What to consider before getting your first credit card
Getting your first card is a big financial step. Here are a few things to weigh up before you apply:
1. Interest rate (APR)
The APR is what you’ll pay if you don’t clear your balance in full each month. A lower rate means less interest, so if you think you may carry a balance, aim for a card with a low APR.
2. Fees
Look out for extra costs such as late payment, foreign usage, or annual fees. These can add up quickly, so compare cards with low or no fees when you’re starting out.
3. Credit limit
Your limit is the maximum you can borrow. A smaller limit can help you manage spending and build your credit safely. Try to use only a small portion of it each month.
4. Rewards and benefits
Cashback, points or miles can be nice extras, but don’t let perks distract you from key features like a low APR and manageable limit.
5. Your credit score and report
Your credit score shows lenders how you’ve managed borrowing in the past. Check your score and report before applying so you understand where you stand – and improve them if needed.
Eligibility checkers and soft searches
If you apply for a credit card, a ‘hard search’ will be conducted on your credit report – this leaves a temporary negative marker, so applying and being rejected for several in a short space of time can have a negative impact on your score.
But how do you know if you’ll be approved without applying? This is where an eligibility checker or a ‘soft search’ comes in.
Eligibility checkers only conduct a soft search, which lenders won’t be able to see and doesn’t affect your score.
An eligibility checker can help you to:
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find financial products that you’re eligible for
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reduce the number of applications you make
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decrease the risk of rejection.
What will a credit card provider look for?
When you apply for a credit card, a hard search is added to your credit file, which can temporarily lower your score if you make several applications close together.
An eligibility checker uses a soft search, which doesn’t affect your score. It helps you:
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See which cards you’re likely to be approved for
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Avoid unnecessary applications
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Reduce your risk of rejection
What lenders look for
When looking over your application, lenders will typically check:
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Your identity (name, address, and electoral roll details)
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Your credit history (including store cards, loans, or overdrafts)
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Your income and ability to afford repayments
Tip: Make sure your personal details match across all credit reference agencies and you’re registered to vote – this helps lenders confirm who you are and prevents delays.
Your credit history
Your credit history shows lenders how you’ve handled money in the past. You can check it for free through Experian, Equifax, or TransUnion – or through our member platform, CredAbility.
If you’ve never borrowed before, lenders have less to go on, which can make approval harder. In this case, look at credit builder cards, which are designed for people with little or no credit history.
Lenders may check if you’ve:
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Missed payments on other accounts
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Spent long periods in your overdraft
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Had financial disputes or county court judgments (CCJs)
Your income
If you have a consistent income and have done for a while, this will make lenders more comfortable when lending to you.
However, if you have no source of income or it’s inconsistent, then it can make lenders nervous about lending to you. This is because your income will seem less secure.
If you’ve changed jobs a lot, then this can also put lenders off. If you've just started a new job, it could be worth waiting a couple of months before you apply for a credit card.
Do I need a credit builder credit card?
If you’re new to credit or rebuilding your score, a credit builder card can help. These usually come with higher interest rates and lower limits, but using them responsibly – by making payments on time and staying within your limit – can boost your credit rating over time.
Once your score improves, you’ll have access to a wider range of cards with better rates and features.
Choosing the best first credit card for you
Picking your first credit card doesn’t need to be overwhelming. The key is to focus on what will work best for your situation and help you build good credit from the start.
1. Start with the right type of card - If you have little or no credit history, a credit builder card can be a good option. These cards are designed to help you build a positive credit record, and you can read more about them in the section above.
2. Keep limits manageable - Choose a card with a limit you can comfortably handle. Staying well below your limit makes it easier to manage spending and show responsible credit use.
3. Compare fees and rates - Even if you don’t plan to carry a balance (meaning you pay your card off in full each month), it’s still worth checking the APR and any fees. These could include annual charges or foreign transaction fees, which all affect whether the card is cost-effective.
4. Consider extra features carefully - Some cards offer rewards or perks like cashback or points. These can be a nice bonus, but don’t let them outweigh the importance of using the card responsibly.
5. Use tools to find the right fit - Comparison websites and eligibility checkers can show you which cards you’re likely to be approved for, without affecting your credit score. This helps you make a smart choice from the start.
Tip: Focus on picking a card that suits your spending habits and helps you build a good credit record. Getting it right first time makes future credit applications easier.
What if my application is rejected?
If your application is turned down, don’t reapply for lots of cards straight away – it could hurt your credit score. Instead, use an eligibility checker to see which cards you’re more likely to be accepted for next time.
There’s a card out there for almost every situation, so take your time, do your research, and apply when you’re confident it’s the right fit.
Ocean Credit Card
See if it's a YES before you apply
- Up to £1,500 credit limit
- Checking won't affect your credit score
- Get a response in 60 seconds
39.9% APR
Representative (variable)
Intelligent Lending Ltd (credit broker). Capital One is the exclusive lender.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona Peake
Personal Finance Writer
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
