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American spending habits fluctuate by generation. In 2023, Gen Z spent most of their money on food and clothes while baby boomers prioritized healthcare.
American spending habits fluctuate based on factors like the economy, average cost of living and global events. Interestingly, spending trends don’t always move in predictable patterns—NPR reported elevated spending in 2023 despite rising inflation costs.
Here, we’ll review American spending habits to paint a clearer picture of our potential expenses in the near future. We’ll also share personal finance resources that can help you refine your budget and reach your savings goals.
Table of contents:
Overview of American spending habits
According to the Bureau of Labor Statistics (BLS), Americans spent an average of $72,967 in 2022. This number suggests a 9 percent increase in American spending habits from 2021 (wherein the average annual expenditure was $66,400) to 2022. How much we spend makes a lot more sense when we break down what exactly our money is going toward.
What do Americans spend the most money on?
Expenditure
Cost
Housing
$24,298
Transportation
$12,295
Food
$9,343
Personal Insurance and Pensions
$8,742
Healthcare
$5,850
Entertainment
$3,458
All Other Expenditures
$2,080
Cash Contributions
$2,755
Apparel and Services
$1,945
Education
$1,335
Personal Care Products and Services
$866
Source: Bureau of Labor Statistics
In 2022, the BLS noted a 7.5 percent increase in income to coincide with a 9 percent increase in expenditures. Among the different categories, spending on food increased by 12.7 percent from 2021 to 2022. Vehicle purchases and entertainment expenses dropped by 6.9 percent and 3.1 percent, respectively.
These numbers fluctuate depending on the circumstances of a particular household. For example, the BLS found that 39.4 percent of a one-person household’s expenses go toward housing costs, while 32.1 percent of a two-person household’s funds are spent on housing.
To better understand American spending habits, we can examine the average expenditures of various groups based on factors such as age and education.
Teen spending habits
According to the United States Census Bureau, more than 43 million teenagers live in America. Gaining a better understanding of teen spending habits is important, as teens spend about $63 billion each year.
More than 50 percent of young adults (16 to 24) were employed in 2023. Some of the top brands that teens spend their new income on include Chick-fil-A, Netflix and Snapchat. In 2024, the BLS anticipates that more teenagers will prioritize school attendance over traditional means of employment—which could affect where and how often they’re spending money.
College student spending habits
College student spending habits fluctuate as changes to the American education system become more widespread. Four years in college is no longer the norm—many students take anywhere between an extra semester to a few extra years to graduate. This extra time incurs additional costs (like tuition and rent) that impact spending habits.
In addition to money spent on tuition, college students are purchasing new tech, tickets to festivals and events and lots of food. Older students with more life experience also have to balance school expenses with other mandatory purchases like groceries for the household.
Gen Z spending habits
Generation Z includes anyone born between 1997 and 2012. Gen Z spending habits reportedly differ even more than their older millennial counterparts. This generation grew up completely immersed in the digital era and is very likely to shop online.
A 2021 study by Elmira Djafarova and Tamar Bowes found that 41 percent of Gen Zers are impulse buyers. Quality and value are of the utmost importance to this generation. They may be quick to switch brands if they believe they’re getting better overall value from a different company.
Millennial spending habits
Millennials are generally defined as the generation born between 1981 and 1996. This group is known for making financial decisions that are strikingly different from those that came before them.
Millennial spending habits include increased online shopping, a preference for experiences over material things and an openness to generic brands if the choice saves money.
Baby boomer spending habits
Baby boomers are those born between 1946 and 1964. This group is filled with people who are close to or already in their retirement years. In contrast to their parents, who were born in the Great Depression, boomers expect to have a fun retirement.
They’re looking forward to experiencing new places and trying new things. However, many baby boomers are facing retirement issues due to a lack of savings and mounting debt. Despite it all, baby boomer spending habits indicate that this generation holds more than 50 percent of the wealth in the United States.
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Alexis Peacock was born in Santa Cruz, California and raised in Scottsdale, Arizona.
In 2013, she earned her Bachelor of Science in Criminal Justice and Criminology, graduating cum laude from Arizona State University. Ms. Peacock received her Juris Doctor from Arizona Summit Law School and graduated in 2016. Prior to joining Lexington Law Firm, Ms. Peacock worked in Criminal Defense as both a paralegal and practicing attorney. Ms. Peacock represented clients in criminal matters varying from minor traffic infractions to serious felony cases. Alexis is licensed to practice law in Arizona. She is located in the Phoenix office.
Your mind and body may be ready for a sunny beachside spring break in Cancun, but if you’re living that broke college kid life, you may imagine your spring break looking more like a week at home, scrolling through Instagram and binging Netflix.
However, it is possible to plan a spring break trip on a limited budget. And yes, even a college student’s budget can be stretched for spring break fun! If you’re wondering how to plan a spring break trip without living off instant noodles for the next month, we have some tips to help you get a well-deserved vacation from those long nights spent studying in your dorm room.
Keep reading for some of our best tips on making your spring break trip dreams happen on a budget.
1. Start Planning Early
Waiting until the last minute to plan a trip could mean missing out on cheaper flights, hotels, and even popular ticketed attractions. If you’re going to a hot destination during a peak travel season, which includes spring break for many destinations, then you could blow your travel budget on the flight alone, leaving you without enough money for food and lodging.
2. Make a Budget & Stick to It
Before you even leave for your destination, it’s smart to create a travel budget. What can you reasonably afford to spend on accommodations, transportation, entertainment, meals, and shopping? Having a budget could help you avoid splurging on expensive dinners or overspending at local shops.
Recommended: How to Save for a Vacation: Creating a Travel Fund
3. Find Off-Season Destinations
If Cancun for spring break is too pricey for your college student budget, don’t stress. There are a number of great destinations that are off-season in the spring, ranging from the more rugged Jackson County, North Carolina to the Big Apple.
4. Only Travel as Far as You Can Drive
It’s about the journey, not the destination, right? You can make that (semi) true by taking a road trip with a few friends. On a road trip, you don’t need to follow any set schedule. Since there’s no flight or train to catch, and often no hurry to reach a destination, you can make spontaneous decisions and discover hidden gems along the way.
5. Avoid Tourist Traps
Doing spring break on a budget generally means skipping touristy destinations like Miami, New Orleans, and Cabo. However, there are plenty of cheaper alternatives to these locations that can save you money and that will probably be far less crowded, too.
6. Reach out to Friends & Family
If you have friends or family in another city, reach out and ask if they’d be willing to host you. If they agree, you could get some free lodging and meals out of it. Plus, you’d be connecting with locals who could guide you through the city and give some tips on cool and free stuff to do that you might not have found otherwise.
Recommended: How to Balance the Urge to Travel and the Need to Save
7. Ditch the Plane Ticket
Planes and cars aren’t the only way to land at your tourist destination. You can do spring break on a budget by hopping on an Amtrak train or a Greyhound bus, both of which have destinations all over the country. The best part? You can catch up on some work, sleep, or relaxation while you enjoy the ride.
8. Don’t Forget about Cruises
You could spend a fortune going to just Miami or Los Angeles. Or, you could check out some cheaper cruise options that could potentially take you all over Alaska, the Caribbean islands, or a slew of other destinations for less. There are even cruise options designed specifically for college students.
9. Consider Pitching a Tent
Do you get motion sickness in cars or boats? With camping, your feet will be firmly planted on the ground, and your budget will also likely stay down to earth. You can camp out in many destinations across the U.S. and even abroad, be it under the stars near a national park or near a great fishing hole in the Carolinas.
10. Look For a Deal
Sites like Groupon and LivingSocial offer a number of travel and hotel deals both for individuals and for group travel. Checking out which hotels are offering promotions could help you save when booking accommodations. You can also find deals on attractions near where you’re vacationing, too.
11. Sign Up for a Spring Break Volunteer Experience
Many colleges offer a program called “alternative break,” which allows students to travel and volunteer during their spring break. If your college doesn’t offer any alternative break trips, you can still find some opportunities through organizations like Habitat for Humanity and United Way .
12. Be a Tourist in Your Own State
If airfare is out of the question for your spring break budget, a budget-friendly alternative could be touring your own state. You can take a spring break road trip around your state or even take multiple day trips, the latter of which could allow you to have most of your meals at home with no hotel needed.
13. Fly on Unpopular Days
No, it’s not just your imagination: There are some days that are cheaper to fly on than others. If you’re not tied to a set departure and/or return date, use the flexible date search on a travel or airline site. This can help you find the cheapest travel dates for your trip.
14. Sign Up for Price Alerts
One helpful way to ensure you’re getting the best possible deal on your trip is to sign up for price alerts, a free service offered by several travel companies, such as Kayak, Skyscanner, and Google Flights. These sites track prices daily and alert you in real-time when the price changes for a flight, hotel, or rental car you want.
15. Ask for Extra Snacks
If you’re flying to your destination, be sure to grab the airplane snacks. And if you like the snacks, ask for seconds! You may be able to snag a free snack to help tide you over between meals when you land. The worst thing that can happen is that they say no.
16. Consider Airbnbs or Hostels
For those looking for the best tips on how to plan a spring break trip, one not-so-obvious one may be skipping hotels altogether. Staying at an Airbnb or hostel could be a cheaper travel hack than even a budget motel, especially if you don’t plan on spending much time in your room anyway.
17. Use Public Transportation
While Uber may be one of the handiest apps to have while traveling, relying on ridesharing and taxis could end up costing you a small fortune, especially if you’re traveling in a big city. Using public transportation could cost you a fraction of the price of an Uber, plus it will allow you to explore more of your destination as you navigate around subway and bus stations.
18. Bring Your Own Food
Grocery costs may be on the rise, but the cost of dining out can really wreak havoc on your spring break budget. If you want to try the local cuisine, you can typically do so much cheaper by going to a local grocery store and buying premade meals there or, better yet, making your own meals using fresh, local ingredients. This option may only be available if you’re staying at an Airbnb or hotel with a kitchenette, though.
19. Eat Out for Lunch, not Dinner
Eating out for dinner will often cost you far more than eating out for breakfast or lunch. And if you decide to eat out for dinner still, skip the drinks and desserts. These items typically have higher markups than other items on the menu. Plus, when it comes to desserts, the quality (and quantity!) may not be worth it — many restaurants don’t even make the desserts they serve.
20. Ask About Complimentary Hotel Meals
Students looking for spring break trips on a budget won’t want to miss out on this tried-and-true travel budget saver: Before booking your hotel, ask if they have any complimentary meals, such as a continental breakfast. It may not be as fancy or Instagram-worthy as the hottest brunch spot in town, but it will likely be a lot better for your budget.
