What is the average first credit card limit?

To get a credit card for the first time, you must be at least 18 years old and have enough income to afford monthly credit card payments, in addition to your other expenses. The minimum payments on a starter credit card usually are around $15 per month.

The two basic steps involved in getting a credit card for the first time are to: 1) compare credit card offers designed specifically for people with limited or no credit history; and 2) apply for one with no annual fee, if available – rewards and APRs can be the tiebreaker.… read full answer

There are plenty of other things about the process of picking, applying for and getting your first credit that are important to learn, too. We’ll walk you through them below, step by step.

How to Get a Credit Card for the First Time

1. See if you have a credit report and score.

You could have more credit history than you think, perhaps from being an authorized user on a family member’s credit card. This will help you determine how good of a credit card you should shoot for. Check your latest credit score and credit report for free on WalletHub.

2. Determine whether student credit cards are an option.

College students can usually get better first credit cards than other people with no credit. Their youth and above-average expected income make them attractive to banks and credit unions. If you’re enrolled in school, check out the best student credit cards.

3. Compare secured and unsecured starter cards.

Secured credit cards have the highest approval odds, but they require you to place a refundable security deposit. The amount of that deposit becomes your spending limit. Unsecured cards are harder to get but have no deposit.

4. Limit your search to cards with the lowest fees.

Focus on weeding out cards with expensive non-refundable fees. A no annual fee credit card with no security deposit is best. But a low-fee secured card isn’t bad, either. You can get back your deposit when you close your account.

5. Choose the best remaining offer for your needs.

If several credit cards are tied for the lowest fees and highest approval odds, consider the terms that are next most important to you. If you plan to pay your bill in full every month, that will probably be rewards. If not, you may want to focus on interest rates.

6. Confirm you have enough income

If you’re at least 21 years old, you can list household income and assets that you have reasonable access to on your credit card application. Applicants who are 18-20 years old can only list independent income and assets, but even having a part-time job should provide enough income to get a credit card for the first time.

7. Submit your credit card application.

Apply online for the fastest decision. You may even be approved instantly if you clearly meet the issuer’s criteria. You should receive your card within 7-10 business days of being approved.

Learning how to get a credit card for the first time is a rite of passage for young adults after turning 18 years old. And it’s a lot easier than you might think. The key is to choose wisely, by focusing on offers for people with limited credit and secured credit cards, which provide nearly guaranteed approval.

Key Things to Know About Choosing Your First Credit Card

High approval odds are among the most important things to look for in your first credit card. The sooner you get approved, the sooner you can begin building your credit standing. Getting rejected for a credit card sets you back, both in terms of time and possible damage to your limited credit.

Low fees are another key feature to seek out when getting a credit card for the first time. Starter credit cards generally don’t offer rewards or interest rates worth paying high annual or monthly fees for. So it’s best to make your first credit card one with a $0 annual fee and always pay your monthly bill in full to avoid interest charges.

Tips for Using Your First Credit Card

It’s really important to remember that learning how to get a credit card for the first time and getting approved are only the beginning. You also need to use that card responsibly, which means spending within your means, paying your bill on time every month, and keeping your credit utilization below 30%.

If you can avoid racking up costly credit card debt and hurting your credit score with missed payments, your first credit card will be a huge asset. It will add positive information to your major credit reports each month. That will gradually improve your credit standing. And better credit will make it easier to rent an apartment, buy or lease a car, find a job, get approved for good loans and lines of credit and save on car insurance premiums, among other things.

You can track your progress for free on WalletHub, the only site with free credit scores and reports that are updated daily. We’ll even tell you exactly what you need to do to improve your credit score at a given time, plus provide personalized credit card recommendations. You can use them to find your first credit card and then graduate from it when the time is right.

When you use a credit card for the first time, the key is to spend within your means and pay the bill on time and in full every month in order to build credit history and avoid expensive interest charges. If used responsibly, a credit card can be a powerful tool that saves you money in rewards and interest down the road. If you’re reckless with it, however, you may wind up facing credit score damage and debt that could take years to get under control.… read full answer

Given that how you manage your first credit card will dictate your future credit card and loan options, as well as help determine how good your credit score is, it’s important to use your card as a good first step in your credit-building journey. Fortunately, that doesn’t have to be too complicated.

How to Use a Credit Card for the First Time:

1. Use the credit card on a regular basis. Making a manageable amount of purchases from time to time will give you the opportunity to develop a habit of paying your bill in-full and on-time. Plus, account activity is one of the factors card issuers will look at when you ask for a credit limit increase. If you use your card regularly and responsibly, you’re more likely to get a credit line increase when you request one.
2. Always pay the monthly bills on time. When you use a credit card for the first time, starting out with timely payments is critical to avoiding interest charges and building a good credit score. A payment that is a day late is still a late payment, so try to pay several days before the due date. Setting up automatic monthly payments from a checking account can be very helpful.
3. Pay off the entire balance every month. Paying in full every month is a good habit to get into, leading to long-term credit score gains and allowing you to avoid being charged interest on your purchases. Plus, a credit card that you use for the first time will likely have a low credit limit, and a balance reduces your available credit.
4. Set a budget and maintain low credit utilization. Know how much you can afford spending each month and try to stay within that budget. You’ll also want to keep your balance-to-credit limit ratio below 30% on the first credit card you use, and all future credit cards. If you have to make an unexpected purchase that will take a chunk out of your credit limit, pay it off as soon as you can – even before the bill comes due.

Using your first credit card responsibly can be a tall order for some people. But once you’ve mastered it, consider the hard part out of the way.

On the other hand, if you’re nervous about the actual mechanics of using your new credit card for the first time at a store or online, try not to be. There will be lots of prompts throughout the process that will tell you exactly how to use your credit card.

Finally, as you continue to use your first credit card and build your credit history, be sure to monitor your account for any suspicious activity by checking your monthly statements for unauthorized transactions. It’s also important to never give out your credit card information or PIN over the phone, unless you are calling the issuer’s customer service department directly. And, to keep your sensitive information extra-safe, memorize your passwords and PINs, or write them down and keep them in a secure location.

The best Capital One first time credit card is the Capital One Platinum Credit Card because it has a $0 annual fee and is available to people with no credit history. This card doesn’t require a security deposit to open an account, and it comes with the opportunity for a higher credit limit in as little as 6 months.… read full answer

Best Capital One First Time Credit Cards

• Best for No Annual Fee: Capital One Platinum Credit Card
• Best for Rewards: Capital One QuicksilverOne Cash Rewards Credit Card
• Best for Students: Journey Student Rewards from Capital One
• Best for Credit Building: Capital One Platinum Secured Credit Card

To give you a bit more context, the Capital One QuicksilverOne Cash Rewards Credit Card is Capital One’s first time credit card for rewards, giving 1.5% cash back on all purchases. But it comes with a $39 annual fee.

For students, there’s the Journey Student Rewards from Capital One, which has a $0 annual fee and gives at least 1% cash back on all purchases. Your earning rate increases to 1.25% for every month that you pay your bill on time.

Another Capital One first time credit card option is the Capital One Platinum Secured Credit Card. It’s also designed to help people establish credit. It reports to the credit bureaus just like an unsecured credit card, except that you’ll have to pay a refundable security deposit to open the account. You’re guaranteed a starting credit limit of $200 with an initial deposit as low as $49, depending on the specifics of your credit history.

Finally, it’s important to note that when you’re a first-time credit card user, you normally have no credit history. A Capital One first time credit card is ideal for helping you establish that credit. In time, you’ll qualify for some of the best Capital One credit cards with lower interest rates, higher credit limits, and better rewards and benefits.