Best First Credit Card

You can get a credit card at 17 as an authorized user, but you have to be at least 18 years old to open a credit card account in your own name. And when you turn 18, you’ll need to show that you have your own independent income to qualify. In the meantime, you can begin to build credit as an authorized user or with a co-signed loan, and you can always use a debit card for everyday purchases.

Here’s what you can get instead of a credit card at 17:

• Authorized user card: If someone makes you an authorized user on their card, the account will be added to your credit report. And if the main accountholder pays the monthly bills on time, your credit score will improve. The main accountholder may or may not decide to give you a card that you can use to charge purchases to the account. But you won’t be responsible for making payments either way.
• Co-signed loan: You’re highly unlikely to get a loan by yourself as a minor, but if you have an adult co-signer, the lender will look at their credit and income when deciding whether to approve. That’s because the co-signer is legally responsible for paying if you don’t. This option allows you to build credit.
• Debit card: Most banks will give you a debit card connected to your checking account. You’ll be spending your own cash, not borrowing money, so you don’t need to be 18 to get one. Different banks have different rules, but most require you to be 13 or 14 years old. You won’t build credit with a debit card, but having one can make life more convenient until you turn 18.

So to recap, you can’t get a credit card at 17, at least not one of your own. But if you find someone to back you, then you can start building credit right away. And in just a year, you’ll be eligible for student cards, secured cards and other options for people new to credit.

You should get your first credit card from an issuer that offers secured cards. For a credit card first-timer, they’re easier to get than an unsecured card for people with limited or no credit. And they’ll likely have fewer fees and a slightly lower interest rate.

You will have to make a deposit before you can open a secured card account. The deposit serves as the collateral for the issuer. If you default on your payments, the issuer keeps the deposit. If you maintain your account in good standing, you’ll get your deposit back after several months of timely payments, or when you close your account. The deposit also sets your credit limit. You can set your own credit limit, but you’ll likely have to put up a minimum $200 deposit.

If you’re a student, consider a first credit card designed specifically for students looking to build credit. They’re unsecured cards, which means there’s no security deposit required. You’ll likely start out with a low credit limit, but most student cards don’t come with the annual fees that traditional unsecured cards tend to charge.

Here’s where to get your first credit card:

• Credit Card Comparison Website: Our Compare Credit Cards landing page makes it easy to apply for your first credit card. Just filter your search based on the type of card and features you want. A side by-side comparison increases the odds of you landing your ideal credit card.
• Banks: Major banks offer starter credit cards for people with limited or no credit. You can apply online or at a local branch.
• Credit Unions: You can often find starter credit cards with excellent terms. Credit Unions do have specific membership requirements to be eligible to apply, so check on line or at a local branch for details.
• Stores: Major retailers offer their own credit cards. You can apply online or in-store. You’ll typically need fair credit in order to be approved.

Once you get your first credit card, use it responsibly. Secured and student cards both, or should, report your activity to the credit reporting bureaus. You will start out with a low credit score, but you’ll notice an increase over time as you keep up timely payments and keep your debt-to-credit limit low.

The average first credit card limit is around $1,800, according to Experian. That’s based on a credit score of 300 to 499, which is the starting point for someone with little or no credit. When you start out with credit, it’s perfectly normal for your first credit card to have a small credit limit.

Getting approved for a first credit can be difficult if you have little or no credit history. If you qualify for a card, you may end up being disappointed with your starting credit limit. That’s because your credit history is one of, if not the key factor that goes into extending an applicant’s credit limit.

As a new cardholder, you probably don’t have a history of using credit responsibly. Therefore, your issuer doesn’t have much to go on, so they’ll usually start you off with a small credit limit. If you’re applying for your first card with a mortgage or car payment under your belt, you may be extended a more generous credit limit, provided you’ve managed those accounts responsibly.

The amount of your first credit card limit will depend on the type of card you receive. Credit card companies don’t disclose starting credit limits, but for a store retail card such as the Amazon store card, cardholders report a starting credit limit of around $600. If it’s a major Visa or Mastercard, you may be approved for a slightly higher credit limit. Capital One Quicksilver cardholders report an average starting credit limit of up to $1,000.

