The ABSOLUTE BEST Beginner Credit Cards (2022)
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- Äas pĆidĂĄn 3. 08. 2024
- In this video I discuss the best Credit Cards for Beginners in 2021 with no annual fee, good cashback rewards, interest rates, and ease of application in mind.
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You'll notice a common motif and theme here with all of the cards I am suggesting you take a look at - and that is that they have no ANNUAL Fee.
That is one of the biggest factors to consider when considering whether or not a credit card is good for beginners or not.
1) No Annual Fee.
And this doesn't mean it has no annual fee just for the first year, which many credit cards these days have - they like to offer you a promo for no annual fee the first year, but then they tack it on later. As a first time card holder, I would just go with something with 0 annual fee for life.
2) Low interest %. Now, if you're being responsible you ideally have 0 balance from month to month, which means that you owe the credit card company 0, but sometimes life gets in the way, a low interest rate is going to help you out here.
3) How good are the benefits/cashback? They have to be worthwhile to make it more valuable than using a debit card at the very least
4) How easy is it to sign up for and actually qualify for? We want to be targeting cards that we have a good chance of applying for and actually being approved for early on in our credit card journey.
Cards for 2021:
1. Discover It Secured
This card is one of the best first time cards, because when you're someone that doesn't have any credit, it's hard to establish a credit history.
A secured card essentially is a card that you need to put up collateral for. So you give Discover a low deposit (usually around $200) and in exchange they give you this card so that you can start spending money on it and building your credit.
After about 6-12 months of on time payments, you will be upgraded to an unsecured card which means they'll give you back your deposit.
2. Apple Card
The Apple Credit Card is actually issued by Goldman Sachs, and came onto market in recent years.
It is on this list because of how easy it is to apply for. One of the biggest barriers to actually applying for a credit card is that a lot of people are intimidated by the application process. Apple makes it super easy to do by doing it all from your phone.
It has good cashback rewards and transparency when it comes to your spending.
3. Visa Petal 2
The Petal 2 is much more straightforward, which is just 1% cashback and up to 1.5% cashback on eligible purchases. Beginner friendly, easy to apply for.
4. Wells Fargo Cash Wise
This ugly yellow card is actually one of the best flat-rate cash back cards out there for beginners.
Interest rate is actually 0% introductory for the first 15 months, and then 14.49% after that.
You get 1.5% flat cashback on everything, I love this, its so straightforward. This is like a mini Citi-Doublecash card.
Lastly, you also get $150 cash back when you spend $500 in the first 3 months, which means you get 30% cashback on your first $500 spent with them.
5. Bonus: Citi DoubleCash
Gives you 2% back on your purchases, it's one of the best cashback cards out there, and also has $0 annual fee.
It is one of the best cards out there so essentially your strategy when it comes to your own credit card journey should be that you apply for one of the first 4 cards i mentioned today, spend money on it for about 6-12 months and continually pay off the balance in full every time.
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0:00 Intro
1:10 Why Credit Cards?
2:07 Benefits of a Good Credit Score
3:36 Criteria for Beginner Cards
4:52 1. Discover It Secured
6:01 2. Apple Card
8:36 3. Visa Petal 2
9:37 4. Wells Fargo Cashwise Card
10:58 BONUS: Citi DoubleCash Card
11:59 A note on Credit Utilization
Got my first credit card at 18, a few years later I bought my first car. Having established credit going into your 20s is so, so, so important. School needs to have more banking and insurance advice.
Schools just donât teach this for some stupid reason. I didnât get my first credit card until I was 21 because I didnât want to âborrow moneyâ. When it came to buying my first car I couldnât get approved.
How where you able to get a credit card what company did you use?
@@michaelparamo3634 schools don't teach us this because they're ran by the government and the government is ran by corporations that profit off of us being poor.
Why would school teach this
That would mean we would have more millionaire's
And they don't want that
No no no please consider the idea that you do NOT need credit of any kind. It is completely possible. Please please please look into Dave Ramsey's Financial peace University!!
This dude just taught something that would take a highschool teacher days, in just 15 minutes and had all the information ever needed. Great vid man!
Glad I could help!
High school is a bunch of wasted time, they gotta have more financial stuff... Thank You đ
yes! you're welcome
exactly, my personal finance teacher in high school only told everyone that credit cards are the devil and to NEVER get one... other adults also told me not to get credit card
Nobody stops you from learning this stuff in highschool on your own. Quite frankly the people that are into this will get into this whenever is right for them. Others would just ignore it like any other subject in school.
