When can you get your first credit card?

To get a credit card for the first time, you should first check if you have any credit history, then compare cards and pick the best offer before applying. In order to be eligible to apply for your first credit card, you must be at least 18 years old and have enough income to afford monthly credit card payments. Below, you can learn more about the process of picking, applying for and getting your first credit card, step by step.… read full answer

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. You can check your latest credit score and credit report for free on WalletHub to see. This will help you determine how good of a credit card you should shoot for.

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 typically 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.

Yes, you should get a credit card. You should get your own credit card account if you’re at least 18 years old, and you should get a parent to make you an authorized user on their credit card account when you are too young to get a credit card alone. There are many reasons to get a credit card, including convenience and earning rewards on purchases, but the best benefit is building the credit history needed to eventually land great interest rates when you need to borrow a lot of money, such as for a home or a vehicle.… read full answer

Why Should You Get a Credit Card

• Credit cards help build credit. Every month you pay your bill on time and keep your account in good standing, credit cards report good information about you to credit bureaus – even if you don’t use the card at all.
• Credit cards are convenient. Credit cards – especially Visa and Mastercard – are accepted nearly everywhere in the world, and it’s much easier to keep track of a credit card than a wad of paper currency.
• Credit cards are better to use abroad than cash or debit cards. As long as you don’t get a credit card with foreign transaction fees, credit cards are a huge asset when traveling outside the U.S. You won’t have to worry about changing money into local currency because it happens automatically at a low rate with a credit card.
• It’s easier to deal with credit card fraud than debit card fraud. All credit card networks have $0 liability guarantees for fraudulent transactions. When credit card fraud takes place, it’s usually a simple matter of calling the card issuer to get the charges taken off your account. Debit card fraud isn’t as easy to deal with, because it involves money that was taken from your bank account.
• Many credit cards offer rewards on purchases. Most people welcome free money, and that’s exactly what credit card rewards are. With the best rewards credit cards, you can get up to 6% back on some types of purchases, or up to 2% back on every purchase with a flat-rate cash back card.

When used responsibly, credit cards are a win-win situation. Plus, many credit cards give the opportunity to earn bonus rewards and enjoy perks such as free airport lounge access or 0% introductory APRs. There are even credit cards for people with bad credit - some of which can help rebuild damaged credit.

It’s reasonable to be worried about the downsides of credit cards – namely, overspending. But don’t give up on building credit as a result. Tools like secured credit cards and automatic payment features can help mitigate the risks for people who are new to credit cards, and you don’t have to even use a credit card to make purchases for it to build your credit history.

If you aren’t quite ready to take on the risk yourself, ask a parent or good friend if they can add you to their card as an authorized user. As long as the primary cardholder uses the card responsibly, authorized users get to build credit history without having to remember to pay the bill.

Ultimately, remembering these three critical rules of credit card use can go a long way toward ensuring credit is a positive in your life: 1) Always pay your bill in full and on-time; 2) Don’t spend more than you can afford to pay every month; and 3) Always read the fine print before you apply. Do those things and your wallet will thank you.

Yes, teens should have credit cards because having one is the most efficient way to build credit history. Plus, credit history will come in handy as teenagers get older. Knowing how to handle a credit limit and reaching financial independence from an early age is a bonus. A significant number of parents agree, too. Nearly 20% of teenagers ages 13-17 have credit cards, according to a TransUnion survey.… read full answer

Key things to know before giving a credit card to a teenager:

• Add them as authorized users: The only way someone under 18 years old can get a credit card is by becoming an authorized user on an adult’s account. While there is no legal minimum age requirement for an authorized user, some credit card issuers have their own age requirements.
• How to build credit: Credit card companies do report to credit bureaus about authorized users, which builds credit history.
• Bill payment responsibility: The primary cardholder takes on the responsibility of paying whatever debt ends up on the card, regardless of who is using the account as an authorized user. Parents who are thinking about adding their teen as an authorized user should set some rules for the card, and make sure those rules are enforced. After all, if a minor wreaks financial havoc as an authorized user on your credit account, you’re stuck with the bill.
• Setting ground rules: Some credit card companies make it easy for primary cardholders to monitor spending and create boundaries for authorized users. American Express consumer credit cards allow cardholders to set spending limits as low as $200 for each authorized user. The Barclays mobile app allows primary cardholders to customize spending limits per transaction, with the option to turn certain spending categories on or off.
• Benefits of getting a credit card as a teen: Teenagers who get credit cards before they’re 21 years old, either as an authorized user on someone else’s account or on their own after they turn 18, tend to have better outcomes. They’re more likely to have a higher credit score later on in life, and are less likely to default on financial obligations in the future, according to an University of Wisconsin study. Becoming financially literate is increasingly important in our modern world, and early exposure to the credit system can pay dividends.

When they turn 18, a teenager has the opportunity to apply for their own credit card, granted they have their own independent income. Many 18-year-olds have limited or no credit history, so they may be limited to a student card or a secured card. Some student cards have rewards beneficial to students, like statement credits for good grades. And they generally come with better terms than cards offered to non-students with limited credit history.