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    5 Best Credit Cards for Beginners 2021

    5 Best Credit Cards for Beginners 2021
    5 Best Credit Cards for Beginners 2021


    We're seeing a pretty substantial change in the credit card world and also some good cards that are probably not going to exist soon. In this article, we're going to look at the five best credit cards in the world for people new to the credit card game. For a lot of you, this is going to lean towards cashback. But be aware that there are other systems that you can run especially if you are someone that wants to do travel. 

    Just because we're listing five cards doesn't mean that you need to get all five of them. You might get one of them and then run that respective system. For example, if you wanted to run travel then you'd probably go down chase cards due to the 524 roll, and the fact that there are so many excellent bonuses and good cards there. 

    1. Citi Custom Cash Card

    Citi custom cash card
    Citi custom cash card


    So, the first card is going to be the Citi custom cash card by Citibank credit card. This card just came out and if I could only pick one card from this list, it'd probably be this one. This card similar to the next four that we're going to talk about does not have an annual fee, meaning that you're going to be protected in the long term. 

    So, if you decide that this isn't a fit, then you can still keep it. It doesn't hurt your credit history. Early on you generally want to get some cards, that you intend to keep long-term. Because it's that base of your credit.

    For this card, you're going to get five percent back, on up to 500, and spend for your top spend category every single month. The good thing is that you don't have to activate anything, and it means that it also adjusts based on your spending. For anything that's not that top category and for anything past the 500, you're going to earn one percent back.

    There are 10 different categories and I'm pretty sure there's at least one or two of them that are going to make sense for you and you probably spend a decent chunk of money with. A few easy ones are going to be grocery stores restaurants, transit as well as gas stations. Basically eating and getting to and from work, drugstores fitness clubs, as well as live entertainment, are some categories that you might spend a decent amount of money on. The final three options are going to be travel home improvement and also select streaming. 

    There are a bunch of exclusions and I'll link to a blog post down below, looking at the nitty-gritty. So for example target as well as Walmart are not technically grocery stores. So they don't work for that five percent. There also are some obvious disadvantages of the card. So if you are someone that spends a lot of money in a lot of different categories, then that's not really that great. Because you're only getting five percent on one of them. 

    If you spend 500 on groceries and then 400 on dining, then you're getting 5 and 1 respectively this.  Obviously, compounds even more if you add more categories, and if you are someone in that position I'd probably get other cards to cover those other bases that way you're in a good position.

    Another disadvantage is if you're someone who spends a lot of money. So if you spend beyond that 500, there might be some other better cards for you. One other fringe benefit if you decide to jump in dive into the rabbit hole, is that the cashback that you earn from this card, is cashback but they can also turn it into thank you points. So, this is the city point system, and they can then transfer those points out to partners. 

    So, cashback thank you points and then partner points the main benefit of this is that when you do this, the points can be worth a lot more. If you're flying economy maybe not as much, but if you want to fly first business, if you want to go to the Maldives, then you're generally going to get something like 2 cents per point upwards of 12 cents per point.

    Beyond the scope of this article, and I'll probably cover it again in the future. But it pretty much means that five percent back times, two cents per point is effectively about ten percent back. On that note, if you want to learn about this card, or pretty much any other card out there and you want to support my blog, we do have links on this article below. As always, thank you guys so much for the support.

    2. Chase Freedom Flex Card

    chase freedom flex. Card
    chase freedom flex. Card 

    The second card is going to be the chase freedom flex. Card the chase freedom flex is pretty similar. That you're earning five percent back. But, instead of it being 500 per month, it's going to be 1500 per quarter.

    So, three-month period be careful because you do need to enroll on chase's site every quarter in order to get this I've seen a bunch of people forget and it's not the best time. In some ways, it's a bit better because if you have a bigger transaction, then it's going to cover more of that amount. Also similar to citi it's cashback but you're technically per the terms earning ultimate reward points. They basically use the cash back to make it simpler for people who don't really want to deal with points, but this means that if you decide to run a chase setup if you get a chase sapphire preferred or chase sapphire reserve then those points are going to be worth more via their pay yourself back program and economy stuff it's about 1.5 or 1.25 cents per point depending on the card you have, and then if you want to do that aspirational stuff two cents per point is what I pick it to.

    So, this means that five percent bag can be six point two five upwards of ten percent return on your spend. This sounds great what are the disadvantages. The main one is that it's not you deciding the category or it's not based on your spend, it's going to be chase determining them.

    So in Q1 of this year, we had cable phone, as well as internet wholesale clubs, and select streaming. Q2 was gas stations and home improvement and Q3 was grocery stores but not including target and Walmart, and also select streaming again. Q4 hasn't been announced yet, but my guess is that it's either going to be Mestro PayPal, or maybe amazon, but more on that in a second and why it might not be that. Something interesting is happening with chase and amazon. 

