{"id":11717,"date":"2024-06-07T13:44:26","date_gmt":"2024-06-07T20:44:26","guid":{"rendered":"https:\/\/www.soundcu.com\/?p=11717"},"modified":"2026-01-05T09:03:22","modified_gmt":"2026-01-05T17:03:22","slug":"how-to-choose-a-good-first-credit-card","status":"publish","type":"post","link":"https:\/\/www.soundcu.com\/blog\/how-to-choose-a-good-first-credit-card\/","title":{"rendered":"How to Choose the Best First Credit Card in 2026: A Comprehensive Guide to Starter Cards"},"content":{"rendered":"<div class=\"co-flex_row co-flex_row__blue co-flex_row__long-form-text co-flex_row__next_row__blog-contributors\" >\n\t<div class=\"co-flex_row--row co-row\">\n\t\t\t<div class=\"co-long_form\">\n\t\t\t\t\t<div class=\"co-long_form--block co-long_form--block__nomedia prow items-start \">\n\t\t\t\t<div class=\"co-long_form--text pcol-md:8\">\n\t\t\t\t\t<div class=\"co-long_form--content\"><p>Getting your first credit card is a huge step towards financial independence, but if you didn\u2019t grow up in a household that talked openly about money and personal finance, you may not know how to pick the best first credit card\u2026 or even why you should get one in the first place.<\/p>\n<p>But you\u2019ll absolutely need a <a href=\"https:\/\/www.soundcu.com\/personal\/credit-cards\/\">credit card<\/a> in your adult life, for things like buying a plane ticket, renting a car, and, most importantly, building credit. Unfortunately, many of us don\u2019t build credit while we\u2019re in college because we aren\u2019t paying the kinds of bills that contribute to our credit score, explains Emily Thompson, Credit Cards Writer at <a href=\"https:\/\/thepointsguy.com\/\" rel=\"noopener\">The Points Guy<\/a>. \u201cWhen it\u2019s time to take out a car loan or get a mortgage, a lot of people have this huge hurdle in spite of financially responsible habits.\u201d<\/p>\n<p>But our credit score \u2014 that little three-digit number that determines so much of our financial lives \u2014 is incredibly important to start building as early as we can. Years of responsible spending on a credit card can establish you as a trustworthy candidate for future loans for bigger things like cars and homes. Here\u2019s how to get started.<\/p>\n<h2><span class=\"bold\">What Is a Starter Credit Card?<\/span><\/h2>\n<p>In short, a starter credit card is designed specifically for people who are new to credit. These cards typically have lower credit limits, fewer rewards, and higher <a href=\"https:\/\/www.soundcu.com\/rates\/personal\/credit-cards\/\">interest rates<\/a> than cards for established credit users, but they are also easier to get approved for. They&#8217;re an ideal option for students, recent graduates, or anyone with limited or no credit history.<\/p>\n<p>There are two main types of starter cards:<\/p>\n<ul>\n<li>Unsecured starter cards: These require no deposit and work like traditional credit cards.<\/li>\n<li>Secured cards: These require a refundable security deposit that usually becomes your credit limit.<\/li>\n<\/ul>\n<p>Both types help you build credit when used responsibly. Over time, consistent on-time payments and low credit utilization can help you qualify for better cards with more benefits. Before you apply, there are a few things to know.<\/p>\n<h2><strong>Before You Apply: Your Credit Report And Credit Score<\/strong><\/h2>\n<h3>How to Read a Credit Report<\/h3>\n<p>Even though it sounds a bit counterintuitive, you need to <a href=\"https:\/\/hermoney.com\/borrow\/credit-cards\/how-to-read-a-credit-report\/\" rel=\"noopener\">review your credit report<\/a> before you ever apply for your first credit card. Because some cards are only available to people with good or excellent credit, you may end up wasting your time by applying for cards you won\u2019t even qualify for. When you first check your credit report, you\u2019ll see a history of prior credit behavior. If you have student loans, for example, you should see them. If you don\u2019t \u2014 and you\u2019ve never borrowed before \u2014 you may not have a credit report. That\u2019s not something to be alarmed about. In fact, it\u2019s the opposite. If you\u2019ve never borrowed, a thick credit report with a lot of information is a sign that you may have been a victim of identity theft. Either way, make sure to read it carefully for any inaccuracies, and dispute them with the credit bureaus if you find them.