Best first credit cards

Credit cards for beginners are designed to be accessible even to those with little to no credit history. However, they still have the following requirements:

• You need to be old enough to open an account. Legally, you can get a credit card at age 18, but the Credit CARD Act of 2009 says you must demonstrate you have independent income or else open an account with a co-signer. That restriction ends at age 21, making it the earliest many people can get a first time credit card.
• You need to have income. Credit card companies want to know you can make payments, and application forms ask about for your income. Income can include money from a job, unemployment benefits, investments, alimony or other funds you may reasonably have access to, such as a spouse's earnings. Income information is used to make approval decisions as well as determine how much credit to extend.

And really, that's it. If you don't have a credit history or have a poor credit score, your choices may be limited, but there are still card options for you, such as secured credit cards and credit cards for limited credit.

You don't need a job to get a credit card, but issuers aren't likely to approve your application if they don't think you can pay off your purchases. Fortunately, they will consider more than job earnings when making their decision. Alimony, unemployment benefits, scholarships and income from another household member, such as a spouse, can be considered.

If you don't have any of these, you could get access to credit in one of the following ways:

• Finding a co-signer for your application
• Becoming an authorized user on someone else's account
• Applying for a secured credit card

Yes, there are many cards designed specifically for those who are building credit. Some of these are student credit cards that may or may not require proof of college enrollment. However, there are options for applicants who aren't in school as well.

For instance, the CardName will let applicants with no credit score link to their bank account to demonstrate their credit worthiness. As a bonus, this card offers some nice cash back rewards. (Petal credit cards are issued by WebBank, Member FDIC; See Rates and Fees)

Since every credit card application can affect your credit score, you want to be selective about which cards to pursue. Here's what to look for in a first time credit card:

Credit requirement: Some card issuers are very clear on their website about the credit level needed for each card. For cards from other issuers, you may need to check CardRatings.com reviews for that information. If you have little or no credit history, look for cards designed for those building credit.

APR: It's always best to pay off your balance each month, but if you think you'll be carrying a balance or financing a large purchase, look for a card with a low APR to limit the amount of interest you'll pay.

Fees: Credit cards can come with a slew of fees - from annual fees to foreign transaction fees. Read the fine print before applying so you understand how much a card will cost you beyond interest charges.

Deposit requirement: Many of the best first credit cards are secured cards, which means a deposit is required. Don't get discouraged by this. Some secured credit cards - such as the CardName - will review your account and may move you to an unsecured account once you have a history of timely payments.

Credit reporting: Credit cards from major issuers almost always report to the credit reporting companies Experian, Equifax and TransUnion. If you are applying for a card from a lesser-known company, double check to make sure they do so as well. You want your timely payments reported so you can build a positive credit report and score.

Picking your first credit card is not unlike picking your first apartment or your first car. What you NEED is more important than what you WANT. You want a card that is functional for your lifestyle, will help you build your credit and, if possible, provides some useful benefits. You don't want a card that only offers perks you would never use. You also want to apply for a card you have a good chance to be approved for. Applying for and being rejected for cards not only wastes your time but can actually be damaging to your credit score.

Therefore, you want to know your credit score and your credit history before starting the process. Take an honest look at your lifestyle and your spending habits. Take time to shop through a number of cards, looking at terms, interest rates, bonus offers, rewards and other benefits. You will also want to take a close look at the various fees a card charges. These fees can catch a first-time cardholder by surprise if you are not prepared.

When you're starting out in the world of credit cards, you might find that there isn't much to get excited about. The CardName is one of the few first credit cards that offers a rewards program, bonus opportunity and 0% introductory APR offer with no annual fee or security deposit. Basically, it comes with everything you'd want to start out with on a credit card and the benefits can be valuable even for people on their second, third or fifth credit card. Because of this, CardRatings experts rate this card as the best first credit card.

However, the best first credit card for you will depend on your creditworthiness, your spending and the goals you have in mind for the first card you sign up for. For many people, a secured credit card like the CardName is actually better to start with because having a security deposit on the line helps stay on track.

That depends on how you use your card. If you make regular purchases and pay them off each month, your credit score should go up. If you are late on payments or go over your limit, that will cause your score to drop.

It also bears noting that applying for a credit card usually results in a hard inquiry on your credit report. Each inquiry can temporarily drop your credit score by a few points and that's one reason to limit your applications. If you want to avoid a hard inquiry, you could apply for the CardName which doesn't perform a credit check on applicants, but does require a minimum $200 security deposit to establish your initial line of credit.

Learn more about how credit cards affect your credit score. 

In many cases, the best credit cards for beginners are secured cards that requires a deposit. Approval is usually easier to get with these cards, and they can be used to establish a positive pattern of payments. That, in turn, should boost your credit score.

If you don't want a secured card and are a college student, you may be able to get an unsecured student card. Others may want to look into options such as the CardName or the CardName, which is available to those with limited credit.

There are cards with no preset spending limits, but these exclusive cards are typically only available to those with high incomes and excellent credit. The Centurion Card from American Express - also known as the Black Card - is one example. It's so exclusive though that only those invited by American Express can apply.

Even the best first credit card will have a credit limit so a "no limit" card is something to maybe shoot for in the future, not right now.

That depends on your priorities.

If you are trying to instill good spending habits, we like the CardName which earns additional cash back when you pay on time. For great rewards and no annual fee, we recommend the CardName. And if you find yourself eating out a lot, the CardName may be the right choice for you.