    There is some other five percent back rotating cards, but this is the best one to me because not only do you have that upside with the transit partner stuff, but you also get other multipliers that are useful for everyday life. So, you get five percent back when you book travel through the chase portal, so this is chase's internal one, pretty much an Expedia on their site. You also get three percent back for restaurants, whether that's takeout or delivery services, and also three percent back for drugstores.
     
    Technically also one percent back everywhere else, but that's not really that interesting to me. Because the baseline that you're looking for is at least two percent back. So for example for me, I actually have four of these freedom s cards if it gets in focus hello four of these freedom s cards they're pretty much the tank to your points engine. Also in case, you're wondering how to get duplicates of cards you can downgrade or product change other cards over to this one. Those are within the same family.

    So cards like the chase sapphire preferred which has a very aggressive bonus right now, you can get that in the first year test it out. That's pretty much the incentive of that intro bonus and then if it's not a fit in the second year you can downgrade it to this no annual fee card. A lot of people get scared of the annual fees, but if there's a downgrade path into a no annual fee one, it's pretty much a no trainer. I'll link to a calculator for the chase sapphire preferred but I think for most people if you can hit the minimum spend, and get that intro bonus you're going to come out ahead.

    3. Capital One SavorOne

    Capital One SavorOne Card
    Capital One SavorOne Card


    The third card on the list is going to be the Capital One SavorOne Card. Be careful here because there is another card called the saver which is a little bit different. It's pretty much the older brother which has an annual fee, so we did a bunch of five percent back cards. And this one might not sound as enticing, but it covers a ton of ground and i think this is one of the best solutions for people who don't really want to have too many cards for The savorOne. 

    You're going to get three percent back for dining entertainment popular streaming services, and also grocery stores. You get one percent back for everything else which is pretty consistent with these cards. For a lot of normal people who have normal spending this is going to be a great complement to the city custom cash. Because it covers the other bases that you don't have covered capital one, also does a lot of other entertainment-based stuff. So, they have a partner there as well so from now until January 31st of 2023 you're going to get 8 cashback on vivid seats. I personally haven't used them that much, but it's still an option, and the more the merrier.

    One of the other really good things about the card, and why you might want to get it is that it has no foreign transaction fees so for. A lot of other cards when you decide to travel you're going to get three percent foreign transaction fees. This one has nothing so the points still work out pretty well and I think if you're someone doing either a study abroad, if you're a digital nomad, or if you're just taking a vacation. Then this is a nice pick up on a related note: if you are someone looking to travel I'd strongly recommend a VPN, you're probably going to have to access your bank accounts. At some point and most wireless internet that you're accessing abroad is not secure. It's basically a layer of protection and if you want to get a little nifty with it.

    There are some ways to sometimes get cheaper prices for things by changing your country. So i think some places know they can charge Americans more. Because I guess we have money, so if you change it to another place that might have a cheaper cost of living, then you're going to see different prices. It's not going to always work. But I think it's worth a check if you want to check out surf shark you can get 83 off and also three months for free by using code. Ask sebby or the link down below they also have a 30-day money-back guarantee. If you change your mind if you feel like it's not worth it. Ask me if you want to know about Capital One Savor Rewards Credit Card.

    4. Citi Double Cash Card

    Citi double cash card
    Citi double cash card


    So number four is going to be for the person who looks at all these numbers at these percentages and it just sounds way too complicated for this person. I'm going to recommend the Citi double cash card, which effectively gives you two percent back. So you earn two percent back on purchases one percent when you make the purchase and then one percent when you pay it off since you're probably using cards responsibly, you're probably paying it off at some point. So, effectively two percent back if you're not paying off your cards. I probably would not recommend getting them, because it's going to be a hole that you don't want to dig yourself into so this. Two percent is pretty much the floor value that we're looking for our cards because it's two percent on everything there are two other options here. So the fidelity two percent card and also the Paypal MasterCard and I'll talk about the one I would pick if you don't want the city one.

    But, I think the city one offers a bit more value the first one is going to be the thing that we already talked about. That cashback can be turned into thank you points which can then be trends without the partners. So, two percent back times two cents per point is four percent back in value and if you don't care about Yolo stuff, then it's still just two percent. So, the same as the other ones the second reason is that you have a bit more optionality. So, with the city given the nature of this the fact that they're a pretty major credit card issuer if you decide that this card is not a fit then you can product change it to one of their other cards. That might be better. 

    So, maybe you realize that you want the Costco card as of right now that's still possible you can do that product change with those other options. There's not that optionality because that's not really their core focus and it's a small part of their business. Maestro PayPal is obviously focused on payments and then fidelity is more of an investment company. But if I had to pick one of them, I'd probably go with the fidelity.

