Best First Credit Cards (2024)

If you don’t have a credit card—you rely exclusively on a debit card or even pay cash—opening one can have some big financial advantages.

On-time credit card payments can improve your credit score, helping you qualify for better terms on a mortgage or car loan. Credit cards also come with stronger purchase and fraud protections than debit cards do. Then, of course, there are the rewards—from generous sign up bonuses to points and cash back across your spending.

• Best if you have no credit history
• Best for students
• Best for cash back rewards
• Best for travel rewards
• How we picked

But you need to be careful too. Credit cards’ benefits can easily be overshadowed if you end up using your card to rack up unnecessary debt, especially with interest charges currently averaging 20%. It’s important you always pay your bill in full each month and choose the right card to begin your credit journey.

To help, Buy Side from WSJ identified the four best first card options for novice credit card users.

Best if you have no credit history

Those who’ve avoided credit cards because of a lack of credit history or a poor credit score, should opt for a “secured” card. These credit cards require an upfront deposit to use, which acts as your credit limit and lessens the risk to card issuers of extending you a line of credit. In return, you can swipe the card like any other, build up your credit score with on-time payments, and receive your deposit back when you close the account.

Our favorite secured card, the Discover it Secured, requires no credit history or credit score for approval, charges no annual fee and offers a generous introductory offer as well as solid rewards for your spending—not something many other secured cards can claim. It also offers the clearest and quickest path we found toward conversion to a standard credit card. (Looking for more options? Check out our list of Best Secured Credit Cards.)

To get started, you will need to put down at least a $200 deposit, but the card offers 2% cash back on all gas station and restaurant purchases, up to $1,000 per quarter and 1% cash back on all other spending. Charge $500 a month on your card and you’ll get at least $60 a year back—use half that monthly sum to finance gas and dining out and you could get back an additional $30 per year.

You’ll see the most bang for your spending in your first year with Discover’s introductory bonus, which matches all the cash back you rack up within your first year. This unique feature marks Discover as the only major card issuer we found to provide a sign-on or intro offer for a secured card.

In addition to cash back, Discover will reward good repayment behavior by returning your deposit and automatically converting your card to an unsecured one after you make six consecutive on-time monthly payments, assuming you also remain in good standing on all other credit accounts during that period. Meaning in under a year, you could be swiping a traditional credit card and well on your way to establishing or rebuilding your credit.

Best for students

Even though many students also have no credit history or a very limited one, many major credit card issuers offer products exclusively designed for undergrad and graduate degree seekers. Issuers will waive many of their credit requirements in exchange for information about where you’re enrolled, what degree you’re pursuing, the number of years you’ve been in college and your expected graduation date. You will also need proof of employment (like a work-study job) or an adult cosigner.

If you’re in school and looking to build credit with your first card, consider the Capital One SavorOne Student Cash Rewards Credit Card. While its standard cash back rate of 1% on all purchases is not the highest you’ll see for a rewards card, it makes up for this by paying out a generous 3% on spending categories you’re likely to actually use, like dining, entertainment (including popular streaming services like Netflix and Hulu) and groceries (though it excludes superstores like Walmart and Target). For a student spending $1,000 a month on their credit card that would equal at least $120 in cash back a year. Those who spend half that amount on purchases within the bonus categories could double their rewards.

In addition, the card offers a sign-up bonus of $50 when you spend $100 in the first three months, comes with no annual fee and doesn’t charge any foreign transaction fees. You can also boost your cash back rate by shopping through specific portals. Booking a hotel or rental car through Capital One Travel will earn you 5% cash back, while tickets purchased through the Capital One Entertainment platform get you 8%. (You can also check out our other picks for Best Student Credit Cards.)

Best for cash back rewards

Those who’ve left school behind and have some experience successfully repaying debt, maybe an auto loan or student loan, can opt for a first credit card that will give them extra perks in return for swiping. The Wells Fargo Active Cash card delivers the top flat cash back rate—2% across your spending—that we could find among major credit card issuers, while simultaneously being simple and straightforward to use.

While you need a credit score of 670 or above to qualify for this card, it doesn’t charge an annual fee, cap your rewards or set expiration dates on redeeming them. You also won’t need to track changing categories to maximize your return. (Also check out our other favorite cash back cards.)

If you spend $500 within the first three months, Wells Fargo provides a $200 welcome bonus. That’s a decent intro offer that’s among the easiest to qualify for. If you spent $3,000 a month on your credit card, like the typical Wall Street Journal reader does, you’d earn $720 in cash back, or $920 your first year with the sign-up bonus.

Best for travel rewards

Those frequently on the road for work or exploring the world on their own time may be best served with a credit card that rewards them for globe-trotting. Our favorite travel card for beginners is the Capital One Venture Rewards Credit Card. Thanks to its easy-to-earn and easy-to-redeem rewards program, newbie credit card users can quickly master how to maximize their miles and save on future travel purchases. (Keep in mind that, as with other rewards credit cards, you need strong credit to qualify for this card.)

Most travel cards offer different earning rates depending on what you’re buying and from where, making it tricky at times to keep track and get the most out of your card, especially when paying an annual fee. Capital One’s Venture card solves this issue by rewarding all spending equally: 2 miles for every dollar charged. The exception being hotel and rental car purchases booked through the Capital One Travel portal. These buys earn a more generous 5 miles back for every dollar spent.

While this isn’t the most generous return rate you’ll find across travel credit cards, the simplicity of Capital One’s option makes a lot of sense for first-time card users just learning how to navigate travel rewards. For instance, with no tracking or special travel portal purchases, someone spending $3,000 a month on their card, would earn 72,000 miles per year. Combine that with the card’s introductory bonus of 75,000 miles for spending $4,000 within the first three months, and a new user would net 147,000 miles within the first year.

Miles are easy to convert into actual travel benefits with this card too. Each mile is worth 1 cent and can be redeemed for flights, hotel stays, car rentals or other travel costs via the Capital One Travel portal or any other travel site.

You won’t need to worry about foreign transaction or currency conversion fees when spending on the card overseas, and you’ll get access to Hertz Five Star status as well as up to $120 for a Global Entry or TSA PreCheck application fee every four years.

These perks in addition to the 75,000-mile signup bonus, worth $750, can help offset the cost of the card’s $95 annual fee initially, but you’ll need to monitor your spending in subsequent years to ensure you come out ahead. Charge more than $400 a month on the card and you should come out ahead. (Looking for more travel credit card options? Check out our full list of Best Travel Cards.)

How we picked

To pick Buy Side from WSJ’s Best First Credit Cards, we looked at both secured and unsecured cards that offer the best perks for newbie users. We favored cards with generous cash back or points rewards rates and solid introductory or sign-up bonuses. Equally important were cards that were straightforward to use and didn’t come with gimmicks or complicated rules so first-time credit card holders could easily earn those benefits.

To find out more about how we choose credit cards—and to meet our panel of experts—you can also check out Buy Side from WSJ’s full best credit cards methodology.

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