Last time, I shared my experience applying for my first credit card. I believe everyone now has a basic understanding of credit cards, so this time I mainly want to share my personal experience with those of you who have had a credit card for about 3 months.
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Choosing Your Second Credit Card
For many students living in rural America, there are not that many entertainment options in daily life, so getting into credit cards becomes a hobby. After getting your first credit card and excitedly spending 3 months learning the ropes, I’m sure many of you have gained a lot, both in terms of knowledge and rewards. However, friends who chose Discover it as their first credit card may already be feeling a bit overconfident—just like I was back then. Some people have already started thinking about their second credit card. Everyone hesitates at this point: what should the second credit card be? Here I mainly want to talk about my own experience.
My Personal Experience
I’m sure many of you are now wondering what to choose for your second credit card. After all, credit cards come with lots of perks, and the earlier you apply, the earlier you can enjoy them. They can also help you build more credit. Why not?
At the time, I spent quite a while comparing cards online. Full of excitement, and thinking I had carefully weighed the situation and made the perfect choice, I applied for the Capital One journey student card. Its features were as follows:
- No rewards; you earn 1.25 points per dollar spent. No foreign transaction fee, meaning you don’t pay currency conversion fees when using it abroad. Visa cards also have broad acceptance.
- Requires hard pull from all 3 credit bureaus.
- The credit limit is very low. Mine was only 300. After half a year, the limit is automatically increased based on your spending. If you use it often, the limit can grow quite a bit. If you don’t use it much—like me—it may only go from 300 to 500.
- Rental car insurance, priority. For a no-annual-fee card that beginners can apply for, this benefit is actually pretty good.
Of course, at that time I only had 2 months of credit history, so I was not instantly approved. Looking back now, I really regret it. Still, this card was a Visa card, and when I first came to the U.S., my China Telecom CT-mobile phone card accepted Visa but I didn’t see a Discover option (later I found that diners club also worked). Also, there was a very good local Asian restaurant that only accepted Visa and master, so this card filled that gap.
Although the benefits on this card are pretty average, I thought the card design looked nice, and since it was a Visa credit card, it was widely accepted. Even though I regret it now, as my first Visa credit card it was genuinely helpful at the time, especially for being able to eat at the local Asian restaurant.
My notes:
- I do not recommend that everyone apply for the Capital One credit card.
- Credit card rental car benefits in the U.S.: https://www.uscreditcards101.com/us-car-rental. Those with travel plans may want to consider this.
Although I did not choose my second card well, failure is also experience, so here I’d like to recommend a few cards. For a second credit card, here are several options worth considering:
Citi Thank You Preferred
Citi ThankYou Preferred is a no-annual-fee credit card. Reasons to consider this card as a second card for someone with 3 months of credit history: this is an entry-level Citi credit card, so the application difficulty is relatively low. Comparatively speaking, Citi cards are hard to get approved for. A friend of mine who works at Citi said even employees can get denied. Applying for this card early can help you build a good relationship with Citi, which may help when applying for its premium credit cards later. It is worth emphasizing that if you do not have an SSN, you can consider applying for this card at a local branch. In addition, TYP points are one of the more flexible points currencies in the U.S. credit card points ecosystem. Another advantage of Citi cards is price protection: if something you bought drops in price, you can ask Citi to reimburse the difference.
Reasons not to consider this card as a second card for someone with 3 months of credit history: when you’re just starting out, if you are not familiar with Citi points and do not use them according to strategy guides, they are not worth much. It also takes up one of your card slots (yes, applications are not unlimited; I’ll explain that later). The earning rate on this card is also not very high. If you do not have a premium Citi card, the points cannot be transferred, so this card is basically not very useful. Therefore, it is not especially suitable for beginners. Also, once your credit history improves, you can apply for higher-end Citi cards, making this card less useful. In addition, because Citi restricts cards within the same family, you can only receive the signup bonus once every 24 months. So after getting this card, you would need to wait 2 years before getting another signup bonus in the same family.
