The 5 BEST Credit Cards For Beginners in 2021

what's up you guys it's graham here so welcome to the year of 2021 where youtubers like myself can finally make videos with 2021 in the title but here in the channel it's become kind of like an annual tradition to break down the best credit cards for beginners of each year and this year is no exception after all over time better offers come up old cards become outdated new cards are invented and it's important to bring you the most up-to-date information as possible so you could make the best choice for your wallet so with that said let's go over the best credit cards for beginners that you could get right now today in 2021 not to mention doing this correctly from the very beginning is so important because when you do this right and use these cards strategically you could quickly increase your credit score you could get the best interest rates any time you go and borrow money and best of all you could eventually use this to take advantage of some of the best credit card rewards out there that give you thousands of dollars of cash back free travel free hotel free accommodations and it all begins with this video which is also free but i do have just one favor to ask of you before we start if you wouldn't mind taking charge and swiping that like button for the youtube algorithm i'll even give you extra credit if you do it right now get it credit wasn't my credit card joke outstanding like outstanding balance or do you not have any interest in my jokes maybe i should discover something funnier fine just hit the like button and i'll stop thanks guys and we'll begin here all right so first let's talk about the best credit card that you can get in 2021 if you have no prior credit card experience whatsoever you want to get started from the very bottom and you want to know your best choice for totally free well without question my number one choice would have to go to the discover it secured card now here's the thing i understand that i've talked about this credit card non-stop since the beginning of the channel as my top recommendation for everyone just starting out but here's the thing this credit card has consistently been the best of the best year after year without fail and even after all of this time not one single credit card has come up that's better than this if you're just starting out not to mention this credit card is literally the entire package of everything you need all wrapped up in a tiny square piece of plastic but here's why this card is so good and why you need to get it as your first credit card anytime you're just starting out in the credit card game and you have zero credit experience whatsoever but you still want to build up your credit score so that one day you could be entered into the elite 800 credit score society of highly successful and financially literate adults that are responsible with money i just made that up but if that sounds like you then this is where you begin anytime you don't have any credit history because you're brand new to this you're gonna have to start off with what's called a secured credit card this just means you put down a refundable security deposit and in return they give you back a credit line of that exact amount for example you could give them a 200 security deposit and they will give you back in return a 200 credit line however what makes discover so much different from all the other secured credit cards out there is that discovers credit card is actually good see most secured credit cards are aimed at people who have no idea what they're doing so they nickel and dime you with fees annual fees and more fees to top it off but because you have this video we all know that building your credit shouldn't cost you anything and thankfully discover has zero annual fees discover also gives you what almost every other secured credit card does not and that would be rewards now i'll be honest it's not like these rewards are going to want to make you quit your job anytime soon but hey at least it's something and in this case the discover it secured card is going to be giving you two percent cash back on restaurants and gas stations up to the first thousand dollars and you will get unlimited one percent cash back on everything else but wait there's more they're also running a promotion where they will match your cash back for the first year so this is really like you getting four percent cash back on restaurants and gas stations up to the first thousand dollars and unlimited two percent cash back on everything else for a credit card that anyone can get for totally free just ask yourself do you want a 2 discount on everything that you buy if the answer to that is yes then go and get the credit card but if you thought it couldn't get even better than that it does because discover allows you to monitor your fico score for free on their platform so you can keep track of how your score is improving over time and from there all you need to do is pay off your balance in full on time at the end of every single month and that way you're gonna owe nothing in interest on any of your purchases on a card by the way that's totally free that gives you unlimited 2 cashback on everything in the first year so discover wins yet again for my favorite secured credit card of 2021. now the second one on my list for anyone who wants to continue building their credit score for entirely free is a brand new one i have never mentioned before here in the channel and that would be the pedal one visa card now i'll admit this one does absolutely have a very strange name but it is oriented around helping you build up a credit history without first having any credit history i swear the whole process of building up your credit is so weird to me like you need to have credit history in order to get a credit card but you have to get a credit card to get credit history so at least the pedal one visa card doesn't really play by the rules they say the pedal one visa card looks beyond your credit history by instead looking at your banking history your cash score shows your credit worthiness and can help you qualify for more credit and better rates with this you're going to be getting a credit limit anywhere from 500 to 5 000 and best of all there's no annual fee they also offer you anywhere from two