Everyone knows it's important to build credit, but where do you start?
If you've never had a credit card before, the number of options can be intimidating. Luckily, there are plenty of cards designed specifically for first-timers. Some reasons you may want one of these cards are if you've never had a U.S. loan or credit card under your name, have had one for less than 3 years, or irresponsibly handled your credit in the past. While these cards function the same way as other credit cards (you borrow money from a financial institution to make purchases, then you pay off your debt after a specific period of time), there are a few things that set them apart:
- Low credit limits
- High interest rates
- Limited (if any) rewards
- Upfront fees or deposits
Essentially, these cards are designed to help you learn about credit, build credit, and prove your ability to pay back your credit card company. Here are a few of the best starter credit cards available.
This card offers a cash-back earning rate that's nearly 50% higher than the market average, though it does charge an annual fee, so it's best for people who intend to use it regularly.
- 1.5% cash back for all purchases
- $39 annual fee
- No fee for international use
- Available to people with limited/fair credit
We love this card because it doesn't charge any of the fees for first timers that so many credit cards do. Also, in the first six months of opening this card, you earn 3% cash back on up to $2,500 of gas, grocery, and drugstore purchases.
- APR: 12.65% - 22.65% variable
- Intro purchase APR 0% for first 6 months
- No annual fee
- Foreign transaction fee: 3%
- 1% cash rewards for each $1 spent on non-everyday purchases
- Must have a Wells Fargo bank account and be a student to apply
This is a great option if you're worried about not being approved for a credit card, because no credit check is required to get this card. All that's required is that you're at least 18 years old and can afford a $200+ security deposit, a $35 annual fee, and monthly bill payments.
- 3% foreign transaction fee
- $200 minimum security deposit
- $35 annual fee
- Average APR
This card is specifically designed for people with no credit or very little credit. It's a no frills option that's a very solid choice for building credit.
- No annual or monthly fees
- Potential for a higher limit after 5 months
- 0% introductory APRs
- No foreign transaction fees
This is another simple card great for building credit. Unfortunately, this card does require an initial $200 deposit upon opening.
- No annual fee
- No foreign transaction fees
- Security deposit of at least $200
- Features a dollar-for-dollar match program for all cash back rewards
- Points or miles credit cards: different names, similar rewards - PayPath ›
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- U.S. News' 6 Best Starter Credit Cards ›
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- Best First Credit Cards for 2020: Build Credit - The Points Guy ›
- Best First Credit Cards of January 2020 ›
What is Robinhood?
The Robinhood app debuted in 2013 as a first-of-its-kind revolutionizing free investment platform. Much like the 700-year-old story of the hero to the people, Robin Hood, FinTech entrepreneurs Vladimir Tenev and Baiju Bhatt created the platform in order to make stock trading easily accessible to the general public and not just the wealthy.
The National Financial Educators Council (NFEC) surveyed young adults in 2017 and asked them what high school level course would benefit their lives the most.
The majority responded that money management was the course that would be most beneficial.
With personal debt is at its highest record and COVID-19 threatening to have the hardest economic effects on youth, understanding money and finances is an important life lesson that should be taught to children at a young age.
The following is a list of the best financial literacy lessons and tips to teach children throughout different life stages.
I thought I had a pretty good handle on my finances out of school. I worked several jobs while attending university and had little to no problem managing my income. However, once I graduated, I realized how much more complicated personal accounting could really be.
There were so many variables I needed to keep track of. Biweekly bills, monthly charges, and general necessities amounted to a heap of confusing numbers that were often impossible to decipher. The funniest part was that I was actually trying to do this by hand (I don't know what I was trying to prove to myself, either).
After messing up for the 17th time, I decided to give Microsoft Excel a shot. I used Excel a bit in school and I knew all the big-wig finance people used it, so what could I possibly have to lose? The answer is about six hours of my precious time. Excel isn't much of an improvement over handwriting and it's still dependent on the user to manually input all of the information. It's like doing everything by hand with the slightest help, meaning that it still required a tremendous amount of time and concentration. Well that was all for nothing, I guess.
It's sort of funny. I was certain that I could manage my personal finances with ease, when it's practically a full-time job. I was already stressed out enough with my first job and I knew I didn't have enough time to give my finances the attention it deserved.
That's why I decided to try out a budgeting app. My best friend told me that he uses an app called Truebill to manage his finances. "What does it even mean to manage your finances?" I asked him. He told me that Truebill was the personal financial assistant I wished I could have. It could aggregate all of my account information into one place and give me specific insights and actions.
I loved the idea of having full control over my finances, especially during a time of financial uncertainty, and I realized that Truebill would be the easiest way to accomplish this. The user interface is incredibly simple and intuitive, so it doesn't even feel like a finance app! Truebill offers a multitude of features, with their most popular being the ability to cancel subscriptions with the press of a button.
Okay, I had no idea how many subscriptions I was still subscribed to. In fact, I wasn't even using a quarter of the subscription services I was signed up for. Subscription boxes, streaming services, my old gym, and even an old subscription to my favorite magazine--it was all there and I was livid. How could I let myself waste all of this money and how did I never catch this? Thank goodness for Truebill.
Truebill also offers bill negotiations. There is a 40% fee based on how much you save and Truebill even claims that there is an 85% chance that they'll be able to lower your bill once a negotiation is requested. Why wouldn't I take them up on this? There was zero risk and I would only have to pay once my bill was lowered (which means that I would be saving money regardless).
More standard features of Truebill include the ability to generate a credit report on-demand and even request a pay advance. I only used the pay advance feature once when I wanted to buy a gift for my mom, but didn't have enough cash in hand and Truebill automatically reimbursed itself when I got my next paycheck.
The credit report is another fantastic feature and practically taught me what good credit meant. Truebill's credit report basically shows you which financial decisions have the most significant impact on your credit score and ways that you can improve your credit month-over-month. I've never had such control over my credit and it feels good.
I'll be the first to admit that I was extremely naive coming out of school. I figured that as long as I was attentive, I could manage my finances with ease. We manage money to some extent throughout our entire lives, but once you're thrown out on your own, it's a completely different story. With Truebill, I've finally been able to take control over my finances and stay on top of all of my responsibilities.