Harjeet , you have Freedom to learn the knowledge. School is just a small step in Life. Most important is to Free your mind and learn . Narrow thinking will stunt your growth.
Learning this stuff in my 30âs and feeling stupid along with disappointed in the generation before me. I couldnât agree with you more.
Very well put together videos. Liked and subbed. I love how organized you are and how detailed the description is! Super helpful man thanks a bunch
Thanks for the sub! Appreciate it Seth!
Thank you. Very informative. Wished school teaches u this before getting into university. If only I knew this 10+ years ago. It seems discover fits my financial needs. Wish me luck.
The only thing educational systems do is teach you how to prostitute your life away to a job(corporation).
Just subscribed! Very informative and easy to follow. Thank you for the card recommendations. Going to binge watch all your videos and soak in all the knowledge I wish they taught us in high school! lol
New subscriber! Love the content dude. Do you have a video breaking down all of the accounts/banks you use and what you use those particular accounts for etc?? Would love to see how you split your funds and with what types of accounts etc. keep the đ„đ„ vids coming. Been a great help!!!
I dont but thats a great idea, its not sexy by any means, just standard but could be good content haha
Would you ever consider doing a video credit cards when it comes to airlines and which ones are worth it and what not?
did a very great job at explaining, thank you !
First time looking at your videos awesome job already subscribed and looking forward to learn more thanks a lot
Thank you Alberto!
I watched so many videos trying to see whatâs best for a beginner and none of them were as straight forward and easy than yours, thank you sm
WOW!! This came at the PERFECT time!! Thank you Humphrey!!
Youâre welcome!
I fixed my bad credit report with the help of a credit repair specialist at Credit Patch-Up LLC called Michael Gibbs [Gibbs@Creditpatchup.com] who I was referred to by my colleague, they helped me improve my bad credit, erased all the negative items affecting my score negatively and pay off collections. I now score an excellent 790+ across all 3 major bureaus. Feel free to reach out to him for help at [Gibbs@Creditpatchup.com] for excellent credit score.
I've been working on my credit and this video really helped me on alot of questions I had. I wonder which would you prefer if you had to choose one?
Thanks for All this SUPER valuable information! Subbed and liked!
Good video Humphrey, just liked! :) Definitely got some solid info here, thanks so much for the content. Keep up the great work, and I look forward to future content!
Great to hear :) glad that you got some info out of it
@@humphrey Of course! Keep it up.
yes, thank you so much for this video!!! very well explained with no fluff.
Thank you for the recommendation of what credit cards to use I just turned 18 and was trying to figure out which credit card is the best to start off with and this video really helped!!
Hello there
I have a question is the cash back like on the Wells Fargo credit card yours to keep. Like the $150 for the first 3 months. Thank you. Great explanation of video.
Thanks for suggesting the Wells Fargo card đ
Brilliant stuff Humphrey, remember me when you're at 1 million subscribers!
Remind me you wrote this if I hit a million and Iâll do something special for ya
@@humphrey I'll hold you to that!
Awesome list! I'd also add that the $0 Annual fee Chase cards are amazing as well, especially the Flex with the 5x on rotating categories and the 3x on dining/drugstore. Also starts the Chase trifecta (CSP/CSR?) for the future to make those points even more valuable!
Great points on all.
I don't trust Chase. It's a criminal organization that rips people off.
Thank you so much for this omg I was getting scared that all the cards were gonna need 500$ to secure it and thatâs all the money I have saved rn and it was discouraging me but this made me feel sm better
Great video for beginners! Definitely made me more confident to start my credit! đ
No no no please consider the idea that you do NOT need credit of any kind. It is completely possible. Please please please look into Dave Ramsey's Financial peace University!!
This was very informative and nicely explained!đ€đœ definitely subscribing!
I went:
1. Discover secure
2. Capital one Platinum
3. Apple card
4. American express blue cash
Only one I kind of regret is the âcapital one platinumâ but looking to upgrade to another capital one that actually gives rewards.
Favorite one has to be âamexâ.
Maybe a higher Amex, gold?