21. Use The Free Hotel Coffee
Most hotels offer free coffee either in the lobby in the mornings or through small coffee makers in your room. It may not be as fancy as your usual Venti Coconutmilk Latte with two pumps of salted caramel, but it won’t cost you anything.
22. Look out for Free Samples
Looking to score some more free snacks? Add local farmers’ markets to your itinerary. Many markets are full of free samples, so you may even be able to scrounge together a free lunch. You may also be able to score free swag, like t-shirts and reusable bags, from local vendors and businesses, your hotel, or the local visitor’s center.
23. Prioritize Free Activities
Sure, you can spend $50 for a museum ticket. Or, you could search online for some free museums nearby. Many hot spring break destinations offer free walking tours, free museum days, and a plethora of other free activities, such as parks and beaches.
24. Find a Travel Buddy (or Four!)
You’ll find that going on a budget-friendly spring break trip can be a lot easier if you team up with friends. Pooling your college budgets together may even help you to afford nicer accommodations or a more far-flung destination.
25. Cash in Credit Card Rewards…
If you have a rewards or cashback credit card, you may want to save up your points to help fund your epic spring break. Having a travel rewards card can be an easy way to save on travel, especially if you’re able to use that card on purchases before heading out on vacation, which could help you build up even more rewards points.
26. …And Earn More Rewards While Traveling!
Using your rewards credit card on vacation may not help you save for your current trip. But if you rack up more rewards during your trip, you’ll already have a new vacation fund started before you even come back from spring break.
27. Research Student Discounts
Catching a movie or eating out during spring break? Ask about a student discount! You may be able to score some sweet savings even before your vacation, as companies like Expedia often offer student-only travel deals. You can also try StudentUniverse , which helps students get discounts on hotels, airfare, and more.
28. Ask About Membership Discounts
A ton of college discounts exist, but don’t rule out membership discounts you could get from family members. For instance, Costco, Sam’s Club, AAA, and AARP all offer travel discounts to their members. It may be worth asking some relatives about their memberships to save big on your spring break trip.
29. Avoid Transaction Fees
Transaction fees can be a real budget-killer if you’re traveling abroad. And even if you’re stateside, ATM fees can also put a dent in your spring break savings. So you may want to ask your card issuer about fees and plan accordingly to make sure you have enough cash on hand to avoid them.
30. Use Hotel Toiletries
TSA-approved toiletries can be overpriced, and buying them when you arrive at your destination may also mean overpaying for toiletries that you have loads of at home. The best alternative? Decant your own shampoo and conditioner into smaller bottles you can snag at The Dollar Store. Or, better yet, just use the hotel toiletries. They may not be what you’re used to, but your budget will thank you.
The Takeaway
Wondering how to plan a spring break trip on a budget? It may not be as hard as you think. If you’re willing to try off-peak destinations and hunt for discounts, you can save a ton of cash. Spring break trips on a budget don’t have to be a drag, either. You can still go to popular destinations if you create (and stick to) a spring break travel budget. Using rewards and cashback cards can also help you save on airfare and other travel expenses.
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Home » Credit » 6 Ways to Help Your Child Build Credit During College
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College students have a lot on their plate already, including the need to study to get good grades, participating in any number of on-campus activities and potentially working part-time to have some spending money.
That said, college students should also focus on their financial future, including steps they can take to build credit before they enter the workforce.
After all, having a credit history and a good credit score can mean being able to rent an apartment, finance a car or take out a loan, whereas having no credit at all can mean sitting on the sidelines until the situation changes.
Fortunately, there are all kinds of ways for young adults to build credit while they’re still in school. Some strategies require a little work on their part, but many are hands-off tasks that you only have to do once.
Teach Them Credit-Building Basics
Make sure your student knows the basic cornerstones of credit building, including the factors that are used to determine credit scores. While factors like new credit, length of credit history and credit mix will play a role in their credit later on, the two most important issues for credit newcomers to focus on include payment history and credit utilization.
Payment history makes up 35% of FICO scores and credit utilization ratio makes up 30% of scores.
Generally speaking, college students and everyone else can score well in these categories by making all bill payments on time and keeping debt levels low. How low?
Most experts recommend keeping credit utilization below 30% at a maximum and below 10% for the best possible results. This means trying to owe less than $300 for every $1,000 in available credit limits at a maximum, but preferably less than $100 for every $1,000 in credit limits.
Add Your Child as an Authorized User
One step you can personally take to help a child build credit is adding them to your credit card account as an authorized user. This means they will get a credit card in their name and access to your spending limit, but you are legally responsible for any charges they make. Obviously, this move works best when you have excellent credit and a strong history of on-time payments and you plan to continue using credit responsibly .
While this step can be risky if you’re worried your college student will use their card to overspend, you don’t actually have to give them their physical authorized user credit card.
In fact, they can get credit for your on-time payments whether they have access to a card or not. If you do decide to give them their credit card, you can do so with the agreement they can only use it for emergency expenses.
Encourage Them to Get a Secured Credit Card
Your child can build credit faster if they apply for a credit card and get approved for one on their own, yet this can be difficult for students who have no credit history. That said, secured credit cards require a refundable cash deposit as collateral are very easy to get approved for.
Some secured credit cards like the Ambition Card by College Ave even offer cash back1 on every purchase and don’t charge interest2. If your child opts to start building credit with a secured credit card, make sure they understand the best ways to build credit quickly — keeping credit utilization low and paying bills early or on time each month.
Opt for a Student Credit Card Instead
While secured credit cards are a good option for students with little to no credit get started on their journey to good credit, there are also credit cards specifically designed for college students. Student credit cards are unsecured cards, meaning they don’t require an upfront cash deposit as collateral, but charge interest on any purchases not paid in full each month.
Many student credit cards offer rewards for spending with no annual fee required as well, although these cards do tend to come with a high APR. The key to getting the most out of a student credit card is having your dependent use it only for purchases they can afford and paying off the balance in its entirety each billing cycle. After all, sky high interest rates don’t really matter when you never carry a balance from one month to the next.
Student Credit Cards…
“One of the safest ways for college student to build their credit by learning valuable money skills.”
Help Your Child Get Credit for Other Bill Payments
While secured cards and student credit cards help young adults build credit with each bill payment they make, other payments they’re making can also help.
In fact, using an app like Experian Boost can help them get credit for utility bills they’re paying, subscriptions they pay for and even rent payments they’re making. This app is also free to use, and you only have to set up most bill payments in the app once to have them reported to the credit bureaus.
There are also rent-specific apps and tools students can use to get credit for rent payments, although they come with fees. Examples include websites like Rental Kharma and RentReporters.
Make Interest-Only Payments On Student Loans
The Fair Isaac Corporation (FICO) also notes that students can start building credit with their student loans during school, even if they’re not officially required to make payments until six months after graduation with federal student loans.
Their advice is to make interest-only payments on federal student loans along with payments on any private student loans they have during college in order to start having those payments reported to the credit bureaus as soon as possible.
“Making interest-only payments as a student will not only positively affect your credit history but will also keep the interest from capitalizing and adding to your student loan balance,” the agency writes.
Of course, interest capitalization on loans would only be an issue with private student loans and Federal Direct Unsubsidized Loans since the U.S. Department of Education pays the interest on Direct Subsidized Loans while you’re in school at least half-time, for six months after you graduate and during periods of deferment.
The Bottom Line
College students don’t have to wait until they’re done with school to start building credit for the future, and it makes sense to start building positive credit habits early on regardless. Tools like a credit card can help students on their way, whether they opt for a secured credit card or a student card. Other steps like using credit-building apps can also help, and with little effort on the student’s part or on yours.
Either way, the best time to start building credit was a few years ago, and the second best time is now. You can give your student a leg up on the future by helping them build credit so it’s there when they need it.
20% APR. Account is subject to a monthly account fee of $2, account fee is waived for the initial six-monthly billing cycles.
College Ave is not a bank. Banking services provided by, and the College Ave Mastercard Charge Card is issued by Evolve Bank & Trust, Member FDIC pursuant to a license from Mastercard International Incorporated. Mastercard and the Mastercard Brand Mark are registered trademarks of Mastercard International Incorporated.
About the Author
Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.
Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.
While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.
Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.
“Hey, kid, get out there and play a clean game and have fun … oh, and remember to send the IRS your quarterly estimated tax check and don’t forget about the social post you owe Vinny’s Pizzeria today,” shouts the hypothetical parent of a student earning NIL money in 2024.
Lots of talented people have become young entrepreneurs in the couple of years since it became permissible for college and, in many states, high school students to cash in on their own personal brand. It’s a concept referred to as name, image and likeness (NIL) — think of a recognizable college athlete getting paid to endorse a brand’s product or a player selling signed merchandise.
While the vast majority of kids aren’t working with an Arch Manning-like windfall, people earning modest amounts may be more vulnerable to money missteps, experts say.
Young stars hoping to profit off their brand need to be savvy about their money. If you’re an athlete, here are five tips to keep in mind.
1. Review contracts carefully
It’s easy to understand why a teenage athlete might be overly eager to sign any business deal that comes their way, but tread carefully, says Helen Drew, a professor of practice in sports law at the University of Buffalo.
“Student athletes are somewhat at the mercy of the people who would be engaging with them,” she says. “It’s hard to know whether or not the deal is worth taking.”
Drew recalls a deal she saw in which a student was being asked to give power of attorney as part of the deal. “He [the student] had no idea what that meant,” she said.
A power of attorney is a legal document that lets another person or business act on your behalf in certain situations, and probably isn’t top of mind for a 19- or 20-year-old.
“[Student athletes] have to understand a contract before they sign it,” says Luke Fedlam, partner and chair of sports law at Porter Wright Morris & Arthur LLP in Columbus, Ohio.
Drew says to pull your parents in, use caution and vet the business before signing anything. “If it looks too good to be true, it probably is.”
And if you spot a term like “power of attorney,” you may want to consult an attorney.
2. Budget earnings to last
When a reputable deal does go through, you can get paid. That’s when you have to start thinking about the future.
Assuming you’re not Bronny James, expect deals to be sporadic with varied pay. Even for those able to earn six or seven figures, classic financial concepts still apply.
Fedlam advises young earners to buckle down with a budget and plan for how to spend and save the money.
It’s a concept that needs to be drilled into adults, too. But once you do it — open a spreadsheet and set some spending guardrails — you’ll be glad you did. Put some money in savings to establish your emergency fund. Strive for $500, then build it up from there.
If your personal brand is bringing a sustainable income, it would be wise to put retirement savings on your radar now.
3. Plan to pay taxes
While you’re finding room for savings, keep the IRS in mind, too.
The good thing about a regular day job, boring as it sounds, is employers typically withhold taxes from your check — so you don’t have to do the math later. That may not be the case with a one-off NIL deal.
