In the seemingly endless sea of credit cards out there, only a handful truly stand out. This list goes over our picks for top entry-level credit cards.
For the purposes of this list, we’re classifying entry-level cards as those with low or no annual fees, that don’t require tons of spending to be valuable, and that serve as a gateway into the world of credit card rewards and perks.
A Note on Credit Card Best Practices
At ToW, we’ re staunchly against debt in the vast majority of cases. In coming up with this list, we assume that you are not carrying a balance. In other words, you’re paying off your balance every month, or at the very least, in the case of 0% APR offers, using the card to pay down high-interest debt. If you can’t afford something outright, it’s probably not a good idea to buy it on plastic.
Similarly, we think one should always avoid manufactured spending, which basically means, not spending more than you usually would, just to use or take advantage of a particular credit card perk. The most classic example of this would be the “buy one, get one half-off” offer. No, you’re not saving 50%, you’re spending 50% more. With that out of the way, let’s jump right in!
Cashback Cards
These are cards that give you benefits in the form of cash back. Sometimes as statement credit, and sometimes redeemable in other ways (like gift cards).
Chase Freedom Unlimited
Annual Fee: $0
Offer: 0% APR for 15 months from account open.
This is a very straight-forward card, and it’s simplicity is definitely a good thing. This card will earn you 3% cash back on up to $20,000 in your first year, which works out to about $600 back just for paying with the card. You’ll earn at a rate of 1.5% per dollar after that, which ain’t too shabby either. If you’re looking to pay down some debt, this card also has a introductory APR of 0% on balance transfers (bear in mind, there is a 3% fee for balance transfers, so do the math accordingly). The Cash Freedom Unlimited also has no annual fee, so if you’re paying your balance off consistently, you’re looking at all upside with this one.
American Express Blue Cash Everyday
Annual Fee: $0
Offer: $150 back after you spend $1,000 in purchases in your first 3 months.
While the flat 1% on all purchases may not seem all that special, the Blue Cash Everyday also awards 3% cash back at U.S. supermarkets on up to $6,000 per year. Unless you’re eating out every day of your life (and if you are, we need to have a serious talk), chances are you’re spending money at the grocery store. Unless you’re driving an electric car or using public transit, chances are you are also spending on gas, in which case this card is good for 2% at U.S gas stations. As if that weren’t enough, you’ll also get 2% back at select U.S. department stores. At the time of writing, that includes stores like Macy’s, Kohl’s, and J.C. Penney. You can get the up-to-date complete list here.
The $150 cash back introductory offer is the cherry on top. If you spend $1,000 in purchases on the card in the first 3 months, you’ll get the cash back in the form of statement credit.
Discover it Cash Back
Annual Fee: $0
Offer: 0% introductory APR for 14 months on purchases and balance transfers. 3% intro balance transfer fee.
For starters, this card has a 1% flat cash back rate, which is unlimited. Nothing too spicy there. The interesting part about this card is it’s rotating category 5% cash back feature. See, with this card, you can earn 5% cash back on a one or more categories that rotate in and out every quarter. In 2019, for example the categories per quarter are: grocery stores for Q1, gas stations, Uber and Lyft for Q2, restaurants and PayPal in Q3, and my personal favorite–Amazon, Target and Walmart for Q4. It should be noted, the 5% categories are limited to $1,500, but the flat 1% is not. Another freebie you get here is access to your FICO credit score. Take that for what its worth, considering there are ways to get this. That said, I really like this card, and it’s one that I’ve personally used for some time now.
P.S. for the vain among us, you can pick between blue, maroon, and purple for your card color.
Uber Visa Card
Annual Fee: $0
Offer: $100 after spending $500 on purchases in the first 90 days.
To be honest, this card is the dark horse in the list. It’s not the most well-known, but it packs some serious value for a $0 annual fee. For starters, it will earn you 4% on dining. As you might imagine, being a Uber-branded card, this category includes UberEATS. Next, we have 3% on travel, including vacation home rentals, hotels, and airfare. Lastly, the Uber Visa Card will also get you 2% back on online purchases including Uber, and music and video streaming services. All other spending gets you 1% back.
In addition to an already-impressive list of benefits, this card also offers cell phone insurance to the tune of $600, and there’s event a $50 credit for streaming services, albeit a bit tougher to earn since you only get it after spending $5,000 or more on your card per year.
Points Cards
Let me start off by saying that I don’t think points cards make great entry-level cards. By that I mean that there are far better alternatives out there at either higher tiers (with high annual fees and higher credit score requirements), or that the cash back alternatives are better. However, for our money, one point card stands out in the entry-level field.
Wells Fargo Propel American Express Card
Annual Fee: $0
Offer: 30,000 points when you spend $3,000 in purchases in the first 3 months (~$300 redemption value). Intro APR.
The 3x points bonus on this card covers so many categories, it’s a bit bananas, to be honest–and we certainly mean that in a good way. At the time of writing, you can earn 3x points per dollar spent on these categories: flights, hotels, rentals, eating out, ordering in, rideshares, transit, gas stations, and streaming services.
Honestly, this card rewards you for living. The fact that this card also earns you bonus points for things like Spotify and Netflix only sweetens the deal. This card just covers so many basics that we nearly forgot to mention, it also comes with cell phone protection (up to $600 with a $25 deductible), which is easily worth north of $100 on its own.
Oh yeah, let’s not forget the 12-month 0% intro APR either. Whew, that’s a lot a value for a $0 annual fee card.
Airline
This category is a bit trickier, since the value you can get is more or less limited by what airlines have hubs where you live, and how often you fly those airlines. That said, if you fly this airline, we think this card stands out.
Another thing to note is that while this card does have an annual fee, we’re assuming you’ll be taking advantage of the perks which would more than cover the fees. Without further ado, let’s get to it.
Alaska Airlines Visa Signature Card
Annual fee: $75
Offer: 40,000 bonus miles after spending $2,000 in the first 90 days.
This card was a bit definitely on the edge between entry-level and mid-tier given its annual fee and more circumstantial value (which is the norm for airline cards), but for anyone that flies often enough to get the most of it, it’s a no-brainer. For starters, each year, you get the companion fare, which is essentially $99, plus any fees and taxes. While this isn’t necessarily a free flight, it can easily cover your $75 annual fee if you’re flying with someone else.
If you often pay for checked bags, this card has also got you covered–you and up to six of your guests (on the same reservation) get a free checked bag. In addition, you’ll be earning 3x miles per dollar spent on Alaska Airlines purchases, and 1 mile per dollar on all other purchases.
Alaska has various partners which increase the likelihood of getting your money’s worth–American Airlines, Emirates, British Airways, and more.
