Best First Credit Cards

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.

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. Younger applicants 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. Only people who are at least 18 years old can get their own credit card account. But there is no minimum age for being an authorized user on a credit card, in most cases.

High approval odds are one of 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.

There are plenty of other things about the process of picking, applying for and getting your first credit that are also important to learn. 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. 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.

It’s also 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.

Getting your first credit card is an essential, often daunting rite of passage – no matter how old you are when it comes. Most people think of credit newcomers as being college students, but first-time applicants come in all shapes and sizes. Many are simply late to credit-building class, so to speak. Others, such as immigrants and divorcees, are merely responding to a recent change in circumstances.

Your particular circumstances will dictate what, exactly, you should look for in your first credit card, but the benefit of opening an account is always the same: Credit cards are the most cost-effective, accessible credit-building vehicles at our disposal. Merely having an open credit card in your own name will help to improve your credit score, even if you lock your card in a drawer and don’t use it to make purchases. And having a good credit score can save you hundreds, even thousands, of dollars each year.

With that being said, let’s take a look at how the three main types of credit newcomers should go about choosing their first credit card.

College Students

If have an active university email address, you also have a leg up in the credit card game. Most credit card companies require one on a student credit card application, and students generally get better terms than their experience would normally merit. Why? Because issuers know that college graduates earn about 84% more than people who don’t make it past high school. They also have years of financial needs to capitalize on, considering that the median college student is just 27 years old, according to the Department of Education.

The first thing a student should look for in a credit card is an offer without annual and monthly fees. The rates and rewards available at this point simply aren’t worth paying for.

With your options whittled down to “free” student credit cards, focus on finding rewards that suit your lifestyle, if you plan to pay your bill in full each month. We recommend that you do so, as it’s important to adopt good habits and build savings at the beginning of your credit career.

But if you anticipate needing some extra time to pay off a looming big-ticket expense (e.g., textbooks or a car), you should try to find a card with a long 0% intro APR period instead of worrying about rewards.

Non-Student Newcomers

The credit card pickings tend to be slimmer for non-student first-timers. But the available options are just as effective when it comes to credit building. And as long as you don’t need an emergency loan, it doesn’t really matter whether you get an unsecured (“regular”) credit card or one that requires a refundable security deposit.
Meaningful rewards won’t be on the table in either case. And you should think of your credit card more as an investment in your credit score’s future than a financing vehicle at this point in your life.

As such, we recommend prioritizing low fees and approvability when looking for your first credit card. With that in mind, you may want to place a deposit on a secured credit card.

You don’t want to apply for unsecured card after unsecured card, only to be rejected each time. Too many applications within a short period of time can damage your credit score and make access to credit even harder to come by. Secured cards are much easier to obtain because their deposit doubles as your spending limit, preventing you from overspending and shielding the issuer from risk.

First Card for a Fresh Start

​​​​​​​Sometimes, your first credit card isn’t literally the first credit card you’ve ever owned. Rather, it may be the first card in your comeback from credit mistakes. And in that case, a secured card is undoubtedly your best option.

Secured cards are not only easier to get approved for than their unsecured counterparts, but they’re also far safer. The fact that your deposit matches your spending limit means it’s impossible to spend more than you can afford to pay back. And since carrying a balance from month to month would basically mean paying interest on a loan you’ve given yourself, hopefully, you’ll avoid doing that, too.

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.

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.

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: Secured Mastercard® from Capital One

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 Secured Mastercard® from Capital One. 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.

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 15 months on purchases and 0% for 15 months on balance transfers, with a regular APR of 13.99% - 23.99% (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 15 months. 13.99% - 23.99% (V) regular APR. $0 annual fee.
• Capital One QuicksilverOne Cash Rewards: 26.99% (V). $39 annual fee.
• Capital One Platinum Credit Card: 26.99% (V). $0 annual fee.
• Discover It Secured: 22.99% Variable. $0 annual fee.
• Capital One Secured Mastercard: 26.99% (V). $0 annual fee.
• OpenSky Secured Visa: 17.39% (V). $35 annual fee.
• First Progress Platinum Select MasterCard Secured: 13.99% (V). $39 annual fee.
• First Progress Platinum Prestige MasterCard Secured: 9.99% (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.

