First Credit Card
Choose the right starter card and get approved
Getting your first credit card is a major financial milestone. Done right, it's the foundation for a lifetime of good credit. Done wrong, it can lead to years of financial stress. This guide ensures you do it right.
Quick Facts
๐ A Note About Your First Credit Score
Don't expect an 800 credit score right away! As a "thin file" consumer (someone new to credit), your initial score after 6 months will likely be between 580-650. This is completely normal. Building excellent credit takes years of responsible use - focus on good habits, not the number.
Are You Ready for a Credit Card?
Before applying, ensure you meet these essential requirements:
โ Essential Requirements
โ ๏ธ Red Flags - Wait If You:
- Struggle to pay current bills on time
- Have no emergency savings
- Plan to use it for expenses you can't afford
- Don't understand how interest works
- Feel pressured by others to get one
Best First Card Options
Not all cards are created equal for beginners. Here are your best options, ranked by approval odds:
The Application Process
Pre-Application Prep
- Check if you have a credit report at annualcreditreport.com
- Calculate your income (include all sources)
- Gather required documents
- Research card options thoroughly
Information You'll Need
- Social Security Number
- Annual income (can include: jobs, allowances, scholarships)
- Monthly housing payment
- Bank account information
- Employment information (if applicable)
Submit Application
- Apply online for instant decision
- Only apply for one card at a time
- Be 100% honest on application
- Screenshot confirmation number
After Applying
- Instant approval: Card arrives in 7-10 days
- Pending: May need to verify information
- Denied: Wait for letter explaining why
๐ก Income Tips for Students
You can legally include:
- Part-time job income
- Work-study earnings
- Internship pay
- Regular allowances from parents
- Scholarship/grant money (after tuition)
- Investment income
Using Your First Card Responsibly
The Golden Rules
Pay in Full, On Time
Set up autopay for at least the minimum, but always aim to pay the full balance.
Stay Under 30% Utilization
With a $500 limit, keep balance under $150 for best credit scores.
Track Every Purchase
Use your bank's app to monitor spending in real-time.
Treat It Like Cash
Don't buy anything you couldn't pay for with cash today.
Your First Month Strategy
- Start small: Use it for one recurring bill (Netflix, Spotify)
- Set up autopay: From your checking account for full balance
- Set a reminder: Check balance weekly
- Pay early: Don't wait for the due date
- Keep it simple: Avoid cash advances and balance transfers
Common First Card Mistakes to Avoid
โ Maxing Out Your Card
Why it's bad: Hurts credit score, hard to pay off
Instead: Keep balance under 30% of limit
โ Paying Only Minimums
Why it's bad: Interest charges pile up quickly
Instead: Always pay full balance
โ Missing Payments
Why it's bad: Late fees + credit damage
Instead: Set up automatic payments
โ Cash Advances
Why it's bad: High fees + immediate interest
Instead: Use debit card for cash
โ Ignoring Statements
Why it's bad: Miss fraud, errors, or overspending
Instead: Review every transaction monthly
โ Lending Your Card
Why it's bad: You're liable for all charges
Instead: Keep card private always