Saturday, 1 June 2019

Top Credit Cards for Beginners To Apply For

Top Credit Cards for Beginners To Apply For

This is the time of the year people usually applied for a lot of credit cards to put their holiday spending on, so today we would be talking about 3 best credit for beginners


Read: Top 5 Best Travel Credit Card

1. Bank of America Cash Rewards Credit Card 


This card usually has a $150 signup bonus after you spend $500 on your first 3 months from account opening. But recently they have bumped it up to $200 of sign up bonus after you spend $500 in 3 months

This card has no annual fee, so if you're not using it you could just throw it in the drawer and not have to worry about it, not have to pay for something that you're not using

  • The card gives 3% on gas stations
  • 2% on groceries
  • 1% on all other purchases. 

But starting from January 14th of 2019 they would let the cardholder choose the 3 person category and you can choose from 

  • Gas stations, 
  • Online shopping, Dining
  • Travel
  • Drugstores
  • Home improvement stores.

If you are living somewhere like new york where you don't have a lot of gas spend, you could switch that to something like online shopping, this day almost everyone shops online

  • Another interesting thing about this card is that Bank of American would give a 10% cashback on top of what was earned, the cashback can be redeemed to a bank of America checking or savings account

For example, let say you get this card and you get the $200 sign up bonus and you spend it throughout the year, you will get another $100, so you got a total of $300 of cashback

  • If you redeem that $300 to a bank of America checking or savings account, Bank of America would add an extra 10%, in this case, $30. So instead of $300, you will get $330.

But as with most checking accounts, there is a minimum balance that you would have to maintain, but if you're a student and you provide your student ID, bank of America sometimes ways that minimum balance requirement for their checking accounts


2. Chase Freedom Credit Card

This one also offers a $200 sign up bonus after you spend $500 on your first 3 months from account opening., this also has no annual fee and earns a flat 1.5% cashback throughout all the spends

The cashback rate does not vary depending on the category, something to keep in mind is that chase credit cards ultimate reward points, so depending on which credit card you use to redeem these chase points, you can get significantly higher value 

Also, your value depending on how you redeem these points whether you're using it for cashback or travel


3. Chase Freedom Unlimited Credit Card

This one has a $150 sign up bonus after you spend $500 on your first 3 months from account opening. This one also has no annual fee and this one gives 5% cashback on select categories each quarter

  • Every 3 months the categories in which you could earn 5% cashback changes. For example, for the first quarter of 2019 which is January, February, and March of 2019, those 5% categories would be gas stations, tolls, and drugstores

Something I do want to point out for all chase cards is that they are affected by the 5:24 rule

For those of you who are unfamiliar with that is that chase would automatically deny your application, despite your credit history, despite your high credit score,

My recommendation to people interested in the chase cards discussed in this article is to apply for the first, once you have received them then apply for the bank of America card as the bank of America card is not affected by 5:24 rule


Now, what makes these credit cards best for beginners is the fact that they have no annual fee and they have very high approval ads which mean that you don't need a perfect credit score or a very high income to qualify for these cards.

These are great to get you started and build a credit history and then eventually move on to better cards.

You can also keep these cards for a lifetime because it doesn't have an annual fee as you move on to better cards with better rewards and better point 

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