How to Choose Your First Credit Card

Pick your first credit card by comparing fees, interest rates, and rewards that match your spending habits and credit history.

1. Check your credit score first. Get your free credit score from your bank's app or a free service before applying. Students with no credit history should look at student cards. Fair credit (580-669) qualifies for secured cards or basic unsecured cards. Good credit (670+) opens up better reward options.
2. Skip cards with annual fees. Your first card should cost $0 per year to own. Cards with annual fees only make sense when you spend enough to earn rewards that exceed the fee. Most first-time cardholders don't hit those spending thresholds.
3. Compare APRs within your credit tier. The Annual Percentage Rate is what you pay on balances you don't pay off each month. Student cards typically run 18-25% APR, while cards for good credit range from 16-24%. A few percentage points matter if you ever carry a balance.
4. Pick rewards that match your actual spending. Cash back cards give you 1-2% on everything or higher rates on specific categories like gas or groceries. Points cards offer travel rewards but require more management. If you spend under $500 monthly on the card, simple cash back beats complex category bonuses.
5. Read the fine print on promotional rates. Many cards offer 0% APR for 12-21 months on purchases or balance transfers. These rates jump to the standard APR afterward. Only valuable if you plan to make a large purchase and pay it off during the promotional period.
6. Apply for one card and wait. Each application triggers a hard credit inquiry that temporarily lowers your score. Apply for cards where you meet the stated requirements. After approval, wait 6 months before applying for another card to let your credit adjust.