Buzz
The first few years post-college can feel like you've been thrown into a chaotic game show. You're trying to manage a new career, a growing list of living expenses, saving for retirement, and the looming weight of student loans with a tight grace period. Plus, you’ll need to build credit to make sure your finances are appealing when it’s time to make big purchases like homes or cars.
It’s not all bad, though. A credit card can offer extra consumer protection and provide assistance in handling worst-case scenarios like credit card fraud. Even if you're great at budgeting and avoid debt, you should still seek out a card that rewards newer credit users, even if those rewards are small.
Here’s a selection of credit cards that can help you get comfortable with credit without the complexity of high-end travel card reward systems.
This list considers a few key factors:
How simple is it to earn points, and how straightforward is the redemption process?
If there’s an annual fee, are the benefits significant enough to justify it?
Are there bonus offers that can help boost your initial earnings quickly?
Capital One Journey Student Credit Card
Rewards: Earn 1% cash back on every purchase. By paying on time, you can increase your cash back to 1.25% for that particular month.
Signup bonus: Currently, there is no signup bonus available.
Annual fee: No annual fee.
Bonus perks: Make your first five monthly payments on time, and you could qualify for a higher credit limit.
Why we like it: Designed for students with limited credit history, the Journey card is also open to non-students. The cash-back program is simple and avoids overcomplicating things, while rewarding on-time payments encourages responsible credit behavior. Though the card comes with a higher interest rate of 26.99%, it can serve as a deterrent from overspending and accumulating debt if you're new to using credit cards.
Citi Rewards+
Rewards: Earn two ThankYou Points for every dollar spent at supermarkets and gas stations up to your first $6,000 each year. On all other purchases, earn one point per dollar. Citi also rounds your points to the nearest 10 on every transaction, with no cap on the amount that can be rounded. For instance, a $2 coffee will normally earn you two points, but Citi rounds it up to 10. Points can be redeemed for purchases at retailers like Amazon and Best Buy, or exchanged for gift cards to various stores.
Signup bonus: Receive 15,000 bonus points after spending $1,000 in the first three months.
Annual fee: $0
Bonus perks: Enjoy 0% APR on purchases for the first 15 months.
Why we like it: Citi Rewards+ is a great option for earning rewards on everyday purchases. The signup bonus has a low spending threshold, making it ideal for those with limited credit history. Plus, the 0% introductory APR for the first 15 months is a valuable benefit not often found on basic rewards cards.
American Express Everyday
Rewards: Earn two Membership Rewards points per dollar spent at U.S. supermarkets, up to $6,000 annually. On all other purchases, earn one point per dollar. Points can be redeemed for travel, gift cards, or used as cash back to offset previous charges.
Signup bonus: Spend $2,000 in the first three months to earn 20,000 Membership Rewards points.
Annual fee: $0
Bonus perks: Make at least 20 purchases in a billing cycle to receive an additional 20% in points on those purchases. This perk becomes available after your signup bonus period ends.
Why we like it: The American Express Everyday card provides top rewards on two key categories while keeping the rest of the earning process straightforward. With flexibility in how you redeem your rewards, you can choose between using them for cash back, travel, or other rewards. However, new credit users should be cautious of the temptation to overspend in order to earn more rewards, and keep in mind that American Express isn't accepted everywhere.
Apple Card
Rewards: Earn 3% cash back on Apple purchases, 2% when using Apple Pay, and 1% on all other transactions.
Signup bonus: Currently, there is no signup bonus available. The card was launched in the summer of 2019, so a bonus might be introduced once the initial excitement settles down.
Annual fee: $0
Bonus perks: Cash back is given daily, unlike other cards that make you wait until the end of the billing cycle. Additionally, Apple doesn't impose fees for late payments, cash advances, international transactions, exceeding your credit limit, or returned payments.
Why we like it: While I’ve been pretty ho-hum about the Apple Card so far, it does have features that make it a good choice for new credit card users who are comfortable managing finances through their mobile device (specifically an Apple phone). The Apple Card automatically categorizes your purchases and assigns colors to them, providing spending summaries by day, week, or month. It also allows you to see exactly how much interest you'll pay based on your payment decisions.
