Graham Stephan Recommends the Top 5 Credit Cards for Newcomers
Graham Stephan, a well-known financial YouTuber, recently shared his top five credit cards for beginners in 2024. Here’s a summary of his recommendations:
**Discover It® Secured**
This card is ideal for those who need to build credit but can’t qualify for a regular card. Unlike many secured cards with high fees, the Discover It® Secured Card offers good terms. You start by applying and submitting a refundable security deposit of at least $200. Use the card responsibly, and you can eventually upgrade to an unsecured card and get your deposit back. The card offers rewards like 2% cash back at gas stations and restaurants, and 1% on other purchases, with no annual fee. This makes it a great option for beginners looking to build credit without extra costs.
**Petal Visa Card**
The Petal Visa cards are unsecured, so you need a decent credit score to qualify. The Petal 1 Rise is a good option for beginners. Petal is transparent about how to increase your credit limit through its Leap program, which offers automatic credit line increases after six months of on-time payments. Highlights include up to 10% cash back at select merchants, credit limits up to $3,500 for beginners, and no fees for the Petal 2 card. However, it uses a variable APR, so paying your bill in full each month is crucial to avoid unexpected rate changes.
**Wells Fargo Active Cash Card**
This card offers 2% unlimited cash back on all purchases with no annual fee, making it simple to earn rewards without worrying about categories or activations. New users can earn a $200 cash rewards bonus after spending $500 in the first three months. Additionally, there’s a 0% introductory APR for the first 15 months, which then changes to a variable APR of about 20% to 30%.
**American Express Blue Cash Everyday®**
This card also offers a 0% introductory APR for 15 months, followed by a variable rate of 19.24% to 29.99%. You get 3% cash back on everyday purchases like groceries, online retail, and gas. It includes access to AMEX’s “Plan It” program, which allows you to split large purchases into monthly installments with a fixed fee while still earning rewards. This feature is useful for managing big expenses.
**Chase Trifecta**
The Chase Trifecta is a combination of three Chase credit cards: Chase Freedom Flex, Chase Freedom Unlimited, and Chase Sapphire Reserve. This setup is more complex but can be very rewarding if managed well.