How to get a credit card for the first time

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 air 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 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.

Use an eligibility checker before you apply

An eligibility checker is a quick, free tool that shows you which credit cards you're likely to be accepted for, before you actually apply. You answer a few questions about your circumstances, and it gives you a result in seconds, without affecting your credit file.

This is useful because applying for a credit card leaves a hard search on your credit file, whether you're accepted or not. This leaves a temporary mark that can cause a small dip in your score, and applying for several cards close together can make it look like you're struggling for credit, which may put lenders off. An eligibility checker gets around this, since it only uses a soft search, which lenders can't see and won't affect your score.

It's worth using one before you apply, so you can narrow down your options to cards you're actually likely to be accepted for, rather than applying blind. You can use our eligibility checker, or read about the difference between hard and soft searches here.

What's different about applying with no credit history?

Without a credit history to look at, lenders will lean more heavily on your income, your identity checks (including whether you're on the electoral roll), and general signs of stability, like staying at the same address. If you've already applied and been turned down, our guide on why you might be rejected for a credit card covers that in more detail.

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.

What's a realistic starting point?

As a first-time applicant, it's normal to be offered a lower credit limit and a higher APR than someone with an established credit history. This isn't a sign of a bad deal; it's simply how lenders manage the risk of lending to someone without a track record yet. As you build your history, you'll have access to better rates and higher limits over time.

A sensible order to do things in

If you're starting from scratch, it can help to tackle things in this order:

1. Open a current account, if you haven't already – this is often the first piece of financial history you'll build.
2. Register on the electoral roll at your current address, so lenders can verify who you are.
3. Give it a little time. A few weeks or months of a settled address and account activity can make a difference.
4. Use an eligibility checker to see which cards you're likely to be approved for, then apply.

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.
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?

A rejection isn't the end of the road, and it's more common than you'd think for a first application. Take it as useful information rather than a setback: it tells you where you stand right now, not where you'll always stand. Give it a little time, take another look at what lenders are checking for, and you'll be in a stronger position next time you apply.