No, you can’t get a credit card at 15. You won’t be able to get one in your own name until you’re 18. And even then, you might need to start out with a secured card until you’ve built up your credit history. The law prohibits minors from getting credit cards and requires anyone under 21 to show that they have their own income when they apply for a card.

But just because you can’t get your own credit card account doesn’t mean you have no options. Your best bet is becoming an authorized user on someone else’s card. Authorized users can charge purchases to the primary cardholder’s credit account, but they don’t have any legal responsibility for payment. And as long as the primary cardholder makes payments on time, the authorized user gets positive information on their credit report.

There are other ways to build credit without a credit card, like making rent payments, but they aren’t available to most 15-year-olds.  And if you want a credit card because carrying cash all the time is a hassle, many banks allow teenagers to open checking accounts with debit cards. Debit cards draw on the money in your checking account, so you don’t have to borrow money to use them. Prepaid cards (reloadable) and gift cards (usable until balance runs out) are other good spending tools.

So instead of getting a credit card at 15, it’s probably best to focus on becoming an authorized user, getting a debit card or both.

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, 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.
• 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 credit cards, secured credit cards and other options for people new to credit.

Hi!  I think it’s a great idea. We co-signed for low credit limit credit cards for both our children when they got their driver’s licenses. I felt that they should have ready access to emergency money once they were out driving. They also used the card to buy gas. The card was not for other “fun” personal use – except when I need them to pick up milk on the way home! – but I always felt safer knowing they had a card. They also used the card to pay for things they signed up for like the SAT and ACT fees and stuff like that.

You may not be able to get a credit card on your own at 19 and may need to ask a parent to co-sign, but I strongly recommend it if you can get one on your own or if your parents will help.  When you make minimum payments on time or better yet pay the card off each month, you will be building your own credit for when you are older and want to buy a car or a home.

You sound like a very responsible 19 year old - I doubt there are too many young people writing to WalletHub about money issues.  That is so cool and bodes well for you to have a lucrative financial life. Best wishes to you and thanks for writing!

The best credit cards for 20-year-olds (and 20-somethings more generally) depend on whether you've already built any credit and whether you're still in school. If you have limited credit, 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 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® (5% cash back on travel through Chase, 3% cash back at restaurants and drugstores, and 1.5% back on all other purchases) or Capital One Venture Rewards Credit Card (2 miles per $1 on all purchases).

Here are the best credit cards for 20-somethings:

• No credit check: OpenSky® Secured Visa® Credit Card
  Requires a refundable security deposit of at least $200. $35 annual fee. Open to applicants with bad credit.
• For students: Bank of America® Customized Cash Rewards Credit Card for Students
  $200 for spending $1,000 in the first 90 days. 3% cash back in a category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500 spent on these categories combined per quarter), 1% on all other purchases. $0 annual fee. Can get this card with limited credit.
• For cash back: Capital One QuicksilverOne
  Unlimited 1.5% cash back on all purchases. $39 annual fee. Accepts applicants with limited credit.
• For frequent travelers/young professionals: Capital One Venture
  100,000 miles for spending $20,000 in the first 12 months or 50,000 miles for spending $3,000 in the first 3 months. 2 miles per $1 on all purchases. $95 annual fee. Requires good credit or better.
• For good credit: Chase Freedom Unlimited
  $200 for spending $500 in the first 3 months. 5% cash back on travel through Chase, 3% cash back at restaurants and drugstores, and 1.5% back on all other purchases. Introductory purchase APR of 0% for 15 months (14.99% - 23.74% (V), based on creditworthiness, thereafter). $0 annual fee.

Most of these cards will be aimed at those at the beginning of their credit journey. If you have bad credit, though, it’s definitely worth checking out the best secured credit cards. 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.

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?