Applying for a credit card may seem intimidating, but it’s a straightforward process. The first step is to find a card likely to approve you without credit history.
You can apply for most credit cards online, over the phone or by mail. You’ll want to prepare for the application by gathering the necessary personal and financial information:
- Your full name
- Date of birth
- Social Security number
- Income sources
- Housing cost
Some issuers may ask for additional information. If you’re under 21 and don’t have proof of independent income, you may also need a parent or guardian to cosign with you.
Beware too many applications. Carefully choose which cards you apply for, because each credit card application will lead to a hard credit inquiry. Hard inquiries show on your credit report and can temporarily reduce your credit score.
To combat application denials that’ll require you to submit multiple applications, you can use preapproval tools to determine the likelihood you’ll be approved for a card. These tools do not guarantee approval, but may help you get a better idea of the likelihood you’ll be approved. Not all issuers offer preapproval, but many do. When a preapproval tool pulls your credit, it pulls a soft credit inquiry, which will not impact your credit score.
How To Establish Credit With a Credit Card
Credit bureaus create and track credit behavior for consumers. Ensuring your card issuer reports to all major bureaus—Experian, Equifax and TransUnion—can ensure you’ll have a report on file for future lenders to evaluate your creditworthiness.
Once you’ve found the right card, you’ll want to practice healthy spending habits and responsible card use.
Pro Tip
Never miss a credit card payment, and always pay your statement balance in full each month to avoid interest charges and keep your credit utilization low.
Don’t allow the balance on the card to exceed 30% of the total available credit. The ratio of what you owe to the amount of available credit is known as your credit utilization ratio and is the second biggest factor used to calculate your credit score. Ideally, you should keep your ratio below 10% to keep your credit score in the best condition.
