If you’re new to the game, the credit card world can be rather intimidating. There are so many different cards and reward programs… figuring out which one is best for you can be like finding a needle in a haystack. Let’s talk about which cards are good for beginners… and which ones are not!

What will you qualify for?
For starters, as a beginner you will be limited to easy to get credit cards. Many of those premium reward cards you see advertised on TV you probably won’t qualify for right away (you will need a more established history). So the best credit cards for beginners will be those which are entry level or for college students (if you are one) because they will be much easier to get approved for.

What you do NOT know about carrying a balance…
Obviously it goes without saying that it would be a bad idea to carry a balance on your new card, but let me explain why because most beginner users don’t understand how the interest charges work…

If you pay your bill in full each month you will not be charged interest. A billing cycle is 30 days long. After that a billing statement is generated and there will be at least 21 days (known as a grace period) for you to make your payment and avoid interest charges.

If you don’t pay your bill in full you will be in for a big surprise. Why? Because if you carry any balance past the grace period, you will be charged interest on those purchases going back all the way to the date of purchase!

So let’s say you made just one purchase and that was on the very first day of the billing cycle. After that cycle closes you only make the minimum payment (during a 21 day grace period). Then just 5 days after the grace period you pay off the full amount. Guess what happens? You are charged interest on that amount for the 30 days in the billing cycle, the 21 days in the grace period, and the 5 days after that! So as you can see, carrying a balance for even a short amount of time will be expensive!

The best for beginners…
…are usually charge cards, not credit. Why? Because with a charge card, you don’t have the option of carrying a balance. Instead, you have to pay the full amount when the bill comes. This benefits you in two ways (1) there will never be interest charges, and (2) you will be much less tempted to overspend since you know you will have to pay the bill in full.

So technically, the best credit card for beginners technically isn’t even a credit card, as ironic as that may be! Since they aren’t making money off interest on debt, charge cards do have annual fees usually ranging around $100 and up. However American Express just came out with a brand new charge card geared towards young adults that only has a $25 annual fee and fantastic benefits! To learn more visit our American Express Zync review