How To Get a Credit Card

There are a lot of credit card options out there. And while the sheer volume of choices (and card terminology like APR, FICO, and utilization ratio) might make you swear off plastic altogether, the process of getting a credit card is simple. 

Plus, the potential benefits of getting the right credit card make it worth the effort. 

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Choose the Right Type of Credit Card

The first thing is to decide what type of credit card best suits your shopping habits and financial goals. 

Do you need to build up your credit score? Want to save money on travel? Gradually pay off that organic latex mattress at no interest? 

Here are some options:

• If you have a low credit score, opt for a secured credit card, which can help you improve your credit.
• If you’re enrolled in college, consider a student credit card — they have lower income requirements than regular cards.
• Want to save money? Cashback credit cards earn you a small percentage of cash on purchases.
• If you’re a frequent flyer, travel credit cards have features like airport lounge access, waived foreign transaction fees, and travel insurance.
• Carrying a lot of debt? Balance transfer cards allow you to move it to a new card at 0% APR for up to 24 months.
• If you’re an entrepreneur, business credit cards earn rewards or cashback on business expenses, like internet, shipping, or advertising. 

Find Out What You’ll Qualify For

Unfortunately, not all card issuers publicly reveal their credit score and income requirements. And applying for a credit card results in a hard inquiry on your credit, so you want to apply for cards selectively.

Juan Ruiz, a travel journalist and credit card expert, recommends you find out your credit score first — which you can do with some free online services.

“Apps or sites like Credit Karma or Credit Sesame can give you your credit score without a hard pull,” says Ruiz. “While there’s no way to predict an approval, you can improve your odds of approval with a high credit score (usually above 720) and solid income.” 

If your credit score is below 720, you can probably still get approved for a card aimed at fair to good credit. While it likely won’t offer as many perks, you’ve got to start somewhere — and you can use this first card to gradually improve your score until you’re ready for more feature-packed credit cards. 

Brian Kelly, founder of The Points Guy, says he recommends starting with a Chase Freedom card for that reason.

“The Chase Freedom Unlimited is a really solid card because what happens with the Chase ecosystem is as your score goes up, you can get their Sapphire cards, then unlock your rewards for [travel],” he says. 

Many issuers also let you get pre-approved for credit cards. This involves a soft inquiry so it won’t impact your credit score. 

While approval isn’t guaranteed, the process can give you a good understanding of what cards you’re likely to get approved for — and can spare you shooting your shot (and taking a small credit score hit) with credit cards currently out of your league. 

READ MORE: When Should You Get a Credit Card?

Do Your Research

Once you’ve determined the type of card you want and will likely qualify for, it’s time to roll up your sleeves and see what’s out there. 

No matter which cards you consider, there are a few terms and conditions you should note when comparing credit cards.

Annual percentage rates

The annual percentage rate (APR) is a charge added if you don’t pay off your card balance in full every month. This fee is a percentage of how much you have on your balance.

Most credit cards in the U.S. have variable APRs, meaning the rate will fluctuate over time. 

The APR you’re assigned will likely depend on your credit score — high scores qualify for the lowest APR and vice versa. 

Credit card fees

A few of the most significant fees to look out for include:

• Annual fees: This is what you pay yearly just to use the card. Basic credit cards may charge no annual fee. Some upscale cards charge over $600.
• Late payment fees: Many cards charge a late fee of up to $40 if you don’t make at least your minimum payment by the due date. 
• Foreign transaction fees: These are usually 3% of each purchase you make that’s not in U.S. dollars. If you travel abroad a lot, a card that charges foreign transaction fees is a no-go. 

COMPARE: Best No-Annual-Fee Credit Cards

Welcome offers 

Issuers often try to entice you to sign up by offering a big bonus of cash or rewards points. 

To qualify for the bonus, you need to hit a minimum spend requirement in a given time, usually within the first three to six months of opening the card.

Look for welcome bonuses with spending minimums that you can meet with your regular, day-to-day purchase habits. Spending beyond your means to earn a welcome bonus is not a good idea. 

COMPARE: Best Credit Card Sign-Up Bonuses

Cashback and rewards rates

Look at your monthly budget and find a card that rewards you in the category where you spend the most. 

For example, a card with a high earning rate on groceries may be smart if you cook at home a lot. Other popular categories include dining, travel, and gas. 

Some offer rotating rewards categories, meaning the bonus rate applies to different types of purchases that change each quarter. 

COMPARE: Erika Kullberg’s Favorite Credit Cards

Submit an Application

You can apply for a credit card online, over the phone, or in person if it’s a bank with physical branches. 

Card applications are relatively short and can take just a few minutes to complete if you prepare beforehand.

What you need to apply for a credit card

You should have the following info ready:

• Name, date of birth, and Social Security number
• Street and mailing addresses
• Phone number and email address
• Monthly rent/mortgage payment
• Employment status (employed, self-employed, unemployed, or retired)
• Gross annual income
• Details of any authorized users you’d like to add, including name, date of birth, and possibly Social Security number

What counts as “income” for credit card applications?

“Gross annual income” trips up a lot of card applicants. To maximize your chances of approval, be sure to tally up all your income sources, including:

• Regular salary
• Bonuses
• Side hustle money
• Savings interest
• Dividends and capital gains
• Rental income
• Retirement benefits
• Alimony or child support

You can base your gross annual income on what you’ve earned historically or what you expect to earn in the coming year.

You can also generally include total household income. Rather than individual income, you can include your spouse or partner’s income.

Use the Card Responsibly

Credit cards are often glamorized as life-hacking strips of wunderplastic. But they can do you more harm than good if you’re not smart with how you use them.

Once you have your card, avoid racking up interest charges. Not only will you end up paying more than you borrowed, but you’ll negate any cashback or points you’ve earned.

If you absolutely must carry a balance, always make at least your minimum payment — missing a card payment can cut more than 80 points off your credit score. 

And if you find yourself carrying a balance more than once or twice a year, it might be a sign you should revert to paying with debit or cash until your credit card debt is repaid and you’re on stronger financial footing.

FAQs

Does applying for a credit card affect your credit score?

FICO reports that, for most consumers, a single hard inquiry will knock less than five points off their FICO credit scores. Applying for multiple cards in a short period could add up, though.

How long does it take to get a credit card?

Your credit card application could be processed and approved in minutes. 

It generally takes seven to 10 business days for a card to arrive in the mail, but some issuers offer rush delivery within one to two business days.

Can I apply for more than one credit card at a time?

Technically, you can apply for as many credit cards as you want. But it’s ill-advised. 

“Applying for too many cards at once may raise red flags with issuers. You want to take it slow and apply for one to two at a time and wait several months more if you plan on opening more cards,” says Ruiz.

TL;DR: Getting a Credit Card

Before you apply for a credit card, you want to make sure your credit score is high enough and that you choose the right card for your spending habits and goals — like earning travel rewards or cashback.

Check things like the APR and annual fee so that you know exactly how much the card will cost you. And be sure to pay it off each month so you can avoid falling into credit card debt.

For more money management tips, check out these episodes of the Erika Taught Me podcast: 

• How To Budget For Beginners
• Money & Investing Pitfalls To Avoid
• What Financial Experts Won't Tell You About Money

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