Get your first credit card
Financial goals / Credit Cards
Edited by: Eric Freeman, Editorial Lead, Credit Cards
There are a lot of card options out there. We help you get started with each type’s pros and cons, shopping tips and an application how-to.
Image: goals-first-cardEditorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
Which type of credit card is best for a first card?
Different kinds of credit cards fit different needs. The best one for you will depend on your priorities, and where you are in your life right now.
Student credit cards
Student cards are designed for college students with limited credit. You don’t need a long credit history to get approved, but they’ll check yours if you have one.
Who it’s best for: Students looking for their first card
What to look for: Solid rewards, no annual fee and incentives for on-time payments
What to avoid: High fees and welcome bonuses with spending requirements that don’t fit your budget
Secured credit cards
Secured cards require a fully refundable security deposit that’s usually equal to your credit limit. The deposit helps protect the card issuer against any unpaid bills.
Who it’s best for: People with minimal or bad credit
What to look for: No annual fee, a low minimum deposit and the ability to graduate to an unsecured card after on-time payments
What to avoid: An annual fee on top of the security deposit, a high minimum deposit and no path to an unsecured card
Unsecured credit cards
Unsecured credit cards don’t require a security deposit, but options available to first-time cardholders often charge annual fees and high interest rates to offset the risk.
Who it’s best for: Someone who doesn’t want to pay a security deposit and is confident they can pay their bill on time
What to look for: Low and clearly stated fees, relatively low interest rates and rewards to offset any costs
What to avoid: High fees and cards with terms that seem especially hard to locate or understand
Retail credit cards
Retail or store cards allow you to earn rewards or special offers at specific retailers, and they’re often easier to qualify for. Some of these cards are “closed-loop,” which means you can’t use them outside of the associated store.
Who it’s best for: People who can’t qualify for other credit cards, or frequent shoppers who will use them for purchases they already make
What to look for: Confirmation that they report to at least one credit bureau and strong rewards for purchases you already make
What to avoid: Enticements to overspend
Ready to do some browsing?
Reality check
Image: true falseA: True! Some secured cards advertise that you will be considered for an unsecured version of the card after a defined period of on-time payments. If a card offers this feature, it means you’re not locked into a secured card and can get back your deposit. We typically recommend cards with this feature over unsecured cards with higher fees and APRs.
Image: docHow to shop and apply for a credit card
1. Outline your goals.
Your goals will help guide your search. For instance, if you want to build credit above all else, you’ll be able to prioritize cards designed for credit-building.
2. Research your options.
Search for the best cards for your goals, and read card reviews to get a sense of everything they have to offer. You can also check out the terms and conditions for any cards you’re considering. They can be hard to understand, but these details may include aspects of the card you didn’t uncover in your research.
3. Check your credit reports.
Ultimately, your chances of approval depend on your credit history. Check for errors on your reports that might be bringing down your credit scores.
4. Get a sense of your approval odds.
Once you’ve settled on a few cards, see if the card issuers offer prequalification — a soft inquiry on your credit that estimates your chances at approval without hurting your scores. Consider services like Credit Karma that assess your likelihood of being approved for a card.
5. Apply.
At this point, you’ll be ready to follow through on an application. You’ll need to provide information like your legal name, address and phone number, Social Security number, income and employment status. With an online application, you might get an answer within seconds, but it can take longer in-person or by phone.
Find a credit card that works for me
Image: upgrade your cardWhat’s the best way to use my first credit card?
Set up autopay or bill payment reminders. Paying late will cost you in both fees and interest. If your card offers it, autopay can help ensure you don’t miss a payment. If it doesn’t, check your due date, set a reminder for that day, and make sure you pay on time and in full (or at least the minimum due).
Keep tabs on your card balance. Aim to keep your credit usage (the amount of available credit you’re using) below 30% to help keep your credit healthy.
Steer clear of cash advances. You may be able to borrow cash from your card, but cash advances aren’t normal purchases. You’ll likely pay a fee on any money you withdraw, and be charged a high APR that starts immediately with no grace period (the interest-free period between the end of a billing cycle and the due date).
Got questions? We have answers.
If you can’t get approved for a credit card, it’s likely because you have a limited or poor credit history. In both cases, there are cards specifically for people in your situation that you may be able to qualify for, like secured cards and unsecured cards for rebuilding credit. You may also want to consider other options to build your credit, like a credit-builder loan or becoming an authorized user on someone else’s credit card, and reassess once you’ve established a positive credit history.
If you can’t afford the required deposit for a secured credit card, you may be able to qualify for an unsecured card. But these cards may charge annual fees and include other costs, so it’s best to shop around to find an unsecured card with the best possible terms.
There are credit cards available to people with all kinds of credit scores, but your scores will determine what kinds of cards you qualify for. If you have lower credit scores, you’ll likely need to limit your search to secured cards and unsecured cards designed for people in your situation.
There’s no set timeline for how long it takes to build credit with a secured card. Credit-building depends heavily on whether you consistently pay your bill on time as well as the amount of credit you use. It’s safe to plan for at least six months to more than a year to see a meaningful improvement in your scores.
Student cards are available to people over 18 years old with proof of enrollment in a college or university. If you’re under 21, you’ll also need proof of income or a co-signer (if the issuer allows one).
Student credit cards usually have lower credit limits. In most cases, the limit is between $500 and $1,000.
It’s worth paying an annual fee on a credit card when the benefit you get is greater than that cost. For a card with rewards, that calculation involves determining how much you’ll earn with your spending. If the card doesn’t have extensive rewards, your decision will depend on the value you place on building credit.