How to get a credit card for the first time
A credit card can give you a fast, convenient way to pay. And when used responsibly, a credit card can be a tool for establishing and building credit. Plus, some credit cards let you earn rewards for spending with the card.
But if you’ve never had one before, how do you get your first credit card?
Key takeaways
- Reviewing your credit scores before applying for your first credit card can give you a better understanding of what cards you may be eligible for.
- Card issuers may use information like credit scores, employment status, income and credit histories to make approval or denial decisions.
- Becoming an authorized user is one alternative to consider if you’re not ready for your own card.
- Applying for a starter card, like a secured credit card or student credit card, might be a good way to start your credit journey.
How to check your credit score for the first time
Before applying for a starter credit card, it can be helpful to check your credit scores. Lenders often use credit scores to judge an applicant’s creditworthiness. And your credit scores may affect what cards you’re eligible for. Lenders may also consider other factors, like income, when making decisions.
One way to check your credit score is with CreditWise from Capital One. CreditWise lets you monitor your TransUnion® credit report and VantageScore® 3.0 credit score without hurting your credit scores. And it’s free and available to everyone, 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.
How to get your first credit card with no credit
Some credit cards are specifically designed for people with little or no credit. These cards may have different requirements and limitations than some other cards. And keep in mind that you have to be at least 18 to open your own credit card account. And if you’re under 21, you have to prove you can make payments or have a co-signer who can.
How to choose a credit card for the first time
There’s a lot to think through when it comes to picking a credit card that’s right for you. Here are a few potential first-time credit cards to explore:
Student credit cards
When used responsibly, student credit cards can help young adults learn how to manage finances and establish or build their credit. They may also have features and rewards that are tailored to a student’s lifestyle.
Student cards may be more accessible to people with thin credit or no credit at all. And they may have lower credit limits and higher interest rates than cards geared toward people with better credit.
Credit cards for fair or building credit
Like the name suggests, cards for fair or building credit cater to people who are working to build or rebuild their credit. But like student cards, that doesn’t mean that they don’t come with benefits, like the opportunity to earn rewards. For example, QuicksilverOne from Capital One is designed for users with fair credit and offers unlimited 1.5% cash back on every purchase.
Secured credit cards
Secured credit cards are another option for people with little or no credit history. To open a secured card account, you have to put down a one-time security deposit. The deposit is typically refundable.
For some secured cards, the security deposit may be the same as the card’s credit limit. But that’s not always the case. With the Capital One Platinum Secured card, depending on your credit history, an initial security deposit of $49, $99 or $200 can open an account with a credit line of $200. And Platinum Secured lets cardholders raise their credit limit by depositing more than the minimum.
If you’re looking for a secured card that lets you earn rewards, the Quicksilver Secured Rewards card offers cardholders 1.5% cash back on every purchase.
Rewards credit cards
When you use a rewards credit card to make qualifying purchases, you can earn rewards in the form of cash back, points or miles. There are many different types of rewards cards, and exactly how you can earn and redeem rewards varies by card and issuer.
If you’re a frequent traveler, you might consider a travel rewards card. If you’re a major foodie, a dining credit card may be right for you. And don’t forget that some student cards, cards for fair and building credit, and secured cards may also offer rewards.
How to get approved for your first credit card
There’s no way to guarantee approval before you apply for a card. And applying for too many credit cards in a short period of time can hurt your credit scores. That’s why the Consumer Financial Protection Bureau (CFPB) says to limit new credit applications and only apply for the credit you need.
With pre-approval from Capital One, you can check for potential card offers before you apply. Pre-approval is quick and only requires some basic info. Plus, it won’t hurt your credit scores.
How to apply for a credit card for the first time
The credit card application process may vary by issuer and card. But you should be prepared to share some personal and financial information during the application process, including:
- Full legal name
- Social Security number or Individual Taxpayer Identification Number
- Date of birth
- Address
- Income
How to use a credit card for the first time
There can be so many advantages to using credit cards, but only if you use them responsibly. Here are a few tips for first-time credit card users:
- Always pay on time. Payment history is a major factor that affects credit scores, so it’s crucial to always make on-time payments. Setting up automatic payments can help.
- Stay below your credit limit. Credit utilization ratio is a measure of how much of your available credit you’re using across all accounts. The CFPB recommends keeping this ratio below 30%.
- Pay more than the minimum. The CFPB says to pay off your entire credit card balance whenever possible. And if you can’t, pay more than the minimum.
- Limit credit applications. New credit applications trigger hard inquiries, which can hurt your credit scores. The CFPB recommends only applying for credit you need. Getting pre-approved can be part of helping you limit hard inquiries.
First credit card FAQ
Still curious about credit cards for first-timers? Here are some frequently asked questions to help you find and apply for the best beginner credit card:
Does getting denied for a credit card hurt your score?
Getting denied for a credit card doesn’t necessarily directly impact your credit scores. But applying for a credit card, whether it results in denial or approval, involves a hard inquiry, which can negatively impact your credit score.
How long does it take to build credit?
The time it takes to build credit can vary from person to person. According to Experian®, it can take about three to six months of credit activity for a score to be calculated when you’re starting out.
Adding someone as an authorized user on a credit card account is one way to help a trusted friend or family member establish and build credit.
If the primary account holder handles their credit responsibly by doing things like making on-time payments, the authorized user’s credit may be positively impacted, too. But if either the authorized user or primary account holder doesn’t use the account responsibly, it can hurt both people’s credit.
First-time credit cards in a nutshell
Credit cards can be great tools for establishing and building credit. They can also help you manage your finances and be prepared for emergencies. Plus, you may be able to earn rewards for spending you would already be doing. But remember, you can only reap these benefits if you use credit cards responsibly.
If you’re ready for your first credit card, start by comparing cards to find one that’s right for you.