Your First Credit Card

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Your First Credit Card

If you have a solid history of paying bills on time, holding a steady job, and staying at the same address, you will begin to look like a good credit risk for a lender. It may be a good time to step out and apply for your first credit card. Where should you begin looking?

Department stores

If you’ve shopped at a department store, you may have been offered a discount if you signed up for their store credit card. The discount is a lure, of course, because the interest rate on these credit cards is typically high.

Experienced credit card holders often avoid these offers, but if you are looking for your very first card, it is worth considering. This is how many people get their first cards. You aren’t guaranteed to be accepted, but it is worth a try. And the credit limit will be small, usually just a few hundred dollars. But this will be all you need to get started. Use the card regularly, and charge only small amounts. Be sure you have money set aside to pay the bill in full every month, and on time.

Your bank or credit union

Another place to apply for a credit card is at your bank or credit union. Many of them offer their own credit cards to their customers/members. If you already have savings, checking, or certificate accounts with them, then they have a history with you and may be willing to extend a credit card to you. Consider trying them first; however, success is not guaranteed.

Once you have your first card, other companies may begin sending you offers for their own cards.