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The 6 best starter cards for building your credit

Aug. 01, 2022
13 min read
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Starting from scratch with credit cards can be a daunting task. At TPG, we want to give you the confidence to take control of your financial journey — wherever you might happen to be. Remember that everyone started as a beginner at one point or another.

New to The Points Guy? Sign up for our daily newsletter and check out our beginner’s guide.

From sharing simple rules to stay out of card debt to debunking myths about your credit score, we’re here to help along the way. And whether you’re building credit from the get-go — or looking to rebuild — this guide will help you consider the best credit card for you.

Related: TPG’s 10 commandments of credit cards

Today, let’s take a closer look at six of the best starter cards for building your credit to bring more stability to your financial future. From entry-level first cards to secured cards, these products will help those who lack an extensive credit profile or need to repair some financial mistakes from the past.

The best starter cards to build credit

Comparing the best cards to build credit

CardBest forSign-up bonusAnnual fee
Capital One Platinum Credit CardEstablishing creditNone.$0
Chase Freedom UnlimitedFuture valueEarn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back.$0
Discover it Secured Credit CardBeginner rewardsAt the end of your first year, Discover automatically matches all the cash back you earned.$0
Bank of America Cash Rewards Credit Card for StudentsStudentsNone.$0
Citi® Double Cash CardFlat-rate cash backEarn $200 cash back after you spend $1,500 on purchases in the first six months of account opening.$0
OpenSky Secured Visa Credit CardNo credit checkNone.$35

The information for the Discover it Secured, Bank of America Cash Rewards credit card for Students has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

As you can see, these cards run the gamut from household names like Chase to much more niche players in the secured card landscape. Let’s take a closer look at each of these cards to see which may fit the bill for you.

Best cards to build credit

Capital One Platinum Credit Card: Best for establishing credit

Sign-up bonus: None

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Rewards: None

Who should apply: Whether you’re just starting out or would like to build up your credit, the Capital One Platinum Credit Card is a practical card for many looking to elevate their credit profile. In fact, Capital One designates (and markets) the Platinum for consumers with average credit. Taken directly from the Capital One website, this card is a fit for you if:

“I have limited credit history. I’ve had my own credit card or other credit for less than 3 years (including students, people new to the U.S., or authorized users on someone else’s credit card).”

When you have an average credit score or a short credit history, you likely won’t be accepted for rewards or travel cards that require good to excellent credit for approval. Therefore, there’s no need to shoot for the stars just yet if the likelihood of getting a card is low.

It’s likely in your best interest to open a card — even a basic one — to get positive information flowing into your credit reports and to start building up a credit history.

Chase Freedom Unlimited: Best for future value

(Photo by John Gribben for The Points Guy)
(Photo by John Gribben for The Points Guy)

Sign-up bonus: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back.

Rewards: Earn 5% cash back on travel purchased through Chase Ultimate Rewards, 3% on dining (including takeout) and drugstores and 1.5% on all other purchases.

Who should apply: The Chase Freedom Unlimited may be a good fit if you already have some credit history. It’s also a dynamic starter card because it pairs very well with other Chase cards.

When you have this card by itself, you’ll earn no less than 1.5% cash back on all purchases in addition to bonus points for specific categories. Cardholders can earn 5% on travel purchased through Chase Ultimate Rewards, 3% on dining at restaurants, including takeout and eligible delivery services and 3% on drugstore purchases.

And because you can transfer your points into an Ultimate Rewards account, the points earned by the Chase Freedom Unlimited are worth 2 cents apiece if you link the card to a higher-end Ultimate Rewards-earning card such as the Chase Sapphire Reserve, Ink Business Preferred Credit Card, or Chase Sapphire Preferred Card.

Related: How to transfer Ultimate Rewards points between accounts

When you combine the rewards you earn on the Freedom Unlimited with your other Ultimate Rewards-earning cards, you can then transfer the points you earn with it to one of Chase’s 11 airline and three hotel partners or redeem them for added value directly in the Ultimate Rewards travel portal. Ultimate Rewards points are some of the most valuable points when it comes to redeeming for travel.

Discover it Secured Credit Card: Best for beginner rewards

Sign-up bonus: At the end of your first year, Discover automatically matches all the cash back you earned.

Rewards: Earn 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter and unlimited 1% cash back on all other purchases.

Who should apply: The Discover it Secured is one of the few secured credit cards that earns rewards. To open it, you must provide a deposit of either $200 for a credit line of that size or $500 for a credit line of $500. With this card, you can earn 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter you enroll and 1% cash back on everything else. Plus, Discover will match all the cash back you’ve earned at the end of your first year. This means you can earn rewards while you work to build your credit by using your card responsibly and paying your bill each month.

As a cardholder, you also get to check your FICO score for free and you won’t pay any foreign transaction fees when you use your card abroad. After you’ve been a cardholder for seven months, Discover will automatically review your account monthly to see if you are eligible to get your security deposit back and may consider converting you to an unsecured card. Discover also will waive the late payment penalty fee the first time you pay late.