“Typically in these agreements, the responsibility for paying taxes is passed to the student athlete,” Drew says.
Depending on your earnings, you may need to pay self-employment tax and make quarterly estimated tax payments to avoid a big bill come April.
Athletes with higher earnings and multiple sources of income may want the help of an accountant.
4. Budget your time, too
There are many ways athletes can make money from their name, image and likeness, but social media influencer marketing tops the list of NIL activities, says Bill Carter, an NIL educator and consultant and founder of Student-Athlete Insights. (For example, Company X gives a student athlete money to post about a product on the athlete’s social media account.)
Posting for pay may sound like music to a teenager’s ears, but it may also be more work than you think.
Carter administers a monthly NIL survey of a panel of 5,000 college student athletes and 1,000 high school prospects.
According to data from the poll, a social media post as part of an influencer campaign takes about three hours, on average.
Athletes used to free-posting personal stuff on social media may be taken aback by the planning, coordination and communication required to post for a business, Carter says.
If you’re an athlete already working with limited free time, be prepared to grind it out off the field, too.
5. Seek education
Experts say financial education is essential for young athletes navigating NIL, but acknowledge it’s a work in progress.
School programs aren’t necessarily built for what comes with NIL, Drew says. She also laments the lack of basic financial education in grade school.
“The types of things these kids need are things every adult needs,” she says. “Maybe you don’t need to balance a checkbook anymore. But you should probably have some understanding of what the ramifications of signing any kind of contract are.”
Carter says his survey results regularly show student athletes involved with NIL are eager to learn more about areas like investing and the basics of how to build credit.
The good news is you can gain financial clarity by reading about budgeting, saving, credit and investing from reputable sources online. If NIL becomes a reality for you, there are more specialized resources like AdvanceNIL.com, which Fedlam co-founded to provide education for athletes and families.
And when your playing (and paid posting) days are over, what you learned could set you up for financial success in what’s next.
Has your soon-to-be college student chosen the school they’d like to attend in the fall? Or, are they just starting to think about the application process? Either way, it’s never too early to research ways to pay for college.
Student loans, federal and private, are one common method that students and their families use to cover the cost of higher education. Typically, students are the ones who take out these loans (and are responsible for repaying them). However, there are also student loans, both federal and private, available for parents.
Also keep in mind that if your child takes out a private student loan, you will likely need to act as a cosigner, which means you will be responsible for repayment if your child is unable to make payments.
No matter who acts as borrower, it’s important for parents to be in the loop when it comes to student loans. Here’s what you need to know.
Not All Loans Are Created Equally
When it comes to student loans, there are two main options:
• Federal loans (funded by the federal government)
• Private student loans (funded by private lenders)
Federal Student Loans
Federal student loans are provided by the U.S. Department of Education and come in several forms:
• Direct Subsidized Loans These are for undergraduate students and are awarded based on financial need. The government pays the interest on these loans while the student is in school and for six months after they graduate (known as the grace period).
• Direct Unsubsidized Loans These are available to undergraduates, graduate students, and professional students and are not awarded based on need. The borrower is responsible for paying all interest that accrues on the loan.
• Direct PLUS Loans These are for graduate and professional students and parents of dependent undergraduates. They are not based on financial need and a credit check is required.
• Direct Consolidation Loans This option allows you to combine all your federal loans into one loan payment under a single loan servicer.
All federal loans come with fixed interest rates, which means the rate won’t change over the life of the loan. Interest rates are set by Congress each year on July 1st. For most students, federal loan repayment starts after the post-graduation grace period.
To apply for federal student loans, you need to submit the Free Application for Federal Student Aid (FAFSA). 💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.
Private Student Loans
Private student loans are available through banks, credit unions, and online lenders. Many private student loans mirror the terms and repayment periods of federal student loans, but not always. Differences between federal versus private loans include:
• Credit checks Most federal student loans don’t require a credit check (except PLUS loans) but it’s required for private student loans. To qualify for a private student loan, you’ll need to meet the lender’s credit and other eligibility requirements.
• Repayment start date Some lenders might allow you to defer making payments until six months after you graduate, while others may require you to begin repayment while you’re still in school.
• Interest rates Federal student loans have fixed interest rates that don’t change over the life of the loan; private student loans offer fixed or variable interest rates.
• Repayment terms Federal loans have long repayment terms — from 10 to 30 years, depending on your plan. Private student loans also vary in term length, but might not be as long.
• Loan forgiveness Some federal student loans offer forgiveness options for certain career paths, or after you’ve made a certain number of payments on an income-driven repayment plan. Private student loans aren’t required to offer this option to borrowers.
How Parents Can Help
If your student has tapped all available financial aid, including federal student loans, you might look into student loans for parents.
The federal government offers Direct PLUS Loans for parents. They have higher interest rates and fees and qualify for fewer repayment plans than federal direct subsidized and unsubsidized loans for students. The interest rate for federal direct PLUS loans is 8.05% for the 2023-24 academic year. There is also an origination fee of 4.228%, which is deducted from each loan disbursement.
To get a PLUS loan, you can’t have an adverse credit history (there may be exceptions to this rule if you meet other eligibility requirements) and you must complete the FAFSA with your child.
It’s important to note that a parent PLUS Loan will ultimately be your responsibility to repay. The only way to transfer parent loans is to have your child refinance the loan with a private lender in their name.
You also have the option of getting a parent student loan through a private lender, such as a bank or credit union.
If you have solid finances and expect to be able to work the entirety of your loan term, a private student loan may be a better deal. Private student loans often offer lower interest rates and typically don’t have origination fees. However, they generally don’t offer as many protections should you lose your income and have trouble repaying the loan.
You Can Use Loan Money Only for Certain Things
Typically, student loans are paid out directly to the school. The school will then apply your loan money to tuition, fees, and room and board (if your student lives on campus), and give any remainder to your student. They can then use the surplus funds but only for education-related expenses. This includes textbooks, computers/software, transportation to and from school, housing, meal plans or groceries, and housing supplies (e.g., sheets, towels, etc.).
Students can’t, however, use the proceeds of a student loan to pay for entertainment, going out to dinner, takeout meals, clothing, or vacations.
Federal Loans Offer More Forgiveness Options
Some student loan repayment plans, like income-driven plans, give graduates the opportunity to have their loans forgiven if they aren’t fully repaid at the end of the repayment period, which may be 20 or 25 years.
Depending on the field of work your student may enter, there may be other forgiveness options. For example, under Public Service Loan Forgiveness (PSLF), borrowers can have their loans forgiven after 120 monthly loan payments. To qualify, you must work for an eligible non-profit organization or government agency full-time while making those qualifying payments.
With the Teacher Loan Forgiveness Program, borrowers can qualify for up to $17,500 in loan forgiveness if they teach full-time for five full and consecutive academic years in a low-income elementary or secondary school or educational agency.
There are far fewer student loan forgiveness programs available for private student loans than federal loans. However, some private lenders offer loan modification or repayment assistance programs. 💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.
The Takeaway
You and your student will generally only want to look into student loans after you’ve tapped more cost-effective forms of funding, such as scholarships, fellowships, and grants — since that’s money you don’t have to pay back.
After that, you might consider federal student loans. You don’t need a credit history to qualify, and they come with low interest rates and programs, like income-driven repayment plans and loan forgiveness, that private loans don’t offer. If you still have gaps in funding, you might next look at private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
When your child heads off to college, you are probably awash in all kinds of emotions. Pride, relief (yes, they got into school!), sadness, anxiety, and excitement can all swirl around you. Your baby is growing up and forging their own independent life. Will they make new friends? Like their classes and excel in them? Find their way around campus easily enough? Will they overspend, sleep through class, and stay out all Friday night?
Part of having a college student as a child means you must get used to some separation and lack of information. But that doesn’t mean you can’t continue to play a vital role in their life. Here, some wise advice about conversations to have, topics to cover, and when to help them have an amazing time at school.
Advice for Parents of College Students
Although each parent-child relationship is unique and each parent may face different challenges with their college student, there are moments that can be universal when your “baby” heads off to university life.
You’ll need to know how much to let go and encourage your child to become independent versus how much you should continue to provide support, whether that’s emotional support or financial.
Where that line should be drawn for each child and parent depends upon things like the seriousness of the problems being faced and how temporary or permanent they may be. In general, though, tips include:
• Listen, but try not to dive right into problem solving. This may not be the moment to lead with, “Here’s what you need to do…”
• Be mindful about how often you communicate and give your college student space while also staying available. Texting constantly and expecting quick replies will be unrealistic for many parents.
• You may be used to getting those report cards regularly and monitoring your child’s checkups at the doctor’s office. Recognize that now, times are changing, and you may not always be kept in the loop. FERPA (or the Federal Education Records Privacy Act) gives college students new privacy rights that can be defined pretty broadly. You may want to talk to your child about signing a FERPA waiver that will give you more access to information.
Accepting that college isn’t just about education but also about your child establishing themselves as an independent adult is an important transition for both of you. 💡 Quick Tip: Pay down your student loans faster with SoFi reward points you earn along the way.
Parenting College Students During Summer Break
Just when you figure out how to parent your child when he or she is away from school, summer break arrives with a different set of challenges. The young adult that you watched leave for college is probably not the same person who is returning. Maybe they don’t want to chat as much as before, or don’t seem as open to talk about daily life, friendships, and relationships.
The parent-child dynamic may be less about directing your kid’s actions and more about creating a collaborative partnership.
This can include things like withholding judgment about your child’s actions and making requests rather than demands — even when you’re sure you’re right. Your child is growing up and stretching their wings, both at school and when they return. They are becoming a full-fledged adult, after all.
Analyze which rules are the most important, and focus on those, letting other ones go. One example is you might ask that he or she call you if dinner will be missed, but not try to impose a curfew.
Recognize that during summer break you’ll probably need to readjust to being together, while also focusing on enjoying your time together.
Conversations about Paying for College
As part of your evolving parent-child relationship, you’ll likely find yourself in conversations about the best ways to pay for college. As the parent, you’ll likely initiate these talks. As part of your discussions, you may want to:
• Be clear about how much money you’re willing or able to contribute towards your child’s college expenses and how much your child will need to contribute.
• Discuss how much college will cost once you add tuition, housing, books, and other expenses together.
• Talk about student loans, including the differences between federal student loans and private student loans.
• Discuss how your child working during college may help pay for expenses.
• Talk about money management and how your child may feel some stress over student loan debt.
Here are some valuable topics to mention.
• There are scholarships and grants that usually don’t need to be repaid. What’s left is the amount that typically needs to be paid for by a combination of parental contributions, student contributions, and student loans.
• The two main types of student loans are federal and private. To qualify for federal student loans, you’ll need to fill out the FAFSA® (or Free Application for Federal Student Aid). This form needs to be filled out every year to determine eligibility for federal student aid dollars, including federal student loans.