to ten percent back on select merchants and their mobile interface helps you better understand how much you spend and what you'll need to do to pay off your balance in full and that will help you keep better track of your finances now of course yes you might see this 19.99 to 29.49 interest and think but graham that's outrageous 30 interest that's awful why would you recommend this to us but truth be told when you do this credit card thing correctly you'll never have to pay a single penny in interest ever the credit card interest rates that you see only apply if you don't pay off your credit card balance in full by the time it's due and when you pay off your credit card entirely by the due date then there's nothing left to pay any interest on so as long as you pay off your credit card in full the interest rate that you see here makes no difference to you so overall i gotta say the pedal one visa card is a good option for anyone who wants to build up their credit history and also there's really no harm in applying for multiple of these cards in the video since they all cost you nothing to keep open that means the more positive trade lines you have from the very beginning the faster your score is going to be going up now number three this one has become a very popular credit card lately and that would be the apple credit card seriously this is just becoming the company that does everything now from phones computers headphones credit cards and maybe even soon one day possibly we could even see electric cars but either way i gotta hand it to them they do have a very good credit card product for beginners now i do want to clarify that the apple credit card is not meant to be your first ever credit card if you have no credit history whatsoever because they do require you to have a credit score of around 600 or so so if you have nothing and you're just starting out i would first recommend you start off with the discover it's secured card but assuming you have some type of credit history then the apple credit card is actually a really good option and here's what this could get you first there's no annual fee and this is really important for anyone starting off because a large portion of your credit score is made up from what's called the average length of your credit history or in other words the longer you keep your credit cards open for the higher your credit score is going to be and when you close your credit accounts over time those accounts are going to fall off your report and that in turn is going to lower your score well the good news is that cards like this cost you nothing to keep open forever so you're never going to have to worry about paying 25 annual fees just to keep your oldest credit card open like with wells fargo that's the mistake that i made 25 a year gone for no reason wells fargo is terrible anyway in addition to no annual fees they're also going to be giving you daily cash back like when you use the apple credit card with apple pay you'll get unlimited two percent cash back on everything you'll also get three percent cash back on apple products and select merchants as seen right here the app is also fantastic for tracking your expenses and learning good financial habits to make sure you pay off your credit card as soon as possible to avoid paying interest think of it almost like your personal finance tracker of your apple credit card expenses where you could see everything in one place and you also get all of that in the form of a titanium credit card so overall i would recommend this card especially if you frequently buy apple products because three percent adds up when you're buying 1200 iphones i swear these phones are just getting too expensive now after that we got number four and this is another one that i mentioned here on the channel non-stop and this was actually one of the first credit cards i ever got and that would be the bank of america cash rewards card now this is a credit card i would recommend adding into the mix after about six to 12 months or so because they do require you to be in good standing with your credit history in order to apply but assuming you get approved this is a really good one to have and they also give you a cash bonus with no annual fee now let's start off with that cash bonus they're going to be giving you 200 when you spend a thousand dollars on the credit card within the first 90 days which for most of us we're just gonna naturally spend a thousand dollars over 90 days anyway so this is basically just like free money all for the price of just the 15 minutes it takes you to sign up for the credit card now besides that you're also gonna be getting three percent cash back in the category of your choice two percent cash back in grocery stores and wholesale clubs and one percent cash back on everything else then if you're already a bank of america preferred rewards member you could get a cash back booster on the credit card potentially turning a three percent cash back into a 5.25 reward now the catch here to get the maximum benefit is that you have to keep a hundred thousand dollars in your bank of america account which come on nice try bank of america but it's not worth it i gotta say the bank itself is just so so but to keep that much money in a bank of america account is just that's a no go in my book so let's just almost pretend like this offer doesn't even exist but one more thing that this card offers you if you're feeling kind of adventurous and have some self-control they will give you 12 months free of zero percent interest this is the only credit card i've mentioned so far that offers this so if you want something that would essentially give you a zero percent loan for the first year this is an option but just remember to always pay it off in full to avoid any interest in the future but overall i would have to give this one a good recommendation because the 200 cash bonus is really nice it's a totally free credit card it helps you build up your credit and even though the rewards aren't incredible it's a good one to keep in your wallet long term the last one to finish this off is a relatively new card that just came out and that would be the chase freedom flex and of course as its name would suggest it is a free credit card now this credit card might just be even a little bit better