credit cards of January 2024, based on different categories and criteria. We have also provided you with some tips on how to apply for a starter credit card and use it wisely.
We hope this article has been informative and helpful for you. If you have any questions or feedback, please feel free to leave a comment below. Thank you for reading, and happy credit card shopping! 😊