• Federal loans can be subsidized or unsubsidized. Students may be eligible for a subsidized loan if they have a certain degree of financial need. Subsidized loans do not accrue interest during the six-month grace period after graduation/dropping below half-time enrollment and during any loan deferments.
• If the student drops below half-time enrollment, the grace period will begin even if he or she has not graduated yet, although there are some circumstances in which the student loan grace period can change.
Unsubsidized federal student loans do not require a demonstration of financial need, but do accrue interest during the entire loan period.
Private student loans are not funded by the government. Your child can apply with individual lenders, and each loan will come with its own terms and conditions, including repayment terms. Private loans can help fill the gap between what your child can pay with scholarships, grants, or federal loans. 💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.
Saving for Your Child’s College
If you’re still saving for your child’s education, your options may include:
• What are known as 529 college savings plans, also called qualified tuition plans, allow you to save for college while potentially offering tax benefits. Money saved in an education savings plan (sponsored by some states) can be used for tuition, fees, room and board, and other qualified higher education expenses at a college or university.
• Prepaid tuition plans (available at some universities) offer the option to prepay tuition and fees at current rates.
• Traditional or Roth IRAs, although more commonly used to save and invest for retirement, can be used to save for college expenses. .
• Coverdell Education Savings Accounts allow you to set up an account to pay for qualified education expenses, but contributions are not tax deductible and are only available for people whose income falls under certain limits.
• Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts are intended as a savings vehicle for beneficiaries under the age of 18. Depending upon your state, the funds will transfer to your child at either age 18 or 21 and do not have to be used for education expenses.
Tax Credits and College
When it’s tax time, if you claim your college-age child as a dependent, you might qualify tax credits related to education.
• The American Opportunity Tax Credit could be helpful during the first four years of their undergraduate education. Qualifications include MAGI, or modified adjusted gross income, among other factors.
This is a credit for tuition and other qualified education expenses worth up to $2,500 per eligible student and could reduce the filer’s tax bill, not their taxable income.
• The Lifetime Learning Credit is also a tax credit, but may be harder to qualify for. Each year, you can claim either the AOTC or the LLC, but not both.
Parent Student Loans
You may be able to take out loans for your child’s education expenses, including a federal Parent PLUS Loans, available to parents of dependent undergraduate students for the amount of attendance costs minus other financial aid.
Private lenders may also be an option. Fees, rates, and repayment options vary by lender and they don’t typically offer forbearance or deferment options like federal loans do. As another option, you may be able to co-sign a private student loan with your child.
SoFi Parent Loans
Paying your child’s tuition with SoFi’s flexible, competitive-rate parent loan may be an option for consideration as well.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
The Free Application for Federal Student Aid (FAFSA) for the 2024-25 academic year is preparing to soft launch, following a three-month delay and its most significant redesign since the 1980s.
The Education Department said on its main FAFSA webpage Dec. 27 that the new form will be available to students and families “periodically” while it tests functionality and site performance during planned pauses for maintenance. It urged students and families to continue checking FAFSA.gov for updates.
Anyone who plans to attend college next year should submit the new FAFSA as soon as possible. The sooner you apply, the more money available to you.
The form unlocks federal, state and school-based financial aid, including federal student loans, need-based grants, work-study and even some scholarships. Some of this aid draws from a limited pool and is first come, first served.
How the FAFSA Soft Launch Will Work
The Department said It will save the information of anyone who submits the form during the soft launch, and will not require resubmission when the form is formally launched. Those who submit the FAFSA should receive a confirmation email with preliminary financial aid eligibility information.
The Department said it will provide FAFSA eligibility information to schools and states in late January. Until that time, schools will not be able to answer questions about aid eligibility or status.
In late January, it said, students and families will be able to check the status of their FAFSA form on StudentAid.gov.
What you can do right now
You’ll need an FSA ID to submit the form. Each person who submits financial information for the new FAFSA is called a “contributor.” This could include the student, the student’s spouse, one or both biological or adoptive parents or the parent’s spouse. Each contributor needs a unique username and password — an FSA ID — to log in and complete their portion of the form.
Request your FSA ID on studentaid.gov and plan for a three-day turnaround time to receive it. Students won’t be able to submit the FAFSA until every contributor has their FSA ID.
What’s new with the new FAFSA
The fresh FAFSA formula could impact students’ financial aid packages. An additional 610,000 students from low-income backgrounds are expected to qualify for the Pell Grant, which gives students up to $7,395 that doesn’t need to be repaid.
The new formula, however, eliminates the so-called “sibling discount,” so parents no longer get a break for having multiple children in college at the same time.
If you’re a current college student and need help completing the 2024-25 FAFSA, reach out to your college’s financial aid office. If you’re a prospective college student, contact your high school college counselor or the financial aid offices of the schools to which you’re applying.
Are you searching for high-paying jobs that require no prior job experience? If you’re looking for high-paying jobs with no experience, it is possible to find them. There are many entry level jobs that you can start if you want to make a good income. Starting a new career path or entering the workforce for…
Are you searching for high-paying jobs that require no prior job experience?
If you’re looking for high-paying jobs with no experience, it is possible to find them. There are many entry level jobs that you can start if you want to make a good income.
Starting a new career path or entering the workforce for the first time doesn’t have to mean taking a low-paying job. In fact, there are many high-paying jobs that don’t require a ton of experience or an advanced degree.
26 Best High Paying Jobs With No Experience
There are 26 high-paying jobs with no experience listed below. If you want to skip the list, here are some jobs that you may want to start learning more about first:
Flexible way to freelance from home – Proofreading
Work from home as your own boss – Blogging
Make passive income – Sell printables
High paying customer-oriented job idea – Car salesperson
High paying travel job idea – Flight attendant
Is it really possible to land high paying jobs with no experience?
Yes, it is possible to find high-paying jobs even without prior experience.
So, you’re on the hunt for high-paying jobs but haven’t yet gathered a ton of experience? You’re not alone! Many people find themselves in this very situation, and the good news is, there are opportunities out there to make income even if you are brand new.
However, just because a job doesn’t require experience doesn’t mean it’s a walk in the park. In fact, it might be quite the opposite. These roles usually demand a quick learning curve and a can-do attitude.
So, while the entry requirements might be minimal and you may be able to learn as you go, the effort you put in can still be a lot.
Below are high-paying jobs with no experience.*
1. Bookkeeper
Degree or education requirements: High school diploma or equivalent
Training requirements: There is a free workshop from Bookkeeper Launch that can help you get started with becoming an online bookkeeper.
Salary: $45,860 per year
You can become a bookkeeper with little to no experience. A bookkeeper is a person who tracks the finances of a business, handles billing and payments, makes spreadsheets, etc., but that doesn’t mean you need to be an accountant or have any related experience.
Recommended reading: How To Find Online Bookkeeping Jobs
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
2. Blogger
Degree or education requirements: None
Training requirements: On-the-job training and How To Start A Blog FREE Course
Salary: There is no average. I have earned over $5,000,000 blogging over the years, but I also know others who have not earned income.
Blogging can be a fun way to make money from home, and you don’t need any previous experience. In fact, this is one of my favorite top-paying jobs with no experience.
When I started my blog, I had no idea what I was doing and simply learned as I went.
As a blogger, you have the freedom to write creatively and share your thoughts or expertise on any given subject. Your income will depend on blog traffic, advertising, and sponsored content.
Recommended reading: How To Monetize A Blog: How I Grew A $5 Million Blog
3. Proofreader
Degree or education requirements: High school diploma or equivalent
Training requirements: Proofread Anywhere has a free training on How To Become A Proofreader
Salary: $45,410 per year
As a proofreader, your job is to scrutinize written materials and correct typos, grammar, and punctuation errors.
Not even the best writers are perfect. They still make grammar, punctuation, and spelling errors, and that’s why professional proofreaders are such a huge help.
Proofreaders proofread books, articles, blog posts, student papers, emails, advertising content, medical documents, and more.
Recommended reading: 20 Best Online Proofreading Jobs For Beginners
10
This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
4. Freelance writer
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training
Salary: $73,150 per year
I know many, many people who have found freelance writing jobs with no experience (myself included!). You don’t need a background in writing or a degree in English or creative writing. I, myself, was a freelance writer for many years, and I enjoyed it a lot. This is one of the best high income jobs with no experience out there.
A freelance writer is someone who writes for a number of different clients and across different types of content. They may write articles for magazines or blog posts, web copy, resumes, technical manuals, social media posts, books, and much more.
Freelance writers write blog posts, content for a company’s sales page, press releases, SEO content for a business, ebooks, essays, emails, newsletters, and more.
Recommended reading: 14 Places To Find Freelance Writing Jobs – (Start With No Experience!)
5. Virtual assistant
Degree or education requirements: High school diploma or equivalent
Training requirements: I recommend taking an online workshop such as Free workshop 5 Steps To Become a Virtual Assistant.
Salary: $44,080 per year
Several years back, I worked as a virtual assistant. I didn’t have any experience before, but I learned as I went along. That’s why I believe it’s one of the best jobs to start with because it was my first job too!
A virtual assistant helps businesses and entrepreneurs with tasks like managing an email inbox, data entry, scheduling appointments, and customer service.
A virtual assistant is someone who works for a person, company, or business owner doing administrative and business tasks to help the business run smoothly. Think of VAs as the online version of an in-person assistant. You work online from home rather than inside someone’s physical business.
Recommended reading: Best Ways To Find Virtual Assistant Jobs
This free training shows you how to become a virtual assistant and work from home.
6. Flight attendant
Degree or education requirements: High school diploma or equivalent
Training requirements: Flight attendants get on-the-job training from the airline they work for.
Salary: $63,760 per year
If you want to travel and work, then this is one of the most fun high-earning jobs with no experience (as an employee of an airline, you typically get free or very discounted flights too!).
As a flight attendant, you have the opportunity to travel and assist passengers during flights. Flight attendants have two main jobs: they do regular tasks like serving food and drinks, and they also know what to do if something goes wrong, to keep passengers safe and comfortable during a flight.
No experience is usually required, but you will need to complete a training program with the airline.
Learn more at How To Become A Flight Attendant.
7. Insurance claims adjuster
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training which can last several months
Salary: $72,040 per year
An insurance claims adjuster investigates and settles insurance claims in the insurance industry. Claims adjusters are like investigators for insurance. They check if an insurance company should give money for a claim, and, if they should, they decide how much.
They determine whether the insurance policy covers the loss claimed, decide the appropriate amount the insurance company should pay, make sure that claims are not fraudulent, and more.
