Best First Credit Cards

The history of credit cards as we know them today began in 1950, when Diners Club launched the first modern credit card. Credit card history also includes a number of important milestones from 1950 to today, including the introduction of magnetic stripe verification in the 1960s and EMV chip technology in 2010.

Unlike early credit cards, which were all “charge cards” that had to be paid in full at the end of the month, most modern credit cards allow people to carry a balance between months. That means the type of credit card in your wallet today has likely been around only for a tiny fraction of all credit card history. Below, you can see an in-depth timeline of the history of credit cards, followed by a discussion of how credit cards developed to their current state.

1. History of Credit Cards Timeline
2. Early History of Credit Cards
3. The History of Credit-Card Modernization
4. Ask The Experts: Credit Cards Of The Future

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The first credit card was the Diners Club Card, launched in 1950 by founder Frank McNamara. This original Diners Club credit card was made of cardboard and required users to pay their bill in full at the end of the month in order to continue using it.   

Credit cards have come a long way since then. Today, almost all credit cards allow you to carry a balance from month to month, and they are no longer made of cardboard. Most are now made of plastic, after American Express introduced the first plastic credit card in 1958, and there are even metal credit cards now.

There are thousands of credit cards available today for people of all credit levels. If you want to narrow your search to just the top ones, check out WalletHub’s editors picks for the best credit cards.

Best Credit Cards of 2023

You can use WalletHub to compare your top credit card choices.

The first credit cards were issued in 1928 and were called Charga-plates. They weren’t electronic, though. They were metal plates engraved with information to identify customers, and merchants would ink impressions of them on paper to record transactions made on credit. If you want to go back even further, you might even consider the “merchant coins” used in the late 1800s to be an early form of credit card. They performed the same function as Charga-plates but were only stamped with an account number and were typically round.The first credit card that could be used at many merchants was issued in 1950 by Diner’s Club, but it still was not electronic like our cards today. The first credit cards that used electronic swipe machines didn’t appear until 1975.

So the date when the first credit card was issued depends on how specific your definition of “credit card” is. You can get a better sense of the different milestones below.

Here’s when the first credit cards were issued:

• Late 1800s: People have been buying items on credit since at least the Middle Ages. But in the late 1800s, merchants used coins with a person’s account number engraved on them to stamp that information on credit contracts.
• 1928: Charga-plates were invented. They were metal plates with embossed numbers and personal info, which merchants used to record credit transactions through making ink impressions. These could only be used at individual merchants.
• 1934: American Airlines released Air Travel Cards with individual numbers, allowing customers to book flights on credit. Other airlines soon followed suit.
• 1950: Diners Club released the first charge card that could be used at multiple merchants. The balance had to be paid in full every month.
• 1958: Bank of America created the first revolving credit card that could be used at multiple merchants. Customers could now carry balances from month to month.
• 1975: National BankAmericard, Inc. introduced the first electronic swipe machine for credit cards.

So as you can see, credit certainly isn’t a new concept, but credit cards have changed a lot as technology has become more sophisticated. Now, most credit cards come with chips for added security, and there are other smart cards that even use wireless technology. Who knows how many more firsts there will be for credit cards in the future?

The best credit cards for 20-year-olds depend on whether you've already built any credit and whether you're still in school. If you have limited credit history, you'll want to get a starter card, like the Capital One QuicksilverOne Cash Rewards Credit Card. If you're still a student, you could get a better deal with the Bank of America® Customized Cash Rewards Credit Card for Students.

But if you're no stranger to credit and you've already built up at least good credit, you can start setting your sights on more lucrative rewards cards, such as Chase Freedom Unlimited®.

Here are some of the best credit cards for 20-year-olds:

Most of these cards are for people who just started their credit journey. If you have bad credit, though, it’s definitely worth checking out the best secured credit cards available right now.

On the other hand, those with good credit or better will have access to the best credit cards on the market. Students are a special category, as the best credit cards for students tend to offer better deals than credit cards aimed at other consumers with similar credit scores.

A good APR for a first credit card is anything below 20%. The best low interest first time credit card is the Bank of America® Customized Cash Rewards Credit Card for Students because it offers introductory APRs of 0% for 18 months on purchases and 0% for 18 months on balance transfers, with a regular APR of 18.24% - 28.24% (V). It also has a $0 annual fee and a 3% (min $10) balance transfer fee. But there is a 3% foreign transaction fee. With non-student first time credit cards, it’s hard to find a regular APR below 25% and nearly impossible to get a 0% intro rate.

