Your credit history begins when you open your first credit account. The following guide will introduce you to the process of getting a credit card and provide you with the best options for a credit card for first-timers.
How to Get a Credit Card for the First Time
Last Updated: May 31, 2024
10 min read
Key points about: applying for your first credit card
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You must be 18 or older to apply for a credit card.
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Consider a student or secured card as your first credit card.
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First-time credit card users can build a credit history with the Discover it Secured Credit Card.1
Requirements to get your first credit card account
If you’re interested in obtaining a credit card, first-time users can expect to meet the following criteria:
- You must be at least 18 years old.
- You must show proof that you can make the payments.
- You must have an established credit history OR choose a student/secured card.
- For secured cards, you must put down a security deposit.
- You must understand the terms and benefits of your credit card.
- You should choose a credit card you plan to use for a long period of time.
- You should compare card providers and card types to find your best option.
If you’re a first-time credit card applicant, you’ll want to learn more about concepts like APR and reward points to find a card that aligns with your lifestyle and budget. And if you’re interested in a secured credit card to build credit history, you’ll have to put down a security deposit.
Choosing the best first credit card for beginners
When choosing your first credit card, consider your chances of getting approved, what rewards you could earn, and if you need a credit history. These are important steps to find the right card for you. This is especially true if you're just starting out, with little or no credit history and perhaps a lower income. Our guide is here to help you look at your options and pick a card that fits your financial needs.
1. Consider applying for a secured credit card or a student credit card
If you lack a lengthy credit history, a secured credit card or a student credit card might be a good first credit card option. If you have little to no credit history, a secured credit card can be a great choice for a first credit card. These cards offer low interest rates and can help you build credit until you’re ready to transition to a different type of card.
With secured credit cards, your credit line will equal the amount of the required cash deposit after you're approved. The difference between a secured card and many debit cards is that your on-time credit card payments may help build your credit history with responsible use.1
If you’re a student, you may consider a student credit card with a low annual percentage rate (APR) and a rewards program that lets you earn cash back on purchases, so you can earn rewards on necessities and all your everyday purchases.
2. Learn about credit card rewards
First-time credit card applicants are still eligible for rewards. These rewards are based on the amount of your credit card purchases and can include anything from cash back to discounts on travel, shopping, and more.
In fact, there are so many different reward cards to choose from that you’ll need to do some homework to find which credit card fits your lifestyle. For example, with Discover it® Chrome, you earn 2% cash back at Gas stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.2
When evaluating credit card rewards, make sure to consider interest rates and annual fees. If you’re a first-time credit card applicant, you may want to consider a card with a lower APR and no annual fee to better manage your balance.
The APR or “annual percentage rate” reflects the interest rate and fees associated with a credit card. Essentially, your APR is the cost of borrowing on your credit card, which is why it’s wise to seek out a low APR for your first credit card.
Did you know?
When comparing credit cards, you don’t usually have to worry about identifying both APR and interest rate—the two figures should mean the same thing. Many credit cards offer a low introductory APR during a specified time after you open your account. When that promotion ends, the APR rises, so the credit card account begins accruing interest if there’s an unpaid balance. You can use the Discover pre-approval tool to see if you qualify for a Discover® Card with a low introductory APR offer. Credit card companies may, however, charge different APRs for different types of transactions, so you should check the card’s terms and conditions for a complete list of APRs.
3. Choose a credit card you won’t want to cancel
Did you know that your credit score can be impacted by the average age of your credit card accounts? For example, imagine that you own two credit cards—one that is a year old and another that is 10 years old. Canceling the oldest credit card could cause your credit score to dip slightly since the average age of your credit card accounts is now limited to the card you’ve had for only a year.
Many credit card issuers offer promotions that include no annual fees for the first year. You may be tempted to apply for this promotional card only to close the account once the annual fee kicks in. But you may benefit more if you select a no-annual-fee card for your first credit card and keep it open long-term. That way, you’ll avoid canceling a credit card, which can potentially impact your credit history.
4. Review the credit card terms
As a first-time applicant, it’s important to understand and review all of the details of your first credit card. This means paying attention to any related fees, interest rates, and reward program terms and conditions so that you understand exactly what you’re agreeing to.
The terms and conditions will explain any consequences (such as late fees, cancellation fees, etc.) if you do not use your credit card properly. Additionally, understanding the terms and conditions will ensure that you get the most out of your reward program.
Improve the odds that your first credit card application will be approved
What can you do to ensure that your credit card application is approved? If you’re applying for your first credit card, the following tips will improve your chances of seamless, smooth approval.
5. Limit the number of applications
Be selective about the number of credit cards you apply for. Each time you apply for a credit card, your credit card issuer will check your credit score. These are considered “hard” inquiries, which can have a minor impact on your credit score. Applying for too many credit cards at once can cause your score to dip even more.
Additionally, applying for too many credit cards at once can create the appearance that you’re struggling to become accepted or that you’re preparing to take on more debt. Avoid this by only applying for the credit cards that you’re most likely to qualify for. That’s another reason why those with little or no credit can take advantage of a student card or a secured credit card.
