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.

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.

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.

When you choose a credit card for the first time, you should weigh several factors. Ask yourself if you really need a credit card. If so, decide what will you use the credit card for. You should also weigh your current financial situation, and assess whether you can make monthly payments on time, and for the full amount. If you’re planning on carrying a balance, make sure you understand things such as minimum payments and interest.

Above all, be realistic in your expectations. Your first credit card will likely have a low credit limit, a high interest rates, and an annual fee. If your most viable option is a secured card, make sure you know the difference between secured and unsecured credit cards.

Here is how you choose a credit card for the first time:

• Decide if you need a credit card. If you’re starting out in the “real world,” you will need to establish credit. If used responsibly, a credit card is a valuable asset in starting the process. Good credit can set you up for future car loans or mortgages, and land you favorable interest rates. Nearly every other start-up expense such as apartment rentals, cell phones, and insurance premiums also require to have an established, and good credit profile.
• Determine how the card will be used. Whether it’s for everyday expenses such as gas and groceries, or furnishing your first apartment, understand that whatever you purchase on the card, you will have to pay back. Make sure you’re aware of your card’s credit limit, and what happens if you use up a large chunk of that credit limit.
• Take a look at your finances. Is your current salary enough to handle a credit card payment and any student loans debt on top of all the everyday expenses? Make sure you have enough funds at the end of the month to pay the credit card bill, preferably for the full amount. It’s easy to fall into the trap of setting aside just enough to cover the minimum payment, but that will end up cost you more in the long run.
• Review Terms and Conditions carefully. Compare against several cards. Research a card’s interest rate, or Annual Percentage Rate, and how that rate is calculated. Familiarize yourself with the card’s grace period, and how can avoid all those interest charges. Know your minimum payment and when it’s due. If a card has any fees such as annual fees, know that those charges will impact your credit limit.
• Consider a secured credit card. A secured card may be the better option for establishing credit. You’ll have to put up a security deposit, which will also be your credit limit. How much spending power you have depends on the size of your deposit. You’ll get a better rate, and fewer fees than with an unsecured card. Plus, if you’re responsible with a secured card for several months, you’ll be eligible for a credit limit increase, or you’ll be able to transition to an unsecured card with much better terms.

Don’t feel like you have to accept the first credit card that’s offered to you. Or every offer. A credit card can be a valuable financial tool to help build your credit. Too many credit cards too soon may be an invitation to overspend and overextend all of your available credit. That will quickly damage the very credit history you’re trying to establish.

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.

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.

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.

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 Credit Card: 26.99% (V). $39 annual fee.
• Capital One Platinum Credit Card: 26.99% (V). $0 annual fee.
• Discover it® Secured Credit Card: 22.99% Variable. $0 annual fee.
• Capital One Platinum Secured Credit Card: 26.99% (V). $0 annual fee.
• OpenSky® Secured Visa® Credit Card: 17.39% (V). $35 annual fee.
• First Progress Platinum Select Mastercard® Secured Credit Card: 13.99% (V). $39 annual fee.
• First Progress Platinum Prestige Mastercard® Secured Credit Card: 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.

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.

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 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: 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.

The best first credit card for students is the Bank of America® Customized Cash Rewards Credit Card for Students because it reports to the main credit bureaus monthly, has a $0 annual fee, and only requires limited credit for approval. Plus, Bank of America Cash Rewards for Students gives 1 - 3% cash back on all purchases. And its intro bonus of $200 for spending $1,000 in the first 90 days is the cherry on top for students getting their first credit card.

Best First Credit Cards for Students

The biggest feature to look for on your first credit card is credit bureau reporting because that will help you build your credit score, assuming you use the card responsibly. Fortunately, nearly all credit cards from major issuers report to credit bureaus. You’ll also want to look for a card with no annual fee because newcomers to credit shouldn’t need to pay for the right to build their credit history.