March 19, 2024 |11 min read
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
- Check your credit. Looking at your credit reports and credit scores can help you get a sense of the cards you might qualify for.
- Explore credit cards. Learning how different credit cards work and comparing things like interest rates and rewards can help you find a good fit.
- Understand the requirements needed to apply. You may need to provide documentation that verifies your age and identity.
- Find out whether you’re pre-approved. Pre-approval can help you compare options and understand your chances of qualifying without affecting your credit scores.
- Submit your credit card application. You may be able to apply for a credit card online, in person, over the phone or by mail.
- Use your card responsibly. Credit cards are a great tool for building credit with responsible use. But poor habits can lead to poor credit scores.
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Get started1. Check your credit reports and scores
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.
Continue monitoring your scores
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.
2. Explore credit cards
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:
- Cash back credit cards that earn you a percentage of cash back for what you buy.
- Travel rewards credit cards, where you can earn miles for your purchases.
- Secured credit cards for those who are rebuilding credit or new to credit.
- Student credit cards for college students to establish credit and earn rewards.
- Low intro rate credit cards to help you save on interest and pay down debt.
- Business credit cards for small businesses and their related expenses.
Consider your reasons for getting a card
Once you review the different types of cards available, you may want to ask yourself the following questions:
- What are your financial goals? Credit cards can help people reach their financial goals. If you’re considering a card with an annual fee, consider whether potential rewards make it worth it. Learn about annual percentage rates (APRs) and understand how to avoid interest on your balance.
- Is your goal to build or rebuild credit? Any credit card can help you build credit and boost your scores over time if it’s used responsibly. But for those just starting out, a secured card may be easier to qualify for.
- Do you want to pay down debt? If you’re opening a new account for a balance transfer, you’ll want to look out for a card with a low or even 0% introductory APR period. Just make sure you read up about each card’s transfer fees and terms and be aware that your interest rate will jump after the promotional period ends.
- Do you have a large purchase coming up? Some people finance big-ticket items with credit cards to take advantage of 0% APR offers or earn rewards. But before you swipe your card, consider how you’ll manage payments. Paying interest on big purchases can add up fast.
- Do you plan to use a card when traveling internationally? You may want to look into cards that don’t charge foreign transaction fees.
Not sure which specific card to apply for? Take your time, compare your options and choose a card that offers the benefits you need.
3. Understand what you need to apply
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:
Age
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.
Personal information
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.
4. Find out whether you’re pre-approved
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.
5. Submit your credit card application
There are several ways to apply for a credit card:
Online
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.
In person
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.
Over the phone
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.
By mail
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.
6. Use your card responsibly
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.
Getting a credit card FAQ
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:
- Find out why. Knowing why your application was denied this time might help you correct the issue before your next application. As part of the Equal Credit Opportunity Act (ECOA), lenders are required to provide the reasons they rejected your application or tell you that you have the right to find out why.
- Keep working on your credit. Better credit may give you better options next time you apply. And if you’re approved, good credit may also make you eligible for things like a higher credit limit and a lower APR. Check out these tips to improve your credit.
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 circ*mstances 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.
How to get a credit card in a nutshell
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.
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