- Signup bonus: 15,000 c (after spending $1,000 in 3 months)
- Rewards: 2X TYP on dining and entertainment, 1x on all other purchases (1 TYP/$)
- No annual fee
- Application link: none
Chase Freedom
Chase Freedom is a no-annual-fee credit card. Reasons to consider this card as a second card for someone with 3 months of credit history: this is an entry-level Chase credit card, so the application difficulty is relatively low (though it is still somewhat difficult for someone with only 3 months of credit history). Applying for this card early can help you build a good relationship with Chase, which may help when applying for its premium credit cards later. Under Chase’s 5/24 policy, this card becomes one you almost need to apply for as early as possible. Because once you get it, it becomes easier to apply for other Chase cards, and it also helps ensure that among your first 5 cards, aside from Discover it, the rest are Chase cards, making it easier to work around Chase’s 5/24 restriction. Once you get your foot in the door with Chase, its other credit cards become much easier to apply for. In addition, this card offers 5% quarterly rotating cashback categories. After the first-year Discover cashback match ends, this can become your main quarterly 5% cashback card. If you also have a Chase Sapphire Preffered (CSP) or Chase Sapphire Reserve credit card, the points earned on this card can be made more valuable. For details, please see Detailed introduction to the Chase Freedom credit card.
Reasons not to consider this card as a second card for someone with 3 months of credit history: comparatively speaking, Chase cards are harder to get started with, and with only 3 months of credit history, approval is difficult. When you are just starting out, if you are not familiar with UR points and do not use them according to strategy guides, they are not worth much. If you do not have a premium Chase card, the points cannot be transferred, so the card is not especially valuable and is basically equivalent to ordinary 1x cashback.
- Signup bonus: 15,000 Ultimate Rewards (after spending $500 in 3 months) + 2,500 UR (for adding an authorized user card)
- Rewards: 1x on all purchases (1 UR/$), 5x on rotating quarterly categories (5 UR/$)
- No annual fee
- Application link: Chase Freedom Flex credit card
Chase Freedom Unlimited
Chase Freedom Unlimited is a no-annual-fee credit card. Reasons to consider it as a second credit card for a beginner with 3 months of credit history include: this card is considered an entry-level Chase card, so approval is relatively easier, though still not particularly easy for someone with only 3 months of credit history. Applying for this card early can help you build a good relationship with Chase, which may make it easier to apply for its premium cards later. Under Chase’s 5/24 policy, this is almost a must-get card early on. Getting it first can make it easier to apply for other Chase cards, and it can also help ensure that among your first five cards, aside from Discover it, the rest are Chase cards, making it easier to work around the 5/24 restriction. Once you get your foot in the door with Chase, its other credit cards become much easier to get. All purchases earn 1.5x UR, so in spending categories where many cards only earn 1% cash back, such as insurance, you can earn an extra 0.5x UR. If you also have a Chase Sapphire Preffered (CSP) or Chase Sapphire Reserve credit card, the points earned on this card can become more valuable. For details, see Chase Freedom Unlimited credit card review.
Reasons not to consider this card as a second credit card for a beginner with 3 months of credit history include: comparatively speaking, Chase cards are harder for beginners to get approved for. With only 3 months of credit history, approval is difficult; even when I applied with 6 months of history, I still needed reconsideration. At the beginning, many people are not very familiar with UR points, and if you do not redeem them strategically, they are not especially valuable. Without a premium Chase card, the points cannot be transferred, so the card’s value is not that high. This card often has a targeted 30,000-point offer that usually requires applying in branch. At the 3-month mark, you typically will not have access to that welcome bonus, so missing out on 15,000 UR for your second card feels like a loss. It may be better to apply for Chase Freedom first and then check in branch later.
