The best of so-called starter credit cards were crafted with new cardholders like you in mind. Each of the best new credit accounts will report your timely payment history to each of the three major credit bureaus. While secured credit cards are a great option for new credit holders, there are some that do not require these deposits upfront.
The Discover It Student Cash Back card does not require a security deposit. This card intended for students just getting started with credit allows you to enrol every quarter to get five percent cash back from grocery stores, gas stations, restaurants, and Amazon.com among other places. Other purchases will earn you one percent limitless cash back.
The Capital One Platinum Credit Card promises you a starter credit line upfront with an increased limit once you have successfully paid your first five months’ payments on time. It also provides no yearly fees, balance transfer fees, or foreign transaction fees.
Among the best secured starter credit cards is the Discover It Secured. This card mandates that you pay at least a $200 security deposit but will allow you to deposit upwards of $2,500 when you open the account to have a larger credit limit.
Discover refunds you this security deposit after you have proven your payment history by transitioning you to a traditional Discover credit card. The card gives two percent cash back on purchases you make per quarter at restaurants and gas stations to your fist thousand dollars in charges there, then it gives you one percent cash back afterwards and on all other kinds of purchases.
Discover also matches all of your earned cash back at the conclusion of your first year with them.
If you have bad or little credit, Capital One Secured Mastercard offers a $200 credit line with security deposit ranging from $49 to $200. Once you make your on time first five payments, they will offer you an improved credit line. It comes with no yearly fees, car rental and accident insurance, free credit score access each month, and extended warranty coverage.