8. Construction worker
Degree or education requirements: None
Training requirements: On-the-job training
Salary: $39,520 per year
Construction laborers have a hands-on role on construction sites. They do physically demanding tasks like cleaning up and getting sites ready, putting up structures, and moving construction materials, among other things.
There is a lot of job growth expected for this career too!
9. Police officer
Degree or education requirements: Ranges from a high school diploma to a college degree (such as a degree in criminal justice or law enforcement)
Training requirements: Training academy as well as on-the-job training
Salary: $69,160 per year (the average annual salary depends on many things, such as the city in which you work)
As a police officer, your duty is to protect and serve communities. This is a job that you will definitely need training for, but you can start with no experience.
Police officers do a variety of important tasks. They go to both urgent and less urgent calls, drive around neighborhoods to watch them, stop vehicles for checks, and even carry out warrants, among other duties.
10. Graphic designer
Degree or education requirements: High school diploma or bachelor’s degree
Training requirements: On-the-job training
Salary: $57,990 per year
Graphic designers many times learn as they go while on the job.
Graphic designers create visual concepts for branding, advertising, and other projects. Graphic designers use digital illustration and editing software to create designs, such as logos, images, brochures, advertising, and more.
Recommended reading: How To Make Money As A Digital Designer
11. Web developer and web designer
Degree or education requirements: Bachelor’s degree
Training requirements: On-the-job training
Salary: $80,730 per year
Web developers design and create websites. This includes making sure the website loads fast and can handle a lot of visitors. They also take care of the technical parts to keep the website running smoothly.
12. Dental laboratory technician
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training
Salary: $41,180 per year
Dental lab technicians create dental prosthetics like crowns and dentures.
Dental laboratory technicians receive work orders from dentists and form material for dental prosthetics. They also may repair damaged prosthetics.
13. Bartender
Degree or education requirements: None
Training requirements: On-the-job training
Salary: $29,380 per year
Bartenders mix and serve drinks while providing excellent customer service. While, yes, you may have to work your way up through a restaurant before you can become a bartender, this is a job that you mostly learn through on-the-job training.
Bartenders have jobs in places like restaurants, hotels, and places where people eat and drink. When it’s really busy, they need to work fast and get drinks to customers as quickly as possible.
Depending on where you bartend, you can make a lot more money too. For example, bartenders in touristy areas may make $10,000+ each month.
14. Roofer
Degree or education requirements: None
Training requirements: On-the-job training
Salary: $47,920 per year
Roofers install and repair roofs on buildings, and this is a job that you learn as you do it. A roofer’s responsibilities may also include inspecting roofs, installing ventilation, cutting roofing materials, and more.
15. Plumber
Degree or education requirements: High school diploma or equivalent
Training requirements: Apprenticeship
Salary: $60,090 per year
Plumbers install and repair water and gas pipes in buildings. They also prepare estimates, read blueprints, follow building codes, inspect and test systems, and more.
16. Car salesperson
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training
Salary: $72,782 per year
Car salespeople help customers find the perfect car while earning a commission. They talk with customers, follow up with leads, go on test drives, and handle paperwork.
This is a job that you can start with no experience. In fact, my husband was randomly offered a job as a car salesman and took the job. He saw lots of success with it!
17. Sell printables
Degree or education requirements: None
Training requirements: There is a free workshop: Earn Money Selling Printables
Salary: There is no average salary, but you may be able to make a couple hundred to several thousand a month.
Selling printables online can be a great way to make money without needing any prior experience.
Creating printables can also be quite passive because you just need to create one digital file per product, which you can then sell an unlimited number of times. Because you only need a laptop or computer and an internet connection, it can be quite affordable to start.
Printables are digital products that customers can download and print at home. Some examples are bridal shower games, grocery shopping checklists, budget planners, invitations, printable quotes for wall art, and patterns.
Recommended reading: How I Make Money Selling Printables On Etsy
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
18. Commercial truck driver
Degree or education requirements: High school diploma, professional truck driving school training, and commercial driver’s license
Training requirements: On-the-job training
Salary: $49,920 per year
A commercial truck driver transports goods across the country. Tractor-trailer drivers usually do long-distance driving. They handle trucks that weigh more than 26,000 pounds when you count the vehicle, passengers, and cargo. These drivers transport goods on routes that can stretch across multiple states.
19. Tree trimmer
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training
Salary: $47,080 per year
Tree trimmers prune and cut trees, maintaining their appearance and safety. This is a job that you will learn by watching others and through on-the-job training.
20. Real estate agent
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training, as well as pass real estate courses and a licensing exam.
Salary: $52,030 per year
Real estate agents assist clients with buying, selling, and renting properties. Their tasks may also include advising on market conditions, making a list of properties for sale or rent for their clients, hosting open houses, presenting purchase offers, managing negotiations between a buyer and seller, and more.
This role may require you to pass a licensing exam, but it doesn’t necessarily need prior experience. With an average salary range starting at a decent scale, real estate brokerage is one of the high-income jobs available with little-to-no initial experience.
21. Sales representative
Degree or education requirements: None
Training requirements: On-the-job training
Salary: Depends on what you’re selling. Could be anywhere from $30,000 to $100,000+ per year
Sales representatives sell products or services to clients, and you usually learn through on-the-job training after you are hired.
Successful salespeople come from various backgrounds and often start their careers with no relevant experience. What matters most is your ability to communicate, negotiate, and build relationships. The high earning potential makes it an appealing career choice for many.
22. Travel agent
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training
Salary: $46,400 per year
As a travel agent, you help plan vacations for clients. Travel agents help people choose where to go, plan out the details of the trip, and take care of all the travel bookings for their clients.
Travel agents figure out what customers want and book a trip that matches their preferences and budget. They may plan honeymoons, day trips, family vacations, cruises, find flights, and more.
23. Masonry worker
Degree or education requirements: High school diploma or equivalent
Training requirements: Learn masonry either through an apprenticeship or on the job, working with experienced masons
Salary: $49,490 per year median pay
Masonry workers build structures with bricks, stones, and concrete, and they typically learn the job through an apprenticeship with no prior work experience needed.
24. Tutor
Degree or education requirements: Depends on the topic you are tutoring on
Training requirements: On-the-job training
Salary: $36,680 per year if done as a full-time job
With tutoring jobs, you can start if you don’t have any prior experience. You will need to be knowledgeable on the topic, though, and many people on your job search may even want to see a bachelor’s degree.
There are many different kinds of tutoring jobs, from tutoring students with their homework to helping a college student pass a major exam. Tutors might spend 30 minutes teaching a lesson, a few minutes answering questions online, or work one-on-one with a student in a video lesson.
Recommended reading: 11 Best Places To Find Online Tutoring Jobs (Make $100+ an hour)
25. Bake dog treats
Degree or education requirements: None
Training requirements: On-the-job training
Salary: Depends on if it’s part time or full time
Dog treat bakers make dog treats, cupcakes, cookies, cakes, and more.
With a dog treat bakery business, you may be able to earn an extra $500 to $1,000 a month or more on the side. Or, you can turn it into a full-time business and make much more.
Recommended reading: How I Earned Up to $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!)
26. Hazmat removal worker
Degree or education requirements: High school diploma or equivalent
Training requirements: On-the-job training
Salary: $46,690 per year
Hazmat removal workers clean up hazardous materials like asbestos, mold, and lead.
Training for hazmat removal workers usually involves two parts: learning in a classroom and working in the field. In the classroom, they learn about safety rules and how to use protective gear. When they’re on a job site, they get hands-on experience with tools and materials, and they’re guided by someone who has a lot of experience.
Frequently Asked Questions About High Paying Jobs With No Experience
Below are answers to common questions about how to find high-paying jobs with no experience.
What entry-level jobs pay the most?
Some of the highest-paying entry-level jobs include positions such as web developer, car salesperson, and bookkeeper.
How can I find a job that pays well without prior experience?
To find a good-paying job without any prior experience, you may want to focus on skills that can be used in different jobs and highlight your personal strengths, like communication, problem-solving, or adaptability. Use job search websites that are designed for beginners, and look for job listings that mention “no previous experience needed.”
Are there any fun, well-paying entry-level positions?
Yes, definitely! Many on the list above can be considered fun. My most favorite is becoming a blogger.
What careers offer high pay with short training periods?
Some careers that have high pay with short training periods include bookkeeper, insurance claims adjuster, bartender, car salesperson, and more. These roles may require specialized training or certifications.
How can I make a good income without a degree?
There are many jobs that pay well without requiring a college degree, such as being a construction worker, freelancer, and real estate agent.
How can I make $20 an hour without a degree?
Jobs that pay around $20 an hour without requiring a degree include proofreading, bookkeeping, plumbing, and more. Many on the list above do not require a college degree.
What jobs pay $80,000 with no experience?
Though a little more difficult to find, some jobs that may pay $80,000 or more with no prior experience include positions in sales and real estate.
How to make $150,000 a year without a degree?
Earning $150,000 a year without a degree can be challenging but is achievable in certain fields, such as running your own business, working as a real estate agent, and in sales.
What should I include in my CV when I have no experience?
Even without prior job experience, you can still make a good resume. You should put in any skills you have that are relevant to the job you are applying for, like things you learned in classes or volunteering. Also, remember that skills you use in everyday life, like solving problems, working on a team, or talking with others are important too.
Should I consider additional form of education for these jobs?
Getting more education can be helpful, but it’s not always a must. For some jobs, taking classes, getting certifications, or attending workshops can make you stand out.
How To Find High Paying Jobs With No Experience – Summary
I hope you enjoyed this article on how to find high-paying jobs with no experience.
Some high-paying jobs with no experience may surprise you, while others may seem more attainable. But one thing they all have in common is that they value different skill sets and backgrounds. So don’t worry if your resume is lacking in years of experience or a specialized degree, because these opportunities are out there waiting for someone like you to apply for them.
I hope you are able to find a high paying job that requires no previous experience that works best for you.
What high paying jobs with no experience would you add to the list above?
*Salary and data for the jobs is from the U.S. Bureau of Labor Statistics (BLS).
Snapshot: TheSecured Chime Credit Builder Visa® Credit Card1 doesn’t have interest4 or an annual fee, which makes it a great credit-building2 option. You’ll have to open a Chime checking account and receive a qualifying direct deposit in order to apply.
Pros
Cons
No annual fee.
You can’t apply without a Chime checking account.
No interest4
You have to secure your credit limit with a deposit.
Chime reports to all three credit bureaus.
Chime doesn’t report credit utilization.
You can use your deposit to pay down your charges at the end of the month and move more money from your checking account to the secured account to secure future credit
Secured Chime Credit Builder Visa® Credit Card
Qualifying direct deposit of $200 or more. Chime Checking Account required.
