How to get a credit card

How can you get a credit card? For first-timers it may seem mysterious. In reality, the application process is relatively simple. But with so many different types of credit cards, how do you find the right one? And what sort of preparations should you do before applying?

Having a credit card can be beneficial for several reasons. First, there are the intangible “adulting” factors, like learning to manage money and becoming financially literate. Beyond that, there’s building credit with responsible use and earning rewards. But first, you have to find the credit card that’s right for you.

What you’ll learn:

• Monitoring your credit reports and scores can give you an idea of where your credit stands.

• Comparing interest rates and rewards can help you find a credit card that’s a good fit.

• Checking for pre-approved card offers can help you understand which cards may be right for you, without hurting your credit scores.

• Applying for a credit card online is typically the fastest and most convenient way to apply, but you also may be able to apply in person, by phone or by mail.

Knowing where your credit stands can make it easier to determine what cards you might be approved for. There’s another way you can check too—more on that in No. 5 on this list.

Before extending credit, credit card issuers evaluate applicants’ creditworthiness to determine whether to approve or decline applications. Part of how they do that is by checking credit histories and scores.

But here’s where it gets a little more complicated. There isn’t just one credit score. You can have multiple scores, depending on what company is doing the scoring. Credit scoring companies such as FICO® and VantageScore® use different calculation methods, with the most popular scores ranging from 300 to 850. 

Generally, the higher the credit score, the better the chances for approval. But there are still options, even if you’ve never had a credit card.

You can get free credit reports from each of the three major credit bureaus: TransUnion®, Experian® and Equifax®. All you need to do is visit AnnualCreditReport.com.

Another way to check your credit: Use CreditWise from Capital One. With CreditWise, you can access your credit report and score anytime, without hurting your credit. Best of all, CreditWise is free. And you don’t have to have a Capital One credit card to use it. 

If you’re starting to learn about credit cards, there are some important terms to look out for.

• Interest rates: With credit cards, this is typically shown as a variable annual percentage rate (APR). And there may be different APRs for different kinds of transactions. You can typically avoid interest on new purchases by paying off your balance each month. 

• Annual fees: Some issuers charge an annual fee to keep your account open. If you’re looking to keep costs low, you might consider a credit card with no annual fee or determine whether the card’s benefits balance out the fee.

• Additional terms: You may not be able to tell before you apply, but understanding credit limits, promotional rates and other key credit card terms could be helpful as you use a card.

The Federal Deposit Insurance Corp. and the Federal Trade Commission (FTC) both say it’s worth shopping around to compare credit cards. “Look for the best APR available to limit your costs,” the FTC says.

Another way to narrow your choices down is to consider your spending habits and what type of credit card rewards would best meet your needs. Capital One offers:

• Cash back credit cards, which reward cardholders with a percentage of cash back on everyday purchases.

• Travel rewards credit cards, which reward cardholders with miles they can use on future travel.

• Secured credit cards, which require a refundable deposit but are generally easier to qualify for than traditional credit cards.

• Student credit cards, which can help college students establish credit, earn rewards and gain money management skills.

• Low intro rate credit cards, which can help with major purchases or when consolidating multiple debts into one.

Application requirements differ from issuer to issuer and card to card, but here’s an idea of what issuers may consider when you apply for a credit card:

The minimum age to get a credit card in the United States is 18. But there’s more required for applicants who are under 21. According to the Consumer Financial Protection Bureau (CFPB), “credit card companies generally can’t issue credit cards to anyone under 21 years old, unless they can show an independent ability to meet payment obligations or someone over 21 years old co-signs the account, agreeing to be held financially responsible.”

When applying for a credit card, you’re going to be asked to supply information such as your full legal name, date of birth, address, annual income, Social Security number or Individual Taxpayer Identification Number, and employment status.

When you see “pre-qualified” or “pre-approved” on a credit card offer, it typically means your credit scores and other financial information matched at least some of the initial eligibility criteria needed to become a cardholder. 

Checking to see whether you’re pre-approved for a credit card can be a great way to compare options and gauge your approval odds before you apply. 

If you apply for a credit card online, you could get a near-instant answer to your application. And if you’re approved, some lenders may give you a virtual card number to start using right away.

You might also be able to apply in person, over the phone or by mail.

Once you’ve received your new credit card, the first thing you’ll need to do is activate it. A sticker on your card will give you directions. The entire activation process is very quick and easy. It’s generally a QR code, web address or phone number to call. 

After your card is activated, you’re free to use it. Using a credit card responsibly can help you meet your spending needs and build credit for the future while avoiding pitfalls. 

One part of using credit responsibly is making on-time payments. Making payments after the due date can incur late fees and interest rate increases. And if they’re reported to the credit bureaus, late payments could stay on your credit reports for years. 

If you have trouble staying organized, you can consider setting up automatic monthly payments. Or you can set electronic reminders. As for how much to pay, the CFPB recommends paying as much as possible and exceeding the minimum required payment.

Here are a few answers to frequently asked questions about applying for a credit card:

If you’re trying to get a credit card, you could start by understanding your credit scores and the application requirements. Once you’re ready, you can see whether you’re pre-approved before you apply. 

If you’re new to credit or searching for your next credit card, Capital One can help. 

• See whether you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, 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. It’s free for everyone, and using it won’t hurt your credit scores.