- Welcome bonus: 15,000 Ultimate Rewards (after spending $500 in three months) + 2,500 UR (for adding an authorized user)
- Rewards: 1.5x on all purchases (1.5 UR/$)
- No annual fee
- Application link: Chase Freedom Ulimited>>
Kohl's charge
First, a quick introduction to Kohl’s. Kohl’s is a major U.S. department store chain. The $10 Kohl’s Cash that Discover it cardholders receive each month is for this store. Kohl’s Cash is essentially a coupon for shopping at Kohl’s and works like cash. If you do not use Kohl’s Cash, it expires. Of course, Kohl’s also has its own store card, issued in partnership with Capital One, called Kohl's charge.
The Kohl's charge credit card has no annual fee and can only be used at Kohl’s. Spending at Kohl’s is effectively equivalent to 5% back. Its biggest features include a 25% discount on the day you are approved, another 15% off after the card arrives, and 1x on all spending (1 Yes2You Rewards/$). Cardholders receive at least 12 special-offer coupons per year. If your annual spending is high enough, you can be automatically upgraded to a higher membership tier, which increases the benefit to at least 18 special-offer coupons per year. In addition, Kohl’s often has 30% off clothing. On the Kohl’s website, https://www.kohls.com/, free-shipping coupons are sent only to Kohl's charge cardholders; non-cardholders need to spend $75. Kohl’s also gives $10 in Kohl’s Cash for every $50 spent, even if you do not have the Kohl's charge card. During Black Friday, Kohl’s often gives $15 in Kohl’s Cash for every $50 spent, and combined with this card, the savings can be substantial.
Reasons to consider this card as a second credit card for a beginner with 3 months of credit history include: this is an entry-level card with relatively low approval difficulty, and 2–3 months of credit history may be enough. Many beginners are people who have just arrived in the U.S. for school or work and need to buy a lot of household items. Kohl’s is a legitimate company with decent product quality across many categories. If you have this card, it can make sense to use your first purchase to stock up on household essentials, appliances, and similar items. The special-offer coupons can also be quite useful. For example, an Instant Pot 7-in-1 pressure cooker may end up at around a Black Friday price or even lower. In addition, combining it with Discover it’s Kohl’s Cash offer ($10 off $30 each month) can make using credit cards feel especially rewarding.
Reasons not to consider this card as a second credit card for a beginner with 3 months of credit history include: Capital One pulls all 3 credit bureaus. That is not necessarily a huge issue, since Chase also pulls 2 bureaus, and the remaining EQ bureau is not especially useful anyway, though it could expose your data. The card is also inconvenient to pay, and it can only be used at Kohl’s. The $10 Kohl’s Cash you get for every $50 spent has an expiration date, and the validity period is fairly short.
- Welcome bonus: 25% off your first purchase at Kohl’s
- Rewards: 1x (1 Yestoyou rewards/$), effectively 5% back in Kohl’s Cash
- No annual fee
- Application link: Kohl's charge>>
Bank of America Cash Rewards
BofA Cash Rewards is a no-annual-fee credit card. Reasons to consider it as a second credit card for a beginner with 3 months of credit history include: this is considered an entry-level card, and approval is relatively easy with about 3 months of credit history. Applying early can help you build a good relationship with BofA, which may help with applying for its more premium cards later, although it does not really have many premium cards. The card’s rewards can be boosted by at least 1.25x on all cash back, and if you are a BofA Platinum Honors customer, the multiplier is 1.75x. That makes this card one of the best options for gas purchases. BofA Deals also adds a small perk, though it cannot really compare with offers on AMEX cards. This card can be applied for without an SSN. Cardholders also get free admission to many museums, which can be a nice travel-related perk for students who have just arrived in the U.S. If you cannot get approved for Discover, you can consider this as a first credit card.
Reasons not to consider this card as a second credit card for a beginner with 3 months of credit history include: relatively speaking, its cash-back rate is not as strong as Discover’s. After all, not everyone gets a 1.5x–1.75x rewards boost, because that requires keeping a large amount of money on deposit. If you came to the U.S. to work and earn money, you may not have that much savings at the beginning, which makes the requirement somewhat unrealistic. Also, most people do not spend that much on gas. In addition, BofA has relatively frequent fraud issues; while the money can usually be recovered, dealing with it can be a hassle.
