How to Get a Credit Card: Step-by-Step Guide
Spending with a credit card can help you grow your credit, earn rewards and more. If you’re ready to add a credit card to your wallet, it’s often easy to do if you follow the right steps.
Generally, this involves checking up on your credit score and financial profile to find a credit card that best suits your needs. This guide explores the details of how to get a credit card, such as how to check your credit reports, what kinds of cards are out there and how to apply.
Why Get a Credit Card? Benefits and Considerations
Having a credit card can help you build your credit history, improve your credit score, and earn rewards like cash back or travel perks, which allow you to stretch your budget further. If you responsibly manage your credit card, your credit score might improve and lead to better terms on future loans.
Beyond these possible advantages, spending with a credit card offers more security and convenience than cash or debit cards because of embedded fraud protection.
The downside of credit cards is the risk of falling into credit card debt. With relatively high interest rates, it’s easy for debt to accumulate if you overspend or carry a balance.
If you decide a credit card is right for you, the first step is checking your credit score.
Check Your Credit Score and Credit Reports
Your credit score impacts your journey to getting a credit card. It can affect your approval odds, the types of cards you’ll qualify for, APRs, credit limits and more. Generally, a higher credit score opens the door to premium rewards cards and lower APRs. Checking your credit score gives you a good idea of where you stand. Plus, you’ll have a chance to fix errors and improve your approval odds.
You can check your credit report for free through AnnualCreditReport.com. And you’ll find your credit score for free through Experian. Below is a quick guide to how your credit score may stack up:
| Credit score range | Types of credit cards |
| Below 580 | Secured credit cards |
| 580 to 669 | Beginner and student credit cards |
| 670 | Rewards credit cards |
Depending on where your credit score stands, you might want to try to improve it before applying for a credit card. For example, if you spot any errors on your credit report, consider disputing them with the credit bureaus. Additionally, consider paying down revolving account balances to lower your credit utilization ratio.
Once you know your credit score, you can seek out a credit card that lines up with your credit profile.
Which Credit Card Should You Apply For?
Before you dive into credit card applications, it’s critical to select the right type of credit card. Different credit cards are designed to support different goals. Some help users build credit, while others offer lucrative rewards to those with higher credit scores. Picking the wrong card can not only lead to a denial, but the hard inquiry could also end up hurting your credit score.
Explore the various types of credit cards below to find the right fit for your situation.
Secured Credit Cards (Best for Bad/No Credit)
Secured credit cards involve making a cash deposit, often in the range of $100 to $500, which serves as collateral for any purchases you make with the card. These represent a good option for beginners building credit or anyone rebuilding credit.
Typically, the issuer will set your credit limit to the size of your deposit at first. For example, if you make a deposit of $500, the secured credit card might have a $500 spending limit. After you close the card, you’ll get your deposit back if the account remains in good standing.
Student and Starter Credit Cards
For those with a limited credit history, starter or student credit cards could be a good option. These cards offer an opportunity to help credit beginners start building their credit history.
Although these cards tend to come with lower limits and higher APRs, you might find some reward opportunities built in.
Rewards and Travel Credit Cards (Best for Good/Excellent Credit)
Premium rewards and travel credit cards are typically only accessible for those with good or excellent credit scores. These cards tend to offer potentially lucrative perks, like cash back, points or travel rewards.
For many, having a rewarding credit card in their wallet is the end goal. But most must start building their credit with other types of card before tapping into a premium rewards credit card.
What Do I Need to Get a Credit Card?
Once you have a better idea of what type of credit card you could apply for, it’s time to gather your information to facilitate a smooth application process. Be prepared to provide the following details:
- Age: You’ll likely need to be either 18 or 21, depending on your income situation.
- Proof of identity: You’ll need to provide a government-issued ID and your Social Security number.
- Proof of income: Typically, pay stubs or bank statements will serve as evidence of your income.
- Housing details: Credit card issuers often ask for details about your housing situation, specifically whether you own or rent and your monthly housing costs.