6. Try to get pre-approved for your card
When possible, seek pre-approval for your first-time credit card before you apply. During the pre-approval process, the credit card issuer will review criteria such as your credit, income level, and payment history. This is typically considered a “soft” inquiry, which can occur when you request your own credit report, employers check your background, and lenders look to pre-approve you for a credit card or loan. They do not have the same negative impact as a “hard” inquiry.
7. Prove you can make credit card payments
Before approving your application, a credit card issuer usually wants to determine how likely you are to pay your bills on time. To make that call, they typically ask for your credit history and income information.
Did you know?
When you apply for a credit card, you typically have to provide your income. Credit card applications may also ask for your monthly housing expenses. This information helps credit card companies estimate your overall financial stability before offering you a credit card. If you haven’t had a credit card before or taken out a loan, a secured credit card could help you build credit history.
To open a student credit card, you may also need to provide information such as your college or university’s name, state and city, and proof that you’re currently enrolled. If you’re over 21, you could include a spouse’s income to help you qualify for a student credit card. If you’re under 21, however, you can usually only report your independent income.
How to apply for your first credit card
Ready to get your first credit card? Follow these simple steps to fill out your application:
- Fill out the application form from the credit card company.
- Enter your legal name.
- Provide your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Enter your date of birth.
- Give your address.
- Report your income.
Credit card companies have different ways to apply—some are online, and some might require mailing in an application. But don't worry, the process is usually straightforward. Following these steps should make applying for your first credit card easy and hassle-free. Plus, if you're a student with not much credit history, there's also information on how to apply for a student credit card.
What to expect after you apply for your first credit card
When you apply for your first credit card, having little or no credit history might impact how quickly your application is processed. So, how long until you get your card? If everything in your application is correct, you could be approved for a student credit card in just minutes. Other types of cards might take a few days or even weeks. By law, credit card companies must let you know if you're approved or denied within 30 days.
After you're approved, your card will arrive by mail. While you wait, you can start using the card issuer's website or mobile app. For example, with the Discover app, first-time users can easily manage accounts, set up payments, customize mobile alerts, and explore card benefits and rewards. These tools help you make the most out of your new credit card right from the start.
What if you’re not ready to apply for your first credit card?
If you’re not ready for the responsibility of having your own credit card, or if you’re under 18, you could become an authorized user on someone else’s card. For example, you might become an authorized user on your parent’s account if you meet the card’s age requirements.
Being an authorized user can also help you build credit history with responsible use. However, keep in mind that the account’s credit history may appear on your credit report. If the primary account holder misses a lot of payments, it could affect your credit score.
Discover reports each account’s activity to the three major credit bureaus. Using this the Authorized User can build a credit history, with responsible use.3 Building credit history takes time and patience, but it’s well worth it. Follow these first credit card tips and you’ll be on your way to establishing a credit history and a solid financial future.
Make the most out of your first credit card
Getting your first credit card gives you more ways to pay and an opportunity to build a strong credit score, as long as you use it responsibly. To do this, you should pay your bill on time every month and only buy what you can afford to pay back. Being disciplined with your credit card is key because it affects your ability to get loans later on for big purchases like a car or a house, helping you build a stable financial foundation.
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Build/Rebuild Credit with responsible use: Discover reports your credit history to the three major credit bureaus so it can help build/rebuild your credit if used responsibly. Late payments, delinquencies or other derogatory activity with your credit card accounts and loans may adversely impact your ability to build/rebuild credit.
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2% Chrome Gas and Restaurants: You earn a full 2% Cashback Bonus® on your first $1000 in combined purchases at Gas Stations (stand-alone), and Restaurants each calendar quarter. Calendar quarters begin January 1, April 1, July 1, and October 1. Purchases at Gas Stations and Restaurants over the quarterly cap, and all other purchases, earn 1% cash back. Gas Station purchases include those made at merchants classified as places that sell automotive gasoline that can be bought at the pump or inside the station, and some public electric vehicle charging stations. Gas Stations affiliated with supermarkets, supercenters, and wholesale clubs may not be eligible. Restaurant purchases include those made at merchants classified as full-service restaurants, cafes, cafeterias, fast-food locations, and restaurant delivery services. Purchases must be made with merchants in the U.S. To qualify for 2%, the purchase transaction date must be before or on the last day of the offer or promotion. For online purchases, the transaction date from the merchant may be the date when the item ships. Rewards are added to your account within two billing periods. Even if a purchase appears to fit in a 2% category, the merchant may not have a merchant category code (MCC) in that category. Merchants and payment processors are assigned an MCC based on their typical products and services. Discover Card does not assign MCCs to merchants. Certain third-party payment accounts and digital wallet transactions may not earn 2% if the technology does not provide sufficient transaction details or a qualifying MCC. Learn more at Discover.com/digitalwallets. See Cashback Bonus Program Terms and Conditions for more information.
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Authorized User: Primary account holder is responsible for all charges made by the Authorized User(s). Discover reports the account credit history to the three major credit bureaus as to you and the Authorized User. This can help build the Authorized User’s credit history if used responsibly. Late payments, delinquencies or other derogatory activity with your credit card accounts and loans may adversely impact yours and the Authorized User’s ability to build credit.
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