How to get a credit card

Applying for a credit card can be the first step toward building credit and earning rewards. But how do you get a credit card? And which card should you apply for?

Here are seven steps you can take to help yourself choose the right card.

What you’ll learn:

• Monitoring your credit reports and scores can give you an idea of where your credit stands.

• Comparing interest rates and rewards can help you find a credit card that’s a good fit.

• Credit card pre-approval can help you understand your chances of being approved—without hurting your credit scores.

• You may be able to apply for a credit card online, in person, by phone or by mail.

Credit card issuers will likely use your credit history and scores to help evaluate your creditworthiness and decide whether to approve your application. Knowing your credit scores could help you figure out which cards you have a better chance of being approved for.

Keep in mind people can have multiple credit scores from credit-scoring companies, such as FICO® and VantageScore®. And scores change based on the information used to calculate them—and when they’re calculated. 

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 TransUnion credit report and VantageScore 3.0 credit score without hurting your credit. CreditWise is free for everyone, and you don’t have to be a Capital One customer to use it.

With responsible credit card use, like paying your statement on time every month, credit cards can be a good tool for building credit and managing spending. They can be helpful when purchasing big-ticket items—especially if you’re able to use a promotional APR. And if your card has no foreign transaction fees, it’s one less thing to worry about if you’re planning to travel abroad. 

There are many different types of credit cards. For example, Capital One offers:

• Cash back credit cards that pay cardholders a percentage of cash back for purchases. 

• Travel credit cards reward cardholders with miles for their purchases. 

• Secured credit cards require a refundable deposit but make it easier to get approved for credit. 

• Student credit cards for college students to help them establish credit and, sometimes, earn rewards.

• Low intro rate credit cards can help with major purchases or consolidating debt.

Once you’ve found the card that’s right for you, you’ll want to make sure you understand what you’re agreeing to. Here are a few things to look out for:

• Interest rate: Interest is the cost of borrowing money. For credit cards, it’s usually shown as an APR. If you want to avoid interest, consider paying off the card balance by the due date every month.

• Annual fee: Some issuers charge an annual fee to keep your account open. If you’re looking to keep costs low, consider a credit card with no annual fee or look at whether the benefits outweigh the fee.

• Late fees: If you don’t pay your card’s minimum payment by the due date, you may be charged a late fee. Late payments could also show up on credit reports and affect credit scores. 

• Balance transfer fees: A credit card issuer may charge a fee for transferring a balance from another issuer. The fee could be a fixed amount or a percentage of the transferred amount.

Application requirements might differ, but here’s an idea of what issuers could consider when you apply for a credit card:

According to the Consumer Financial Protection Bureau (CFPB), if you’re under 21, you’ll have to prove you can independently make payments on the account or have a co-signer who’s over 21. And not all card issuers allow co-signers.

Some credit card issuers require documentation to prove your income and U.S. residence. They may require a Social Security number (SSN) or an individual taxpayer identification number as proof of identity. 

If you’re applying for a Capital One credit card, you’ll be asked for your full name, date of birth, SSN, physical address and estimated gross annual income.

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. 

Checking to see whether you’re pre-qualified or pre-approved for a credit card can be a great way to compare options and get an idea whether you’ll be approved. Pre-approval at Capital One is quick, and it won’t hurt your credit scores.

You can apply for a credit card in several ways.

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 right away.

You might also be able to apply in person, over the phone or by mail.

If your application is approved, congratulations. Responsible credit card use can help you meet your spending needs and build 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 setting up automatic payments or electronic reminders.

As for how much to pay, 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:

When applying for a credit card, you can start by understanding your credit scores and the application requirements. Once you’re ready, you can check for pre-approved card offers or apply. 

If your credit scores are a work in progress, you may still be able to get a credit card. But you’ll want to make sure you choose a card that works for your short- and long-term goals. To help you find one, Capital One has a useful credit card comparison tool that helps you compare cards by credit requirements, rewards type and other factors.

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit score.

• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use.