Eighteen can be a liberating age. You're legally an adult. You can vote. You may be going to college soonif you're not already there. And, you can get a credit card.
As eager as you may be to get your first credit card, many credit card companies aren't so eager to give you one. Rather than putting in several credit card applications to see who's going to approve you, target just a few companies that are known for giving credit cards to first-timers.
Make sure you're ready for your first credit card.
Being old enough to qualify for a credit carddoes not mean you’re ready for one. You need to be responsible enough to charge only what you can afford and to pay your bill every month without being reminded. Getting your first credit card before being fully prepared can spell disaster for your credit. Once your credit is damaged, it can be difficult getting it back on track.
Don’t set yourself up for failure; learn all you can about credit cards before getting one. If you're not ready, there are steps you can take to get there.
Understand the credit card landscape for young adults.
Getting approved for a first credit card can be tough, especially if you're younger than 21 and more so if you don't have a job.
Federal law requires adults younger than 21 to have verifiable income before they can be approved for a credit card without a cosigner. Income must be from a job. However, child support or government benefits may allow you to be approved.
If you don’t have income, then you’ll have to find someone who’s willing to opena joint credit card with you or make you an authorized user on one of their credit cards.
Another thing that makes it tough to get a first credit card is insufficientcredit history.
If you're enrolled in college, you have a good chance of getting approved for a student credit card from a major credit card issuer. However, some student credit cards have high interest rates and annual fees, both bad options for a first credit card.
If you've been responsible with a checking or savings account, try applying for your first credit card at your bank. An existing banking relationship can improve your chances of getting a credit card application approved, especially if you’ve handled your account responsibly. You can apply online, but visiting a bank branch would put you face-to-face with a representative who may have more authority to get your application approved.
Retail and department stores typically have more favorable approval odds.On the downside, they have high interest rates that make it expensive to carry a balance from one month to the next. Another downside of these cards is they aren't versatile—you can use them only in that store. However, retailers often encourage spending by offering discounts for using the card, and having a retail store credit card as your first credit card can help you build up a good enough credit history to apply for a major credit card within a few months.
Look for cards that target moderate or limited credit.
Certain credit card websites list the type of credit history needed to get approved. For a first credit card, look for credit cards that accept applicants with moderate or no credit. Applying for cards that are geared toward your specific credit history improves your chances of getting approved. Avoid applications for credit cards requiring excellent credit, because you probably will get denied.
Ask someone for help.
You may have a relative—a parent, for example—who’s willing to help you get your first credit card by cosigning with you. Cosigning is risky—any mistakes you make will affect yours and the cosigner's credit—but it can be a good way to jumpstart your credit. Agree upfront that you’ll be responsible for making the payments on time each month and that you'll abide by all the credit card terms. Then, consider closing the joint account once you can qualify for a credit card on your own.
Don't be discouraged by denials.
Don't be surprised if you're denied for the first credit card you apply for—or the first few credit cards you apply for. Even people with established credit histories are sometimes denied. It may be helpful to know that you’ll get a letter,anadverse action notice, in the mailthat includes the specific reason you were denied. The information in this letter will be useful in planning your next step. You may need to apply for a different type of credit card or jumpstart your credit by using a secured credit card.
Frequently Asked Questions (FAQs)
How old do I have to be to get a credit card?
You have to be at least 18 years old to get a credit card, and Chase Bank warns that it may be difficult before you reach at least age 21. It can depend on whether you have a reliable and dependable source of income.
What is a secured credit card?
You can apply for a secured credit card if your lack of a credit history keeps you from getting a standard card. You must make a deposit with the lender, usually equal to the credit limit on the account. The bank holds the deposit and can claim the money if you don't make your payments as agreed. You may have the chance to convert it to an unsecured credit card later on. Be sure that the card issuer reports payments to the credit bureaus so you can build a credit history and eventually get an unsecured credit card.
A secured credit card requires that cardholders put down a deposit, which acts as collateral if they're ever unable to make payments. The Discover it® Secured Credit Card is one such option, requiring a security deposit of $200.
A secured credit card requires that cardholders put down a deposit, which acts as collateral if they're ever unable to make payments. The Discover it® Secured Credit Card is one such option, requiring a security deposit of $200.
Is getting a first credit card hard? Not typically. So long as you meet basic requirements, you can typically get approved for a student or a secured card designed for users with no credit. These may be more limited than non-starter cards, though, so be aware.
The solution: Instead of thinking of your credit card as "free money" -- it's a loan -- use your credit cards like debit cards. If you don't have the money in the bank to pay for a purchase, don't put it on your credit card. It's the safest way to spend.
One of the best ways to obtain a credit card for the first-time millennial borrower is to apply at the bank where you have opened your salary account. Typically, people start their careers immediately after graduating. And in most cases, they decide to go in for a credit card.
First Progress Platinum Elite Secured Mastercard: The First Progress Platinum Elite Secured Mastercard requires no credit history or minimum credit score for approval. Your security deposit is refundable, and the card is accepted nationwide.
If your credit score lands around 500 or lower, your chances of getting the credit card of your choice is significantly reduced. You may want to consider improving your score so you can have better chances of getting the card of your choice.
If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.
And perhaps most surprisingly, having a good credit history increases the chance that you'll get that job or promotion if your employer requests a review of your credit report. Another reason it's crucial to open a credit card is to avoid being credit invisible.
You can still get approved for a credit card without a credit history. In fact, there are credit cards designed for people with no credit, such as secured cards and student cards. You'll want to pay attention to features like fees and interest rates when shopping for your first credit card.
What is the starting credit score? That answer doesn't technically exist. The truth is there's no such thing as a “starting credit score.” Some people wonder whether the starting credit score is zero, for example, or whether we all start with a credit score of 300 (the lowest possible FICO score).
The easiest credit card to get with bad credit (a credit score of 300-639) is a secured credit card with no credit check such as the OpenSky® Secured Visa® Credit Card or the OpenSky® Plus Secured Visa® Credit Card. This type of card requires a deposit but doesn't check your credit history, making it very easy to get.
Some of the easiest unsecured cards to get approved for are the Indigo® Mastercard®, Mission Lane Visa® Credit Card and Milestone® Mastercard®. While these cards are geared toward people with bad credit and have easy approval odds, they tend to charge high fees and interest, which can make building credit costly.
Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
:max_bytes(150000):strip_icc()/174408810_HighRes-crop-56a1de5f3df78cf7726f5836.jpg "Ways to Get Your First Credit Card (1)")
:max_bytes(150000):strip_icc()/GettyImages-142481409-5822036a5f9b581c0b5ad0aa.jpg "Ways to Get Your First Credit Card (2)")
:max_bytes(150000):strip_icc()/GettyImages-169267080-582203383df78cc2e838520f.jpg "Ways to Get Your First Credit Card (3)")
:max_bytes(150000):strip_icc()/GettyImages-906503380-5c30e52446e0fb000130fe7f.jpg "Ways to Get Your First Credit Card (4)")
:max_bytes(150000):strip_icc()/GettyImages-894443420-5c30e64346e0fb0001946e6d.jpg "Ways to Get Your First Credit Card (5)")
:max_bytes(150000):strip_icc()/GettyImages-483599179-582204195f9b581c0b5c31b6.jpg "Ways to Get Your First Credit Card (6)")