Is Apple Card worth it because it doesnât have sign up bonus
Thank youuu this is super helpful
glad you liked it!
this was sooooo helpful humphrey thank u soo much
Iâm 20 and struggling big time, getting a new Car/Truck. Not enough credit. But this is helpful. Really wish they would have taught some of these kind of Life Skills in school
Hi Humphrey, thanks for a great video. Do you think the Southwest Rapid Rewards card with Chase is okay for a beginner?
It is decent but a lot of the rewards will be tied to southwest so that is up to you
Thank you for this video! I just applied for the apple credit card, got approved, and set up apple pay. Its available to use right away. Youâre the best!
Love the "like a mustang line"đ
Ily bro lmaooo I just got my first credit card and I donât know where to begin, I read all the paper documents that I got from the credit company and got some of an idea of what to do, but I needed more! I know your from tiktok and this video explained very well on what the credit utilization is and now have a better understanding. Thank you đȘđœđ
Great vid Humphrey! I was looking into the Discover cards and noticed there is also a Student Cash Back Credit card. Iâm in college, would this be a better option than the Secured credit card you mentioned in the vid?
Yes
Thank you for creating this video!!!!
Great video!! Thank you for all the info!đ€đ»đ
Thank you!!!
That was super helpful!
Thank you!
Best timing for this!!!
Thanks! Ignore the bot comments btw.
Great video just subscribed. Honestly I only use my credit card aslong as I have the same amount in my bank account, not sure why so many people don't pay it off on time.
Great vid made me sub
Thank you for the insight, very helpful!
Glad you enjoyed it!
Hey Charlene, if you decide to use Discover, DM me on instagram and I will send you my referral link which will get us both a $50 statement credit if you apply and get accepted through my link. insta: charlievelazquez25
Love the content!
Thanks Hughes!!
You made me chuckle...that's hard to do. Congratulations. đ
love this video!!
Hey Humphrey! Such a great video! I wonder if I missed a video, but do you think we could get a video about cards and maybe future moves about rebuilding credit? Or just generally improving a score if you're like me and have a decent score, but not too great. Thank you again!!!
Hey Humphrey, I currently have a 704 credit score and I have 4 credit cards right now. I want to get the chase sapphire preferred next, but my credit age is 6 months. Should I wait for my credit age to at least get to a year, or should I try to apply for it?
Thank you
Nice video! Just got approved for the Apple Card! New subscriber here!
Thank you amazing videođ„
How should I go about applying for multiple cards and is it a good idea to have more than one card at first?
I love this. Itâs so simple and clear. I now know what credit card I want to apply for and I feel confident doing so!
hope it all works for you, good luck!
Hi Humphrey. Can I apply for the Apple Card and the chase card as well?
The reputation tour box in the back mad me trust you
would you suggest applying for multiple cards as a beginner?
Love the vid
Do you recommend having a higher credit line like 500$ rather than the 200$ minimum to build
More credit ? Also , do you recommend opening multiple credit lines as a first time credit builder (credit union?)
Do not open multiple credit cards as a first time credit builder. Only open one, the more you open at once, the more desperate you look to credit cards and on your report. This makes you a riskier person to give credit to and you'll be less likely to get accepted. Of course your credit line should be based on yourself and your self control, but generally the higher your credit line the better. This is because one of the important metrics used to build your credit score is "credit utilization" which is basically, what percentage of your credit line are you using each month? So $100 on a $200 credit limit is 500%, $100 on a $500 credit limit is 20%, a big difference!
@@nicoleeid4905 thank you!! I just got
Approved for the discover it and put the 200$ minimum. Do
You recommend only using around 15-19$ a month being that is the 9% credit utilization?
@@daejharivera8845 if your doing âsecuredâ credit cards you can open as many as you can afford cause at the end of the day your using your own money as credit to start off with. Eventually when you start being approved by regular unsecured cards thatâs when you take your time, Iâd say maybe 2-3 new cards every 3 months. Credit karma shows you your chances for approval for credit cards also which is a good tool. Credit unions are good to start with cause they tend to be more generous in the long run and just keep any credit card under 30% utilization unless itâs an emergency.
yes i did my discover it card with 1500 as a deposit and got it all back :)
I got a Discover IT card 3 months ago and put down a $400 deposit. In hindsight i wish i put down more money so i didnt have to pay off my balance as much. I never carry a balance on my card and always pay it off before the billing cycle is complete so that little to no money is actually owed the next month (if that makes sense, idk its kinda hard to explain). I love the discover card and my credit score is already in the Good range even tho this is my first and only credit card
in Jamaica we get rewards with both debit and credit cards not from all the banks here though but I do from NCB
Is the Costco anywhere Visa card a good 2nd credit card for a 18 year old?
