The basic steps to get a credit card

Getting a credit card means finding a bank or credit card company, filling out an application with your personal and financial information, and waiting for them to decide whether to approve you. Most applications take 5 to 10 minutes online, and you'll get a decision within a few days to a few weeks. If approved, the card arrives by mail within 7 to 10 business days.

The company checks your credit history and income to decide whether you're likely to pay them back. If you have no credit history yet—because you've never borrowed money before—you may need to start with a secured card, which requires a cash deposit, or ask someone with established credit to co-sign your application.

Key Takeaways

  • You can apply for a credit card online, by phone, or in person at a bank branch, and most decisions come back within days.
  • The card company will check your credit report and ask for proof of income, so have your Social Security number and recent pay stub or tax return ready.
  • If you have no credit history, a secured credit card (backed by your own cash deposit) is often the easiest first card to get.
  • Once approved, your card arrives by mail and you activate it by calling the number on the back or using the company's app.
  • You can use the card immediately for purchases, but you'll receive a bill each month showing what you owe and when payment is due.

What information you need to have ready

Before you start an application, gather your Social Security number, a government-issued ID (driver's license or passport), and proof of income. Proof of income can be a recent pay stub, a tax return from the past year, or a bank statement showing regular deposits if you're self-employed.

You'll also need your current address and contact information. If you're applying online, the company will ask for your email address and phone number so they can reach you about your application. Have your monthly rent or mortgage payment amount handy—they'll ask what percentage of your income goes to housing.

Where to apply: banks, credit card companies, and online

You can apply through a bank where you already have a checking or savings account, through a credit card company's website, or through a third-party website that shows you multiple card options. Applying through your own bank is often easiest because they already know your account history and may approve you faster.

Major credit card companies like Visa, Mastercard, American Express, and Discover each have their own websites where you can see their card options and apply directly. Online-only banks like Chime, Marcus, and Ally also issue credit cards. If you're not sure where to start, your current bank's website usually has a "credit cards" section that shows what they offer.

How the approval process works

When you submit your application, the card company pulls your credit report from one or more of the three major credit bureaus: Equifax, Experian, or TransUnion. Your credit report shows your borrowing history—past loans, credit cards, whether you paid on time, and how much debt you currently carry. If you've never borrowed before, your report will be blank, which is why first-time borrowers often get denied.

The company also verifies your income by checking the information you provided against public records or by contacting your employer. They calculate your debt-to-income ratio, which is the percentage of your monthly income that goes to debt payments. If that ratio is too high, they may deny you even if your credit is good.

You'll receive a decision by mail or email, usually within 5 to 10 business days. If approved, the letter will tell you your credit limit—the maximum amount you can charge to the card. If denied, the letter will explain why, and you have the right to request a free copy of your credit report to see what information they used.

What to do if you're denied

A denial usually means one of three things: no credit history, too much existing debt, or a mistake on your credit report. If you have no credit history, apply for a secured credit card instead. A secured card requires you to put down a cash deposit—usually $200 to $2,500—which becomes your credit limit. You use it like a regular card, and after 6 to 18 months of on-time payments, the company converts it to a regular unsecured card and returns your deposit.

If you were denied because of existing debt, wait a few months while you pay down what you owe, then apply again. If you suspect a mistake on your credit report, you can request a free copy from AnnualCreditReport.com (the only official site for free reports) and dispute any errors directly with the credit bureau.

Another option is to ask someone with good credit—a parent, spouse, or trusted family member—to co-sign your application. The co-signer agrees to pay your bill if you don't, which gives the card company more confidence. Be aware that late payments will hurt both your credit and theirs.

Activating your card and making your first purchase

When your card arrives in the mail, you'll see a phone number on the back. Call that number and follow the prompts to activate the card—this usually takes less than a minute. Some card companies also let you activate through their mobile app instead.

Once activated, you can use the card immediately at stores, online, or anywhere that accepts that card brand. The card company will send you a bill each month (usually by email or mail, depending on what you chose) showing what you charged, your minimum payment due, and the date the payment is due. You can pay online through the company's website or app, by phone, or by mail.

Understanding your first bill and avoiding fees

Your first bill will arrive 3 to 6 weeks after you make your first purchase. It shows the total amount you charged, the minimum payment (usually 1 to 3 percent of what you owe), and the due date. You must pay at least the minimum by the due date to avoid a late fee, which is typically $25 to $35.

If you don't pay the full balance, the card company charges interest on what's left over. Interest rates for credit cards vary widely—from 15 percent to 30 percent annually depending on the card and your creditworthiness—so carrying a balance gets expensive fast. To avoid interest, pay your full balance by the due date each month.

Watch out for other fees: annual fees (charged once a year just for having the card), foreign transaction fees (if you use the card abroad), and cash advance fees (if you withdraw cash using the card). Many cards aimed at first-time borrowers have no annual fee, so look for that when comparing options.

Frequently Asked Questions

How long does it take to get approved for a credit card?

Most decisions come back within 5 to 10 business days by mail or email. Some online applications give you a decision instantly or within 24 hours. Once approved, the physical card arrives by mail within 7 to 10 business days after that.

Can I get a credit card without a credit history?

Yes, but you'll likely need a secured card, which requires a cash deposit equal to your credit limit. After 6 to 18 months of on-time payments, most issuers convert it to a regular card and return your deposit. Alternatively, ask someone with good credit to co-sign your application.

What's the difference between a credit card and a debit card?

A debit card pulls money directly from your bank account when you use it. A credit card borrows money from the card company, and you pay them back later. Credit cards build your credit history when you use them responsibly, while debit cards do not.

Do I have to pay interest on my credit card?

Only if you don't pay your full balance by the due date each month. If you pay the entire amount you charged, no interest is charged. Interest rates typically range from 15 to 30 percent annually, so carrying a balance gets expensive quickly.

What happens if I miss a payment?

You'll be charged a late fee (usually $25 to $35) and interest will start accumulating on your balance. Missing payments also damages your credit score, making it harder to borrow money in the future. If you miss a payment, pay as soon as you can to minimize the damage.