No annual fee. No minimum security deposit*. No credit check to apply
*Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
Build credit history with your own money on everyday purchases and on-time payments**
**On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.
View and track your FICO® Score¹ right in the Chime app. FICO® Scores are used by 90% of top lenders
¹Credit score calculated based on FICO® Score 8 model. Your lender or insurer may use a different FICO® Score than FICO® Score 8, or another type of credit score altogether. Learn More
***$2.50 Out-of-network ATM withdrawal fees may apply.
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Credit Builder Visa® Credit Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
Table of Contents
Full Review of Secured Chime Credit Builder Visa® Credit Card
What You’ll Like About This Card
The Drawbacks
Is the Secured Chime Credit Builder Visa® Credit Card Worth It?
Full Review of Secured Chime Credit Builder Visa Credit Card
The Secured Chime Credit Builder Visa® Credit Card is unique among secured credit cards. Most secured credit cards require an initial qualifying deposit that acts as collateral and determines your credit limit. The Secured Chime Credit Builder Visa® Credit Card works a little differently. By transferring funds from your Chime checking account to your secured account, you determine your own credit limit.
This means that you don’t have to worry about accruing credit card debt faster than you can pay it back. You’re essentially “borrowing” from the deposit that you initially submitted to set up the account, except that it appears on your credit reports as a credit account. This means that all on-time payments you make on this card will show up as positive items on your reports, helping you build up good credit.
Also, a credit check isn’t necessary to apply – which makes it a good option if you have a low or non-existent credit score.
To apply for the Secured Chime Credit Builder Visa® Credit Card, you will need to open a Chime checking account and receive a qualifying direct deposit of at least $200. So although the Secured Chime Credit Builder Visa® Credit Card has no security deposit minimum3, with the requirement for the Chime checking account, it’s essentially a $200 minimum requirement to get the secured card.
At the end of the day though, a $200 minimum deposit is right in line with other secured cards. And the lack of interest rate4, annual fee, and credit limit flexibility available with this card make it a great choice if you’re looking to build your credit.
What You’ll Like About This Card
No Minimum Security Deposit3 and an Adjustable Credit Limit
The money that you use as a security deposit for your Secured Chime Credit Builder Visa® Credit Card is transferred from your Chime Checking Account to your Credit Builder secured account. So even though you need to have a qualifying direct deposit of at least $200 in your Chime checking account in the last year to get the card, you don’t have to transfer the full $200 to your Credit Builder secured account – you can transfer however little you want.
One of the most unique features of the Secured Chime Credit Builder Visa® Credit Card is that there is no minimum security deposit3. You can also change your credit limit later if you decide to add more money into the Credit Builder secured account, which provides a lot of flexibility. You can start working to build your credit history right away. (There is a maximum deposit limit of $10,000 though).
No Interest Rates4 or Annual Fees
With Chime, you essentially get a checking account as well as a secured, credit building card. The benefit is that you get these things for free – no interest rates, no annual fees.
User-Friendly App
You can easily manage your Secured Chime Credit Builder Visa® Credit Card and your Chime checking account from the Chime app, including moving money from your spending account to your Credit Builder secured account.
Great for Building Credit2
There are two aspects of this card that make it a great option for building credit:
Because you’re spending your own money and Chime doesn’t have any interest rates, you don’t have to worry about racking up credit card debt. You can spend to your credit limit without any worries (although you will need to continue to make on-time payments).
Chime doesn’t report your credit utilization ratio to the credit bureaus (the ratio of available credit to used credit). Typically, with credit it’s a good practice to keep your credit utilization ratio below 30%. But with the Secured Chime Credit Builder Visa® Credit Card, you don’t have to worry about that.
The Drawbacks
You Need a Chime Checking Account
While you don’t need great credit to get this card, you do need a Chime checking account. You also have to continue to transfer money over to your secured account to secure future credit if you use your deposit to pay down your charges each month.
No Upgrade Path
Many secured credit cards offer an upgrade path after a period of “good behavior” where you’ve shown that you can make payments on-time and can be trusted with a line of credit. Typically, this is a great option if you’ve been struggling with a low credit score for a long time and are looking to work your way up to a larger line of credit.
Is the Secured Chime Credit Builder Visa® Credit Card Worth It?
Our opinion? Absolutely. Why? No interest4, no annual fees and total flexibility.
If you’ve never had a credit card before (maybe you’re a young adult or a college student) and you’re looking to build credit and avoid high interest rates while learning about how to manage a credit card, this is a great option. It can also be a tool to help those who’ve had significant negative credit items in their past, like bankruptcies, rebuild their credit.
It all depends on what you’re looking for. If you’re looking to rebuild and protect your credit, this card is a great option. If you have a low credit score and are looking for an access point to a larger line of credit, you may want to consider other secured credit cards.
What are the credit limits for Secured Chime Credit Builder Visa® Credit Card?
The Chime credit card doesn’t come with “traditional” credit limits. You can spend as much as you secure with a deposit of funds from your Chime checking account to the secured account. You need to receive a qualifying direct deposit of at least $200 in your Chime checking account in the last year before you can qualify and apply for a Secured Chime Credit Builder Visa® Credit Card.
How soon can I increase my credit limit after being approved for a Secured Chime Credit Builder Visa® Credit Card?
You can increase your own credit limit at any time, depending on how much money you transfer from your Chime checking account to your Chime Builder secured account. The maximum limit you can have on the card is $10,000. There is no upgrade path to a typical “unsecured” line of credit though.
Is a Secured Chime Credit Builder Visa Credit Card good for building credit?
Yes! The Secured Chime Credit Builder Visa Credit Card offers two main benefits for building credit. First, Chime does report your positive payment history to all three of the credit bureaus. Second, it doesn’t report credit utilization. That means you can use your credit amount as you want without worrying about what percentage of the credit limit you’ve used.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
Out of network ATM withdrawal fees may apply. See here for details.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Information in this piece is accurate as of August 2023.
The best credit cards provide you with cash back rewards, points you can redeem for purchases at your favorite stores, travel miles and much more. Each credit card is fine-tuned with specific perks and benefits, and you’ll find plenty here that will fulfill your needs.
We’ve reviewed 25 credit cards from our partners that not only provide great rewards, but we’ve found the best credit cards for people with no credit, bad credit and fair credit. We’ve also provided a complete guide to help you better understand how credit cards work, as well as some tips to assist you in choosing the right one.
Table of Contents:
Best Overall Cards From Our Partners
The best credit cards bring in new customers by providing various perks, bonuses and benefits. The following credit cards have some of the best sign-up offers that come in the form of cash back rewards and travel miles.
Best for: Repairing credit
Secured Chime Credit Builder Visa® Credit Card
Apply Now
on Chime’s secure website
Annual fee
Recommended credit score
You can qualify for the Secured Chime Credit Builder Visa® Credit Card with a $200 direct deposit
or more, and all you need is a checking account. As you use this secured credit card, you can
build your credit score—and there’s no minimum security deposit.
see more details
Pros
Helps build credit
No security deposit required
No interest
Cons
Needs Chime checking account
Best for: Low APR
Upgrade Cash Rewards Visa®
Apply
Now
on Upgrade’s secure website
Annual fee
Recommended credit score
The Upgrade Cash Rewards Visa® card has a flat rate rewards program for all purchases, which go on
your card when you make your monthly payments. The card also comes with peace of mind from its free
fraud liability program.
see more details
Pros
No annual fee
Fraud liability
Flat rate rewards
Cons
No debt card for welcome bonus
Balance Transfer
Balance transfer credit cards allow you to transfer debt from one account to another, and the best ones come with little to no fees.
Best for: Bonus categories and balance transfers
UNITY® Visa Secured Credit Card – The Comeback Card™
Apply
Now
on OneUnited Bank’s secure website
Annual fee
Recommended credit score
The UNITY® Visa Secured Credit Card – The Comeback Card™ is not only a balance transfer card, but
it’s a secured credit card as well, so there’s no minimum credit score required. This card has a
9.95% balance transfer rate for six months and a low fixed-interest rate of 17.99%.
see more details
Pros
No minimum credit score required
Low fixed interest rate
Fast approval
Cons
Annual fee
$250 deposit to open account
No Interest
Low interest is great, but having 0% interest is even better. These cards have their advantages and disadvantages, such as the advantage of not needing a good credit score, but their usage may be limited.
Best for: No interest
Merit Platinum Card
Apply
Now
on Merit Platinum’s secure website
Annual fee
Recommended credit score
The Merit Platinum Card does have an annual fee broken into monthly payments of $14.77, but their 0%
APR makes up for this. They also allow for a seven-day risk-free trial. With this card, you’ll gain
access to a $750 line of credit for Horizon Outlet and have other member benefits like roadside
protection and credit report monitoring.
see more details
Pros
0% APR
$750 line of credit
Works with bad or no credit
Cons
Annual fee
Can only use at Horizon Outlet
Doesn’t report to credit bureaus
Best for: No interest
Net First Platinum
Apply
Now
on NetFirst Platinum’s secure website
Annual fee
Recommended credit score
The Net First Platinum is a credit card that you can get approved for without any credit as well as
if you have bad credit. It provides you with a $750 line of credit for Horizon Outlet, and you also
receive member benefits like legal assistance, roadside protection and identity theft insurance.
see more details
Pros
0% APR
$750 line of credit
Works with bad or no credit
Cons
Annual fee
Can only use at Horizon Outlet
Doesn’t report to credit bureaus
Best for: No APR
Freedom Gold Card
Apply
Now
on Freedom Gold’s secure website
Annual fee
Recommended credit score
The Freedom Gold Card gives cardholders a $750 line of credit for Horizon outlet, which sells a wide
range of products as well as clothing. There’s no credit check or employment check required to get
approved, either. It also comes with additional member benefits like roadside protection.
see more details
Pros
No activation fee
$750 credit limit
No credit check
Cons
Annual fee
Can only use at Horizon Outlet
Lowest Interest
One of the primary factors people look for in a credit card is a low annual percentage rate (APR). This is the interest you pay on purchases after the introductory rate.
Best for: Bonus categories and balance transfers
UNITY® Visa Secured Credit Card – The Comeback Card™
Apply
Now
on OneUnited Bank’s secure website
Annual fee
Recommended credit score
The UNITY® Visa Secured Credit Card – The Comeback Card™ is not only a balance transfer card, but
it’s a secured credit card as well, so there’s no minimum credit score required. This card has a
9.95% balance transfer rate for six months and a low fixed-interest rate of 17.99%.
The Applied Bank® Secured Visa® Gold Preferred® Credit Card provides you with a credit limit of up to
$5,000 and has no minimum requirement for your credit score. You can open an account with a deposit
as low as $200.
see more details
Pros
Low fixed APR
High max credit limit
Cons
Annual fee
Cash Back
Cash back credit cards put money back in your pocket based on your spending. This can be either a flat rate or for specific categories like dining, entertainment or retail shopping.
