Best Credit Cards
I remember looking for my first credit card and there being so many different options that I almost just gave up. So, I made this list to help you understand what to look for and how to find what you want. You should be looking for...
- NO ANNUAL FEE - Paying an annual fee for your first card is really pointless because most people do not have the money to utilize the more expensive card.
- What kind of rewards you want - Different companies offer different rewards, some do travel points, hotel points, or just straight cash back. Researching what you would like to earn is important. For example, I love snowboarding and going to the beach, so I chose a Hilton card that builds points for free hotel stays.
- Usability - Make sure you know where your card can be used. A lot of other countries outside of the US such as Mexico do not take cards like American Express. Whereas pretty much everywhere accepts VISA without a fee, unlike Amex. Now, having an Amex card is fine as long as you have a debit card or cash, just something to use as a backup. Just look out for international transaction fees.
- Regular APY - The interest on a credit card should not matter as you WILL be paying it off every month to avoid the high interest of credit cards. If you cannot afford to use a credit card do not get one. I suggest putting a limit on your card as an emergency stop to ensure you can pay the card off each month. Considering the interest on most cards is 20-30%, this is in your best interest.
When handled responsibly, a credit card can help you build your credit history, which could be helpful when looking for an apartment, a car loan, and even a job.
As these are good beginner cards, they will have $0 annual fees, but have different rewards systems depending on your preference.
Fees
NO annual fees
Rewards
Earn Hilton points to stay in participating Hotels across the world and anywhere from 3-7x points on select purchases.
Cons
A lot of Places outside of the US and in rare cases inside the US do not accept Amex
Fees
NO annual fees
Rewards
1.5% Cash Back on every purchase, every day, 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Cons
No intro APR on purchases or balance transfers
Fees
NO annual fees
Rewards
Earn unlimited 1.5 points for every $1 you spend on all purchases everywhere, every time and no expiration on points.
Cons
Requires a good credit score and best rewards can be limited to select customers.
Fees
NO annual fees
Rewards
2% on every purchase with unlimited 1% cash back (CB) when you buy + 1% CB when you pay for those purchases. (Must pay on time)
Cons
Intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer
These are some good beginner cards, as they do not require a high yearly salary or particularly good credit to apply. I put cards with different reward systems to help you find which one works best. Remember to read through all the card details and understand what you are getting into before applying for a card. Each one of these will help you build credit in a cheap way. There are also options above each of these cards if you choose to pay for a better card in the future.