How do I choose a credit card for the first time?

Asked by: Cristina Goyette  |  Last update: February 9, 2022
Score: 4.9/5 (44 votes)

How to Get a Credit Card for the First Time
  1. See if you have a credit report and score. ...
  2. Determine whether student credit cards are an option. ...
  3. Compare secured and unsecured starter cards. ...
  4. Limit your search to cards with the lowest fees. ...
  5. Choose the best remaining offer for your needs. ...
  6. Confirm you have enough income.

Which credit card is best for me first time?

The Best First Credit Cards
  • Petal® 1 “No Annual Fee” Visa® Credit Card: Best Overall For Prequalification.
  • Deserve® EDU Mastercard for Students: Best for Students Without Any Credit History.
  • Discover it® Secured Credit Card: Best Secured Starter Card For Those Starting Out.

What should I look for when choosing a credit card?

Here's a checklist of some things to look at when you choose a credit card:
  • Annual Percentage Rate (APR). This is the cost of borrowing on the card, if you don't pay the whole balance off each month. ...
  • minimum repayment. ...
  • annual fee. ...
  • charges. ...
  • introductory interest rates. ...
  • loyalty points or rewards. ...
  • cash back.

What are the three most important factors going to be when choosing a credit card?

Here are the top factors to consider when choosing a new card:
  1. APR. The first thing you should look at is the most important one. ...
  2. Rewards. Rewards cards can be great because you get all sorts of benefits and bonuses. ...
  3. Fees. ...
  4. Credit Limit.

What is not important when choosing a credit card?

Which of these items is NOT important to consider when selecting a credit card? The look of the credit card. What could be a good option available to you if you are behind on loan payments? A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

How to choose a credit card

26 related questions found

Does applying for a credit card hurt?

Applying for a credit card and being denied can be frustrating—especially if you're worried it might impact your credit scores. ... Instead, applying may lower your credit scores—usually by just a few points, according to credit-scoring company FICO®—because applying for a credit card will trigger a hard inquiry.

How much does a credit card cost per month?

The average monthly credit card bill is a minimum payment of $110.50, based on the average American credit card balance of $5,525 and the average minimum payment percentage of 2%.

How can I build my credit fast?

How to Build Your Credit History Fast
  1. Apply for a Secured Credit Card. ...
  2. Get Someone to Cosign a Loan. ...
  3. Become an Authorized User. ...
  4. Automate Payments. ...
  5. Pay Off Credit Card Balances. ...
  6. Only Apply for Loans or Cards You Need. ...
  7. Increase Your Credit Limits. ...
  8. Check Your Credit Report for Errors.

What kind of bills build credit?

What Bills Affect Credit Score?
  • Rent payments.
  • Utility bills.
  • Cable, internet or cellphone bills.
  • Insurance payments.
  • Car payments.
  • Mortgage payments.
  • Student loan payments.
  • Credit card payments.

What score is good credit?

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

Does paying cell phone build credit?

Will paying my phone bill build credit? The short answer: No, paying your phone bill will not help you build up credit. Phone bills for service and usage are not usually reported to major credit bureaus, so you won't build credit when paying these month to month.

Does your credit card have to be from your bank?

Do you need to have a bank account to open a credit card? The short answer is no. Credit card companies will only look at your credit score, current employment and income to determine your eligibility for a credit card.

Are credit cards free?

A credit card doesn't have to cost anything, but to use a credit card for free requires discipline. The first step to avoiding credit card costs is choosing a credit card that doesn't have an annual fee. ... Cash advances, balance transfers, and foreign currency transactions are most commonly charged a credit card fee.

Is it best to get credit card from your bank?

Getting a credit card from your bank can be a great way to continue building your financial profile and credit history as well as earning valuable rewards. It can also be easier to qualify for a credit card from an issuer you already have a good relationship with.

Do credit cards check your income?

How Do Credit Card Companies Verify Income? Since income doesn't show up on your credit reports, most credit card issuers don't actually verify your income. For low lines of credit, it's not worth their time or money.

How long should I wait before opening a new credit card?

While the number of credit cards you should have is up to you and you can apply for new lines of credit as often as you want, it's a good idea to wait at least 90 days between new credit card applications—and it's even better if you can wait a full six months.

How much will my credit score go down if I apply for a credit card?

Yes, applying for a new credit card can hurt your credit score a little. According to FICO, a hard inquiry – when a card issuer pulls your credit after you apply – can lower your score by five points or less. However, the impact is temporary.

How much money do you need for a credit card?

Minimum deposit requirements range from $200 to $500, depending on the card. Most secured cards allow you to deposit more to get a higher credit line. Falling behind on payments could mean losing this deposit.

What is the risk of a credit card?

Overspending: Credit card can be risky instrument for those who cannot control the urge of splurging money. The easy availability of credit not only reduces the sting of making payment, it also stimulates their desire to buy or consume more.

Is Capital One a Visa or Mastercard?

Capital One issues Visa credit cards and Mastercard credit cards both. Unlike Capital One, which is a bank, Visa and Mastercard are card networks.

Should I apply for a credit card online or in person?

Applying online is the best, most convenient option, but the others have virtues, too. Applying for a credit card in person offers the opportunity for instant approval, much like applying online. But it only works if you already know you want a particular store's credit card, or a card from your bank or credit union.

What are two requirements needed to obtain a credit card?

You're generally required to provide your legal name, birth date, address, Social Security number and annual income. Giving an issuer your Social Security number allows them to check your credit, which largely dictates whether or not you'll receive the card.

Can I walk into a bank and get a credit card?

Applying for your first credit card doesn't have to be scary. If you already have a checking or savings account in good standing, consider applying for a credit card at your current bank. For many credit cards, you can apply online or visit a bank branch to work directly with a representative.

Does paying Internet bill build credit?

Does paying cable or Internet bills help build credit? ... But a good credit score may save you from having to pay a deposit or get you a lower one. Paying utility and cable bills on time won't help your credit, though, because most utilities don't report to the credit bureaus.

What can I buy to build my credit?

The Best Things to Buy To Build Credit
  • Groceries. Your monthly grocery bill should be one of the first items built into your budget. ...
  • Gas. If you're like most Americans, your car is a daily necessity and, as we all know, that car isn't going anywhere without gas. ...
  • Utilities. ...
  • Rent. ...
  • Small (or small-ish), irregular expenses.