Best for: Auto, home and health spending
Upgrade Triple Cash Rewards Visa®
Apply
Now
on Upgrade’s secure website
Annual fee
Recommended credit score
The Upgrade Triple Cash Rewards Visa® credit card provides 3% cash back for auto, home and health
categories. This is a quality choice if you’re doing home upgrades, repairing your car or purchasing
medications and using a gym membership
see more details
Pros
Up to 3% cash back
Umlimited rewards
Fraud liability coverage
Cons
Niche reward categories
Need debit card for welcome bonus
Best for: High percentage rewards
Petal® 2 Card
Apply Now
on Petal’s secure website
Annual fee
Recommended credit score
The Petal 2 card has no fees and is the perfect card for individuals with credit scores from poor to
excellent. You’ll receive 1% to 1.5% cash back on all purchases and up to 10% cash back when
shopping at certain stores.
see more details
Pros
No fees
High cash back rewards
No minimum credit score
Cons
No introductory offer
High APR
Travel
For those who travel, travel cards with top-tier rewards may be the right choice for you. You can get free airline miles along with other perks like points for rental cards and hotel stays.
Best for: Travel
Mastercard® Black Card™
Apply
Now
on Luxury Card’s secure website
Annual fee
Recommended credit score
The Mastercard® Black Card™ is a travel card that has 2% airfare redemptions with no blackout dates
or seat restrictions. You’ll also receive enrollment in Priority Pass™ Select, with access to 1,300+
airport lounges worldwide with no guest limit.
see more details
Pros
Low ongoing
Lounge access
Luxury travel benefits
Cons
High annual fee
Best for: Low APR and travel
Mastercard® Titanium Card™
Apply Now
on Luxury Card’s secure website
Annual fee
Recommended credit score
The Mastercard® Titanium Card™ is a travel card with a low ongoing APR of 19.24%. You’ll receive 24/7
Luxury Card Concierge® as one of the benefits along with 2% for airfare demptions with no blackout
dates or seat restrictions.
see more details
Pros
Luxury Card Travel® benefits
Airfare rewards
Cell phone protection
Cons
Annual fee
Best for: Low APR and travel
Mastercard® Gold Card™
Apply
Now
on Luxury Card’s secure website
Annual fee
Recommended credit score
The Mastercard® Gold Card™ has 2% airfare redemptions with no blackout dates or seat restrictions and
2% cash back. You also receive lounge access at over 1,300 airports worldwide and additional
benefits at hotels like room upgrades and free wifi.
see more details
Pros
Luxury Card Travel® benefits
Airfare rewards
Lounge access
Cons
High annual fee
Bad Credit
In order to build credit, you need a history of good credit—these are our top picks for credit cards if you’re working on improving your mid- to low-range credit score by adding more positive payments to your credit report.
Best for: Groceries and gas
Aspire® Cash Back Reward Card
Apply
Now
on Aspire’s secure website
Annual fee
Recommended credit score
The Aspire® Cash Back Reward Card gives cardholders a credit line of up to $1,000, and you’ll also
receive 1% cash back on all of your purchases. When shopping for groceries or getting gas, you can
earn up to 3% cash back as well.
see more details
Pros
Up to 3% cash back
1% flat-rate on other purchases
Up to $1,000 credit limit
Cons
Annual fee
High APR
Fair Credit
If your credit score falls within the 630 to 689 range, while not an excellent credit score, there are still plenty of cards you can apply for.
Best for: Building credit
Avant Credit Card
Apply
Now
on Avant’s secure website
Annual fee
Recommended credit score
The Avant Credit Card allows people with a credit score of 580 to 669 begin building their credit
score. It can be difficult to get a credit card with a fair credit score, so this card can be quite
helpful—they alsoregularly review your payment history for potential credit line increases.
see more details
Pros
Fast and easy application
Soft inquiry for credit check
Cons
Annual fee
High APR
Best for: Low APR
Upgrade Cash Rewards Visa®
Apply
Now
on Upgrade’s secure website
Annual fee
Recommended credit score
The Upgrade Cash Rewards Visa® card has a flat rate rewards program for all purchases, which go on
your card when you make your monthly payments. The card also comes with peace of mind from its free
fraud liability program.
see more details
Pros
No annual fee
Fraud liability
Flat rate rewards
Cons
No debt card for welcome bonus
Secured Credit Cards
Secured credit cards are a great option for those with no credit or bad credit. They work by providing you a credit line that uses your own money. You simply make a deposit, which becomes your credit limit, and you raise your score as you use your card and make your monthly payments.
Best for: Repairing credit
Secured Chime Credit Builder Visa® Credit Card
Apply
Now
on Chime’s secure website
Annual fee
Recommended credit score
You can qualify for the Secured Chime Credit Builder Visa® Credit Card with a $200 direct deposit
or more, and all you need is a checking account. As you use this secured credit card, you can
build your credit score—and there’s no minimum security deposit.
see more details
Pros
Helps build credit
No security deposit required
No interest
Cons
Needs Chime checking account
Best for: Repairing credit
PREMIER Bankcard® Secured Credit Card
Apply
Now
on PREMIER Bankcard®’s secure website
Annual fee
Recommended credit score
The PREMIER Bankcard® Secured Credit Card doesn’t require a checking account, and you can have a
credit limit of however much you deposit, up to $5,000. Regardless of your credit score, you can use
this card to begin building or repairing your credit.
The Applied Bank® Secured Visa® Gold Preferred® Credit Card provides you with a credit limit of up to
$5,000 and has no minimum requirement for your credit score. You can open an account with a deposit
as low as $200.
see more details
Pros
Low fixed APR
High max credit limit
Cons
Annual fee
Best for: Secured credit
The First Latitude Platinum Mastercard® Secured Credit Card
Apply Now
on First Latitude’s secure website
Annual fee
Recommended credit score
The First Latitude Platinum Mastercard® Secured Credit Card offers lines of secured credit between
$100 and $2,000. During your first year, they have an introductory offer for a $25 annual fee, which
changes to just $35 per year after that.
see more details
Pros
Low first-year annual fee
No credit score requirement
Low minimum deposit
Cons
Annual fee
*FICO scores and credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any credit offer.
The Top Cards
The best credit cards depend on what you need. Whether you’re looking for a card that has low interest, one with the most rewards or one that gives you points for traveling, we broke down the top cards into nine categories.
Using similar criteria to our overall methodology, we’ve chosen the top card from each category.
How We Chose the Best Credit Cards
To rank the best credit cards, we reviewed over 25 credit cards from our partners. The primary criteria we looked at takes into consideration aspects cardholders look at during their decision-making process and includes:
Intro APR (10 points)
Regular APR (20 points)
Fees (15 points)
Works with low credit scores (15 points)
Cash back rewards (20 points)
Bonus offers (15 points)
Additional perks (5 points)
The best credit cards depend on your specific wants, needs and circumstances based on your specific credit score. Below, we discuss more about how to choose the right credit card for your situation.
There’s a lot of information about each specific card, so we listed the top cards with each of their primary benefits below to give you an overview at a glance.
Best Overall Cards From Our Partners
Secured Chime Credit Builder Visa® Credit Card: This is a card that is for individuals with bad credit or no credit, and it also has 0% interest on purchases. There’s no minimum security deposit as well.
Upgrade Cash Rewards Visa®: For every purchases, you make with this card, you’ll receive 1.5% cash back, and it also comes with a $200 signup bonus.
Best Balance Transfer Credit Cards
UNITY® Visa Secured Credit Card – The Comeback Card™: 9.95% on balance transfers for the first six months and then 17.99% fixed APR after.
Best Credit Cards for No Interest
Secured Chime Credit Builder Visa® Credit Card: This secured credit card helps those looking to repair or build credit and comes with 0% interest. There’s also no minimum security deposit.
Merit Platinum Card, Net First Platinum and Freedom Gold Card: Each of these cards comes with the same benefit of 0% interest as well as member benefits for their $177.24 annual fee. Although the card is limited to shopping at Horizon Outlet, 0% interest is hard to beat.
Best Credit Cards for Low Interest
UNITY® Visa Secured Credit Card – The Comeback Card™: 9.95% on balance transfers for the first six months and then 17.99% fixed APR after.
Applied Bank® Secured Visa® Gold Preferred® Credit Card: This card gives cardholders a credit limit of up to $5,000, and there’s no minimum credit score required. It also has a low 9.99% fixed interest rate and is great for anyone looking to build their credit score.
Best Cash Back Credit Cards
Upgrade Triple Cash Rewards Visa®: Ongoing APR as low as 14.99% on all purchases along with 3% cash back on home, auto and health purchases.
Petal® 2 Card: The Petal® 2has one of the highest cash back percentages at 10% when you shop at select merchants, and you’ll receive 1.5% cash back on all other purchases.
Best Travel Credit Cards
Mastercard® Titanium Card™: 0% APR for the first 15 billing cycles and 2% rewards on airfare redemptions with no blackout dates or seat restrictions.
Mastercard® Gold Card™: 0% APR for the first 15 billing cycles and 2% rewards on airfare redemptions with no blackout dates or seat restrictions.
Mastercard® Black Card™: 0% APR for the first 15 billing cycles and 2% rewards on airfare redemptions with no blackout dates or seat restrictions.
Best Credit Cards for Bad Credit
Secured Chime Credit Builder Visa® Credit Card: Secured credit card you can open with a $200 deposit or more along with a checking account.
Aspire® Cash Back Reward Card: A secured credit card option that also gives you 1% cash back on all of your purchases. You can also earn up to 3% cash back on groceries and gas.
Best Credit Cards for Fair Credit
Avant Credit Card: Can qualify with a credit score between 580 and 669.
Upgrade Cash Rewards Visa®: Ongoing APR as low as 14.99% and 1.5% flat-rate cash back on purchases.
Best Secured Credit Cards
Secured Chime Credit Builder Visa® Credit Card: Secured credit card you can open with a $200 deposit or more along with a checking account.
PREMIER Bankcard® Secured Credit Card: Secured credit card with a spending limit of up to $5,000.
Applied Bank® Secured Visa® Gold Preferred® Credit Card: Requires a $200 deposit and can go up to $5,000.
The First Latitude Platinum Mastercard® Secured Credit Card: Secured credit card with a limit of between $100 and $2,000.
A Beginner’s Guide to the Best Credit Cards
Whether you’re new to credit and credit cards or are experienced and just looking for the best options, this brief guide will provide you with additional information before choosing your new card.
How Do Credit Cards Work?
Credit cards are like taking out small loans, allowing you to buy something now and pay for it later on. You’ll need to pay back the money you borrowed on your credit card, and this comes with interest.
