Top Credit Cards for Newly Minted College Degree Holders
In the world of finance, building a strong credit history is essential. For individuals with fair or bad credit, finding the right credit card can be a challenge. However, there are several beginner-friendly options available that can help establish credit responsibly.
One such option is the Discover it® Secured Credit Card. This card requires a refundable security deposit, has no annual fee, and offers cash back rewards (2% at gas stations and restaurants, 1% on other purchases). It is highly recommended for rebuilding credit with bad credit scores (300–670). Another suitable choice is the Capital One Platinum Secured Credit Card, which is a low deposit secured card suitable for building credit, though specifics on fees and rewards vary.
For those with no credit history or poor credit, the Grow Credit Mastercard could be a viable solution. This virtual card doesn't require a credit check and applies its own proprietary technology to evaluate eligibility based on income. By paying monthly subscription bills like Netflix or Spotify with the Grow Credit Mastercard, individuals can build their credit history without the risk of high-interest rates or fees.
Other options include student credit cards, gas cards, and store cards, which may have higher interest rates or fees. However, these cards can sometimes be easier to obtain for those with thin or no credit.
For those who cannot qualify for a traditional or secured credit card, alternative methods to establish credit include secured credit cards, credit-builder loans or alternative credit builder cards like the Grow Credit Mastercard, using store cards or gas cards with lower requirements, and being an authorized user on someone else’s credit card with good standing.
One such beginner-friendly secured card is the Chime Secured Credit Builder Visa® Credit Card. This card does not charge interest or fees and reports payments to all three major credit bureaus. According to a representative study conducted by Experian® in January 2024, members who made their first purchase with the Chime Secured Credit Builder Visa® Credit Card between June 2022 and October 2022 observed an average FICO® Score 8 increase of 30 points after approximately 8 months.
Applying for a credit card that is appropriate for your credit level can improve your chances of approval. To apply for the Chime Secured Credit Builder Visa® Credit Card, you must have an active Chime Checking Account. The Discover it® Secured Credit Card requires a minimum security deposit of $200 to qualify.
In summary, secured cards like the Discover it® Secured Credit Card are excellent for beginners with bad credit, while virtual credit builder cards and starter cards help those who can't qualify otherwise build credit responsibly by reporting on payments to credit bureaus. With these options, establishing and improving credit is within reach for everyone.
- The Discover it® Secured Credit Card, with its refundable security deposit and cash back rewards, is highly recommended for individuals with bad credit (300–670) looking to rebuild their credit history.
- For people with no credit history or poor credit, the Grow Credit Mastercard, which doesn't require a credit check and evaluates eligibility based on income, could be a viable solution to help build credit.
- If you can't qualify for a traditional or secured credit card, consider using a secured credit card like the Chime Secured Credit Builder Visa® Credit Card, which doesn't charge interest or fees and reports payments to credit bureaus.
