Starter 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.

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.

It is very important to start good credit habits with your very first credit card. It is so easy to get caught up in using a credit card for every purchase, feeling like it is "free money" for those who have never had a credit card before. But, by doing this, a person can face a lifetime of bad credit decisions, especially if they are uneducated.

Instead, it is important to view a starter credit card as a tool – mainly as one to build credit for larger purchases like a car or a home later in life. Thus, it is not BAD to use the starter card for items like a new outfit, school supplies, or other things. But the user should definitely have the funds to pay in full at the end of a billing cycle.

Also, I would recommend NOT using it for things like gas or food – there is nothing tangible to show at the end of the month.

Starter cards can be a very helpful tool if used correctly, and a very dangerous obstacle if used frivolously. But with a bit of common sense and a little self-control they can help young people or students get off to a great start on building credit while still in school!

Most people consider their first credit card to be a “starter” credit card. As such, the types of people who typically use them include:

1. Young People

2. Immigrants

3. Divorcees & Widowers (who haven’t had credit under their own name in the last few years)

All of these groups tend to have minimal credit history, either because they haven’t been eligible to access credit for very long or because circumstances that previously allowed them to rely on another party’s credit standing have changed.
Some of us may also seek out starter credit cards when looking to start our financial lives over after previous mistakes – such as missed payments, account default, or even bankruptcy.

Everyone has to start somewhere. That, in a nutshell, is why starter credit cards are necessary. Consumers need a way to prove that they’re responsible enough to handle more robust financial products, such as a substantial home loan or a high line of credit.

Starter credit cards offer the kind of low-risk environment in which unproven consumers can show what they’ve got without the potential losses being too high for banks. They tend to have modest credit limits, modest rewards, modest fees, and modest interest rates, but they do report usage information to the major credit bureaus on a monthly basis and therefore provide an exceptionally cost-effective means by which to build credit.

The Capital One secured card is a great starter card. Because it's secured, it guarantees that you can't get into trouble.

By using a starter card for fixed monthly purchases such as gas or groceries, you can use the card and then set aside the money you usually spend on those items each month to pay the bill.

This allows you to build you credit so you can qualify for unsecured credit and loans in the future. It's also a great way to get you disciplined to spending only what's within your budget.

To get a credit card with no credit, apply online for a starter credit card, student credit card or other type of credit card for people with limited credit history. By choosing a card designed for people with no credit, newcomers who are at least 18 years old with enough income to afford monthly bill payments will have good approval odds. You don’t need credit history to get credit. But you do need to demonstrate the ability to repay future balances.

It’s actually easier than you might think to get a credit card with no credit. You just need to follow a few simple steps. We’ll tee them up below and then explain each in more detail.

How to Get a Credit Card with No Credit History

1. Check for a credit report/score to confirm you really have no credit.
2. See if your school email still works, as student credit cards are the best available to beginners.
3. Compare starter credit cards to find the lowest fees and highest approval odds.
4. Apply online and get a decision within days, if not instantly.
5. Activate your starter credit card.

So, if you want to get a credit card without credit history, start by making sure you really have no credit, then compare credit card offers, select the best one for your needs and submit an application. You could have a new card in your hands within 7-10 business days of applying.

But let’s not get ahead of ourselves. Let’s go through the steps involved in getting a credit card for the first time with no credit history in greater detail. 

Step 1: Confirm you have no credit. You might have credit history without even realizing it. This could have come from being an authorized user on a parent’s credit card account. Or, it could be some sort of a mistake. And it could either put you in line for a better starter credit card or approval harder. You can check your credit report and score for free on WalletHub.

Step 2: See if your school email still works. College students typically get much better credit cards than other people with no credit. So if you have an active “.edu” email address, it will be an asset in your credit card search.

Step 3: Compare starter credit cards. You have to comparison shop if you want to find the best credit card deal. Your top priority should be getting a card with no annual fee whose other terms complement your spending and payment habits nicely.

Step 4: Submit your application. Actually applying for a credit card is the simplest part of the process. Just click “Apply Now” when you find your favorite offer, and we’ll redirect you to the issuer’s secure online application page. Applying online is the fastest application method. You could even be approved instantly. 

Step 5: Activate your new credit card (or place a deposit on a secured card). If you don’t get approved the first time you apply for a starter credit card, place a refundable deposit on a secured credit card. Secured cards have the highest approval odds because your deposit usually matches your spending limit.

It’s simple to get a credit card with no credit. But once you open a credit card account, make sure to use it responsibly. Above all else, that means paying your bill on time every month and keeping your credit utilization as low as possible. That will ensure your credit score starts strong and stays headed in the right direction. You can track your progress for free on WalletHub, the first and only site with free daily credit score updates.