Some cards offer 0% interest for a certain amount of time, which means you’ll only pay back the same amount charged on the credit card.
Here’s what a basic credit card transaction looks like:
The purchase: Make a purchase with your credit card.
The authorization: The card reader used to run your card contacts your credit card company to ensure the funds are available based on your max limit.
The merchant payment: Your credit card company pays the merchant for the product or service you purchased.
The credit card payment: Each month, you’ll have a statement that shows how much you owed based on all of the purchases you made.
Learn more: How do credit cards work?
How Do Credit Card Rewards Work?
Credit cards with the best rewards will give you a high percentage of cash back or points that you can use at places you make purchases. The following are the two main types of rewards:
Cash back: Cash back rewards pay down your balance. For example, if you’re getting five percent cash back on $5,000 worth of purchases, those purchases would technically cost $250 less.
Points and miles: Rather than cash back, some cards offer points or miles. You can use points to redeem gift cards and other merchandise. With travel cards, your earned miles give you discounted or free travel, depending on how much you have saved.
The rate of the rewards come in two different forms as well:
Flat rate: Cards that offer flat rate rewards give you the same percentage on all purchases. While this is more consistent, they’re lower than tiered rewards.
Tiered rewards: The most common rewards cards offer tiered rewards, which means you receive different rates based on where you use your card. For example, you may receive five percent cash back on groceries, travel and fuel but one percent for everything else.
Which type of reward structure you choose should be based on how you spend. If a card has tiered rewards with a high percentage cash back on purchases you make regularly, that type of card may be a better option. And if you travel a lot, you may benefit more from a travel card rather than a cash back rewards card.
Learn more: 5 ways to maximize credit card rewards without overspending
How Do You Track Credit Card Rewards?
The majority of credit cards have a separate account that stores your rewards, which you can access through your credit card’s website or mobile app. Depending on the card and card issuer, you may see your rewards instantly after purchases, or they may not appear until the following billing cycle.
Here’s how the reward process looks:
You make a purchase
Your rewards are calculated based on a flat rate or tiered rewards
Your rewards are credited to your account
You redeem your rewards through the card issuer’s website or mobile app
Learn more: Ways to redeem your credit card reward points
How Does APR Work?
APR stands for annual percentage rate, which is the interest you’ll pay on your purchases. Simply put, this is what the card issuer charges you for borrowing money through your line of credit. Depending on the credit card, the APR may be fixed or changed based on the current economic conditions.
Below, we’ve listed some more helpful information about interest:
Your interest rate is generally based on your credit score, and you’ll get approved for lower rates when you have a better credit score.
While interest is shown as an annual rate, you’re charged, daily. For example, a 20 percent APR divided by 365 days in the year means you pay roughly .055 percent per day.
Your monthly statement shows how much interest you’re being charged.
Interest is not compounded, so you’ll pay your full interest cost each month.
Learn more: Help! I really don’t understand my credit card APR
How Does the Credit Card Application Process Work?
In the early days, credit card applications were done on paper, but now, you mainly do them online. When you apply for a credit card, the card issuer is evaluating your level of risk and trustworthiness based on your credit score. A good credit score indicates that you’ll pay back the money you borrow from your line of credit.
Here’s what the application process looks like:
Step 1: Fill out the application. You’ll need some personal information like your name, address and Social Security number. The card issuer may request other items.
Step 2: The card issuer runs your credit, which will check your score as well as your actual credit report. The credit score is just a number, but the report gives additional details such as how many cards you recently applied for or any additional details they may need.
Step 3: You’ll receive an approval or denial. These days, many online applications approve or deny you within just a few minutes.
If you’re approved for the credit card, you’ll typically receive the card by mail within 10 business days. Once you receive it, you can activate it and begin spending.
Learn more: How to apply for a credit card online
How Many Credit Cards Should You Have?
How many credit cards you have is really dependent on your situation and your preferences. There’s no optimal number of credit cards. Rather than the number of credit cards you have, you should take into consideration your credit utilization as well as how often you’re applying for new cards.
For example, if you have 10 credit cards but have a 20 percent credit utilization ratio, you’re doing great. But if you have three cards with a 70 percent utilization ratio, that can hurt your score. If you were to have that high of a utilization ratio with 10 cards as well, that would hurt your score. If you apply for new cards too often, this can also harm your score.
Learn more: How many credit cards is too many?
Types of Credit Cards Explained
When choosing a credit card, it’s helpful to know the various types. Different cards are beneficial for different lifestyles, purchasing decisions and personal preferences. Below, we’ve listed some of the most common types along with a brief summary of what they do.
Rewards cards: These cards pay you back via cash that you can use to pay down your credit card debt or points that you can redeem at stores or in the form of airline miles. You earn rewards by using your card.
Balance transfer cards: All credit cards have interest that you need to pay, but some have lower rates than others. Balance transfer cards allow you to move debt and give you a year or more to pay it back with no interest. This often comes with a fee, but the fee is usually less than the interest.
Low and no interest cards: These cards are some of the most popular because interest payments make purchases cost more than the original price. For those who plan on carrying their balance over to the following month, these are the ideal cards.
College student cards: Young people are just starting out with credit building, so these cards get marketed towards college students and can help with the process. They’re easier to get approved for, but you’ll still need to meet qualifications beyond being a student to receive an approval.
Small business cards: Business owners and entrepreneurs often need to make purchases with credit, and these cards offer perks that are specifically geared towards business categories.
Cards for building credit: Whether you have no credit or bad credit, these cards can help you repair or build your credit score when you use them responsibly and make payments on time. They’re easier to receive an approval for, but they sometimes come with high interest rates or deposits.
How Credit Card Companies Work
In order to understand how credit card companies work, it’s helpful to know that they’re more than just companies. Each card company works within a network, and, sometimes, they’re partnered with another brand.
Credit card issuers: A credit card company is the card issuer. This can be a bank or financial institution that maintains your account. For example, Wells Fargo, Chase and Capital One are all card issuers.
The network: On every credit card, you’ll see names like Visa, Mastercard, American Express or Discover. These are basically the go-between companies that manage the transaction.
Co-brand partners: In some cases, cards have branded partners. An example would be an airline, hotel or store credit card.
Let’s look at an example using one of the top cards from our Travel category, the Citi Premier® Card. Citi Bank is the card issuer, using the Mastercard network and doesn’t have a co-brand partner. Then, there are cards like the Hilton Honors American Express Card, where American Express is the card issuer and the network, and Hilton Hotels is the co-brand partner.
Top Credit Card Companies
There are quite a few credit card companies out there, but which one is the best? J.D. Power does a regular study to see which one is the best.
Here are the rankings of the top 10 companies from the 2022 J.D Power U.S. Credit Card Satisfaction Study based on a 1,000-point scale:
American Express (848 points)
Discover (841 points)
Bank of America (818 points)
Segment Average (814 points)
Chase (813 points)
Capital One (812)
Citi (808)
Barclays (797)
Wells Fargo (797)
U.S. Bank (791)
Remember, what’s considered “the best” is subjective, so you may want to do additional research to see which company is right for you. Some may have benefits that suit your needs and spending habits, or you may find it better to get a card through your current bank.
How to Choose the Card That’s Right for You
There’s a lot to consider when choosing the right credit card, so we’ve listed some of the primary features of various cards to help you make the best for you. It’s also helpful to remember that by improving your credit score, you’ll have more options for which credit card companies will approve your application.
Annual Fees
Many cards come with no annual fee, but the ones that do often offer some additional perks and benefits. You’ll need to see if the fee makes sense based on what you’ll use the card for.
A great example is when it comes to travel credit cards. These may come with a fee, but you might save more than enough due to the rewards you gain in comparison to the annual fee.
Other Fees
Different cards come with different fees, and they’re not always advertised front and center when you’re applying for a credit card. You’ll often need to go looking on the application page for additional information to find out which fees you’ll pay as you use your card.
Some of the most common fees include:
Balance transfer fee: A fee for transferring debt from one card to another, which is often a percentage of the amount transferred.
Foreign transaction fee: When you’re out of the country, many cards charge up to 3% for using your card while traveling abroad.
Cash advance fee: Some credit cards allow you to use them like an ATM card for a cash advance, but these come with high interest rates as well as a fee.
Late fees: Credit cards usually have a grace period for making your payments, but these may also come with a late fee.
Learn more: How much does one late payment affect credit scores?
Introductory Rates
Credit card companies make money by charging interest, but many have promotional offers where you’ll receive low interest on purchases for a certain amount of time. Some are as low as 0% interest.
Regular Rates
Regular rates, also called “ongoing rates,” are the interest rates you pay once the introductory period is over. You can find this rate in the terms and conditions on the application, so you can use it to compare it to other cards.
Rewards
We’ve gone over the various types of rewards, such as flat-rate, tiered and points. This is where comparing cards gets specific to your lifestyle. If you travel a lot, a card with travel rewards may be right for you, but if you don’t, you may want to look at cards that give you cash back at places where you shop. You may also get a sign-up bonus with some credit cards that come as cash back rewards or points.
Perks
In addition to rewards, there are sometimes additional perks like cell phone insurance, identity theft security, rental car coverage and more.
How to Get a Credit Card in Six Steps
Now that you have all the knowledge you need to choose the right card, we’re going to put it all together in six simple steps:
Step 1: Check your credit score to know what types of cards you can apply for.
Step 2: Research various cards that sound like they might be the right ones for you
Step 3: Narrow down your options so you don’t apply for too many cards. Remember, each application may trigger a hard inquiry on your credit report, which can temporarily drop your credit score.
Step 4: Apply for the card through the card issuer’s website.
Step 5: Wait for a decision.
Step 6: If you’re approved, you should receive your card within 10 business days, and then you can start using the card for purchases once the card is activated.
FAQ
The following are some additional questions people have about finding the best credit cards.
What’s the Best Credit Card?
There’s no single best credit card. The card that’s the “best” will vary from person to person based on their needs, credit score and lifestyle.
What’s the Best Credit Card Company?
According to J.D. Power’s 2022 survey, American Express is the best credit card company. This is based on criteria like customer satisfaction based on a specific sample size, so some people may prefer a different card issuer.
When is it Time to Get a New Credit Card?
Here are a few reasons you may want to get a new credit card:
To increase your credit limit
To increase your credit utilization ratio
To accommodate a lifestyle change like traveling more often
Improve Your Odds of Getting the Best Card
To get the best credit cards and have endless options, improving your credit score should be your top priority. The best credit cards with the most rewards and best perks typically look for applicants with a score of 690 or higher—falling within the “good” to “excellent” range.
Credit.com has a wide range of services like our ExtraCredit program, which can help you learn more about credit and may lead to better credit health. If you’re unsure of your credit score, get your credit score for free here.