How to get a credit card for the first time

Getting a credit card for the first time is a huge step toward financial independence. Your first credit card could offer you many benefits, but it also comes with a host of new responsibilities.

When it's your credit card, the monthly bill comes in your name, and it’s up to you to manage the account. With these added responsibilities, you want to make sure you’re getting a card that gives you the most benefits and works best for your financial goals. Or if you’re brand new to your credit journey, you might just be looking for one that will approve you so you can get your foot in the door.  

No matter what your goals are, there are some things to keep in mind when figuring out how to get a credit card for the first time and which one you should choose. Here’s everything you need to know about getting your first card!

Why get a credit card?

Credit cards do more than just help you build credit. They can also be a more convenient and safer way to pay than using cash. If your cash is lost or stolen, it’s probably gone for good. But if your credit card is lost or stolen, you can report it to your credit card company. 

Like debit cards, credit cards also make it easy to track your spending. You can even attach your card right to your phone, so if you ever forget your wallet, you still have payment options. 

While credit cards can be very expensive if not used responsibly, the right card can be very rewarding. 

How old do you have to be to apply for a credit card?

To apply for your own credit card, you need to be 18 since it requires signing a legal contract. If you’re under 18, you can be added to a parent’s credit card as an authorized user. You can then use the card and possibly get the benefits of building a credit history, but the bills come in under your parent’s name. 

Even though you can sign for your own credit card at the age of 18, there could still be some restrictions. If you are under 21 and figuring out how to get a credit card for the first time, you’ll have to submit proof of income in order to be approved for an unsecured card. It can be difficult for credit beginners to get approved for unsecured cards, though, so here are a few options to consider. 

Become an authorized user

Some credit cards give account holders the ability to add an authorized user. Parents can use this powerful feature to give their kids access to a credit card for the first time and help them build credit. 

In this case, the child would be provided with a credit card with their own name on it. The card will act the same as the parent’s card and have the same benefits attached to it but the bill will go to the parents. Becoming an authorized user can be used as a credit-building tool since the account will now be reported on their credit report as well. 

Greenlight tip: Credit building for teens? We’ve got that and more. Learn more about the benefits of building positive credit early on.

Get a parent to cosign

A parent or guardian can cosign for the new card if they have good credit. This is different from being an authorized user because the bill will go to you. If for some reason you are unable to make on-time payments, the credit card company would require the cosigner to pay the debt. 

What happens on this account could be reported on both your credit and whoever cosigned, so if you make a mistake, make sure to talk to your cosigner before anything gets out of hand. 

Try a secured credit card

The second option is opening a secured credit card account. This starter credit card is a great way to begin building credit if you have no credit history — not to mention a great way to learn valuable money management skills like honing your spending habits. When you get a secured credit card, you'll make a security deposit with the credit card issuer and be given a credit line that’s equal to your deposit. 

Most secured accounts can be converted into unsecured credit cards after some time in good standing. They will just send your deposit back to you. Make sure you check out the interest rates and fees involved with secured accounts because they can be high. 

How do you choose the right credit card?

You want to know how to get a credit card for the first time, and part of that is deciding what kind of card is right for you. There are a lot of credit cards on the market to choose from, and they all have their own unique features, interest rates, and fees. Which one is right for you depends on your credit score, how you will manage the account, and your unique financial situation. 

Let’s look at some of the details to look out for when finding your first credit card. 

Rewards credit cards

Credit card companies want their card to be the one you reach for the most, and many are willing to reward you for doing it. Cardholders can be rewarded with cashback, points, airline miles, or other perks depending on the type of credit card it is. 

Rewards can pay you back a little on purchases you were already going to make. If you pay your balance off in full each month, rewards can really sweeten the deal. Just make sure you don’t spend more than you intended just to get rewards, and avoid carrying a balance when you can. Interest charges can quickly add up to cost you more than the rewards you got — and no one wants credit card debt.

Fees and interest 

Even the best credit cards have fees and interest. Be sure to read the agreement before applying for a new credit card so you understand them all. Here are a few common ones to look out for. 

Annual percentage rate (APR)

The APR is the interest rate you pay if you carry a balance. Credit card rates are usually very high, and it’s a compounding rate, which means they will charge you interest on your interest. Paying your entire statement balance on time each month will save you a lot of money.

Some cards offer an intro APR. This is a lower interest rate for a certain amount of time after you open the account. While these can seem attractive, you’re better off not getting into the habit of carrying a balance.

Annual fees

An annual fee is just a fee for having the card in your wallet. These can be anywhere from around $20 to $500-plus per year. Sometimes you’ll find a card with great rewards that will more than pay you back for the fee with strategic use of the card. For your first card though, it's usually a good idea to find a card with no annual fee. 

Late fees

Missing credit card payments can do more than give you bad credit. It can also cost you in late fees and a higher APR. These can be avoided by making at least the minimum payment by the due date. 

One way to avoid late fees is to use the autopayment feature most lenders offer, so the payment comes right out of your bank account each month. If you do use autopay, try to check in on your payments once per month for optimal security. 

Balance transfer fees

Sometimes you can use one card to pay off another one. If you find yourself in credit card debt, this can sometimes be a way to save a little on interest until it’s paid off in full, especially if the balance transfer card has a low intro APR. 

It’s a good idea to read the fine print to get a clear picture of your card’s fees. Most cards charge a balance transfer fee of 3%-5% of the entire balance. 

Foreign transaction fees

If you like to travel this might be important to you. It can be comforting when traveling abroad to see the Visa or Mastercard sign and know you can use your card there, but it's no fun to get home and find out you were charged a hefty transaction fee each time you swiped. If you do a lot of travel, it might be good for you to find a card that doesn’t charge foreign transaction fees. 

How to get a credit card for the first time

Now that you know about the features and fees to be aware of, where do you find the right credit card for you, and what do you do when you find it? Here are a few tips:

• Shop around: You might be tempted to sign up for the first credit card offer you receive, but it’s good to shop around. If you have a customer relationship with a bank, that could be your first stop to see what credit cards they offer. You can also look online via reputable banks or credit card issuers. Many of them will allow you to see if you’re preapproved without putting in a full application. This is powerful because a hard credit inquiry can go against your credit score for two years, even if you aren’t approved. 

• Check your credit score: Once you turn 18, the three major credit bureaus will start a file on you if you’ve started using credit (or possibly if you’ve been an authorized user on a parent’s credit account). This file is called your credit report. The information on your credit report will be used by FICO or VantageScore to determine your credit score. Knowing your credit score can help you to understand your approval odds before you apply. 

• Gather your info and fill out the application: You will need to fill out a credit card application and provide some personal information. If you apply online, make sure you do it from a secure connection. You’ll need info like your Social Security number, employment status, and income. Having everything ready will make the process much easier. 

What should you expect after you apply?

If the application is filled out online, you’ll probably get a response in seconds (but it might take a few days). If approved, the card issuer will tell you your credit limit, and you might even get a temporary card number you can use right away. If your application is declined, you’ll get a letter by mail telling you why. 

Your first credit card is a financial milestone

Getting a credit card for the first time can be an exciting and empowering experience. By choosing the right card for your needs and using it wisely, you can build a solid credit history and set yourself up for financial success. 

Greenlight helps you and your family build up your credit knowledge for a brighter financial future. Discover credit content, credit-building products, and more — right in the Greenlight app!