Is there another video about what credit cart to get when you already have terrible credit score? Or is that covered well enough in the first card you mentioned
Discover It Secured, should do the trick.
Dropped a like. Prob the best intro Iâve seen
What if the benefits you can utilize throughout the year make up more than the annual fee cost? For example WiFi credits on flights, food discounts, and waived fees you would normally have to pay.
Well all these donât have annual fees. But on the cards with annual fees the points that you get for spending money should make up for your annual fee. And waived fees on different things like travel etc
I fixed my bad credit report with the help of a credit repair specialist at Credit Patch-Up LLC called Michael Gibbs [Gibbs@Creditpatchup.com] who I was referred to by my colleague, they helped me improve my bad credit, erased all the negative items affecting my score negatively and pay off collections. I now score an excellent 790+ across all 3 major bureaus. Feel free to reach out to him for help at [Gibbs@Creditpatchup.com] for excellent credit score.
I JUS SEEN U ON TIK TOK IM TRYNA LEARN â
I just got the capital one platinum secured card as my first credit, kinda sad it wasnât on this list, should I get one of these if I just got approved for my capital one platinum secured yesterday? Or should I wait a while?
Would I be able to build my credit with a Discover It Student Cash Back card? Would that also be considered a good beginner credit card?
Are any of these cards acceptable for someone post-bankruptcy, rebuilding their credit?
Was very curious about the Petal 1. Seems like a good one!
Iâm thinking of applying for the Wells Fargo and the discover secured card. Should I only get 1 if I get approved for both? Also, Iâm a student so is there a benefit for getting the student chrome or the student cash back rather than the secured credit card??
Student cards are easier to get approved for, only apply to one at a time. Being pre-approved doesn't mean your approved. If you're curious the major differences between the cards just do some comparisons on what they offer
Honestly Iâd avoid welsfargo! Discover it student card or secured card is good!
Is it good to apply for multiple credit cards when youâre just beginning or should I wait in between?
Multiple
@@kenzeyl9510 No, terrible advice
Wait in between. The more you apply to at once will make you look riskier because you look like you're desperate for credit to be able to spend money you don't have. Get one, be reliable with everything and paying it off, and ask two times a year for credit limit increases or once a year for a big increase. Once you've developed a strong credit score, then you can start applying for another one
Don't acquire cards too quickly, but it's okay to have multiple.
If you want to have several cards then you should check out Chase, they have some of the most generous rewards.
Will I know the amount of the credit limit for the card before Iâm approved? Or do I have to apply first?
What are your thoughts on the Wells Fargo active cash card
i have a question đ€ say you do get a credit card and you start building your credit. when is it ok to apply for another credit card?
I love Humphrey
Thank youuu Iâm 18 and going into sophomore year of college and really wanted to start building my credit with a credit card
Same but im 19
same but im 20
@@kageyamasmiling same but im 21
@@isabellavazquez-muniz9250 same but Iâm 75
What company are u using
I won't touch Wells Fargo, but the Propel card does a lot better than the Cash Wise in most common spending catagories. And, no fee.
Hey Mr. Yang great video! Question... if I utilize over 30% before my monthly payment is due am I able to make a payment in the middle of the month to bring that utilization % down before the monthly statement? & will this still be seen as a bad thing? or a positive thing?
Yes you can.
QuestionâŠ. When applying for a credit card they tend to ask you for your annual income, but what happens when you an 18 year old college student and have no more than 2 months of working an actual job?
What annual income to you put in those case? Your own or your parents?
Or do you just give an estimate of what you might earn that year yourself in your job?
I put the annual income of my job + any money I would regularly receive from my parents in a year. So, for example if my income is $12000/year, but I get $4000/year from my parents for rent/utilities/tuition whatever, I would state my income at $16000.
Very helpful
Glad to hear that
Question...if i make a purchase on the 5th by when should i pay the balance...a week after or at the my due date of avery month... Trying to avoid the interest obviously...thank you
As long as you pay before the due date you're fine.
oh wow it really is you. i see you on my instagram all the time. didn't think you were a real person
Honestly wish I knew of this now with no cards currently. I donât have any of these cards and one of them does have a annual fee. Ugh but now I know so thanks!
