Best Starter Credit Cards
At some point in your life, you had no credit. No car loans, credit cards, mortgages, student loans, no anything. Your credit profile was non-existent. Depending on when this occurred in your life, it can be daunting to overcome (and quite scary as well). If you are here, or you have a family member that is here, we outline our ToP tips for getting a credit journey started. Follow our advice and you can get some of the best starter credit cards in no time. It does not need to be scary any longer!
Add An Authorized User Card
The best starter credit cards are actually not a new application. Instead, you should add this person with no credit to your oldest credit card. Doing so will attach that card's history, going back however far it goes, to the new authorized user's credit profile. If the credit card is 25 years old, the authorized user will soon have a credit history that is 25 years old. This even works if the authorized user is younger than the credit history. (Note: American Express does not follow this approach and lists the credit history as the date the authorized user is added). For increased success, be sure to add the authorized user's social security number when you add the card. Then track the person's credit profile on a free tracker to confirm the credit card is reporting correct. Credit Karma is great for this purpose.
Learn More About Best Starter Credit Cards Here
No Annual Fee Cards
Once you have added the person as an authorized user on your oldest account or two, the next best starter credit cards are no annual fee cards. We like no annual fee cards for credit beginners for 2 reasons:
- As your credit is tied to your oldest account, you want a no annual fee card as your oldest so that is there never a reason to close it.
- If your oldest card has an annual fee, you may wish to stop paying it in the future.
- Closing a card results in losing the credit history and there is not always a downgrade option available.
- The best starter cards often do not have a welcome offer, or a small welcome offer if they have anything at all.
- Any sign up bonus is literally a “bonus” when there is no annual fee to offset.
Avoid Fear of Missing Out (FOMO)
We've all been there, trust me. You learn about lucrative travel rewards, you have a P2 that is ready to jump into the game, or you have a family member that recently received a SSN or turned 18 and you want them to dive in head-first. This is not a good idea. While we all want lucrative travel rewards, and we have a guide showing how to select the best cards, you do not want fear of missing out to guide your decision on the best starter credit cards. Doing so will likely lead to a declined application and lost interest in the game.
Even if you follow the advice above and add an authorized user account and choose a no annual fee card, you need some credit history of your own to be approved by some banks. For example, if you decide to apply for the no annual fee Chase Freedom® Flex℠ or Chase Freedom Unlimited®, you will likely be declined without 12+ months of credit card history. Avoid FOMO and go with one of our best starter credit card recommendations. While approvals are certainly never guaranteed, we outline cards that are marketed for those will little to no credit history.
Learn More About Best Starter Credit Cards Here
Choose the Best Starter Credit Cards with Long-term Benefits
When applying for the best starter credit cards, it is important to think long-term. As we mentioned above, one of the reasons you want a no annual fee card to start is that your credit history is tied to the card. Along with having no annual fee, it is helpful if the starter card also has some long-term benefits. Additionally, you are using a 5/24 spot for this starter card, so the more useful it is the better.
What do we mean by longterm benefits? It can mean lots of things, including:
- The ability to upgrade to an award travel card in the future
- To earn a transferable currency outright
- To earn category multipliers on spend (2-5% or 2-5x), etc.
These are not absolute requirements, mind you, but certainly help guide our ToP recommended starter cards. Since you're applying for a starter card anyway, you might as well get as much bang for your buck as possible.
Learn More About Best Starter Credit Cards Here
Best Starter Credit Cards: ToP Thoughts
If you're at the starting line and anxiously awaiting the race to credit history to begin, wait no longer. Follow these four simple steps and the no-credit person in your life can start their credit journey immediately. Before you know it, their own credit history will be over a year old and time for them to select an award travel card!
How did you start your credit journey for yourself or someone in your family? Come over to our Facebook group and let us know.
