Best Credit Cards For Beginners In 2021

What’s First In Your Wallet?

Stepping into the credit card world can be an overwhelming and daunting task when you’re first starting out as a beginner. From cash and travel rewards to retail specific and gas benefits, the mountain of selections seems endless.

When you’re selecting your first credit card and subsequent cards, you should always choose a card that is most compatible with your spending habits. This will require a monthly budget analysis of what you normally spend on, although this does not have to be extremely detailed or comprehensive. Try your best to get an estimate about how much you are spending in total, and a rough breakdown on what specific categories of purchases you are spending on.

Are you spending the most on groceries? Maybe there are subscriptions or entertainment expenses that are accumulating the most? Is it on housing and transportation?

Having an estimate of what you spend on will help you decide which credit card will be ideal for your spending, allowing you to receive the most benefit with your return on spend. So for example, if you spend most of your monthly budget on groceries and dining out, then a credit card that gives you a good return for that particular spend, say 3% cash back for groceries or 3X points for restaurant dining would provide you the most benefit based on your spending habits.

Here are 5 beginner choice cards to get you started:

A great credit card for beginner’s is the Chase Freedom Flex card which comes loaded with perks and benefits. The card has no annual fee, so you can keep this card long term in your wallet and build up your credit history. With Chase, all of your reward points can be redeemed either for cash back, travel, activities, gift cards, and other bonuses. This is a behemoth of an offer and Chase's biggest package yet with the freedom collection. 

• $200 cash back or the equivalent 20,000 Chase ultimate reward points when you spend $500 within the first 3 months of the account opening
• 5% cash back on rotating categories
• 5% cash back on travel purchased through the Chase travel portal and on Lyft rides
• 3% cash back on restaurants and dining, including delivery
• 3% cash back on drug stores
• 1% cash back on all other purchases 
• Complimentary DashPass with DoorDash for 3 months and 50% off DashPass for 9 months thereafter 
• Travel interruption insurance
• 15 months 0% promotional APR period

Also a great sidekick and starter card in the Chase lineup is the Chase Freedom Unlimited. This no annual fee card packs a similar benefits package to the Chase freedom flex, and is known for its 1.5% cash back reward on all purchases. There is no ceiling on how much you can earn with this card. When you sign up for this card, you’ll receive a very comparable package:

• $200 cash back or the equivalent 20,000 Chase ultimate reward points when you spend $500 within the first 3 months of the account opening
• 1.5% unlimited cash back on all purchases
• 5% cash back on Lyft rides
• Complimentary DashPass with DoorDash for 3 months and 50% off DashPass for 9 months thereafter
• Travel interruption insurance
• 15 months 0% promotional APR period 

Third on the list is the Capital One Quicksilver card. The Capital One product family is a great place to build out a rewards portfolio, with cards available for to solely build and repair credit, and earn both cash and travel rewards. 

• $200 cash back when you spend $500 within the first 3 months of the account opening
• 1.5% unlimited cash back on all purchases 
• No foreign transaction fees 
• 15 month 0% promotional APR period 

The Discover It Student Chrome card is an excellent choice for beginners who are still in school and concurrently on a work study program or on a lighter part time work load in additional to classes. It is friendly toward purchases that are common while in school and college. Starting early in the credit building journey is a big advantage after graduation and in the working world. This card also has no annual fee for the cardholder. 

• Earn 2% cash back at gas stations and restaurants on up to $1000 in combined purchases each quarter
• Earn 1% unlimited cash back on all other purchases
• Earn $20 in statement credits each school year if your GPA is a 3.0 or higher for up to 5 years 
• 6 month 0% promotional APR period 

Lastly, the Citi Double Cash card incentivizes conscientious spending and responsible payback, rewarding you over time for building creditworthy behaviors. And best of all there is no annual fee! There may be a trend here. 

• Earn 2% unlimited cash back on all purchases, starting with 1% after your purchases and another 1% as you pay off those purchases
• 18 months 0% promotional APR period. Wow! 
• Citi Entertainment perk: Special access to events and dining experiences

Your credit building journey starts early and we're happy that you're thinking about the long term strategies that will create options and opportunities downstream.