Most first-timers have no credit history, so they need to prove themselves as responsible borrowers before getting a really low APR. But there are exceptions. One way to get a good APR for a first credit card is to apply for a secured card. But because these cards require you to deposit the entire amount they allow you to spend, it doesn’t make sense to carry a balance. You would in effect being paying interest to borrow money from yourself. Student cards also give lower rates, but naturally only to students.

Therefore, the very best APR for a first credit card is one that never affects you. Since you’re unlikely to get approved for a low APR, you should pay your balance in full every month. And if you do that, you won’t have to pay interest. Still, it’s worth knowing what rates are available, just in case.

First-Time Credit Cards with Good APRs:

• Bank of America® Customized Cash Rewards Credit Card for Students: 0% for 18 months. 18.24% - 28.24% (V) regular APR. $0 annual fee.
• Capital One QuicksilverOne Cash Rewards Credit Card: 29.74% (V). $39 annual fee.
• Capital One Platinum Credit Card: 29.74% (V). $0 annual fee.
• Capital One Platinum Secured Credit Card: 29.74% (V). $0 annual fee.
• OpenSky® Secured Visa® Credit Card: 21.64% (V). $35 annual fee.
• First Progress Platinum Select Mastercard® Secured Credit Card: 18.24% (V). $39 annual fee.
• First Progress Platinum Prestige Mastercard® Secured Credit Card: 14.24% (V). $49 annual fee.

If you’re in the market for your first credit card, you probably don’t have much credit history, unless you’ve been able to build some as an authorized user on someone else’s card. So you probably won’t get a low APR. As a result, your aim should be to find a card with no annual fee that you can get approved for (rewards are a bonus). Then, pay in full every month by the due date to avoid interest. Paying your bill on time will also help you build credit and graduate to a card with a lower APR.

WalletHub’s best tips for first-time credit card users are: 1) Get a credit card because it’s the easiest way to build credit; 2) set up automatic monthly payments from a bank account because on-time payments fuel credit score improvement; and 3) try to pay your bill in full every month because it will save you money and keep your spending under control.

In other words, it is important to get your first credit card as early as possible and then use it responsibly, by spending within your means and not missing due dates. If you do that, you’ll be able to graduate to a great second credit card sooner.

It all starts with picking the right first credit card, though. Most people looking for their first card have limited or no credit history, unless they’ve been an authorized user on a credit card or have a loan. As a result, cards that accept applicants with “limited credit” or “bad credit” are the most popular starter credit cards.

Below, you can find advice on which card to make your first as well as the steps to take for success with everything after that.

Here are some helpful first credit card tips:

1. Compare credit card offers thoroughly: Your main options include secured cards, which are the easiest to get and require a security deposit, and cards for limited credit, which tend to give slightly better terms and cater to people who have little/no credit experience. It’s important to find the right card right away so you only have to apply once.
2. Put your needs first: Start with a no annual fee credit card, if you can, and use other terms as a tiebreaker. Rewards are best if you plan to pay your bill in full every month. First credit cards usually have high interest rates, so it’s best to pay in full.
3. Never max out your spending limit: You don’t have to use your card to build credit. But if you do, it’s important to not overspend. Try to use less than 30% of your available credit. If you’re tempted to overspend, keep the account open but lock the card away.
4. Never miss a due date: Payment history is one of the most important portions of your credit score. Late payments will cause a lot of damage. But you can avoid ever paying late by setting up automatic monthly payments with your issuer.
5. Pay in full to avoid interest. Most first credit cards have very high interest rates. But you will only owe interest if you carry a balance from month to month. So, paying your first card’s bill in full each month is not only great for your credit, but it will also save you money.
6. Watch your utilization: While it is best to use 30% or less of your credit limit, the reality is that a lot of first credit cards have very low limits. Paying your bill multiple times per month can help keep your end-of-month utilization figure low.
7. Review your monthly statements: Getting into this routine will help you better understand your spending habits. And it will help you avoid getting overcharged if any of the merchants you bought from made a mistake (or if someone used your card fraudulently).
8. Stick to a budget: Figure out how much you can afford to spend each month and try keep your charges from exceeding that amount. If you do have to carry a balance between months at some point, make a plan for paying off what you owe as quickly as possible.

When you’re in the market for your first credit card, you probably don’t have a credit score yet. But it’s possible you’ve built a bit of credit history through other means. If that’s the case, you could have far more credit card options available to you. You can check your latest credit score for free on WalletHub. It’s also good to check your credit reports, just to make sure there’s nothing inaccurate or suspicious on them.

Once you get a card and begin using it on a regular basis, it’s even more important to monitor your credit to make sure everything is correct. Knowing your credit score will also help you decide when the time is right to graduate to your second 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.

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.