How to Get a Credit Card for the First Time With No Credit

Obtaining a credit card for the first time without an established credit history can seem challenging. Credit cards serve as important tools for developing a financial track record, which can open doors to future loans, mortgages, and other financial products.

Exploring Credit Card Options

When seeking your first credit card, several options are designed for individuals with limited or no credit history. Each type offers a distinct pathway to establishing a positive credit profile.

Secured Credit Cards

Secured credit cards are a common starting point, requiring a cash deposit that acts as your credit limit. This deposit provides collateral for the issuer, reducing their risk and making approval more accessible for those new to credit. Consistent on-time payments with a secured card are reported to major credit bureaus, helping to build a credit history.

Student Credit Cards

Student credit cards cater specifically to students, often having more lenient approval requirements than traditional unsecured cards. To qualify, applicants need to demonstrate proof of enrollment at an educational institution and must be at least 18 years old. If under 21, proof of independent income is required to ensure repayment capability. Issuers evaluate an applicant’s ability to pay.

Authorized User

Becoming an authorized user on someone else’s credit card account can contribute to building a credit history. As an authorized user, you receive a card linked to the primary account holder’s credit line, but you are not legally responsible for the payments. The primary cardholder’s responsible payment behavior, such as on-time payments and low credit utilization, can positively reflect on your credit report, assuming the issuer reports authorized user activity to credit bureaus.

Preparing for Your Application

Before submitting a credit card application, gathering necessary information and understanding basic eligibility criteria can streamline the process. Applicants need to provide their full legal name, current address, date of birth, and contact information. A Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is also required for identity verification and credit reporting purposes.

Accurately reporting your income and employment details is important for the application. Income can include wages, salaries, regular allowances, Social Security benefits, investment returns, and certain non-taxable income like disability payments or scholarships. For applicants aged 21 or older, household income to which they have a reasonable expectation of access, such as a spouse’s income, can be included. If you are between 18 and 20, only independent income, like earnings from a job or allowances, can be listed.

Most credit card issuers require applicants to be at least 18 years old to enter into a credit contract. If you are between 18 and 20 years old, you will need to demonstrate sufficient independent income to repay debt. A U.S. mailing address is also a requirement.

Completing Your Application

Once you have prepared all necessary information and decided on a suitable credit card, the next step involves completing and submitting the application. Many credit card applications are completed online through the issuer’s website. It is important to carefully review all entered information for accuracy before proceeding to avoid potential delays or denials.

After filling out the form, the final action is submitting the application. Many online applications offer an instant decision, providing immediate approval or denial. If approved, some issuers may provide a virtual card number for immediate online use, with the physical card arriving by mail within one to two weeks.

An application may go into a “pending” or “under review” status instead of an instant decision. This indicates that the issuer needs more time to verify information, due to missing or incorrect data, a security alert on your credit report, or a high volume of applications. Issuers are legally required to provide a decision within 30 days. If your application remains pending, contacting the issuer’s customer service can clarify the situation or determine if additional information is needed.