Nilton Porto
MBA, Ph.D., Associate Professor, Consumer Finance, Human Development & Family Science, University of Rhode Island

For better or worse, a good credit score plays a big role in our financial lives. It can make everything from renting an apartment to buying a car a lot easier. Starter credit cards are a great way to begin building credit. They are especially helpful for young adults, recent immigrants, or anyone looking to rebuild after past credit issues.
Since the main goal is to build credit and improve your score, it is best to wait until your finances are stable – like when you have a steady income – before applying. It is also smart to plan ahead if you are thinking about a big purchase, like a car or a home. If your goal is to build credit, I recommend applying for a starter card once you land a good job or right after college graduation. Banks tend to view college grads as lower-risk and more likely to earn higher incomes.
Some starter cards require a security deposit, which helps protect the card issuer. Usually, your credit limit is equal to the deposit. The good news? That deposit is refundable once you have shown responsible use and are ready to move on to a traditional credit card.
While credit overall has become harder to access since the Great Recession, secured starter cards have actually grown in popularity. More banks are offering them, and applying is easier than ever thanks to online and mobile options.
Banks offer starter cards to attract new customers—and yes, to make money. But they also help people get started on the right financial path. Another great way to build credit is by becoming an authorized user on a family member’s credit card. I have done this with all three of my kids. They are authorized users on different cards I have had for years. You can set a limit and monitor their credit use. My oldest just graduated college and is already able to apply for his own credit card.