How to Earn Rewards With Your First U.S. Credit Card

Your first U.S. credit card should do two jobs: get approved and earn something useful without tempting you into dumb debt. That’s the whole game. If you’re new to the U.S., on an H-1B, L-1, F-1, newly immigrated, or just starting with no credit file, I’d rather see you earn a clean 1.5% cash back and build six months of perfect payment history than get rejected chasing a premium travel card you’re not ready for.

That may sound boring. It’s also how you win.

Rewards are great, but early on, approval odds and credit-building matter more than squeezing every last point out of groceries. The good news is that several starter cards now earn real cash back, have $0 annual fees, and are built for people with limited or no U.S. credit history. Some paths also work with an ITIN instead of an SSN, which matters a lot for newcomers who don’t yet have a Social Security number.

The best first-card strategy for earning rewards

If I were starting from zero in the U.S., I’d use a simple sequence: open the most approvable no-annual-fee card I can responsibly manage, put predictable monthly spending on it, pay the full statement balance on autopay, and wait before applying again.

For most beginners, that means one of four lanes.

If you’re a student, the Capital One SavorOne Student Cash Rewards Credit Card or Discover it® Student Cash Back Credit Card can be excellent because they earn meaningful rewards with $0 annual fees. If you’re not a student but have no credit history, the Chase Freedom Rise℠ is interesting because Chase says it doesn’t require prior credit history, and it earns a flat 1.5% cash back. If approval is still tough, a secured card like the Discover it® Secured Credit Card or Capital One Platinum Secured Credit Card can get you started with a refundable deposit.

The card I’d avoid for rewards specifically is the BankAmericard® Secured Credit Card. It has a $0 annual fee and can help build credit, but it doesn’t offer rewards. That’s not automatically bad — approvals and credit-building can be worth more than rewards — but if you can qualify for a secured card that earns cash back, I’d usually take the rewards.

Cash back counts as beginner points earning

People in travel circles love to talk about airline miles, hotel points, and transferable currencies. I do too. But for a brand-new credit user, cash back is often the better first reward.

Why? It’s simple, flexible, and hard to misuse. One dollar of cash back is one dollar. You don’t need to understand award charts, transfer partners, blackout dates, or whether a hotel point is worth half a cent or two cents. You just need to spend normally, pay on time, and let the rewards post.

That’s especially helpful if you’re new to the U.S. and still figuring out rent deposits, payroll timing, insurance bills, utilities, and bank accounts. Cash back lets you learn the system without turning your first year into a side job.

The trick is to treat rewards as a rebate, not an excuse to spend. If you buy a $60 dinner you didn’t need because your card earns 3% on dining, you made $1.80 and spent $60. Bad trade.

Best starter rewards cards by situation

The Chase Freedom Rise℠ is one of the cleanest starter options if you want rewards with minimal complexity. It has a $0 annual fee, earns 1.5% cash back on all purchases, and Chase says no prior credit history is required to qualify. Chase also says having a Chase checking account with at least $250 within three days of application may improve your approval chances. That detail matters. If you’re already using Chase for banking, this card becomes more compelling.

There’s also a small but easy sweetener: cardmembers can earn a $25 statement credit for enrolling in autopay within the first 3 months of account opening and staying enrolled for at least 90 days. I like that because autopay is exactly the habit you should build anyway.

For students, the Capital One SavorOne Student is stronger on everyday categories. It has a $0 annual fee and earns unlimited 3% cash back on dining, entertainment, popular streaming services, and grocery stores, though grocery stores exclude superstores like Walmart® and Target®. It also earns 5% cash back on hotels, vacation rentals, and rental cars booked through Capital One Travel, and 1% on everything else. New cardmembers can earn a $100 cash bonus after spending $300 within the first 3 months from account opening.

That’s a genuinely good beginner setup if you qualify as a student. Dining and groceries are exactly where many students and new workers spend money.

The Discover it® Student Cash Back Credit Card is better for someone willing to track rotating categories. It has a $0 annual fee, requires no credit score to apply, and earns 5% cash back on everyday purchases at different places each quarter, up to a quarterly maximum upon activation, plus 1% cash back on everything else. Discover also automatically matches all cash back earned at the end of the first year, dollar for dollar. New cardmembers can earn a $100 statement credit after spending $300 in the first 3 months.

