Best Starter Credit Cards

The secret’s out: there’s no need to go into debt to build your credit score! That’s right, credit cards can be great tools to help young adults build high credit scores. When used in the right way, the best starter credit cards can help you start your financial life on the right track. If you’re on the search for your first credit card, be on the lookout for these three things:

 

1. No annual fees

When starting to use a credit card for the first time, you may want to opt for a card with no annual fees to worry about. The last thing you want is to sign up for your first fancy credit card and get smacked with a $120 bill. That will send you running back to your debit card in no time! A credit card with no annual fees will let you reap all of the benefits with no financial obligations. As long as you pay your card off in full every single month (no, not just the minimum payment!), you can use this card for free and get some rewards from it as well.

 

2. Simple but useful rewards system: cash back

There are many credit card rewards options but my favourite is a simple cash back card. For example, you might choose a card that gives you 1% cash back when spend on gas, groceries and restaurants and 0.5% cash back for every other purchase. Every year, you’ll accumulate cash that will be credited back to your card. It’s truly as simple as that.

My first credit card was the Scotiabank SCENE Visa, but I wish I would have just gone with a simple cash back card like the Scotia Momentum No-fee Visa. There’s nothing quite like money in the bank when you’re a struggling student or young professional! 

 

 

3. Wide acceptance

For the best starter credit cards, opt for Visa or Mastercard as these are the most widely accepted cards in North America. Any store that accepts credit cards will most likely accept both Visa and Mastercard! 

 

Remember, you don’t need to go into debt to raise your credit score. Using a credit card to purchase day-to-day items and paying your card off in full every single month is more than enough to build an outstanding credit score. Learn more at The Ultimate Guide To Credit Cards. Best of luck!

 

 

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Disclaimer: I am not a certified financial planner or investment advisor. The ideas posted on this website are my own opinions on how I manage my personal finances. The content is specifically for educational and informational purposes and is not considered professional financial advice.