When you’re beginning to use credit cards whether or not you’re a student or a worker, you will not have many options. Because you don’t have an established credit score, you will have a hard time getting credit cards. But this doesn’t have to be the case for everyone.
Although you can pretty much get any secured credit card you wish after placing the deposit, there should be a couple of unsecured credit cards you can get your hands on. Before we get to that though, what are the differences between a secured and an unsecured credit card?
Differences Between Secured and Unsecured Credit Cards
Secured Credit Cards: Lenders require a security deposit before issuing the credit card. The deposit is proportional to the available credit to you. These kinds of credit cards are designated for people with bad credit or no credit.
Unsecured Credit Cards: Lenders do not require a security deposit for these credit cards. If are found creditworthy, you will get the credit card you want. The available credit limit will depend on how much available credit you have.
As for which type of credit card you should get as a beginner, of course, an unsecured credit card. However, as mentioned above, unsecured credit cards are usually not given to people with no credit. If you’ve never used a credit card in the past before, the likelihood of getting an unsecured credit card is very low.
At the time of writing, the only unsecured credit card with the highest approval rate for beginners is the Capital One Platinum Card. It has no annual fee with a minimum $300 credit line. Although it doesn’t have any rewards for purchases, you can use it to avoid paying a deposit. Once you build your credit, you can qualify for better credit cards with plenty of perks.
On the other hand, if you don’t mind paying a deposit for getting a credit card, check these credit cards.