That first-year match can be powerful, but rotating categories require attention. If you forget to activate or don’t spend in the bonus categories, the card is basically a 1% card for those purchases.

If you need a secured card, the Discover it® Secured Credit Card is my favorite rewards-first secured option from this group. It has a $0 annual fee, requires a refundable security deposit as low as $49 for an initial credit line of at least $200, and earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus 1% on all other purchases. Discover automatically matches all cash back earned at the end of the first year.

The Capital One Platinum Secured Credit Card is more of a credit-building tool than a rewards card. It has no annual fee, allows a refundable security deposit starting at $49, $99, or $200 for an initial credit line of at least $200, and Capital One says cardholders are automatically considered for a higher credit line in as little as 6 months with no additional deposit needed. But it doesn’t earn rewards based on the facts here. I’d pick it if approval, deposit flexibility, or future credit-line growth matters more than cash back.

A real rewards example with beginner spending

Let’s say you’re an F-1 student or new H-1B worker spending $1,340 per month on a starter card:

$350 at grocery stores, $250 on dining, $20 on streaming, $120 on gas, and $600 on miscellaneous purchases.

With the Capital One SavorOne Student, assuming those grocery purchases qualify and aren’t at Walmart or Target, you’d earn 3% on groceries, dining, and streaming. That’s $620 per month at 3%, or $18.60. The remaining $720 earns 1%, or $7.20. Total monthly cash back: $25.80. Over a year, that’s $309.60 before any bonus. If you also meet the $300 spending requirement in the first 3 months, the $100 cash bonus would bring the first-year value to $409.60.

That’s excellent for a $0 annual fee student card.

Now compare that with Chase Freedom Rise at 1.5% on everything. The same $1,340 per month earns $20.10 monthly, or $241.20 over a year. Add the $25 autopay statement credit if you meet the terms, and you’re at $266.20 in first-year value.

So which is better? If you qualify for SavorOne Student and your spending fits the 3% categories, it wins on rewards. If you’re not a student, don’t want category rules, or already bank with Chase and want a straightforward first card, Freedom Rise may be the smarter approval-first move.

Newcomer basics: SSN, ITIN, and thin credit files

A lot of newcomers get stuck on one question: can I get a U.S. credit card without an SSN?

Sometimes, yes. Many major U.S. credit card issuers, including American Express and Capital One, accept an Individual Taxpayer Identification Number, or ITIN, instead of a Social Security number for credit card applications. That doesn’t mean approval is guaranteed. It means an SSN is not always the only path.

To obtain an ITIN, you generally complete IRS Form W-7, provide proof of identity and foreign status, and submit it with a federal tax return to the IRS. That process is not instant, so don’t leave it until the day you want to apply for a card.

If you don’t have an SSN or ITIN yet, your options narrow. I’d focus first on getting your banking foundation set up, documenting income, and understanding which ID documents an issuer will accept. Credit card applications, especially without U.S. credit history, generally require proof of income. For an H-1B or L-1 worker, that may be salary income. For a student, it may be more complicated, and you should be honest. Never inflate income to chase an approval.

Thin-file approvals are about reducing uncertainty. A U.S. bank account, stable address, verifiable income, and a card designed for no-credit applicants can all help. Applying randomly for five cards in one weekend is the opposite of that.

Secured cards: boring, useful, and often misunderstood

A secured credit card is not a prepaid debit card. You put down a refundable security deposit, and the issuer gives you a credit line. You then use the card like a regular credit card and pay the bill. The deposit protects the bank; it is not used to pay your monthly statement unless things go wrong or the account is closed according to the issuer’s terms.

The Discover it Secured and Capital One Platinum Secured both allow deposits starting as low as $49 for an initial credit line of at least $200, based on the issuer terms in the brief. BankAmericard Secured requires a minimum security deposit of $200 and allows deposits up to $5,000, with the deposit typically determining the credit limit.

