The Best First Credit Card When You’re Just Starting Out
Whether you are 18 or 34 years old, getting your first credit card is an exciting time. It means you’re taking the steps towards building your credit and responsibility for your future.
There are so many credit cards out there to choose from though… So I’ve created this post to make it easy for you and give you the best chance of getting approved!
In this article I will tell you:
My favorite first credit card option
The card benefits
Basic tips for building good credit
Discover It Cash Back Credit Card
This card was the first credit card I got - right after I graduated high school! I knew that it was a good thing to start building credit while I was young, but wasn’t sure where to start. I had tried to apply for a few different cards, but was getting denied because of my credit history (which was nothing). But then I called Discover (their customer service is great!) and they recommended this card
TIP: if you are unable to get approved for a card when you apply online, call the company and ask what cards they have available for people with low credit, or student cards.
Why I love this card (and still continue to use it):
Discover has great customer service. I’ll expand more on this below
Offers 5% cash back on different categories each quarter - earn up to $75 cash back ever 3 months on the specific categories. Here’s some examples of the cash back categories . I will plan out certain purchases around this calendar so I’m getting the most money back!
1% cash back on all other purchases
Redeem cash back as statement credits, checks or get even more for your money through partner gift cards. For example, Discover offers a $25 gift card to Gap for only $20 cash back that you’ve earned. I always redeem for gift cards so I can get the most out of my rewards. Its great for giving as birthday gifts or treating yourself to something you’ve been wanting!
No annual fee
No interest for 14 months!
TIP: using the card to build your credit
Pay off the card, in full, every month. Do not leave a balance! You will have to pay interest on the balance and this is what leads people down a slippery slope of credit card debt.
Pay the card on time, every time! Mistakes happen though. There have been a few times I have made a late payment. There is a late fee associated with this. I kindly messaged Discover and asked if they could waive the late fee because I have been a responsible, loyal customer. And they’ve waived it!
After 6 months, ask for an increase on your limit (this can be done when you sign into your account online). Why do this? Because it will increase your available credit and decrease the percentage of your credit utilization. Say your credit limit is 6,000 and you owe 500 - your credit utilization would be about 8%. Now if your limit is increased to 12,000 and you owe $500, your credit utilization would be 4%.
Keep your first credit card open, forever!!! This will increase the length of your credit history, which is a factor in your credit score.
These are the strategies I used to reach an 800 credit score by the time I was 23 by using the Discover It Card. Now I have 4 other credit cards and I can say that this card continues to be one of my favorites. The 5% cash back categories are useful (groceries, Amazon purchases, gas, etc), I’ve made so much money in cash back over the years, and their customer service is great!
You can apply for the Discover It Cash Back Card here!