Related: Your ultimate guide to Discover cards

Bank of America Cash® Rewards credit card for Students: Best for students

(Photo by Parinda Yatha / EyeEm / Getty Images.)
(Photo by Parinda Yatha/EyeEm/Getty Images)

Sign-up bonus: None

Rewards rates: Earn 3% cash back in the category of your choice and 2% cash back at grocery stores and wholesale clubs (on up to $2,500 in combined spending each quarter on choice category, grocery stores and wholesale clubs, then 1%); 1% on all other purchases.

Who should apply: The Bank of America Cash Rewards Credit Card for Students is unique in that it offers plenty of flexibility in its award earning structure. It merits consideration if you want a cash-back card that you don’t need to replace when you graduate from college.

The card has a 3-2-1 cash-back system, and the cardholder can select which category they want to earn a 3% bonus on each month. Your options include gas, online shopping, dining, travel, drugstores, home improvement and furnishings. The card also earns a consistent 2% back at grocery stores and wholesale clubs and 1% elsewhere.

However, it’s important to note that the 3% and 2% bonus categories are limited to your first $2,500 in combined purchases each quarter. Once you reach that threshold in a quarter, all your purchases revert to 1% cash back.

Related: Best credit cards for college students

Citi® Double Cash Card: Best for flat-rate cash back

Sign-up bonus: Earn $200 cash back after you spend $1,500 on purchases in the first six months of account opening.

Rewards: Earn 2% cash back on every purchase (1% when you buy, plus 1% as you pay).

Who should apply: If you’re looking to earn a solid cash-back return on everyday purchases beyond your first year, you may want to consider the Citi Double Cash Card. As its name suggests, the card earns 2% cash back on all purchases (1% when you buy, plus 1% as you pay off your statement). While other mid-tier credit cards may have more valuable perks, 2% back on everything leads the pack in terms of the best no-annual-fee credit cards. Plus, there’s no limit on the amount of cash back you can earn.

Like the Chase Freedom Unlimited, opening the Double Cash card can unlock more valuable rewards in the future. Cardholders who also have the Citi Premier® Card or Citi Prestige® Card can effectively convert their Double Cash earnings into fully transferable Citi ThankYou points — which TPG values at 1.8 cents apiece. As a result, this unlocks the ability to transfer your points to Citi’s 15 airline partners and redeem for flights. If you value simplicity with no restricting categories to keep track of or enroll in, a respectable 2% earning rate and no annual fees, the Citi Double Cash Card is a compelling choice.

Related: What credit score do you need to get the Citi Double Cash Card?

Just note that the Citi® Double Cash Card charges a 3% foreign transaction fee, so you won’t want to use it outside of the U.S.

The information for the Citi Prestige card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

OpenSky Secured Visa Credit Card: Best for no credit check

(Photo by John Gribben for The Points Guy)
(Photo by John Gribben for The Points Guy)

Sign-up bonus: None

Rewards: None

Who should apply: Looking to build credit and don’t mind paying a nominal annual fee of $35? While this card lacks any perks or rewards, the OpenSky Secured Visa Credit Card reports your payment activity to all three major credit bureaus, helping you boost your credit score when paying your balance off each month. With an easy approval process, this card may provide the key to a better financial path.

This is a foundational starter card meant for individuals looking to build credit by making on-time payments. In terms of secured cards, the OpenSky Visa is one of the few that you can qualify for without a bank account or credit check. That means if you’re grappling with past financial mistakes or just have bad to poor credit, this is a card that might be on your radar. Additionally, those without any credit history, like students, can start their credit from scratch.

Related: OpenSky Secured Visa Card Review

Doing so will also open opportunities for car loans and mortgages with lower interest rates. This makes a secured card, such as the OpenSky Visa, a much better option than using cash or prepaid cards since those payment methods don’t help in prospering credit.

Bottom line

If you’re looking to build or repair your credit with a credit card, you’ll want to make sure the card you get will report your payment activity to the credit bureaus. All of the cards described in this guide do so.

Related: Ways to use cards responsibly

Your credit report (which includes your payment history, accounts and more stats about your relationships with lenders) and credit score are what lenders look at when deciding to approve you for lines of credit. This includes mortgages, small-business loans, car loans, credit cards and even apartment rentals. The higher your score, the more likely you will be approved and the better your interest rates on accounts will be.

Credit cards aren’t the only way to build credit, but they are one of the easiest ways. If used responsibly, credit cards can be a useful financial tool and get you on your way to building good credit.

Related: Things to understand about credit before applying for cards

Additional reporting by Ryan Wilcox, Stella Shon and Juan Ruiz.

Featured image by Getty Images
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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How we chose these cards

Our points-obsessed staff uses a plethora of credit cards on a daily basis. If anyone on our team wouldn’t recommend it to a friend or a family member, we wouldn’t recommend it on The Points Guy either. Our opinions are our own, and have not been reviewed, approved, or endorsed by our advertising partners.
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TPG featured card

Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards

2 - 10X points
10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day

Intro offer

75,000 bonus miles
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

Annual Fee

$395

Recommended Credit

740-850
Excellent
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023
Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day
  • Intro Offer
    Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

    75,000 bonus miles
  • Annual Fee

    $395
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    740-850
    Excellent

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023