    Fidelity card has a one percent foreign transaction fee while the PayPal one recently added back three percent. I've also heard my fair share of bad experiences with PayPal. But your mileage may vary so do what makes sense for you. Write down in the comment section if you want to know more about Citi double cash card benefits.

    5. Apple Card

    Apple Card
    Apple Card


    The last card is going to be a surprise for people who are subscribed to my blog because I'm generally not a fan of it. But I think for the purpose of this article for beginners it's not a bad pickup and that's going to be the apple card by Goldman Sachs. Apple Card is also targeting developing countries, one of which is that they have issued an Apple Card Indonesia. So, yes, if you want to play the game there are a ton of other options and ones that offer either better benefits or higher multipliers like we just talked about, one reason I really like the apple card though is that they have pretty easy underwriting.

    So, if a lot of other issuers if you don't have a secured card history, if you don't have student history, then they're not going to approve you for the apple card. Looking at data points that's not really the case as long as you don't have any baddies. So, delinquencies default late payments any of the things that aren't good for your credit, then you're going to be fine another thing, I really like is that they're trying at least in their marketing to teach people how to be better with their credit. I feel like financial education is not really built into our system. So, the fact that they're helping with this a little bit is a good thing whether you're a normal person, whether you're someone looking to play the game rewards don't really mean anything. 

    If you're paying 19 interest the last reason is that they don't have fees for a lot of things, and if you're someone new if you're prone to mistakes, then this is a good thing this is saving you money. I feel like most other issuers find excuses to try to charge you as much as possible.

    The big disadvantage is that you probably need to be in and stay within the Apple ecosystem to maximize the value. So, you get three percent back for their partners and this includes Nike, Panera Bread, Walgreens, Uber, T-Mobile, and also Exxon Mobil. You also get three percent back for apple services and also their other products. Two percent back when you use apple pay and one percent back when you use the physical card.

    I have both an iPhone as well as a Samsung due to the fact that I need to test stuff for work. But for half of the us this card might not be the greatest. I think for many people though this ends up being a gateway card for them to learn about the game for them, to realize that there's so much value here that they can do these cool trips, get extra cashback for everyday spending if you're wondering why the card you want is not on the list. 

    I do have three honorable mentions the first one is going to be the chase amazon card. So, if you have amazon prime, you're going to get five percent back on Amazon as well as whole foods. If you don't have prime, if you only have normal amazon, then you're only going to get three percent back on amazon and also three percent back on whole foods. There are some two percent and one percent back for everything else. But it's not really too interesting given everything we've talked about.

    So the reason I didn't include this is that Amazon might not be working with chase moving forwards. If things were going well, we probably wouldn't hear anything or we would see something similar to the city and at t ink a long-term multi-year agreement instead we have amazon takes bid to replace. Chase amazon is considering a credit card breakup with chase we'll see what happens with all this. But yeah the second honorable mention is going to be the U.S bank altitude go card.

    Here you're going to earn forks back in restaurants and this includes takeout delivery services and also dining in you also get to expect on a bunch of other ones and one expects on everything else. In this current environment and with all the options, we have the u.s bank ultra. Should go feels a bit like a one-trick pony there is a use case if you're someone who really spends a lot of money there, and you don't care about travel.

    But other than that, I think it's harder to recommend the last one is also another u.s bank card and this is the us bank cash plus. So, you earn five percent back on up to two categories that you pick every quarter on up to two thousand dollars in spend categories are super broad. So a bunch of different things and you can probably find two that work for you so electronic stores are a pretty easy one. The main thing you'll notice though is that those categories do not include the big ones that you would expect gas restaurants as well as grocery stores. 

    For those specific ones, you're earning two percent back, which is fine. But again, doesn't really move the needle for U.S factor in the lack of upside that. This is just cashback and not points not something else that you can get a little bit more value from and the lack of transfer partners into interesting cards.

    I think it's harder to recommend,  if you swap this with the apple card, I wouldn't be too bad again. if you want to learn about these cards, or pretty much any other cards out there and you want to support the channel, we have links on our site ask savvy.com and also down below in the description box and also pinned as a comment.

    If you want to learn about other financial products such as brokerages, and you want an alternative to Robinhood you can get two free shares by opening up a Weibo account and depositing a hundred dollars give it a try and see. If you like it but i'll link that down below as well my question for you guys is of these cards how would you rank them which one's your favorite and also what type of system are you running or looking to run let me know and everyone else know in the comments down below give this a thumbs up and if you know anyone else who benefit share this with them we'll probably help them out but otherwise hope you guys liked it. That's a list of the best credit cards that you can use as a reference in choosing the best credit card.. See you guys next time

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