Youâre welcome
I fixed my bad credit report with the help of a credit repair specialist at Credit Patch-Up LLC called Michael Gibbs [Gibbs@Creditpatchup.com] who I was referred to by my colleague, they helped me improve my bad credit, erased all the negative items affecting my score negatively and pay off collections. I now score an excellent 790+ across all 3 major bureaus. Feel free to reach out to him for help at [Gibbs@Creditpatchup.com] for excellent credit score.
So if we shouldnât go 30 percent above our limit but we want to buy a new phone that cost 800$ and our limit is 1000$ we are better off paying cash or what do you recommend?
What does it mean to pay back?
How do you do it? What do you use?
dude i have an 86 SVO mustang, 2.3 Turbo, 5 spd handles on par with corvette of same year
I got the discover it card 8 months ago and have now been approved for the full line of credit and got my score to a 743. What should my next step be? If I spend $2-$10 on the card a month should I pay it off before the due date everytime?
For the visa 2 what did you mean by straight up cash back?
you should talk about regions bank credit cards
Can you do one for fixing your credit ?
Get a secured card from Discover.
Iâm looking at buying my first car soon and Iâm already pre approved for my loan, but I donât have a credit score yet. Would you recommend paying my payment with one of these cards?
Yes, if possible, it will help build credit for a payment you're already going to be making.
So would you recommend that once a purchase is made on a credit card to pay it right away or is there a time period you should wait in regards to building credit?
Iâm guessing from the video that you set a limit to what you spend in a month on a card and at the end of each month you pay that off
Remember to keep utilization in mind
Don't use more than 10% have your credit utilisation and pay it off on your closing date. Which is when you get your statement.
@@deadbro11 explain ..
I wanted to get chase freedom card for my second credit card but I was declined 5 months ago. Apparently it was because my chase balance on my savings/checking was low and my credit score wasnât ideal. How much do you think I should have in my chase bank account before applying again? When should I apply again?
Wow thatâs interesting they said they looked at your bank balances.
I hadnât heard of that before. But if you keep building your credit with your card you should reapply a year after you got declined the first time
I fixed my bad credit report with the help of a credit repair specialist at Credit Patch-Up LLC called Michael Gibbs [Gibbs@Creditpatchup.com] who I was referred to by my colleague, they helped me improve my bad credit, erased all the negative items affecting my score negatively and pay off collections. I now score an excellent 790+ across all 3 major bureaus. Feel free to reach out to him for help at [Gibbs@Creditpatchup.com] for excellent credit score.
How long have you had your first card for? They like to see at least one year of credit history on your oldest primary account if you don't have sufficient deposits with them.
They look at your savings and checking?! Tf
If I have a job and I need to deposit money, I would need a debit card correct? Also can you talk about other money platforms like PayPal and Venmo and their uses?
correct, a debit card to deposit, then a credit card to spend and then pay it off from your bank
Iâm trying to get my first credit card. What do you think about Chime?
Thanksssss
Can't wait to get my platlium card next week! đđđâ„ïž
I just got mine today am I supposed to pay anything with it and than pay it off
Yâall just know that for the Apple Card you need previous credit history otherwise you wonât qualify
Hi Humphrey, lets say my credit limit is $1000 and I use $800 but I pay it off before the closing date. Is my credit utilization rate 80% or 0%? Do you recommend I only use select purchases on my credit car and keep everything else on my debit card?
If you pay it off before the closing date, it would mean that your utilization rate is 0%. They count your utilization toward how much you owe ONCE your statement is out. So on your statement, it will show as 0% because u pay it off early. I always use over 30% utilization rate but I pay most it off usually. I usually keep a little bit of money for my statement to show that I have low utilization. And I finish paying it off once the statement is release.
Iâve got a question. For example, I opened a credit card with discover only bc I have no credit score. i know the idea of building your credit score but would I be able to apply to other banks for a credit card for future references? Or would I have to start over and still build a new credit score with that next bank that I am applying to?
You can apply to any bank or credit company. Just wait 6mon to a year before applying for a new card. You will have enough credit history to be offered better deals.
Couldn't you sign up for the apple card then use the apple card to buy an iphone? Like when you go to a store like best buy and apply for their card
Depends on how much credit you get i had 0 credit they declined me then said they will give me $250 credit line
Then went up in 6 months to $500
After a year $1750
With $250 you cant do nothing to begin with uk