- Bank account: In the case of secured cards, you might need to provide bank account details to fund the security deposit.
How to Apply for a Credit Card: Application Process Explained
Before you jump into the application, it’s helpful to know what to expect. Generally, credit card issuers follow a process similar to the one outlined below. But exact details can vary across credit card companies.
Pre-Qualification vs Full Application (Soft Pull vs Hard Pull)
A pre-qualification involves a soft credit inquiry, which won’t impact your credit score. Generally, pre-qualification includes a review of your basic financial situation and gives you an estimate of what you may qualify for. But pre-qualification doesn’t guarantee approval.
In contrast, a full application triggers a hard credit inquiry, which can have a slightly negative impact on your credit score. Full applications take a closer look at your financial details and give you a decision.
Generally, pre-qualifying is a good first step to gauge your approval odds. If things go smoothly during the pre-qualification, you might be ready to submit a full application.
How to Apply for a Credit Card Online or Offline
If you want to apply for a credit card, you can find options either online or offline.
Typically, an online application is fastest and may result in instant approvals or denials. But if you are a first-timer or simply like a hands-on experience, you could apply for a credit card at a physical bank. Opting for an in-person application gives you a chance to ask questions throughout the process.
If you are looking for a mix of convenience and a human touch, you may choose to apply over the phone, which is an option through some issuers.
The Credit Card Application Process, Step-by-Step
Here’s what to expect from the credit card application process.
- Gather your information. It’s helpful to collect the necessary information before jumping into an application. Be prepared to provide identity details, income information and more.
- Submit your application. Depending on the credit card you choose, you might apply online, in-branch or over the phone. Coming prepared can create a smooth experience.
- Automatic screening. Typically, your application is reviewed instantly by the credit card issuer’s system.
- Instant decision or manual review. Depending on the situation, you may receive an approval or denial immediately. In some cases, the issuer will perform a manual review, which can take several days.
- Approval and credit limit assignment. If you’re approved for the credit card, you’ll receive your credit limit and account details right away.
- Card delivery. You’ll need to wait for the physical card to arrive via the mail. Typically, this takes between 7 to 10 business days. Sometimes, you’ll receive the card details right away, which you can use for digital purchasing.
- Denial notification. If you are denied the credit card, the issuer must provide a written explanation. Generally, denial reasons may include low credit, insufficient income or too many recent applications.
Tips to Apply for Credit Successfully
While nothing will guarantee your credit card application approval, you can take extra steps to improve your approval odds. Some strategies include:
- Choosing the right credit card. Do your research to find a card that supports your goals and works with cardholders in your current credit score range.
- Pay down debt. If you have high revolving account balances, consider paying that down to lower your utilization ratio before applying for another card. For example, if you have credit card debt, consider working on that balance before getting a new card.
- Limit your applications. If possible, avoid submitting multiple applications that lead to a hard credit inquiry within a short timeframe.
- Find and fix and credit report errors. Take a few minutes to review your credit report for mistakes. If you find any, report them to the credit bureaus for removal.
What to Do After You’re Approved for a Credit Card
Once you’ve been approved for a credit card, how you use it will likely impact your credit score, for better or for worse. If you want to set the tone for responsible credit card use, consider implementing the following tips:
- Activate your card immediately.
- Set up online access.
- Enable automatic payments and payment reminders.
- Stick to paying off your balances in full every month.
- Monitor your statement each month to catch potential fraud.
- Keep your credit utilization ratio below 30%.
FAQs: How to Get a Credit Card
You’ll need to share your credit score, income, identity details and more. If opening a secured credit card, you’ll also need to make a deposit to serve as collateral for your purchases.
While there isn’t a fixed income requirement needed to get a credit card, you’ll need a high enough income to support the monthly payments.
For unsecured credit cards, it usually doesn’t cost anything to open a credit card. But if opening a secured credit card, you’ll likely put down between $100 to $500 as a security deposit.
While premium rewards credit cards may require high credit scores, other types of credit cards are easier to get.
