Because we’re dependent upon credit for so many of life’s major events — including buying a car, purchasing a home and even (at times) getting a job — it’s crucial to establish good credit history at an early age. Signing up for a credit card, and using it responsibly, is a great way for those who are new to credit to build their credit profile.

The best first credit card for you will depend on your credit score and the extent of your credit history, though there are plenty of starter credit cards available to people with poor or limited credit. In any case, there are some key features to look for in good starter credit cards. You’ll want to find a card with a low or no annual fee, a low interest rate, monthly reporting to credit bureaus to help build credit, and, if possible, a card that earns cash back.

Avoid cards with high fees, penalties, and interest rates. For college students with limited credit history, a student credit card can be an excellent choice. A secured credit card best fits those with poor credit seeking to rebuild their score.

To select the best card for each of these categories, our credit card experts compared cards designed for individuals with poor, limited and average credit on LendingTree.com and issuer sites.

We chose our top picks based on a variety of factors, including each card’s annual fee, interest rate, rewards program and more.

Other factors that came into play when making our selections were the benefits offered by the card and the opportunity to increase your credit line with responsible card usage.

Choosing a starter credit card can seem daunting, but by answering a few key questions, you can help narrow down your search. For example:

• What is your credit score? Knowing your credit score is a quick way to gain insight into which cards you may qualify for. For example, if your FICO Score falls within the 580 to 669 range, you may be able to be approved for a card designed for those with fair credit.
• Do you qualify for a student card? You may qualify for a student credit card if you’re age 18 or older, in college and can prove a source of steady income.
• Do you have a bad credit history? If you’re new to credit cards, but have a history of paying other bills, such as rent or car payments, late (or not at all), your best option may be a secured card or a credit card that doesn’t conduct a credit check.
• Do you want to earn rewards? Not all credit cards available to beginners offer rewards. However, for those in college or with limited credit history, you can still often qualify for a card offering rewards. Even secured credit cards sometimes offer cash back. Many of the best credit cards for beginners we highlight offer rewards.
• What other benefits are useful to you? Many cards offer additional perks and benefits. These range from travel benefits, to purchase protection, to merchant-specific offers.

If you’re not ready to open your own credit card, you can ask a family member to add you as an authorized user and begin building credit that way. Once you’ve established a fair or good credit score and are comfortable using plastic to pay for purchases, you can open your own card down the road. If you’re not yet 18 and can’t have your own account, it could still be a great idea to be added as an authorized user on a parent’s card. This will help build your credit before you enter college and adulthood.

• Student credit cards

  These cards are geared toward college students with limited credit history. Most offer a lower credit limit than traditional cards. But they are a great way to build credit history.

• Secured credit cards

  These cards are designed for those with poor or limited credit who need to build or rebuild their credit history. Secured cards require a refundable security deposit of at least $200. As you demonstrate responsible credit card usage, most will allow you to graduate to an unsecured card, and your deposit will be refunded.

• Simple rewards cards

  Most cards offering cash back rewards require at least good credit. If you have built up a decent credit history and have a good credit score, consider a simple cash back card such as the Discover it^® Cash Back.

• Business credit cards

  These cards are designed for business owners who want to have a separate credit card strictly for business purchases. It’s rare to find a business card for people with fair credit, but the Capital One Spark Classic for Business is one option available.

Getting your first credit card may seem intimidating, but it isn’t difficult. Here’s how to set yourself up for success when applying for your first credit card:

1. Check your credit. Before applying, you should know your credit score and the score range required for the card you want. You can get free access to your credit report through annualcreditreport.com. You can also sign up for a free credit score through LendingTree.
2. Decide how you want to apply. Applying online through an issuer’s website is the fastest and easiest way to apply for a credit card. However, you can also apply in-person at a bank branch, over the phone or by mail.
3. Gather the required information. Make sure you have all required information readily available. Besides your name, birthdate, phone number, email and physical address, you’ll need your Social Security number or Individual Taxpayer Identification Number (ITIN), gross income, monthly housing costs and additional employment and/or business information.
4. Apply for the card. When ready, complete and submit the application. You’ll get one of three typical responses: instant approval, application under review or immediate denial.
5. Be prepared to follow up. If you’re not instantly approved for a card, don’t worry. It may take several days for an issuer to review your application. You can often check the status of your application. Sometimes issuers will request additional information from you before making a decision.
6. Don’t panic when your credit score drops. When you apply for a credit card or loan, the lender typically performs a credit check. This is a “hard” credit inquiry. The number of hard pulls within the previous 24 months is one of the factors that influences your score, so you may see your score go down slightly after applying for a credit card.
7. Dealing with denial. If you aren’t approved for a card, it’s not the end of the world. However, you’ll want to understand why. Issuers are required to provide a reason for the denial within 30 days, and most will send you a letter stating why they denied you. You may need to improve your credit score through continued on-time payments of existing accounts, reduce your credit utilization by paying down balances or simply wait.

• Don’t rush into a decision. There are plenty of products out there. Take your time to compare starter credit cards. If a card doesn’t seem like it will work well for you after an initial review, move on to another one. Take your time and be confident in the card you choose.
• Look for $0 annual fee cards. While there are many excellent cards out there with annual fees, it’s best to get your feet wet with a card that doesn’t charge one.
• Leverage your situation. If you’re a college student with little to no credit history, there are cards intended specifically for you. Use your student status, as it may let you qualify for a better card than you could otherwise get, such as the Discover it^® Student Cash Back.
• Use your card responsibly. Building credit takes time. Consistently demonstrate responsible credit card use by making your monthly payment on time. Try not to run your credit balance up to the limit, either. Both of these will negatively affect your credit score.
• Fully pay off your balance each month. While paying on time is most important, it’s even better to pay off your balance in full each statement cycle. This means you won’t pay any interest on your purchases.
• Don’t cancel your card. Your first credit card is one that you’ll want to keep open. Issuers take into consideration the average age of your credit card accounts. Even if you move on to a better card once you’ve developed a good or excellent credit score, it is beneficial to keep your first card account open.

 

The information related to the Chase Freedom^® Student credit card and the Citi^® Secured Mastercard^® has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply