 TITLE: How Can a Starter Credit Card Help Build Credit? CONTENT: As the name suggests, a starter credit card is designed for people who have a limited credit history or no experience with credit at all.\nThese cards can provide access to the credit system, helping you establish a positive credit history as you use the card responsibly and pay your bill on time each month.\nIn general, there are three types of starter credit cards: secured credit cards, student credit cards and unsecured credit cards for bad or no credit.\n### Secured Credit Cards\nSecured credit cards function the same as unsecured cards with one key difference: They require a security deposit—typically equal to your desired credit limit—to get approved.\n\"It's easier to get a secured card rather than an unsecured one because you're basically taking the risk away from an issuer,\" says Bill Hardekopf, CEO of LowCards.com. \"You're securing the loan with a deposit \\[and\\] that deposit basically acts as your credit limit.\"\nIn most cases, you'll get the deposit back after you close the account in the future. Some card issuers, however, may choose to refund your deposit while your account is still open, effectively converting it into an unsecured card.\nMany secured credit cards charge an annual fee, but some of the best secured cards don't. Also, don't expect a lot of perks with one of these cards, even if some offer cash back rewards.\n### Student Credit Cards\nIf you're a college student, you may be able to qualify for a student credit card. Unlike secured cards, you don't need a security deposit to get approved for one of these.\nMost student credit cards don't charge an annual fee, and many even offer rewards on everyday purchases.\nBut just because you're a college student, it doesn't mean you'd automatically qualify. While you don't need a credit history for the Deserve® EDU, the Journey® Student Rewards from Capital One® is recommended for students with fair credit, which means a FICO® Score☉ of 580 to 669.\n### Unsecured Credit Cards for Bad or No Credit\nSome credit card issuers offer a chance to build credit without needing to put up a security deposit, but these cards tend to have drawbacks.\n\"They will come with higher interest rates because someone with limited credit is a risk, and issuers base their interest rates on risk,\" Hardekopf says. \"The lower your credit scores, the higher the risk you are, so the higher the interest rates you will get.\"\nIn some cases, you could end up paying a one-time processing or program fee when you get approved, a monthly fee, an annual fee and an APR upwards of 30%.\nDon't stress too much about the rate, though. Your goal should be to use the card in a way that the APR is irrelevant. \"Your interest rate should be there to scare you, so it never has to be assessed on you,\" Hardekopf says. \"If you pay your card off in full on time every month, the interest rate will have no effect on you. If you mess up, it will have an effect.\" END