a credit card." />Applying for a credit card can be the first step to building credit and earning rewards. That’s if you’re approved and use it responsibly, which means doing things like making payments on time and staying well below your credit limit.
But how do you get a credit card? And where do you start? Here are six steps you might take toward getting a credit card.
Key takeaways
Why do your credit history and scores matter when you’re applying for a credit card? Credit card issuers will likely use them, along with other factors, to evaluate your creditworthiness and decide whether to approve your application.
If you know your credit scores, it could help you figure out which cards you have a better chance of being approved for. Even if your credit score is less than perfect, there might still be a card out there for you.
Keep in mind that you have different scores from credit-scoring companies, such as FICO® and VantageScore®. These companies have multiple credit-scoring models, each using different mathematical formulas to calculate credit scores.
Want to see what’s in your credit reports? You can get free credit reports from each of the three major credit bureaus, TransUnion®, Experian® and Equifax®, by visiting AnnualCreditReport.com.
CreditWise from Capital One is another option. It allows you to access your free TransUnion® credit report and VantageScore® 3.0 credit score without hurting your scores. CreditWise is free for everyone. You don’t have to be a Capital One customer to use it.
Monitoring your credit reports and scores can help you understand how your credit card activity adds up over time to impact your scores. You may even be able to catch and report errors and potential fraud attempts on your credit report before they have a chance to impact your scores significantly.
CreditWise can help here too. It checks your credit reports from both TransUnion and Experian. When something meaningful changes on your reports, you’ll automatically get an alert.
Plus, it scans the dark web and tracks your Social Security number. If CreditWise detects your personal information has been used, it alerts you.
With responsible use, like paying your statement on time every month, credit cards can be a good tool for building credit.
Before you pick a particular card, it can be helpful to know the different types of credit cards out there. For example, Capital One offers:
Once you review the different types of cards available, you may want to ask yourself the following questions:
Not sure which specific card to apply for? Take your time, compare your options and choose a card that offers the benefits you need.
Application requirements might differ a little among credit card issuers. But here’s an idea of the kind of things your lender considers when you’re applying for a credit card:
You have to be at least 18 to open your own credit card with Capital One. But according to the Consumer Financial Protection Bureau (CFPB), if you’re under 21, you’ll have to prove that you can independently make payments on the account or have a co-signer who is over 21. And not all card issuers allow co-signers.
Some credit card issuers require documentation to prove your income and U.S. residence.
Some issuers require a Social Security number (SSN) as proof of identity. An individual taxpayer identification number (ITIN) may also be accepted. Capital One asks for your full name, date of birth, SSN, physical address and estimated gross annual income.
Checking to see whether you’re pre-qualified or pre-approved for a credit card can be a great way to compare options and find the right fit before applying.
When you see “pre-qualified” or “pre-approved” on a credit card offer, it typically means your credit scores and other financial information matched at least some of the initial eligibility criteria needed to become a cardholder.
Pre-approval at Capital One is quick, only requires some basic information and won’t hurt your credit scores.
There are several ways to apply for a credit card:
Applying for a credit card online is often the quickest option. You could get a near-instant answer to your application. And if you’re approved, some lenders may give you a virtual card number to start using straight away.
You can also apply for a credit card in person at a branch or Capital One Café. This can be a helpful way to have any questions answered and get help with the application process.
Applying over the phone may get you a decision almost as quickly as with an online application. But depending on when you call, you may have to wait on hold for several minutes.
Sending an application through the mail is typically the slowest way to apply for a card. You’ll have to wait for your application to get there and for the decision to be mailed back.
If your application is approved, congratulations. Used responsibly, a credit card can help you meet your spending needs and build strong credit for the future.
Part of using credit responsibly is making on-time payments. Late credit card payments can incur late fees and interest rate increases. And if they’re reported to the credit bureaus, they could stay on your credit reports for years. If you have trouble staying organized, you can consider automatic payments or electronic reminders to help you avoid missing payments.
As for how much to pay, the CFPB says paying off the entire balance every month is best for credit scores. It can also help you pay less in credit card interest than if you carry over your balance month after month. But if you can’t pay your balance in full, the CFPB recommends paying as much as possible and making at least the minimum credit card payment.
Here are a few answers to frequently asked questions about applying for a credit card:
What if my credit card application is denied?
Here are a few steps you can take to help improve your chances of a successful application next time:
Can I apply for more than one credit card at once?
It’s possible to apply for more than one credit card at a time. But it could end up having a negative effect on your credit scores.
Each credit card application can result in a separate hard inquiry, which can appear in your credit reports. FICO says that a hard inquiry may temporarily lower your credit scores, typically by just a few points. But multiple hard inquiries over a short time could have more of an impact on your credit.
“If you apply for a lot of credit over a short period of time, it may appear to lenders that your economic circumstances have changed negatively,” the CFPB says. That’s why the agency recommends applying only for the credit you need.
How do I get a credit card if I have no credit history?
It’s possible to get a credit card with no credit history. Some types of credit cards that might be a good fit in this situation are secured credit cards, student credit cards and retail store cards. It’s helpful to check the interest rates, annual fees and other terms and conditions of each card before you decide to apply.
How much money do I need to get a credit card?
There isn’t a set income requirement for getting a credit card. But card issuers may look at some aspects of your financial health before deciding to approve or deny an application. One factor that can influence lending decisions is an applicant’s debt-to-income (DTI) ratio, which is basically a snapshot of how much of your monthly budget goes toward debt payments.
Applying for a credit card doesn’t have to be a complicated process. You can start by understanding your credit scores and the application requirements for the type of card that you’re considering. Once you’re ready, you can check for pre-approved card offers or submit your application.
If your credit score is a work in progress, you may still be able to get a credit card. But you’ll want to make sure you’re choosing a card that works for your short- and long-term goals. Capital One has a useful credit card comparison tool that helps you search by credit requirements, rewards type and other factors.
New to credit or looking for your next credit card?
a credit card." />
a credit card while looking at information on a tablet." />
We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.
The EMVCo Contactless Symbol and Contactless Indicator, consisting of four graduating arcs, are trademarks owned by and used with permission of EMVCo, LLC.
Capital One does not provide, endorse or guarantee any third-party product, service, information, or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners.
Your CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model, which is one of many credit scoring models. Your CreditWise score can be a good measure of your overall credit health, but it is not likely to be the same score used by creditors. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion. Some monitoring and alerts may not be available to you if the information you enter at enrollment does not match the information in your credit file at (or you do not have a file at) one or more consumer reporting agencies.
CreditWise Alerts are based on changes to your TransUnion and Experian® credit reports and information we find on the dark web.
