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　　on March 10, 2021 TweetIf you’ve never had a credit card before, getting started with one can be pretty daunting for the beginner. Without any experience in the world of credit, how are you supposed to know where to start, or which card to apply for first?

　　We rounded up our favorite credit cards for beginners into an easy-to-read list, and broke down why each card deserves a spot in your wallet. For this list, we focused most on ease of use, good value of points, and annual fee as reasons a beginner should have this credit card.

　　The Best Starter Credit Cards of March 2021:

　　Credit CardBest For…Main Benefit

　　Journey® Student Rewards from Capital One®Students1.25% Cash Back

　　Chase Freedom UnlimitedCash Back$200 Sign Up Bonus

　　Chase Sapphire PreferredTravel Points100,000 Point Sign Up Bonus

　　Journey Student Rewards® from Capital One® – Best for students

　　If you’re just starting to build your credit, there’s a good chance you’re a student. So long as you’re at least 18 years old, you can and should start building your credit by using a credit card responsibly – you’ll thank me in 10 years when you have a good amount of credit history to look back on. The Journey Student Rewards® from Capital One® card offers one percent cash back on all purchases, plus a 0.25 percent bonus when you pay your bill on time. We like this incentive, as it encourages good credit habits that a student can learn before moving on to more rewarding credit cards. There are also no annual or foreign transaction fees for this card, which makes it a great choice for students studying abroad. Check this card out.

　　Highlights from the Journey Student Rewards® from Capital One® Card

　　One percent cash back on every purchase.

　　0.25 percent cash back bonus for paying your bill on time.

　　No foreign transaction fees.

　　Chase Freedom Unlimited Card – Best for cash back

　　The Chase Freedom Unlimited Card offers 1.5 percent cash back on every purchase, and those purchases will be under a zero percent APR period for the first 15 months of card membership. There’s also a $200 sign up bonus when you spend $500 in three months, and no annual fee, which is why it made our list of Best Credit Cards with No Annual Fee as well! New to the card is the ability to earn 5% back on all travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1.5% on all other purchases. In addition, earn 5% cash back on grocery store purchases (not including Target or Walmart purchases) on up to $12,000 spent in the first year. These cash back benefits are great, but you can increase your savings even more by securing an Ultimate Rewards credit card and transferring your cash back benefits at a one cent to one point ratio.

　　Highlights from the Chase Freedom Unlimited Card

　　Pay no annual fee

　　$200 sign up Bonus when you spend $500 in three months.

　　1.5 percent cash back on every purchase

　　Chase Sapphire Preferred Card – Best for travel points

　　We’ve made the case for the Chase Sapphire Preferred card in the past, but in case you missed it, the Chase Sapphire Preferred card has an annual fee of $95. Its points are easy to earn, with a 100,000 point sign up bonus for spending $4,000 in the first three months. Plus, you’ll earn double points for dining and travel spend, and one point for everything else. These points can be used in a lot of great ways, like how I used Ultimate Rewards points on my trip to the Maldives!

　　Highlights from the Chase Sapphire Preferred Card

　　$95 annual fee

　　100,000 point sign up bonus when you spend $4,000 in three months.

Double points on travel and dining spend

　　How to build credit with a credit card when you're just getting started

　　At first glance, it appears to be a classic chicken-and-the-egg situation: You need a regular credit card to build up a good credit score—by showing you can pay your bills on time. But you need a good credit score to get a regular credit card in the first place. How does it work?

　　The answer is that there are certain kinds of credit cards that you can apply for without having a credit score. Here are your options:

　　Apply for a secured credit card

　　Become an authorized user on a credit card whose owner has a good credit score

　　Get a store credit card with a small limit

　　Find someone who will be a co-signer with you on a regular credit card

　　Once you have one of these, you can start to prove your creditworthiness—in large part by always meeting your payments and not maxing out your card. Once you have a history of on-time payments and prudent credit use, you're on your way to being able to apply for a regular credit card.

　　Below is a guide on how each option works, so you can choose the one that best fits your situation. But first, it helps to understand the very basics of how to build a credit score and what they're used for.

　　What is a credit score?