To land a first credit limit above the $1,200 average, you’ll need that established credit history with no late or missed payments. You might land a higher credit limit if you’re listed as an authorized user on a card with a stellar credit history.

To get the credit limit you truly want, consider applying for a secured credit card. You’ll be essentially setting your own credit limit when you make a security deposit for the amount of your desired credit limit.

If you manage the card responsibly, you may be eligible for a secured credit card with a higher credit limit. In addition, your security deposit is refunded in full, if you close the account in good standing.

When you use a credit card for the first time, you should use it responsibly. If used wisely, a credit card can be a powerful financial tool that can save you money in interest down the road. If you’re reckless with it, you may be facing insurmountable debt that could take years to get under control.

How you manage your first credit card will serve as an indicator for future credit inquiries, so it’s important you use your card to make a good first impression.

Here are some tips for when you use a credit card for the first time:

1. Use the card on a regular basis. This doesn’t mean to go on a series of spending frenzies. Instead, use your credit card for the first time with a manageable amount of purchases from time to time. Activity is one of the factors will look at when evaluating your account for a credit limit increase.
2. Always pay your bill on time. Try to make your payment several days before the due date. Don’t assume your payment will automatically make it to the issuer by the due date. When you use your credit card for the first time, starting out with timely payments are a critical factor in determining your credit score. A payment a day late is still a late payment, and the issuer won’t care why.
3. Pay off the entire balance every month. You’ll get a boost in your credit score when you don’t carry a balance, but you’ll also avoid paying interest on your purchases. Also, a credit card you use for the first time will likely have a low credit limit, having a balance reduces your available credit.
4. Utilization. You’ll want to maintain a low credit-to-debt ratio. The recommended utilization is less than 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. Don’t wait for the bill to come before you pay.

As you’re using your card for the first time, and building your credit, be sure to monitor your account for any suspicious activity. Take precautions to protect yourself from fraud. Never give out your credit card or PIN over the phone, if you did not make the call. Memorize passwords and PINs and keep them in a secure location.

A good first Visa credit card is the Capital One QuicksilverOne Cash Rewards card. Designed for people with limited or no credit, you’ll earn 1.5% cash back on all of your purchases. The QuicksilverOne does come with a $39 annual fee.

Other good first Visa credit cards are the Capital One Platinum and USAA Secured Card Visa Platinum cards. Secured cards require an upfront deposit which secures your credit limit. The deposit, which start as little as $200, is fully refundable when you close the account in good standing.

If you’re a student, a good first Visa card is the Bank of America Travel Rewards Credit Card for Students. You’ll get 25,000 bonus points when you spend $1,000 in the first 90 days. Points are worth $250 when redeemed for travel purchases.

Here are some good first Visa cards:

• Best first Visa card for cash back: Capital One QuicksilverOne Cash Rewards. 1.5% on all purchases. Points do not expire as long as the account is open. $39 annual fee.
• Best first Visa card for initial deposit: Capital One Secured Mastercard. Starting credit line with a security deposit of $49, $99, or $200. Deposit based on credit worthiness. No annual fee.
• Best first Visa card for low APR: USAA Secured Card Visa Platinum Card. 11.65% - 21.65% (V) Regular APR. $35 annual fee.
• Best first Visa card for travel rewards: Bank of America Travel Rewards Credit Card for Students. 25,000 bonus points, redeemable for a $250 statement credit toward travel purchases. No annual fee.

For your first Visa card, you should know if you meet the age requirement to apply. Visa requires you be at least 18 years old and have your own income. If you are under 21 and don’t have an income, you will need an adult to co-sign the application for you.

It would also be helpful to know what a Visa credit card is. Visa is the network that handles the processing of your credit card and determines where the card is accepted. Visa is one of the four major credit card networks. The others are Mastercard, American Express and Discover.

Also, your Visa card is serviced by a bank, or issuer, such as Chase, Citi, or Bank of America. The issuer is who handle billing, payments, and rewards, if applicable. The issuer is also the one that will review your credit history to see if you qualify for a card. If approved, the issuer sets your credit limit, and your starting interest rate.