The basic steps to get a credit card

Getting a credit card means finding a bank or credit card company, filling out an process (online, by phone, or in person), and waiting for a decision. The company will check your credit history, verify your income, and decide whether to approve you and what interest rate to offer. If approved, your card arrives in the mail within one to two weeks, and you can start using it right away.

The whole process usually takes less than 15 minutes if you explore online, though the decision itself can take anywhere from when ready to a few business days. Some companies give you a decision on the spot; others review your process and call or email you later.

Key Takeaways

  • You need to be at least 18 years old, have a Social Security number or ITIN, and provide proof of income or assets to explore for a credit card.
  • Credit card companies check your credit report and score to decide whether to approve you and what interest rate to offer you.
  • If you have no credit history or a low score, you may need to start with a secured card, which requires a cash deposit, or find a co-signer.
  • Once approved, your card typically arrives within one to two weeks, and you can use it when ready to build credit history.
  • The interest rate you receive depends on your creditworthiness, so people with higher scores get lower rates on the same card.

What credit card companies look for when you explore

Credit card companies want to know three things: whether you have borrowed money before (your credit history), whether you paid it back on time (your credit score), and whether you have income to pay them back now. They get this information from your credit report, which is maintained by three major companies: Equifax, Experian, and TransUnion.

Your credit score is a number between 300 and 850 that summarizes your payment history. A higher score means you have paid bills on time consistently. Most credit card companies want a score of at least 580 to 620, though cards with better rewards or lower interest rates usually require a score of 670 or higher. If you have never borrowed money before, you have no score yet — you are starting from zero, not from a low number.

The company will also ask about your income, employment, and whether you rent or own your home. They use this to estimate how much money you have available to pay them back each month. You do not need a high income to get approved; you need enough to cover your monthly bills plus the credit card payment.

If you have no credit history or a low credit score

If you have never borrowed money, no credit card company has reported your payment history to the credit bureaus, so you have no score. You are not a risky borrower — you are an unknown borrower. Most mainstream credit card companies will not approve you because they have no way to predict whether you will pay them back.

Your options are a secured credit card or a co-signer. A secured card requires you to put money into a savings account (usually $200 to $2,500) that the card company holds as collateral. You then get a credit card with a limit equal to your deposit. You use it like a regular card, pay your bill each month, and after 6 to 18 months of on-time payments, the company converts it to a regular card and returns your deposit. This builds your credit history so you can move to a regular card later.

A co-signer is someone (usually a family member) who agrees to pay your bill if you do not. They must have good credit themselves. The co-signer's credit is on the line, so this is a serious commitment for them. Some card companies allow co-signers; many do not, so you will need to ask.

The difference between being approved and being denied

If you are approved, the company tells you your credit limit — the maximum amount you can charge to the card. This limit is based on your credit score and income. Someone with a score of 750 and a $60,000 salary might get a $5,000 limit; someone with a score of 620 and the same salary might get a $1,000 limit. The limit is not a reflection of how much you should spend; it is the maximum the company will let you borrow.

If you are denied, the company must tell you why — usually because your credit score is too low, your income is too low, or you have too much existing debt. A denial is not permanent. You can reapply in a few months after paying down debt or building credit history with a secured card. Some companies will reconsider if your situation changes.

What happens after you are approved

Once approved, your card is mailed to the address on your process. When it arrives, you will need to set up it by calling a phone number on the card or using the company's website. Some companies set up it automatically; others require you to do it yourself before you can use it.

Your first bill arrives 20 to 25 days after your first purchase. You will have a due date (usually the same day each month) and a minimum payment amount. You can pay the full balance, the minimum, or anything in between. If you pay the full balance by the due date, you pay no interest. If you pay less than the full balance, the remaining amount is charged interest at your card's annual percentage rate (APR), which varies based on your credit score.

Every payment you make on time is reported to the credit bureaus and builds your credit score. Late payments hurt your score and can trigger a higher interest rate. After six months to a year of on-time payments, you may be able to request a higher credit limit or move to a card with better rewards.

Where to explore for a credit card

You can explore online through a bank's or credit card company's website, by phone, or in person at a bank branch. Online applications are fastest — you get a decision within minutes to a few days. Phone and in-person applications take longer because a representative has to enter your information manually.

Banks (like Chase, Bank of America, Wells Fargo) offer their own credit cards. Credit card companies (like Discover, American Express, Capital One) also issue cards directly. Retailers like Target and Walmart offer store credit cards, which are easier to get approved for but can only be used at that store. Each process is a separate hard inquiry on your credit report, which can lower your score slightly, so explore only to cards you actually want.

Common reasons applications get denied

The most common reason is a credit score that is too low. If your score is below 580, most mainstream cards will deny you. The second most common reason is too much existing debt — if you already owe $20,000 on other cards and your income is $40,000 a year, a new card company may decide you cannot afford another payment.

Other reasons include a recent bankruptcy, a history of missed payments, or too many recent applications. If you applied for three cards in the last month, the fourth company may deny you because they see you as desperate for credit. Waiting three to six months between applications gives your credit score time to recover from the hard inquiries.

If you are denied, ask the company for the specific reason. Some will reconsider if you address the problem — paying down debt, waiting for old negative marks to age off your report, or reapplying with a co-signer. A denial is not a permanent barrier.

Frequently Asked Questions

Do I need a job to get a credit card?

You need income, but it does not have to come from a job. Social Security, disability payments, retirement income, investment income, or money from a spouse or parent all count. You will need to list the source and amount on your process. Some companies verify income; others do not.

What is the difference between a credit card and a debit card?

A debit card pulls money directly from your bank account. A credit card borrows money from the card company, which you pay back later. Credit cards build your credit score; debit cards do not. Credit cards charge interest if you do not pay the full balance; debit cards do not.

Can I get a credit card if I have bad credit?

Yes, but your options are limited. Secured cards, store cards, and cards designed for people rebuilding credit are easier to get approved for than mainstream cards. Your interest rate will be higher, and your credit limit will be lower, but you can use them to rebuild your score over time.

How long does it take to get a credit card after I am approved?

The card is usually mailed within one to two weeks. Expedited shipping is sometimes available for an extra fee. You cannot use the card until it arrives and you set up it, which takes a few minutes by phone or online.

Will explore for a credit card hurt my credit score?

Yes, but only slightly and only temporarily. Each process creates a hard inquiry, which lowers your score by a few points. The impact fades after three to six months. Multiple applications in a short time have a bigger impact than a single process.