<\/p>\n<h3>How to Understand Your Credit Score<\/h3>\n<p>Next, your credit score. A credit score is a three-digit number that typically ranges from 300 to 850. Your credit score is based on information in your credit reports, and the three main credit reporting bureaus: <a href=\"http:\/\/www.experian.com\/\" rel=\"noopener\">Experian<\/a>, <a href=\"http:\/\/www.equifax.com\/\" rel=\"noopener\">Equifax<\/a> and <a href=\"http:\/\/www.transunion.com\/\" rel=\"noopener\">TransUnion<\/a>, are in the business of gathering information for your credit file. They get that information from financial institutions and public records.<\/p>\n<p>Your credit score helps credit unions, banks and other businesses decide how much of a financial risk you are. It\u2019s based on your history as a borrower, along with several other patterns of financial behavior. If you have a low score, it can indicate to a lender that you could be more likely to pay late or default on a loan. Conversely, the higher your score, the better the rates you\u2019ll qualify for with mortgages, auto loans, credit cards, and other types of loans.<\/p>\n<p>Again, if you\u2019re new to credit, there\u2019s a chance you won\u2019t have a score at all. Don\u2019t let this discourage you. This means that while you likely won\u2019t be eligible for a fancy platinum card, as long as you have income, you should be able to get a solid starter card that\u2019s perfect for your needs as a first-time credit builder.<\/p>\n<p>\u201cIt\u2019s important to adjust your expectations, because a lot of what we think of with credit cards, in terms of rewards and things like that, just aren\u2019t going to be available to you on that first credit card,\u201d Matt Schulz, Chief Credit Analyst at LendingTree, says. But that\u2019s okay \u2014 the goal right now is building your credit and paying your bills on time, every time. The rewards can wait.<\/p>\n<p>Need help reading your credit report or figuring out what you qualify for? Contact us to speak with a Sound Credit Union team member. We\u2019re here to help you make sense of it all.<\/p>\n<h2>What to Know About Your Credit Limit And Interest Rate<\/h2>\n<p>When you get approved for a credit card, your credit union or bank will assign you a credit limit, or a maximum amount you can borrow. Especially when you\u2019re just starting out, this number will be pretty low, probably only a few hundred dollars to a couple thousand dollars. Keep in mind: This is a credit limit, not a spending goal. A good rule of thumb is to never use more than 30% of your credit limit, because if you go over that mark, your credit score will suffer.<\/p>\n<p>Paying on time, every month, and always paying your bill in full help to avoid the downsides of borrowing money: interest charges and late fees. With that said, things happen, and you may occasionally have a month or two where you need to carry a balance. Just make certain you always pay at least the minimum amount, since late fees can a) add up quickly and b) paying late damages your credit score, which is the exact thing you want to avoid right now.<\/p>\n<p>Speaking of interest rates, even good first credit cards usually have high interest rates. \u201cIf you can find a card in the low 20% range, you should probably scoop that up,\u201d Schulz says. \u201cBut don\u2019t be too surprised if your interest rate is 25% or higher.\u201d Of course, this just makes it even more important to only charge what you can comfortably repay at the end of every month. If you\u2019re not carrying a balance, you\u2019re not paying interest at all!<\/p>\n<h2><strong>What To Know About \u201cSecured\u201d Cards<\/strong><\/h2>\n<p>Ever heard of a secured credit card? For people with little to no credit history, secured cards can be a great way to start building credit. Essentially, the way secured credit cards work is that you put down a deposit \u2014 let\u2019s say $500 \u2014 which then becomes your credit limit for that account. Because your limit comes directly from a deposit you put down when opening the account, there\u2019s virtually no risk to the credit union or bank \u2014 which means almost anyone can get approved.