How to Get a Credit Card for the First Time

Before you get your first credit card, you must first prove to the bank or credit card issuer that you’re responsible enough to handle a small line of credit. While the exact requirements might vary from company to company, here’s what you typically need:

• Meet the minimum age requirements. In most U.S. states, you must be at least 18 years old to apply for a credit card. The minimum age is 19 if you live in Alabama or Nebraska.¹
• Identification. You typically don’t need to show government-issued identification like a driver’s license to apply for a credit card, but you do need to provide some identifying information like your full legal name, your Social Security number (SSN), address, email address, and phone number. If you don’t have an SSN, some banks allow you to apply with an individual taxpayer identification number (ITIN).²
• Proof of income or a co-signer. If you’re over age 21, you typically just need to enter your gross annual income on credit card applications. Cardholders use this information to determine what your initial credit line should be. However, if you’re under age 21, the Credit CARD Act of 2009 requires either a co-signer or proof of income, such as a pay stub or tax return. This law helps prevent young adults with no income from getting into debt they can’t afford to repay.³

Once you’ve got the basics covered, you’re ready for the next step: choosing the right credit card.

Not all credit cards are created equal – some come with perks like travel rewards or cash back, while others have high annual fees. Unfortunately, you might not have many credit card options if this is your first time using credit or you have bad credit.

Consider secured or student credit cards

A secured credit card might be your best bet if you’re looking for a first-time credit card with no credit history. These starter credit cards require a refundable security deposit (usually $200 or more).⁴ This deposit acts as your credit limit.

Using your secured card responsibly helps you build credit to eventually upgrade to an unsecured credit card. But if you fall behind on your payments, the card issuer can tap into your security deposit to cover the owed amount.

If you’re a college student, consider a student credit card. These cards usually come with lower credit limits and higher interest rates than standard credit cards, but they often don’t require a security deposit or a credit check.⁵

Research cards with rewards programs

Some beginner-friendly cards offer cash back on purchases, points for travel, or discounts at popular stores. For example, some student credit cards let you earn cash back on student-centric purchases like textbooks and streaming services.

Be sure to read the fine print before you apply. If a rewards card has high interest rates or a hefty annual fee, the benefits might not be worth it.

Understand APRs and interest rates

Credit cards come with something called an annual percentage rate (APR), which is a fancy way of saying how much interest you’ll pay if you don’t pay your balance in full each month. Unlike a loan with fixed payments, credit card companies calculate interest daily on any unpaid balance.

For example, if your card has a 20% APR and you carry a $1,000 balance, you’ll owe roughly $17 in interest after just one month.

If you cannot pay your balance in full each month, looking for a card with a low APR can help you save money.

Compare card features and annual fees

Most cards charge fees, but it may be possible to avoid them. Here are some of the fees to be aware of:

• Annual fees. Many rewards cards have an annual fee, although some waive the fee the first year to attract new customers. Before signing up for a credit card with an annual fee, make sure the potential rewards exceed the annual fee.
• Cash advance fees. If you use your card to withdraw cash at an ATM, the card issuer might charge a cash advance fee – usually 5% of the amount you receive or $10, whichever is more.⁶
• Foreign transaction fees. Credit cards often charge foreign transaction fees on purchases made when traveling outside the U.S. or when buying something online in a foreign currency.
• Late payment fees. Your credit card issuer may charge a late payment fee if you don’t make at least the minimum payment by the due date. You can avoid these fees by scheduling automatic payments.
• Returned payment fees. Your credit card issuer may charge a fee if you don’t have enough money in your checking account to cover your online payment or paper check.

Choose a card you’ll want for a long time

Your first credit card may be with you for years. Older accounts help your credit score, so picking a card with good terms, no annual fee, and the potential for credit limit increases can benefit you down the road.

Applying for a credit card is fairly simple, but it helps to have some basic information ready. Here’s how to get a credit card for the first time online or in person:

• Personal information. You usually need to provide your legal name, date of birth, and SSN or ITIN to verify your identity.
• Credit check. The bank may use your SSN to check your credit. The higher your credit score, the better your chances of being approved for a credit card. If you have bad credit, you may have trouble getting approved.
• Contact information. Provide your current mailing address, phone number, and email.
• Employment and income details. The application will ask whether you’re employed, self-employed, a student, or unemployed. You’ll also need to provide your annual gross income, like wages, earnings from freelance work, or even financial support like a scholarship. If you’re under 21, you’ll need to provide proof of this income when you apply.⁷
• Bank account information. While not always required, some credit card issuers ask for details about your checking or savings account to verify your financial stability.
• Co-signer information. If you’re under 21 and don’t have an independent income, you may need a creditworthy co-signer like a parent or guardian. Their credit score and income help you qualify for the line of credit.

So, you hit “submit” on your credit card application. Now what? Here’s what typically happens next:

Instant decision or further review

The credit card company might approve your application instantly if you have enough income and a solid financial profile. But don’t panic if you don’t get an immediate answer. The issuer might need to manually review your application, which could take anywhere from a few days to a couple of weeks.

Possible follow-up requests

The credit card issuer may ask for additional information like:

• A pay stub or bank statement to confirm your income
• Additional identification if it has issues verifying your identity
• Co-signer details if you’re under 21 and don’t have independent income

Responding to any additional requests promptly keeps your application moving forward.

Approval or denial

If approved, you’ll get a letter or email with your credit limit, APR, and other card details. Your physical card should arrive within seven to 14 business days.

If denied, don’t take it personally. You’ll receive an adverse action letter explaining why. Common reasons include lack of income or no credit history. Consider applying for a secured card or becoming an authorized user on your parent’s or another family member’s credit card to start building credit.

Activate your card

Once your card arrives, you’ll need to activate it online or over the phone. This step confirms you received your card and are ready to use it.

Getting your first credit card is a big step toward financial independence, but it comes with responsibility. Your credit score is your financial reputation – it’s easier to build than repair. So pay your bills on time and keep your balance low. With smart habits, your first credit card may be able to open doors to bigger financial opportunities later on.

Now that you know how to get a credit card for the first time, you probably want to minimize the interest you’ll pay when you use it. Learn how to avoid interest on a credit card.