4 Common Misconceptions About Best Credit Cards For Beginners | best credit cards for beginners

There are really no hard-and-dry guidelines for beginning with a new credit card. However, most experts would suggest that you get a better than average credit score of at least 580 before signing up for any credit cards. This is a bare minimum standard, but it is one most experts would agree on. Anything less than this is considered poor by many experts and may hurt your chances of getting approved for any card or loan. Getting a good score is extremely important these days because the interest rates have been constantly rising.

If you plan to start building credit while you are still a beginner, then the best option would be to get a starter credit card, such as a MasterCard or Visa. These two types of cards are simple to use and give you the opportunity to build a decent amount of credit before you start buying more expensive stuff. However, these two cards do come with their drawbacks. That's why experts always recommend beginners sign up only for a secured card, rather than a starter credit card or an unsecured one.

Why should this be the case? Usually, the best credit cards for beginners are offered by credit card issuers that have relatively good market reputations. In other words, issuers know that if they offer beginners a starter card that's backed by a strong brand name, the risk of fraud is minimal compared to issuing the same to someone who has no credit history at all. That's why issuers tend to offer these types of cards to those with good credit histories.

So how do you find the best credit cards for beginners? It's actually quite easy. If you want to get approved quickly and save as much money as possible, then the easiest way is to find issuers who offer no annual fee. Of course, annual fee-free cards usually have higher interest rates – which should also be considered when choosing your starter credit card – so it would be prudent to compare the annual fee of various issuers to determine which ones have the lowest interest rates. Just make sure to read the fine print of your application to ensure that you won't be paying unnecessary fees.

Another option that you have to get approved quickly is to find issuers who don't have any annual fee. These cards usually don't have much credit limit and they also have very high default rates. But since they also don't have an annual fee, they are very attractive for first credit card applicants. So keep in mind that these first cards should have lower interest rates. Don't go for the issuer with the highest annual fee, though.

After you've found the best credit cards for beginners, you can then focus on building credit history. Credit cards for beginners should be used primarily to build your credit. You don't want to get yourself into a bad situation where you'll be stuck paying huge debt amounts that you can't pay back. To help you out of such a predicament, make sure to make payments on time and use your card responsibly.

Aside from building your credit history, you should also strive to keep your total debt to income ratio at 40% or lower. This means that you should have a substantial balance in your checking or savings account before using your credit card. To do this, you need to make sure to have a good FICO score, since the score will determine your ability to pay monthly installments.

The last thing you should remember is to always use your starter cards to pay off your high interest rate debts. Even if you've gotten yourself to a better financial situation, you should still try to reduce your total outstanding debt to income ratio. If you're unable to do so, then it's best that you use other ways to improve your credit score. Once you've improved your credit score, you can avail of other types of credit cards for beginners which offers low interest rates.

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