<\/p>\n<p>\u201cI\u2019m a big fan of secured cards for somebody\u2019s first card, because they minimize the risk to everybody involved,\u201d Schulz explains. \u201cSecured cards can be a great stepping stone, but it\u2019s also something that you shouldn\u2019t have for all that long.\u201d<\/p>\n<p>The only downsides are that once you deposit money into your credit account, you can\u2019t then use it for other things \u2014 and you also can\u2019t increase your credit limit without putting more money down. So while secured cards can be great if they\u2019re the only credit card option you qualify for, plan to try to upgrade to a traditional credit card after you\u2019ve established a track record of a year to 18 months of on-time payments.<\/p>\n<p>Not sure if a secured card is the right move? Our team at Sound Credit Union can walk you through your options based on your credit history and goals. <a href=\"https:\/\/www.soundcu.com\/contact\/\">Get in touch<\/a>.<\/p>\n<h2>How to Choose the Best First Credit Card for Your Needs<\/h2>\n<p>Now that you know how credit cards work, it\u2019s time to choose the first card to go in your wallet. As much as we wish the \u201cultimate beginner\u201d credit card existed, it doesn\u2019t.<\/p>\n<p>\u201cThere\u2019s not a one-size-fits-all answer for what the best credit card is,\u201d Schulz says. \u201cIt really is about what you want from the card, how you spend on the card, and how comfortable you are with managing your credit card.\u201d<\/p>\n<p>Start by focusing on the cards available for someone with your credit score, and then start comparing everything about those cards, including interest rates, fees, any rewards offered, and other perks. And make sure you check with your credit union to see what\u2019s on their menu as well \u2014 often the interest rates are lower, and the fees (when there are any) are less.<\/p>\n<h2>How to Compare First Credit Card Options<\/h2>\n<p>Choosing the best starter card isn\u2019t about finding the flashiest rewards, its about what works for your situation. When comparing your options, here\u2019s what to focus on:<\/p>\n<ol>\n<li><span class=\"bold\">Credit Requirements:<\/span> Some cards require limited credit; others are open to applicants with no credit history.<\/li>\n<li><span class=\"bold\">Annual Fees:<\/span> Most good starter cards have no annual fee, which is ideal when you&#8217;re just starting out.<\/li>\n<li><span class=\"bold\">Interest Rates (APR):<\/span> Since beginners often receive higher interest rates, make sure to only charge what you can pay off monthly.<\/li>\n<li><span class=\"bold\">Security Deposit:<\/span> If applying for a secured card, check the minimum deposit and whether it&#8217;s refundable after a year of on-time payments.<\/li>\n<li><span class=\"bold\">Credit Reporting:<\/span> Ensure the card reports to all three credit bureaus (Experian, Equifax, TransUnion) to help you build credit across the board.<\/li>\n<li><span class=\"bold\">Upgrade Path:<\/span> Some cards offer a path to upgrade to a better, unsecured card without a new application \u2014 that\u2019s a huge plus.<\/li>\n<\/ol>\n<p>Whatever you do, do NOT fall into the trap of going into credit card debt to earn rewards \u2014 you\u2019ll never come out ahead. \u201cThe interest rate is way higher than the value of the rewards that you\u2019ll earn,\u201d Thompson says. \u201cYou might end up earning, say, a 5% return on your spending with your rewards, but if you\u2019re then paying 25% in interest, that\u2019s not a good deal.\u201d<\/p>\n<h3><strong>Got Your Card? Congrats! Now It\u2019s Time To Be Responsible With It<\/strong><\/h3>\n<p>Getting approved for your first credit card is a huge deal \u2014 but it\u2019s only the beginning. In order to build the kind of good credit that will set you up for a stress-free financial life, you\u2019ll need to make sure you pay every bill on time, and always try to pay your balance in full. Just set a budget for yourself and treat your credit card like regular cash (not an infinite resource), and you\u2019ll be golden.