How to get a credit card

Getting a credit card can be a big milestone. But before you apply, you might want to check your credit scores and research card options to help you find a card that’s the right fit for you.

What you’ll learn:

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

• Monitoring your credit reports and scores can give you an idea of where your credit stands and which cards you could be eligible for.

• 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.

Credit card issuers typically evaluate creditworthiness to determine whether to approve or decline applications. Knowing where your credit stands can make it easier to determine what cards you might be approved for. Generally, the higher your credit score, the better your chances are for approval.

You can get free credit reports from each of the three major credit bureaus—TransUnion®, Experian® and Equifax®—by visiting AnnualCreditReport.com.

CreditWise from Capital One is another way to monitor your credit. With CreditWise, you can check your credit as often as you like without hurting your credit scores. And it’s free, even if you’re not a Capital One cardholder.

There’s a lot to know about credit cards. Learning about some key credit card terms could help you be more prepared to choose a card and apply. Here are a few to look out for.

• Annual percentage rate (APR): Interest is the price you pay to borrow. With credit cards, APRs and interest rates are typically the same. But APRs can change based on the type of transaction. 

• Annual fee: Some cards charge a yearly fee for keeping your account open. 

• Credit limit: This is the maximum amount you can charge to the card.  

• Late payment fee: If you pay your credit card bill after its due date, you may be charged a late payment fee. Late payments could also increase the card’s interest rate and impact credit scores.

There are many different types of credit cards. What’s best for you depends on what you’re looking to get out of the card, your spending habits and other preferences. The Federal Trade Commission says APRs are a good thing to compare. You could also review rewards structures and other benefits.

Here are some common types of credit cards.

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

• Employment status

When you’re pre-approved for a credit card, it typically means your credit scores and other financial information matched at least some of the initial eligibility criteria needed to become a cardholder. Pre-approval is a way to compare options and gauge your approval odds.

If you apply for a credit card online, you could get a near-instant answer to your application. You might also be able to apply in person, over the phone or by mail. And if you’re approved, some lenders may give you a virtual card number to start using right away while you wait for your new card to arrive in the mail.

Federal guidelines require credit card issuers to let you know whether your application is approved or denied within 30 days of receiving it. If you apply for a Capital One credit card online, you could get a response within 90 seconds.

The right time to apply for a credit card depends on your financial goals. Everyone’s timeline looks a little different, but here are some situations where a credit card might make sense.

• You want to build credit. Using a credit card responsibly can help you improve your credit scores. Secured cards and student cards may be options for people with limited or no credit history. 

• You want to earn rewards. With a rewards card, you could earn points, cash back or miles. Those rewards can then be redeemed for things like statement credits, gift cards or travel. 

• You’re making a large purchase. Some cards offer a 0% promotional APR to cardholders. If you pay off your balance before the promotional period ends, you could avoid paying interest on big-ticket purchases. 

• You’re struggling with high-interest credit card debt. A balance transfer credit card could help you consolidate debt from multiple cards, simplify payments and pay less interest. 

Keep in mind that the minimum age to get a credit card in the United States is 18, and there are extra requirements for applicants who are under 21. Becoming an authorized user on a trusted family member’s account is one way to access credit without opening your own account.

Getting turned down can be frustrating. But federal law requires issuers to provide the reasons they reject applications. And knowing why your application was denied might help you correct the issue before you apply again. In the meantime, improving your credit scores may give you better chances next time around.

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

If you’re trying to get a credit card, understanding your credit scores and the application requirements can help you narrow down your options. If you’re ready to explore your credit card options, you could compare credit cards from Capital One. 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. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

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

• Monitor your credit with CreditWise. It’s free, even if you’re not a Capital One cardholder.