Here’s the practical issue: low limits make utilization easy to mess up. If your credit limit is $200 and you spend $180 before the statement closes, your reported balance may look high even if you pay in full later. That can hurt your score temporarily. I’d try to keep the statement balance low relative to the limit, especially in the months before applying for your next card.

A simple habit works: use the card for one or two predictable bills, then pay it down before the statement closes and again by the due date if needed. You don’t need to carry a balance to build credit. Carrying a balance just creates interest charges.

The right first-card sequence for points and miles later

If your long-term goal is travel rewards, your first card should set up your second and third cards. That means protecting your credit profile.

Month 0: apply for one realistic starter card. If you’re a student, look at student cards. If you bank with Chase, consider Freedom Rise. If approval is uncertain, secured may be the right call.

Months 1 to 6: use the card lightly and pay in full. Set autopay for at least the statement balance if your bank account can support it, or at minimum set alerts so you never miss a due date. Keep balances low. Don’t apply for every card you see on social media.

Around month 6 or later: check whether your issuer offers a higher credit line, graduation path, or better product. Capital One says Platinum Secured cardholders are automatically considered for a higher credit line in as little as 6 months with no additional deposit needed. Chase’s Freedom Rise autopay credit also rewards the exact behavior you want early.

After you’ve built a clean record, then it makes sense to think about stronger rewards cards. That’s where transferable points and travel redemptions become more realistic. But the first year is mostly about proving you’re low risk.

Common beginner mistakes that cost more than the rewards

The biggest mistake is carrying a balance because you think it helps your credit. It doesn’t. Paying interest can wipe out a year of rewards in one or two billing cycles.

The second mistake is choosing a card only for the headline rate. A 5% rotating-category card is great if you activate categories and actually spend in them. If you don’t, a flat 1.5% card may beat it in real life.

The third mistake is ignoring category exclusions. The Capital One SavorOne Student earns 3% at grocery stores, but superstores like Walmart and Target are excluded from that grocery category. If most of your “grocery” spending is at those stores, don’t assume you’ll earn 3%.

The fourth mistake is putting too much spend on a tiny secured limit. Yes, you can pay multiple times per month. No, you shouldn’t run your card up to the limit and hope it reports nicely.

Frequently asked questions

Can I earn points or cash back without a U.S. credit history?

Yes, but your options are narrower. Some student, secured, and no-credit-history cards earn cash back while helping you build credit. The Chase Freedom Rise earns 1.5% cash back and does not require prior credit history to qualify. Discover and Capital One also have starter products that can work for beginners, depending on your profile.

Can I apply for a credit card with an ITIN instead of an SSN?

In some cases, yes. Many major issuers, including American Express and Capital One, accept an ITIN in place of an SSN for credit card applications. To get an ITIN, you generally file IRS Form W-7 with proof of identity and foreign status and submit it with a federal tax return. Always verify the issuer’s current application requirements before applying.

Is a secured card worth it if it earns few or no rewards?

Sometimes. If you can’t get approved for an unsecured card, a secured card can be the bridge into the U.S. credit system. I’d prefer a secured card with rewards, like Discover it Secured, if approval odds are similar. But if a no-rewards secured card is the realistic approval, building credit may be worth more than earning a few dollars of cash back.

Should I get multiple starter cards to earn more rewards?

Usually no. Not at the beginning. One well-managed card is better than three new accounts you barely understand. Build a payment history first, keep balances low, and apply again only when your credit profile is stronger and you know exactly what the next card adds.

Bottom line

For newcomers and credit beginners, the best rewards strategy is not “maximize everything.” It’s get approved, pay in full, keep utilization low, and earn cash back on spending you were already going to do.

If you’re a student, I’d look hardest at Capital One SavorOne Student for easy 3% categories or Discover it Student Cash Back if you’ll track rotating categories. If you want simple rewards and have a Chase banking relationship, Chase Freedom Rise is a strong first step. If you need a secured card, Discover it Secured offers real cash back, while Capital One Platinum Secured may appeal more for deposit flexibility and possible credit-line growth.

Don’t rush the premium travel-card phase. Nail the first card, build six to twelve months of clean history, and the points game gets much easier.