　　Your credit is a 3-digit score ranging from 300-850, and serves as a gauge of just how creditworthy you are. Lenders use these scores to determine whether you can have a credit card, and on what terms. The higher your credit score is, the better. A credit score is made up of factors like payment history, available credit, total balances, the mix of credit type, length of credit history, and the frequency and amount of new credit you're applying for. But on-time payments and a low "utilization ratio" are by far and away the two most important things as they make up large portions of your score. A utilization ratio is basically the amount of outstanding debt on your card, versus the credit limit on the card. There's no set number, but the rule of thumb is to try and keep your outstanding balance at less than 30% of your credit limit. You'll generally find that your payment history makes up 30% of your score while your credit utilization will make up another 30% of your score. Depending on the credit reporting agency, these two together could total up to 65% of your score, so it may be worth focusing on these two factors.

　　What is your credit score used for?

　　Lenders may look at credit scores to help them make loans and credit decisions and may also play a role in being approved or denied for apartment rentals, home loans, phone lines, student loans, credit cards and more. In addition to being used for approvals or denials for applications, your credit score may also determine interest rates and credit limits when it comes to regular credit cards and personal loans.

　　How to build credit with a credit card

　　You can build your credit with a credit card in the following ways:

　　Use a secured credit card

　　Secured credit cards may be an option for those with little to no credit. Secured cards are like pre-paid credit card, where the required security deposit is typically the same amount as the credit limit. Even so, they are used and paid off in the same way as a regular credit card, so they can be used to help establish a record of healthy spending habits.

　　Become an authorized user

　　Becoming an authorized user of a card held by a family member with a good credit score is one of the quickest and easiest ways of establishing a credit score. While it's not just family members who can authorize you to use their account, usually parents or other immediate family members are the ones to do this because they have to trust you to use their account wisely.

　　When you become an authorized user, the primary card holder will be sent an extra card with your name on it. Activity from that credit card will become reflected on the authorized user's credit report over time. This means that positive habits like making consistent on-time payments and keeping the credit card balance low will become reflected on the authorized user's credit report - in addition to the main account holder's.

　　On the other hand, any late or missed payments could will affect both the authorized user and main cardholder. If the primary cardholder sticks your card in a drawer instead, the on-time payments will begin to contribute to a good credit score over time.

　　Apply for a store credit card

　　Retailers and businesses will often approve applicants with little credit history for a store credit card. These cards usually carry a noticeably higher interest rate, yet your payments on these cards are reported by the three main credit score bureaus. They're one way of building up a good payment history–assuming you pay your bills on time!

　　Get a co-signer

　　An individual with established, strong credit, can serve as a cosigner on a credit card to increase your chances of being approved for a credit card when you have no credit. In this case, though, a co-signer is putting the fate of their credit score in your hands. Any missed payments on your part will damage their own credit score–as well as yours.

　　10 Best Credit Cards for Beginners in India

　　There is something about owning a credit card that makes you feel grown-up. You may have seen your parents use it and would have been longing to get one with your name on it. Now that you have a job, it is time to make your long-standing wish come true and get yourself the best credit card in India.

　　Many of you might have queries regarding credit cards, like, which are the best credit cards, how do I apply for a credit card, how to improve my CIBIL score after I start using my credit card?

　　Today, we will address the first question. There are so many credit cards in the market, and each of them claims to be the best. How do you identify one that truly works for you and meets your requirements as a new credit card holder?

　　10 Best Credit Cards for Beginners

　　The first step is to identify where you would be using the credit card the most. You can then select a card that offers the most benefits in that area.

　　If you shop a lot, then it would be better to get one that offers maximum points for shopping. If you are someone who travels a lot during the year, then try to get one that offers more points for booking tickets and allows lounge access.

　　Here are the top 10 best credit cards for beginners in India to help you pick the right one.

　　1. Citibank Cash Back Credit Card

　　True to its name, the Citibank Cash Back Credit Card offers cashback on almost every transaction. It has an annual fee of INR 500, but there is no joining fee. New cardholders also get additional savings worth INR 3,300.

　　Get 5% cashback when you book movie tickets and pay telephone and utility bills.

　　Get 0.5% cashback on all other transactions.

　　Get 15% off on dining at partner restaurants.

　　Get a 1% waiver on fuel surcharge at Indian Oil outlets.

　　Cashback is credited automatically.

　　2. American Express Membership Rewards Credit Card

　　The Membership Rewards credit card is the perfect example of why American Express cards are the most sought after.

　　It has an annual fee of INR 1,000. It also has a renewal fee of INR 4,500, which can be waived if you spend more than INR 1.5 lakhs.

