Before choosing your starter credit card, there are a few key considerations to keep in mind. Be on the lookout for the following:
Account reporting to the three main credit bureaus: When your credit issuer reports to Experian, Equifax, and TransUnion, it lets you maximize the credit history you’re building with your card and helps you graduate to better credit cards in the future.
Affordable security deposits: If you’re applying for a secured credit card, you don’t need a huge credit limit. This means you should look for a card with a reasonable minimum security deposit.
Low or no processing, maintenance, or annual fees: Credit card fees are only worth it if you get rewards and perks that offset the cost. With starter cards, you don’t get many perks, so paying for fees is useless and unnecessary.
Low APR: Unfortunately, high APR credit cards are usually unavoidable if you have no credit or a bad credit score. As a result, you’ll want to diligently pay off your balance each month to avoid costly rollovers that tack on high interest payments.
What all of that boils down to is that you should look for an affordable credit card that helps you build your credit.