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How to Choose a Credit Card for the First Time

9 min read

Last Updated: December 17, 2025

Table of contents

Key Takeaways

Figure out your financial resources and future goals before you start applying for credit cards.
Each card is different, so it’s important to compare details like interest rates, introductory APR, annual fees, and credit card rewards.
A credit card comparison tool may help you find the right choice.

Starting the journey to pick your first credit card is more than just an important step; it's the beginning of building a good credit history. Your first card is a major financial decision that influences how lenders and financial institutions may view you in the future. The right credit card may help you build a strong financial foundation.

Considerations before choosing your first credit card

Before you begin comparing or applying for cards, it’s vital to take a step back and look at the bigger picture of your financial situation. Think about your resources, what types of expenses you have, and your short-term and long-term financial goals.

When you know where you stand and what you want to achieve, you’ll be well-prepared to choose a card that fits your lifestyle and matches your preferences.

Check your credit score

Before you apply for a credit card, you should understand where your credit score stands. That way, you may avoid applying for a credit card you’re unlikely to qualify for.

Even if you’ve never managed a credit card before, you may still have a credit score. If you’ve taken out personal loans from a financial institution or have been an authorized user on someone else’s credit card account, then chances are you’ve already begun building your credit history.

You may be able to check your credit score through a major credit bureau or an online credit score service.

It’s also a good idea to check your credit report as you prepare to apply for your first credit card. The Federal Trade Commission explains that you may receive one free credit report from each major credit bureau per week at AnnualCreditReport.com.

While your credit report does not include your credit score, it does offer insight into your credit accounts, like student loans, personal loans, and more, as well as any unfamiliar or unauthorized transactions that may point to fraud.

Assess your income and bills

The best credit card for you may depend, in part, on your financial circumstances. When you apply for a credit card, credit card issuers typically request information about your income and your necessary living costs. If you have a lot of money left over after rent or mortgage payments, a financial institution may be more likely to extend a credit card offer with a higher credit limit.

Your first credit card is a meaningful financial decision and a major milestone. To set yourself up for success, make sure you understand your credit history and budget before you apply.

Before you add a credit card to your financial toolkit, it’s important to understand how much credit card debt you may be able to manage. A thorough review of your budget may help you find the right credit card for your spending habits and financial goals. For example, if you have pricey monthly rent, you may want to consider a credit card with no annual fee or a lower interest rate to keep extra costs at a minimum.

Identify your financial goals

To choose the card that’s the best fit for you, consider your priorities. How do you want to use your credit card? What benefits do you hope to receive? It’s important to choose a card that not only fits your current financial situation but may also help you accomplish your goals.

Some credit cards are well-suited for people who want to begin building credit history for the first time. For example, a secured credit card requires a refundable security deposit at account opening, making it easier to qualify for than some other cards. Or, if you’re in college, you may want a credit card with rewards and features designed for students, like the Discover it^® Student Cash Back card.

If you’re looking for an everyday card to maximize cash back, look for a rewards card that offers a high rewards rate for the types of purchases you already make with cash or a debit card, like gas or groceries.

Best credit cards for first-time applicants

While the right card for you depends on your needs, some types of credit cards have eligibility criteria or other features that make them ideal for first-time credit card users.

Secured credit cards: Unlike a debit card, a secured credit card gives you access to a line of credit “secured” by a refundable deposit. You may be able to establish a credit score and learn excellent credit habits with a secured card. For example, the Discover it^® Secured Credit Card helps you build your credit history with responsible use.¹
Student credit cards: Student cards are designed for college students who are just starting their careers and credit journeys. Features like online banking or mobile banking apps with expense-tracking tools may help students build financial literacy and good credit habits. Because college students may have limited experience and income, a student credit card may have a low credit limit at first.
Rewards credit cards: Rewards cards earn a percentage of each eligible purchase back as cash back or miles. You may be able to redeem rewards as a statement credit, gift card, and more.

Key features to look for in your first credit card

Knowing what to look for in a first credit card may help you make a choice that fits your budget and lifestyle. Pay careful attention to the terms and rates that the card offers, such as the annual interest rate, introductory APR, and what types of fees may apply. You should also evaluate each card’s benefits and features, like cash back rewards and fraud protection.

Annual percentage rate (APR)

If you don’t pay your entire credit card balance in full each month, the amount you carry over accrues interest charges, leaving you with more credit card debt. Your credit card’s annual percentage rate (APR) determines how your balance accrues interest. Credit card issuers may set your APR based on your credit history and financial situation.

Some credit cards come with a low introductory APR after account opening for new cardmembers. Any balance that builds during the promotional period accrues interest at the lower interest rate.

A low introductory APR credit card may help you finance an expensive purchase, like a new couch, over several months. But any amount that remains at the end of the promotion accrues interest charges at the standard rate. So, it’s important to understand the length of the promotional period and the standard APR.

Credit card fees

Most credit cards come with a few fees. Fees may add up, so it’s important for first-time credit card applicants to understand additional costs. Common credit card fees may include:

Annual fees for keeping your card active. Discover has no annual fee on any of our cards.
Balance transfer fees for moving a high-interest credit card balance to a lower-interest card.
Cash advance fees for borrowing cash against your available credit.
Foreign transaction fees for using your credit card in a country with a different currency. Discover^® has no foreign transaction fee.
Late payment fees for failing to pay your credit card bill by the due date.

Credit building potential

To build good credit history, consider a credit card issuer that reports your payments to the major credit bureaus. When your credit card company reports activity to these bureaus, each timely payment contributes positively to your credit history. Excellent credit habits, like making on-time payments and using only a small portion of your available credit, may help you improve your creditworthiness over time.

Some credit card companies may offer free tools for credit monitoring. With Discover, get a free Credit Scorecard with your FICO^® Score and important information behind it.² You should also keep an eye on your credit report and monthly credit card statement to understand how your financial actions impact your credit over time.

Rewards and incentives

Credit cards may offer many types of rewards and perks for cardmembers. Some common examples include airline miles, cash back on select purchases, and a welcome bonus to add to your rewards. Rewards programs and perks may incentivize responsible credit card use.

To maximize credit card rewards, consider your spending habits. If you take frequent trips, you might look for travel rewards. If you use your card for your everyday spending, a cash back rewards card for gas, restaurants, or groceries may be the right fit.

Choosing a rewards card thoughtfully may make every dollar you spend work harder for you.

Did you know?

The Discover it^® Cash Back credit card lets you earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.

Learn More

How to compare credit cards effectively

With so many cards to choose from, narrowing your options may feel overwhelming. As you compare your choices, look for rewards you’ll use, features that will benefit you, and terms you feel comfortable with.

Utilize credit card comparison tools

Credit card comparison tools streamline the card selection process by compiling information like user reviews, ratings, fees, and rewards. This comparison allows you to quickly evaluate various cards, saving time and simplifying your decision. By offering a comprehensive overview, these tools help ensure you find a card that best matches your financial needs and goals without extensive research.

The bottom line

By comparing factors like interest rates, fees, introductory APRs, sign-up bonuses, credit monitoring tools, and rewards, you may find the best credit card for your lifestyle. Once you find a credit card that checks all the right boxes, you may apply online and get a response quickly. Before long, you may be enjoying credit card rewards and building a strong credit history.

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