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Top 3 Picks For The Best Beginner Credit Cards

Last updated: July 05,2021
Originally Published: April 14,2020
by Jestan Mendame

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Are you looking for the best beginner credit cards? This article has you covered! You’ve probably heard about these travel hackers who get free premium flights and hotel stays, and now, you want in on it too.

But before you do that, you need to know that using credit cards is like riding a bicycle for the first time – you need training wheels to learn how to use it, or else, you’ll crash and fall.

When getting credit cards, you don’t immediately apply for top-tier business cards because these can be complicated for beginners. You need to choose low-risk credit cards which typically have the following features or characteristics:

Easy Approval – Personal credit cards are the easiest ones to get approved for, even if you have little to no credit history at all. Beginners must go for these cards to slowly build up their credit score, and eventually apply for top-tier cards in the future.

No Annual Fees – The annual fees of premium credit cards can cost between $90 – $600 which can be very costly for some people. The Amex Platinum for Business has an annual fee of $595 and is one of Amex’s credit cards that has the most expensive annual fee. It’s just practical for beginners to get no-annual-fee cards since you’re still trying to learn how credit cards work.

Has Perks & A Rewards Program – Credit card companies offer incentives to clients to get them to sign up and the rewards you’ll earn will depend on the type of credit card you get. Some companies have sign-up bonuses, warranties on goods and services, partner merchants discounts, free flights, or free hotel stays. There are also cashback cards that let you earn money back if you spend on eligible categories. The key is to look for rewards programs that match your spending habits.

0% APR Periods – APR Periods or Annual Percentage Rate is the interest rate charged by the company for borrowing money from them. Look for 0% APR cards because this means you can purchase goods and services without interest. These intro periods usually last between 12-24 months, depending on the card.

best beginner credit cards

What Are The Top 3 Best Beginner Credit Cards?

1. Chase Freedom Flex

Some might say that the Chase Freedom Flex isn’t suitable for beginners, but we beg to differ. The card does not have an annual fee (for life), and currently, they’re offering a $200 bonus after spending $500 within the first three months of getting the card. Welcome bonuses are subject to frequent change.

Cardholders can earn 5% cashback on grocery store purchases of up to $12, 000 ( Target or Walmart purchases are excluded) in the first calendar year. The card also offers 5% cashback on travel purchases made through Ultimate Rewards, 3% at restaurants and drugstores, and 1% on all other purchases.

New cardholders will also get an introductory 0% APR period for 15 months. This feature is perfect for people who want to make big purchases with zero interest. However, we advise that you leave this card back at home if you’re traveling abroad because it charges a 3% fee for foreign purchases.

Read More: Best Beginner Credit Card For Travel – Chase Freedom Flex Card

2. Discover It

The Discover It Card is simple and straightforward. It’s the counterpart to Chase’s Freedom card because it too doesn’t have annual fees.

The rewards program is similar too, because it offers 5% cashback on rotating categories and 1% cashback on other purchases. There is usually no sign-up bonus for this card but occasionally there is an offer only up to $50. However, Discover will double the cashback you’ve earned for the entire year. For example, if you’ve earned $500, you’ll get an additional $500 at the end of the year.

It also has an introductory 0% APR for a term of 14 months, and it does not have foreign transaction fees.

3. Discover It Miles

You’re probably asking, “what’s the difference between Discover It and Discover It Miles?” Well, it’s the rewards program. Discover It Miles is a travel credit card where you’ll earn 1.5 miles for every dollar you spend on any expense. Discover will also double the miles you’ve earned throughout the year.

It’s perfect for travelers because it doesn’t have annual fees or foreign transaction fees. There’s also a 0% introductory APR for 14 months, and you’ll get a free $30 in-flight WiFi credit. The only problem that you might encounter is that not all merchants accept Discover compared to Visa and Mastercard.

What Points Panda Recommends

Getting your first credit card doesn’t have to be a frustrating experience. You need to understand what each card offers and match that to your spending capabilities and habits. For most people, these are the best beginner credit cards that will help you learn how travel or points hacking works. They’re also low-risk cards that are easy to get approval for so you can slowly build your credit history.

Welcome Offer: 100,000 Membership Reward Points after spending $6,000 in the first 6 months of your membership when you sign up for the New American Express Platinum

Special Bonus: Earn 10x on restaurant spend worldwide in the first 6 months of your membership, up to 225,000 additional points, this is in additional to the record high welcome bonus.

Every traveler should have this card in their wallet, and the welcome offer of 100k is the highest offer Points Panda has seen in many years!

Annual Fee: $695

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