- Welcome bonus: $150 (after spending $500 within the first 3 months); 0% intro APR for the first 12 months
- Cash back: 3% on gas, 2% at grocery stores (on the first $2,500 each month), and 1% on everything else
- No annual fee
- Application link:Bank of America Cash Rewards>>
AMEX EveryDay Card
AMEX EveryDay Card is a no-annual-fee credit card. Reasons to consider it as a second card for beginners with 3 months of credit history: it is an entry-level card, so approval is relatively easier (3 months of credit history may be enough). For many beginners who have just arrived in the US for school or work and need to buy lots of everyday necessities, this card’s 2x rewards at supermarkets can be a great option. Based on the analysis above, the real value of 2x rewards can be higher than 2% cash back. AMEX is also relatively easy to get approved for, so you are less likely to waste a hard pull, and the credit limits tend to be generous. Having one card with a solid credit limit can also make it easier to apply for other credit cards later. AMEX Offers is another nice perk, with many shopping deals available.
Reasons not to consider this card as a second card for beginners with 3 months of credit history: AMEX is not accepted as widely as Visa and MasterCard. You need 20 transactions to increase the value of the points, which can be cumbersome and may discourage beginners from getting into the credit card game. Since AMEX has many good cards, once you start applying you may not want to stop, which could delay your Chase applications. Beginners may also not understand MR points well and may need more time to learn, so cash back may feel more straightforward. A large portion of AMEX Offers may not be useful, and some offers can be confusing and take time to figure out.
- Welcome bonus: 15,000 MR, worth $240
- Earning rates: up to 2.4x at supermarkets; up to 1.2x on other purchases
- No annual fee
- Application link:AMEX EveryDay Card>>
AMEX Blue Cash EveryDay
American Express Blue Cash Everyday is a no-annual-fee credit card. Reasons to consider it as a second card for beginners with 3 months of credit history: it is an entry-level card, so approval is relatively easier (3 months of credit history may be enough). For many beginners who have just arrived in the US for school or work and need to buy lots of everyday necessities, this card’s 3% cash back at supermarkets is a great option. AMEX is relatively easy to get approved for, so you are less likely to waste a hard pull, and the credit limits tend to be generous. Having one card with a solid credit limit can make it easier to apply for other credit cards later. It earns straightforward cash back, which is beginner-friendly and less complicated than points currencies like MR. It also comes with AMEX Offers, which can provide many promotional deals.
Reasons not to consider this card as a second card for beginners with 3 months of credit history: AMEX is not accepted as widely as Visa and MasterCard. Since AMEX has many good cards, once you start applying you may not want to stop, which could delay your Chase applications. A large portion of AMEX Offers may not be useful, and some offers can be confusing and take time to figure out.
- Welcome bonus: $200 (after spending $1,000 in the first 3 months); 0% intro APR on purchases for the first 12 months
- Cash back: 3% at supermarkets; 2% on gas and at department stores; 1% on everything else
- No annual fee
- Application link:AMEX Blue Cash EveryDay>>
Conclusion
Among many options, you only need to pick the one that fits you best. Choose your second credit card and continue your US credit card journey. Of course, do not get overwhelmed by too many choices—the best card is the one that truly suits your needs. For example, even though many people dislike Capital One cards, that Kohl’s card works well for me. Still, most people will probably choose either Chase Freedom or one of these two AMEX cards. But do not apply blindly. First, if you are denied, you will waste a hard pull. Second, it uses up one of your card slots—for example, the well-known Chase 5/24 rule can affect your ability to apply for Chase credit cards.
- Beginner Notes (1) — Understanding Credit Cards
- Beginner Notes (2) — Choosing Your Second Credit Card (this article)