How to get a credit card

Using a credit card responsibly can help you build good credit and earn rewards. But when it comes to getting a credit card, how do you know which one to choose? And what should you do before you apply? 

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.

• Checking for pre-approved card offers can help you understand which cards you may qualify for without hurting your credit scores.

• Applying for a credit card online is typically the fastest way to apply, but you also may be able to apply in person, by phone or by mail.

Here are seven steps to help you find the right card for you and apply with confidence:

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.

People can have multiple credit scores from credit-scoring companies such as FICO® and VantageScore®. Credit scores vary based on when they’re calculated and the information used to calculate them.

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 way to monitor your credit. CreditWise lets you access your credit report and score anytime without hurting your credit. CreditWise is free for everyone, and you don’t have to be a Capital One customer to use it.

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

• Cash back credit cards, which reward cardholders a percentage of cash back for purchases.

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

• Secured credit cards, which require a refundable deposit but are generally easier to qualify for than traditional, unsecured cards.

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

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

Once you’ve found the right card 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 rates: Interest is the cost of borrowing money. For credit cards, it’s usually shown as an annual percentage rate (APR). Credit cards typically have a variable APR. And there may be different APRs for different kinds of transactions. If you want to minimize interest, the Consumer Financial Protection Bureau (CFPB) says to “pay your entire balance each month or as much of the balance as you can.”

• 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 may consider when you apply for a credit card:

According to the 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. 

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-approved for a credit card can be a great way to compare options and gauge your approval odds before you apply. Pre-approval from Capital One is quick and won’t hurt your credit scores.

If you apply for a credit card online, 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.

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, late payments 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 choosing 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 before you 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, you can compare credit cards from Capital One by credit requirements, rewards type and other factors.

If you’re new to credit or searching for your next credit card, Capital One can help: 

• See if you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn unlimited 1.5% cash back on every purchase, every day with a cash back rewards card. 

• Monitor your credit report and score with CreditWise from Capital One. It’s free for everyone, and using it won’t hurt your credit.