<\/p>\n<h2>Explore Your Credit Card Options With Sound Credit Union<\/h2>\n<p>At <a href=\"https:\/\/www.soundcu.com\/\">Sound Credit Union<\/a>, we offer credit cards that are built for real life: no annual fees, no balance transfer fees, and no foreign transaction fees. Whether you\u2019re just getting started with credit or looking for a low-interest option you can trust, we\u2019ve got you covered.<\/p>\n<p>Our credit cards offer:<\/p>\n<ul>\n<li>No surprise fees, ever.<\/li>\n<li>Secured and unsecured options to fit your credit history and goals<\/li>\n<li>Competitive rates as low as 11.20% APR<\/li>\n<li>Mobile-friendly features like card controls, real-time alerts, and Mobile Pay<\/li>\n<li>Quick approvals: online, over the phone, or at your nearest branch<\/li>\n<\/ul>\n<p>Compare Sound <a href=\"https:\/\/www.soundcu.com\/personal\/credit-cards\/\">credit cards<\/a> or <a href=\"https:\/\/www.soundcu.com\/contact\/\">talk to a team member<\/a> to explore your options, ask questions, and find the best first credit card for your needs.<\/p>\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t<\/div>\n<\/div>\n\n\n<div class=\"co-flex_row co-flex_row__last co-flex_row__blog-contributors\" >\n\t<div class=\"co-flex_row--row co-row\">\n\t\t\t<div class=\"co-blog_contributors\">\n\t\t\t\t\t<div class=\"co-blog_contributor\">\n\t\t\t\t<div class=\"co-blog_contributor--img_wrap\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/www.soundcu.com\/files\/Sound-CU-May-20258643-Tammie-Atoigue_300x300.jpg\" class=\"co-blog_contributor--img\" alt=\"Tammie Atoigue VP Consumer Lending\" srcset=\"https:\/\/www.soundcu.com\/files\/Sound-CU-May-20258643-Tammie-Atoigue_300x300.jpg 300w, https:\/\/www.soundcu.com\/files\/Sound-CU-May-20258643-Tammie-Atoigue_300x300-150x150.jpg 150w, https:\/\/www.soundcu.com\/files\/Sound-CU-May-20258643-Tammie-Atoigue_300x300-75x75.jpg 75w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/div>\t\t\t\t<div class=\"co-blog_contributor--content\">\n\t\t\t\t\t<h3 class=\"co-blog_contributor--name\">Tammie Atoigue<\/h3><div class=\"co-blog_contributor--title\">Vice President of Consumer Lending<\/div><div class=\"co-blog_contributor--bio text-component\"><p><strong>Tammie Atoigue<\/strong> is the Vice President of Consumer Lending at Sound Credit Union, where she utilizes her extensive experience to empower members in achieving their financial goals. She is passionate about member education, particularly around credit and smart borrowing, and frequently participates in industry speaking engagements to share her insights.<\/p>\n<\/div>\t\t\t\t\t\t<div class=\"co-blog_contributor--social\">\n\t\t\t\t\t\t\t<span>Connect<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.linkedin.com\/in\/tammie-umawatari-atoigue-40463b61\/\" class=\"co-social_share--link\" target=\"_blank\" rel=\"noopener noreferrer\" aria-label=\"LinkedIn\">\n\t\t\t\t\t\t\t\t\t<svg class=\"icon-svg\" viewBox=\"0 0 24 24\" role=\"img\" aria-label=\"Icon LinkedIn\">\n\t\t\t\t\t\t\t\t\t\t<use xlink:href=\"https:\/\/www.soundcu.com\/wp-content\/themes\/soundcu-theme\/images\/sprite-icons.svg#linkedin\" \/>\n\t\t\t\t\t\t\t\t\t<\/svg>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":10,"featured_media":10982,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_searchwp_excluded":"","footnotes":""},"categories":[50,23],"tags":[110,62,134,162],"class_list":["post-11717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-life-finances","category-financial-advice","tag-budgeting","tag-credit","tag-credit-card","tag-financial-education"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/11717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/comments?post=11717"}],"version-history":[{"count":12,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/11717\/revisions"}],"predecessor-version":[{"id":18011,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/posts\/11717\/revisions\/18011"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/media\/10982"}],"wp:attachment":[{"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/media?parent=11717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/categories?post=11717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soundcu.com\/wp-json\/wp\/v2\/tags?post=11717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}