How to get your first credit card

Getting a credit card can make buying things more convenient and may even reward you with perks 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 what credit cards you might be eligible for. 

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

• Applying for a secured credit card—or a student credit card if appropriate—might make it easier to be approved.

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

Before you apply, it may help to understand what to expect from the application process.

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 too, including your:

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

• Proof of income

• Employment status

• Monthly housing payment

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

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

• A co-signer who’s over 21

But it’s important to remember that many major credit card issuers don’t allow co-signers.

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. 

If you’re establishing credit, you might consider some of the ways you can access credit:

Some credit cards might suit people with a thin credit file or those working to build healthy credit scores. And some cards reward you for using the card. For example, QuicksilverOne from Capital One is designed for users with fair credit scores. It offers unlimited 1.5% cash back on every purchase.

Secured credit cards are another option for people with little or no credit history having trouble qualifying for other cards. Unlike unsecured credit cards, secured cards typically require a refundable security deposit to open an account. 

With the Capital One Platinum Secured card or Quicksilver Secured from Capital One, 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. And student credit cards are designed with that in mind. Plus, they might have benefits tailored to college students, including bonuses and rewards related to 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’s student credit cards.

You can also gain access to a credit card and help build your credit by becoming an authorized user. An authorized user is someone who receives a credit card linked to another person’s account—typically a family member or trusted friend—and can make purchases. 

As long as payments are made on time, your credit as the authorized user could improve and set you up to eventually get your own credit card. Keep in mind, the account holder is ultimately responsible for payments on purchases they and any authorized users make.

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

Knowing what your credit scores are can help you determine cards you might be eligible for. 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 also 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.

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

• Credit limit: This is 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 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.

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, which can 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. Just accept an offer and Capital One will mail the card to you.

Once you’ve explored offers, most issuers offer credit card applications online, over the phone, by mail or even in person. A decision on your application could take seconds, depending on how you apply. But issuers must give you a decision within 30 days of receiving your complete application.

Still curious about first-time credit cards? Here are answers to some frequently asked questions to help 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.