Monkeygeek.com recently published an article on "Best First Credit Cards for No Credit in 2024" featuring advice from Bryan Bouboulis, senior lecturer and finance internship coordinator in Appalachian State University's Department of Finance, Banking and Insurance.
Here's what Bouboulis had to say in the article.
What APR might someone with no credit history expect from their first credit card?
Someone with no credit score can get varying rates depending on where you get it from. Credit unions will usually have lower interest rates in the lower teens. Bank cards will have higher rates than they could be in the twenties for a percentage. Shopping around will pay off for them in the long run. One way to help them get a higher score is to get a card with a low limit of $500 and never use it.Can immigrant workers and international students without Social Security numbers apply for credit cards?
It would be very difficult for immigrant workers or foreign students to get cards, specifically because of the social security number you mentioned.Are there any benefits of getting a credit card while still in college?
The length of time you have on your credit card affects your score. So, the longer you have it, the higher your score. Once my children turn 18 and have a job, I get them a $500 credit card. One, so they have it for a longer period. Two, so I am close to watching how they use it. I usually tell them not to or to just put gas on it and pay it off right away.Is there any particular credit card issuer that's better than the others for first-time credit card users?
For first-time cards, research is important. I have accounts at a credit union, which usually has lower interest rates, but now, with online banks, there may be offers that match or beat that. Research is important; find the one that fits you the best. I know many travel or cash-back offers, but I do not recommend them. Mostly because they have higher rates and encourage spending on the card, and most people do not have the discipline to pay it off each month. So they incur interest, and the cards know that.
About the Department of Finance, Banking and Insurance
The Department of Finance, Banking, and Insurance develops leaders for business, government, and education by offering a Bachelor of Science in business administration in two specializations: finance and banking and risk management and insurance. Learn more at https://finance.appstate.edu.
Finance professor offers advice on 'Best First-Time Credit Cards'
Bouboulis