than the bank of america cash rewards card however most likely you're going to need a slightly better credit score to get approved for this one which is why i wanted to put it last but if you could get it this card is going to beat all of the other ones out of the water first they're going to be giving you a 200 bonus when you spend only 500 on purchases within the first three months and on top of that they're gonna be giving you five percent cash back on grocery store purchases on up to twelve thousand dollars spent in the first year then in addition to that we got quite a doozy they're going to be giving you five percent back on up to fifteen hundred dollars worth of bonus categories five percent back on travel throughout the ultimate rewards portal three percent back at restaurants and dining three percent back at drug stores and one percent back on everything else now remember when i said the bank of america cash rewards card is going to be giving you zero percent interest for the first 12 months well this one is going to be giving you zero percent interest for wait for it 15 months touche that's why if you could get this card i would plan to leave it in your wallet at all times the cash back categories are fantastic no interest with a sign up bonus on a credit card that costs you nothing oh and they're also going to be giving you three months free of dash pass with activation if you like to order food but honestly using doordash is so expensive to order food like that it's a big waste of money so i wouldn't necessarily use this unless you're going to be doing it anyway now as a final honorary mention here i wanted to throw in the x1 credit card now unfortunately i can't include it in this list because it's not really widely available yet but once it comes out i'll be sure to include it because i do think this would be a good credit card to get if you're just starting out if you're just building up your credit score because of how they're oriented they wanted to design a smart credit card that gives a credit limit based on their customers income not their credit score i think they've realized there are so many millennials out there that have a decent income but they've just never needed a credit card for anything so they want to build that in between for people with income but who just don't have any prior credit history they're also going to be giving you two to four times points back on every dollar spent but as of right now we're not exactly sure how much each of these points is going to be worth and it looks as though you could only redeem those points at select merchants which i gotta say i'm not entirely a huge fan of but on the bright side they do give you a credit card based on your income with no annual fee that's also metal so i got to give it an honorary mention here but it's still too early to put it officially on the list and lastly to put all of this together if you want to know exactly what to do step by step to build up your credit score as fast as possible between all of these cards here's what i recommend first go and sign up for the discover it's secured card with the 200 deposit then once you get the credit card all you need to do is put a few small expenses on the card each and every month pay it off in full and do this for six months the second if you want to expedite the credit building process just a little bit faster around the same time you sign up for the discover it's secured card you could also sign up for the pedal one visa card now you're gonna have two trade lines going at the exact same time that's going to help boost up your score the third after about six months of doing this you're either going to want to apply for the bank of america cash rewards card or the apple credit card these are going to be your first unsecured credit cards which means you don't have to put down a deposit with these cards you're just gonna do the exact same thing put a few small expenses on the card then pay it off in full that's it now fourth after another six months of doing that go and apply for the chase freedom flex card and enjoy that free 200 cashback and finally five after 12 to 16 months of doing this you should have built up a credit score around 750 or so and once you do that you're gonna be able to take advantage of some of the best credit card rewards out there that give you free cash back free travel free hotels and anything else you could imagine or if you do nothing and stay home all the time like me well then you get bragging rights and you can also get a low interest rate mortgage anytime you go and leverage your money or decide to buy real estate and for me i would say that is just as cool and a good reason to begin building up your credit score so with that said you guys thank you so much for watching i really appreciate it as always if you guys enjoy videos like this make sure to destroy the like button subscribe button and notification bell also feel free to add me on instagram i posted pretty much daily so if you want to be a part of it there feel free to add me there as on my second channel the gram stefan show i post there every single day i'm not posting here so if you want to see a brand new video for me every single day make sure to add yourself to that and lastly if you guys want four free stocks use the link down below in the description and weeble is going to be giving you four free stocks when you deposit a hundred dollars on the platform with those stocks potentially worth all the way up to 1 600 so if you want free stocks use that link down below it's pretty much like free money let me know which stocks you get thank you so much for watching and until next time

Channel: Graham Stephan

Views: 390,858

Rating: 4.9643631 out of 5

Keywords: investing, investing for beginners, investing in your 20s, how to invest, how to invest in real estate, how to invest in stocks, stock market investing, stock market investing for beginners, stock options, robinhood, robinhood app, best stock trading app, how to be a millionaire, how to be a millionaire in 3 years, credit score, credit score explained, credit card, credit cards for beginners, passive income, how to build wealth, how to build wealth in your 20s, real estate 101

Id: joOBoZbQN4Y

Length: 14min 46sec (886 seconds)

Published: Mon Jan 04 2021