Best Credit Cards for New Graduates in 2024

Landing your first job after college is an exciting milestone, but it also comes with new financial responsibilities. One of the best ways to start building your credit history and establishing good financial habits is by getting a credit card designed for recent graduates.

As a recent college graduate, you’re likely navigating the world of personal finance for the first time. While student loans may have helped you build some credit history, a credit card can be a powerful tool to continue developing your credit profile and earning rewards on your everyday purchases. With so many options available, it can be overwhelming to choose the right credit card.

This post will walk you through the key factors to consider and highlight some of the best credit cards for new graduates.

Benefits of Getting a Credit Card as a New Graduate

Getting a credit card as a recent graduate can provide numerous advantages, including:

Building Credit History: Making timely payments on a credit card is one of the most effective ways to establish and improve your credit score, which is crucial for future financial milestones like renting an apartment, buying a car, or securing a mortgage.
Earning Rewards: Many credit cards offer rewards programs that allow you to earn cash back, points, or miles on your purchases, helping you stretch your budget further.
Fraud Protection: Credit cards typically offer zero liability for unauthorized charges, providing an extra layer of security compared to debit cards or cash.
Emergency Funding: A credit card can serve as a safety net for unexpected expenses or emergencies when you may not have enough cash on hand.
Convenience: Credit cards are widely accepted and can simplify transactions, especially for online purchases or travel.

Why Should College Graduates Get a Credit Card?

Getting a credit card as a recent college graduate offers several important benefits:

Build Credit History: Using a credit card responsibly and making on-time payments is one of the best ways to establish and build your credit history. A good credit score is essential for future financial milestones like renting an apartment, buying a car, or securing a mortgage.
Earn Rewards: Many credit cards offer rewards programs that allow you to earn cash back, points, or miles on your purchases. This can help stretch your budget further as you start your post-college life.
Emergency Funding: A credit card can serve as a safety net for unexpected expenses or emergencies when you may not have enough cash on hand.
Fraud Protection: Credit cards typically provide zero liability for unauthorized charges, offering more protection against fraud compared to debit cards or cash.
Convenience: Credit cards are widely accepted and can simplify transactions, especially for online purchases or travel.

What Is the Credit Limit on Credit Cards for College Graduates?

The credit limit you receive on a credit card as a recent college graduate will depend on several factors, including your creditworthiness, income, and existing debt. Generally, those with excellent credit, higher income, and low debt will receive higher credit limits.

However, if you are approved for a secured credit card, you can essentially set your own credit limit by providing a refundable security deposit. The deposit amount becomes your credit limit.

How to Pick a Credit Card as a Recent College Graduate

Choosing the right credit card as a new graduate can be challenging with so many options available. Here are some tips to help you find the ideal card:

Check Your Credit Score: Knowing your credit score will help you understand which cards you may be eligible for and narrow down your options.
Decide on Rewards Type: Different cards offer different types of rewards, such as cashback, points, or miles. Consider which type of reward aligns best with your spending habits and goals.
Compare Annual Fees: Many credit cards for new graduates have no annual fee. So you shouldn’t feel obligated to pay one unless the benefits outweigh the cost.
Consider Perks: Look for cards that offer perks you’ll use. Such as no foreign transaction fees, travel protections, or extended warranties.
Review Interest Rates: While you should aim to pay your balance in full each month. Compare the interest rates on the cards you’re considering, as they can vary significantly.
Evaluate Welcome Bonuses: Some cards offer sign-up bonuses or cash back after meeting a minimum spending requirement. Which can provide an extra incentive.

By considering these factors, you can find a credit card that not only helps you build credit but also provides rewards and benefits tailored to your needs as a new graduate.

Top Credit Card Options for New Graduates

Here are some of the best credit card options for recent college graduates in 2024, along with their key features and benefits:

1. Chase Freedom Flex

Rewards: Earn 5% cash back on up to $1,500 in combined purchases in rotating quarterly categories. (Upon activation), 5% on travel purchased through Chase, 3% on dining and drugstores. And 1% on all other purchases.
Welcome Bonus: $200 bonus after spending $500 on purchases in the first 3 months. Plus 5% cash back on combined gas station and grocery store purchases. (Excluding Target and Walmart) on up to $12,000 spent in the first year.
Annual Fee: $0
Perks: No annual fee, 0% intro APR for 15 months on purchases and balance transfers (Then a variable APR of 20.49% – 29.24% applies). And the ability to transfer points to Chase’s travel partners for higher redemption value.

2. Discover it Secured Credit Card

Rewards: 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases per quarter), and 1% cash back on all other purchases.
Welcome Bonus: Discover will automatically match all the cash back you’ve earned at the end of your first year.
Annual Fee: $0
Perks: No annual fee, a refundable security deposit (which can be as low as $200), and the ability to graduate to an unsecured card after making on-time payments for seven consecutive months.

3. Bank of America Customized Cash Rewards Secured Credit Card

Rewards: 3% cash back in a category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings). 2% at grocery stores and wholesale clubs. And 1% on all other purchases (up to $2,500 in combined choice category/grocery store/wholesale club purchases per quarter, then 1%).
Annual Fee: $0
Perks: No annual fee, the ability to change your 3% cash back category every month. And the option to graduate to an unsecured card after making on-time payments for 12 consecutive months.

4. Petal 1 “No Annual Fee” Visa Credit Card

Rewards: 2%-10% cash back at select merchants through the Petal app.
Annual Fee: $0
Perks: No annual fee, no credit history required, and tools to help you build credit and avoid fees.

5. Wells Fargo Active Cash Card

Rewards: Unlimited 2% cash rewards on purchases.
Welcome Bonus: $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
Annual Fee: $0
Perks: No annual fee, a 0% intro APR for 15 months on purchases and qualifying balance transfers. (Then a variable APR of 20.24%, 25.24%, or 29.99% applies). And cell phone protection when you pay your monthly bill with the card.

Conclusion

As a new graduate, getting a credit card can be a smart move to establish your credit history. Earn rewards, and gain financial flexibility.

When you understand the benefits, features, and application process. You can choose a credit card that aligns with your spending habits and financial goals.