　　Get 4000 bonus Membership Reward Points as a welcome gift

　　Get 1000 bonus Membership Reward Points on making four transactions of INR 1000 or more every month

　　Get one reward point for every INR 50 spent with the exception of payment towards fuel, utilities, cash advance, and insurance.

　　Get 20% off for dining at partner restaurants.

　　Get 5000 reward points upon renewing the card for the second year.

　　3. Standard Chartered Super Value Titanium Credit Card

　　While most cards offer cashback and rewards for shopping and travel spends, there are few that do so for fuel spends. This is one card that does.

　　It has an annual fee of INR 750, and the renewal fee is also INR 750.

　　Get 5% cashback on paying utility bills, phone recharges and on fuel spends.

　　On all other expenditures, get one reward point for every INR 150 spend.

　　Exclusive offers under Standard Chartered Good Life Programme.

　　Get add-on credit cards free of cost.

　　4. HSBC Visa Platinum Card

　　Do the annual and renewal fee on the credit cards bother you? Then the HSBC Visa Platinum card is perfect for you.

　　It has zero joining, annual and renewal fee.

　　Get two reward points for every INR 150 spend on the card.

　　Get 15% off for dining at partner restaurants.

　　Convert air miles to book flight tickets.

　　Get more rewards and offers upon spending more on the card.

　　5. HDFC Regalia Credit Card

　　If you are someone who spends in all areas and would like to be rewarded for your spending, then the HDFC Regalia credit card is just what you need.

　　It has an annual fee and renewal fee of INR 2,500. The renewal fee can be waived if you spend more than INR 3 lakh in a year.

　　Get 2500 reward points when you join and when you pay the renewal fee every year.

　　Get 12 complimentary lounge access.

　　Get four reward points on every INR 150 spent.

　　Get air accidental death cover and emergency overseas hospitalisation cover.

　　Multiple ways to redeem your reward points.

　　6. HDFC Bank Diners Club Rewards Card

　　If you travel abroad quite often, then the HDFC Bank Diners Club Rewardz Card is perfect for you.

　　It has an annual fee of INR 1,000. The fee is waived if you spend more than INR 1 lakh on the card.

　　Get three reward points on every INR 150 spent on retail.

　　Get 10X the reward points on international spends.

　　Get airport lounge access.

　　Use reward points to book flight tickets.

　　7. SimplyCLICK SBI Card

　　The SimplyCLICK SBI card offers excellent discounts and reward points.

　　It has an annual fee of INR 499. The fee can be waived upon spending more than INR 1 lakh on the card.

　　Get a gift voucher worth INR 500 upon joining.

　　Get one reward point for every INR 100 spent on the card.

　　Get five times the reward on online spends and 10X the rewards on online spends with SBI partners.

　　8. AXIS Bank Neo Credit Card

　　Love watching movies and shopping? Meet your soulmate in the Axis Bank Neo credit card.

　　It has an annual fee and joining fee of INR 250. Spend INR 2500 in the first 45 days to waive the joining fee.

　　Get two reward points for every INR 200 spend on the card.

　　Get a minimum of 15% off on dining at partner restaurants.

　　Get 10% discount at Myntra, Akbar Travels, BookMyShow and Freecharge.

　　9. AmazonPay ICICI Bank Credit Card

　　Amazon has become the go-to shopping spot for everyone’s needs. If you find yourself spending more on Amazon than anywhere else, then this is the best credit card in India for you.

　　There are no joining fee or annual fee.

　　Get 5% cashback on all Amazon purchases for Prime customers. The cashback becomes 3% for non-Prime members.

　　Get 2% reward points for bill payments and recharges.

　　Get 1% cashback on all other spends.

　　10. SBI Card Elite

　　Do you like the high-end lifestyle? The SBI Card Elite is the perfect card to complement your luxurious lifestyle.

　　It has an annual fee of INR 4,999.

　　Get two reward points for every INR 10 spent on the card.

　　Get five times the reward points on dining, grocery, and departmental store shopping.

　　Get nine Club Vistara Points on every INR 100 spent on Vistara flights.

　　Get the Best Credit Cards for Beginners in India

　　A credit card is a great way to build and maintain your credit score. If you use it judiciously, it can become your best friend and help you manage your finances better. Today, it is also easy to pay credit card bills online. If you are thinking of obtaining a credit card, make a choice from this list and watch as you save more on your expenses.