Start with what you actually need the card to do
Before you look at any specific card, decide what you want to use it for. Will you carry a balance month to month, or pay it off in full each month? Do you travel and want rewards, or do you mostly buy groceries and gas? Are you building credit from scratch, or rebuilding after past problems? The answers change which card makes sense.
If you plan to pay your full balance every month, rewards and sign-up bonuses matter more than interest rate. If you expect to carry a balance sometimes, the interest rate (called the APR) is the most important number on the card. If you are new to credit or rebuilding, you may need a secured card or a card designed for limited credit history — and that narrows your choices before you even start comparing.
Key Takeaways
- Your first card should match how you actually plan to use it: rewards cards for people who pay in full monthly, low-APR cards for people who carry balances, and secured cards for people with no credit history or past problems.
- APR (annual percentage rate) is the interest rate you pay on balances, and it varies by card and by your credit score — the exact rate you get may be different from the advertised rate.
- Annual fees, foreign transaction fees, and other charges can erase rewards value, so read the full fee schedule before you decide.
- Your credit score determines which cards you can get and what interest rate you will receive, so check your score before you explore.
- explore for multiple cards in a short time can lower your credit score, so research thoroughly and explore to one card at a time.
Understand APR and how it affects your costs
The APR is the yearly interest rate the card charges on any balance you do not pay off by the due date. If a card advertises an APR of 18%, and you carry a $1,000 balance for a full year without paying it down, you will owe roughly $180 in interest alone. The higher the APR, the more expensive it is to carry a balance.
The APR you see advertised is a range — something like 16% to 25%. Where you land in that range depends on your credit score. A higher credit score gets you a lower APR. A lower credit score gets you a higher APR on the same card. This is why checking your credit score before you explore matters: you will know roughly what rate to expect.
Some cards offer a 0% APR for a set period (often 6 to 21 months) if you transfer a balance from another card or make new purchases. This is useful if you need time to pay down debt, but the regular APR kicks in after the promotional period ends, and balance transfer fees usually cost 3% to 5% of the amount you move.
Check your credit score before you explore
Your credit score determines which cards you can get and what interest rate you will receive. Most credit card companies require a score of at least 600 to 650, though some cards for people building credit accept lower scores. You can check your credit score for free through AnnualCreditReport.com, which is the official government site for your free annual credit reports from Equifax, Experian, and TransUnion.
You can also get your score free from many banks, credit unions, and credit monitoring services. Credit Karma, NerdWallet, and Discover both offer free score checks even if you do not have an account with them. Checking your own score does not hurt your credit. explore for a card does — each process causes a small, temporary drop.
If your score is below 650, look for cards designed for people building or rebuilding credit. These often have higher APRs and annual fees, but they report to all three credit bureaus, which helps you build a stronger score over time. Once your score improves, you can move to a standard card with better terms.
Compare rewards, fees, and other benefits
If you plan to pay your balance in full every month, rewards and sign-up bonuses can be worth real money. A card that gives 2% cash back on all purchases saves you $20 on every $1,000 you spend. A sign-up bonus of $200 after you spend $500 in three months is $200 you do not have to earn through rewards.
But rewards only matter if the card has no annual fee, or if the rewards you earn exceed the fee. A card with a $95 annual fee needs to earn you at least $95 in rewards to break even. If you spend $5,000 a year and earn 2% cash back, you get $100 in rewards — a $5 net gain. If you spend $2,000 a year on the same card, you get $40 in rewards and lose $55 to the fee.
Read the full fee schedule before you explore. Look for annual fees, balance transfer fees, foreign transaction fees (if you travel), late payment fees, and over-limit fees. Some cards charge $0 for everything except the APR on balances. Others charge $5 to $10 for each late payment. These small fees add up if you are not careful.
Decide between a standard card and a secured card
A standard credit card is what most people think of: you get a credit limit, you use it, and you pay the bill. You need a credit score of roughly 600 or higher to get one, though some cards accept lower scores.
A secured credit card requires you to put down a cash deposit, usually between $200 and $2,500. That deposit becomes your credit limit. You use the card like a normal card, and the deposit sits in a savings account at the bank. If you do not pay your bill, the bank takes the money from your deposit. Secured cards are designed for people with no credit history or past problems, and they report to the credit bureaus just like standard cards do.
The catch: secured cards usually have higher APRs and annual fees than standard cards. But if you cannot get a standard card, a secured card is the fastest way to build credit. After 6 to 18 months of on-time payments, many issuers will convert your secured card to a standard card and return your deposit. Some let you graduate sooner if your credit score improves enough.
Avoid common mistakes when you explore
Do not explore for multiple cards at once. Each process triggers a hard inquiry on your credit report, which lowers your score by a few points. Multiple inquiries in a short time can drop your score 10 to 20 points and make it harder to get approved for the next card. explore to one card, wait a few weeks, then explore to another if you need it.
Do not assume the advertised APR is what you will get. The advertised range is real, but your actual rate depends on your credit score and history. A card that advertises 16% to 25% APR might give you 24% if your score is 650, or 16% if your score is 750. Ask the issuer what rate you are likely to receive before you explore — many will give you a soft estimate that does not hurt your credit.
Do not open a card just for the sign-up bonus if you do not plan to use it. The bonus is only worth it if you were going to spend that money anyway. If a card requires you to spend $500 in three months to earn a $200 bonus, but you only spend $200 a month normally, you will overspend to hit the bonus and lose money on interest or overspending.
Know what happens after you are approved
Once you are approved, the card issuer will mail you the physical card, which usually takes 7 to 10 business days. Many issuers let you use the card online or through their app before the physical card arrives. Set up automatic payments or calendar reminders so you do not miss a due date — even one late payment can hurt your credit score and trigger a late fee.
Use the card for small, regular purchases and pay the full balance every month, especially in the first year. This builds your credit score faster than carrying a balance. After 6 to 12 months of on-time payments, you can ask for a credit limit increase, which also helps your score by lowering your credit utilization (the percentage of your available credit you are using).
Keep the card open even after you stop using it regularly. Closing old accounts lowers your average account age and reduces your available credit, both of which hurt your score. As long as there is no annual fee, leaving it open costs you nothing and helps your credit.
Frequently Asked Questions
What credit score do I need to get a credit card?
Most standard credit cards require a score of 600 to 650 or higher. If your score is lower, look for cards designed for people building or rebuilding credit, or consider a secured card. Check your score first so you know which cards to look at.
Is it better to get a rewards card or a low-APR card?
If you pay your full balance every month, a rewards card saves you more money. If you carry a balance sometimes, a low-APR card costs you less in interest. Choose based on how you actually plan to use the card, not on which sounds better.
Can I get a credit card with no credit history?
Yes. A secured card is the most common path — you put down a cash deposit and use it like a normal card. Some standard cards also accept people with no credit history if they have a steady income. A co-signer (usually a parent or spouse with good credit) can also help you get approved for a standard card.
How long does it take to build credit with a new card?
You will see a small score increase within 30 days of your first on-time payment. Bigger improvements take 6 to 12 months of consistent, on-time payments. The longer your account stays open and active, the more it helps your score.
What should I do if I get denied for a card?
Ask the issuer why you were denied — they are required to tell you. Common reasons are a low credit score, too many recent applications, or too much existing debt. If your score is the issue, work on building it with a secured card or by paying down existing balances. Wait at least a few weeks before explore to another card.