How to get your first credit card

Getting a credit card can make buying things more convenient and may even reward you with benefits like cash back or miles. And when used responsibly, a credit card can be a helpful tool for building your credit.

But if you’ve never had a credit card before, where do you start?

What you’ll learn:

• Reviewing your credit scores and credit reports can help you understand which credit cards you might be eligible for. 

• Card issuers may use your employment status, income, credit scores and credit history to make a decision about your application.

• Approval might be more likely if you apply for a secured credit card, or a student credit card if appropriate.

• Becoming an authorized user is one way to access credit and establish a credit history without opening your own account.

Before you apply, it can help to learn the basics about credit and credit cards.

Credit scores reflect your creditworthiness. They’re based, in part, on information found in your credit reports. Your scores can give you a sense of which cards you might qualify for. For instance, many credit cards are designed for people with fair, good or excellent credit scores. There are even cards for people with no credit history at all.

You can check your credit report and credit scores with CreditWise from Capital One. CreditWise lets you monitor your credit without hurting your credit scores. It’s free to use, even if you’re not a Capital One cardholder.

AnnualCreditReport.com offers free copies of credit reports from all three major credit bureaus. Credit reports don’t typically include credit scores, but they can help you understand how your credit history impacts your scores.

Another key to choosing the right card for you is reviewing the terms of the account. Here are some to consider.

• Introductory rate: Credit card interest is typically shown as a yearly rate known as an annual percentage rate (APR). Some cards may offer a temporary low or 0% intro APR, but once the promotional period is over, a standard APR typically applies to new purchases and any leftover balance.

• Rewards and bonuses: Rewards cards let you earn cash back, miles or points when you use your card. A welcome bonus is a one-time reward offered to new cardholders. To earn this bonus, cardholders usually have to meet specific requirements, like spending a certain amount on the card within a set time frame.

• Annual fee: Cards that offer rewards or welcome bonuses sometimes come with an annual fee. Consider your financial situation, how you plan to use the card and whether the card benefits balance the cost.

• Credit limit: This is often the maximum amount you can charge to the credit card. If you hit the credit limit and want to spend more, you may need to pay down some of the balance first. 

• Minimum payment: This is the minimum amount you must pay each billing cycle to keep your account up to date and avoid penalties and fees. If you pay just the minimum, you’ll likely be charged interest. But paying off your statement balance on time each month can help you avoid that.

• Payment date: This is when a payment must be received by your credit card issuer to avoid being past due. Late and missed payments can hurt credit scores and result in late fees and possible loss of any introductory APR.

Here are some of the ways a first-timer can access credit.

Some credit cards might suit people with no credit, a thin credit file or those working to build healthy credit scores. For example, the Capital One Platinum Mastercard® could help build credit if it’s used responsibly by doing things like paying statements on time every month. Some may even come with rewards like cash back on purchases. The Capital One SavorOne and Capital One QuicksilverOne cards are two examples.

Secured credit cards are another option for people with little or no credit history who are having trouble qualifying for other cards. Secured cards are easier to qualify for because they require a refundable security deposit to open an account.

With the Capital One Platinum Secured card or Quicksilver Secured card, an initial security deposit can open an account with a credit line of at least $200. Cardholders can also raise their credit limit by depositing more than the minimum.

Many students don’t have experience with credit. Student credit cards are designed with that in mind. Plus, they might have benefits tailored to college students, including bonuses and rewards related to things like grocery shopping, dining and streaming services. If you’re enrolled—or admitted and planning to enroll in the next three months—at an accredited university, community college or other higher education institution, explore Capital One student credit cards.

An authorized user is someone who receives a credit card linked to another person’s account (typically a family member or trusted friend) to make purchases. The primary account holder is ultimately responsible for all charges and payments on the account. 

But as long as both people use the card responsibly and activity is reported to credit bureaus, being an authorized user could help the authorized user build credit.

Here are some basic steps you might take to apply for your first credit card.

You have to be at least 18 years old to apply for a credit card. But if you’re under 21, the Consumer Financial Protection Bureau (CFPB) says you’ll also need to meet one of two conditions:

• Prove you have enough independent income to make your minimum credit card payments.

• Have a co-signer who’s at least 21. Keep in mind that many major credit card issuers don’t allow co-signers.

When you apply for a credit card, issuers typically ask you for general information, including your name, date of birth and address. But you can also expect more detailed requests, including your:

• Social Security number (SSN) or individual taxpayer identification number (ITIN)

• Proof of income

• Employment status

• Monthly housing payment

If you receive a pre-approval or pre-qualification offer, it typically means you’ve met the initial criteria required to become a cardholder. You can even check for yourself, which can help you avoid unnecessary hard inquiries that may temporarily cause your credit scores to dip. 

Pre-approval at Capital One involves a soft inquiry, which means checking for yourself won’t affect your credit scores. If you’re pre-approved, you don’t have to apply separately. But if you choose to accept a card offer, the acceptance will trigger a hard inquiry, which may impact your score.

Most issuers offer credit card applications online, over the phone, by mail or even in person. Online applications could see a response in as little as 60 seconds. But issuers must give you a decision within 30 days of receiving your complete application.

Still curious about a first credit card? Here are answers to some frequently asked questions that may make it easier to find and apply for a card

Getting a first credit card can make it easier to shop and build credit for long-term financial well-being. But only if you use it responsibly. 

Ready to apply for your first credit card?

• See if you’re pre-approved without harming your credit scores. 

• Explore cards for people with fair credit. 

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash back rewards card. 

• Monitor your credit report and score with CreditWise.