Building a strong foundation of credit cards is essential for a healthy credit score. In this post, we’ll walk through the first 5 credit cards to consider if you’re starting out in your credit journey.

A few guidelines:

1. Chase 5/24 - Chase has an unwritten rule where you’ll automatically get denied for a credit card if you have more than 5 credit cards from ANY credit issuers in the past 24 months. This only applies to credit cards. Personal loans, car loans, etc. do not count towards the Chase 5/24 rule.
2. Chase typically likes to see 12 months of non-authorized user credit history before they approve you for a card. Your mileage may vary based on your banking relationship and income level.
3. Why are we focused on Chase cards? Due to the restrictive Chase 5/24 rule, it mathematically makes sense to get Chase cards first, then move on to other credit issuers. Each Chase slot is easily worth $500-$1,000 in travel. More details here: https://www.asksebby.com/blog/how-much-are-Chase-credit-cards-worth

Credit Card #1: Any student or secured card

Since Chase typically likes to see at least 12 months of personal credit history, your first credit card should be a student credit card (if you qualify), a starter card, or a secured card.

I strongly recommend picking a card that does not have an annual fee since you should plan on keeping the card long-term. This card is the foundation of your credit card history, and the last thing you want to do is cancel your oldest card due to the annual fee.

Capital One, Bank of America, and Citi have good beginner card options.

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Credit Card #2: Chase Freedom Unlimited® or Chase Freedom Flex℠

After holding credit card #1 for at least 12 months, I recommend going for a Chase Freedom Flex or Chase Freedom Unlimited to start building a credit relationship with Chase.

I’ve seen people get approved for a Chase card with less than 12 months of credit history, but they usually have a higher income ($80k+) or other credit mixes.

Chase starter cards:

• Chase Freedom Flex - earn 5% on select rotating categories each quarter you activate, up to $1,500 in combined purchases each quarter.
• Chase Freedom Unlimited - earn a flat rate of 1.5% on everything.

If you have a lot of miscellaneous expenses like home improvement, taxes, or tuition, I recommend going for the Freedom Unlimited.

You can product change between the Chase Freedom Flex and the Freedom Unlimited.

Credit Card #3: Chase Sapphire Preferred® Card or Chase Sapphire Reserve®

Depending on what your income is and if you have plans to travel, I recommend going for either the Chase Sapphire Preferred or the Sapphire Reserve.

Wait at least 3 months of having the Freedom card before applying. If you apply sooner, it could raise flags due to the velocity of card applications.

The following rules apply to the Sapphire cards:

• You can only hold one Sapphire card at a time (unless you’re grandfathered in)
• You can only receive one Sapphire bonus (regardless if Reserve or Preferred) once every 4 years

Since the Chase Sapphire Reserve is a Visa Infinite card, you need to have the ability to get approved for a minimum of $10,000 credit line. I recommend having an income of at least $35,000+ to increase your chances of approval.

If you don’t have plans to travel in the near future or you value Chase travel partners, I suggest going for the Chase Sapphire Preferred. The Sapphire Preferred has a higher intro bonus of 100,000 points, and a lower annual fee.

Worst case, you can cash out the 100,000 points for a net $905. After a year, you can product change the Sapphire Preferred to a Sapphire Reserve.

Bonus: Add Chase Ink Cards

Chase business cards do not count towards Chase 5/24, but they’re affected by it. You must be at 4/24 or under to get approved for a Chase business credit card.

If you qualify for business credit cards, I recommend adding them here.

You can qualify for a business credit card if you generate any type of income outside of your full-time job. Examples would be tutoring, rental income, selling online, or babysitting. Depending on the state you live in, you could qualify as a sole proprietor.

Credit Card #4 and #5: Any remaining Chase credit cards you want

Chased on your travel goals, I recommend filling in slots #4 and #5 with the remaining Chase credit cards that are on your list.

A strong hotel keeper card that I’ve kept long term is the The World of Hyatt Credit Card since redemption nights start at 5,000. You also get a free night certificate each card anniversary.

A few other cards worth considering:

• United℠ Explorer Card
• IHG® Rewards Club Premier Credit Card
• Southwest Rapid Rewards® Priority Credit Card
• Marriott Bonvoy Boundless® Credit Card

Pick the cards based on your airline or hotel preferences.

Alternatives to Chase Credit Cards

If you are not a fan of Chase or you’re not eligible for Chase credit cards, I recommend going for Capital One first since they’re inquiry sensitive.

Capital One® Venture® Rewards Credit Card

• Annual fee: $95
• 12+ Airline transfer partners
• Up to $100 application fee credit for Global Entry or TSA Pre✓®  
• No foreign transaction fees

Barclays

Barclays has a soft 6/24 rule that is not always enforced. If you open more than 6 credit cards in the past 24 months from any credit issuer, then you’re likely to get denied.

Barclays credit cards worth considering:

• Barclays Aviator cards
• Barclays JetBlue Plus

Although some of the Barclays cards have no annual fee products in the same family tree, some people have had trouble requesting a downgrade. I recommend building a strong foundation of cards first before moving on to Barclays.

America Express

American Express is not sensitive to velocity or inquiries, so I would save Amex cards as the last cards you get.

Important note: I do not recommend getting an Amex card with an annual fee as your first credit card. If the Amex card does not have a no annual fee downgrade path, and you choose to cancel in the future, you lose the credit history.

Bank of America

For people with a lot of assets with Bank of America, I suggest checking out our post on the Bank of America Duo to maximize your points: https://www.asksebby.com/blog/bank-of-america-duo-credit-cards-for-high-net-worth-individuals