How to apply for your first credit card - Be Clever With Your Cash

A credit card can be a really useful financial tool – you can use it to spread the cost of big payments, to build up your credit history, for extra consumer protection when spending, or to collect rewards like cashback or travel discounts

If you’ve never had a credit card before, it can be slightly overwhelming deciding which one to choose – as there are credit cards for just about anything. It’s important to be aware of the charges involved too, it can be tempting to overspend with a credit card but everything you borrow must be paid back – often with interest.

Here we explain everything you need to know if you’re considering opening your first credit card.

In this article

1 How to get a credit card for the first time

2 Are there any special offers for first-time credit cards?

3 What should I use my credit card for?

4 What shouldn’t I use my credit card for?

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How to get a credit card for the first time

It’s relatively straightforward to apply for a credit card, although there are some checks you’ll need to carry out before it’s approved and you can start spending.

Check you are eligible

First things first, not all credit cards are suitable for everyone and you will need to meet certain requirements before you can take one out. If you’ve chosen a credit card you would like to apply for, check what the provider is looking for. It may only accept people with a minimum income, for example, or those with an excellent credit score.

If you apply and you don’t meet these requirements, it can have a negative impact on your credit score – as every hard credit application will remain on your credit report for other lenders to see. Using a free eligibility checker is key here – as it will give you an idea of the types of cards you will be eligible for, and only uses a soft search so no mark is left on your credit record.

Choose the right card

Before applying for your first credit card, have a think about what you will use the card for. It might be for one (or several) of the following reasons:

To spread the cost of a big purchase you’re making, such as a holiday for example. You may be able to buy the holiday with a 0% purchase credit card and then pay it back over a certain period of months with no interest applied. Just remember if you don’t pay it off in this time you will start paying interest on anything owed
To build your credit score, opening a credit card and using it responsibly can help. If you’ve never had a credit card before your credit history is likely to be limited so using a card and paying it back each month can slowly push your credit score up
To collect rewards you will want a rewards card, just make sure the rewards you’re getting will actually be used (there’s no point using a rewards card with flight discounts if you never fly anywhere, for example)
For cashback, where you get paid a set amount of cash whenever you use your card you’ll want a cashback credit card.
For emergency spending, a credit card can be handy, especially an unexpected expense you weren’t prepared for. Just remember you will pay interest on anything owed
For cheaper overseas spending you’ll want a travel credit card, with low or no fees for using it abroad

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Prepare your details

You will need to give certain details when you apply for your first credit card. What you need will depend on the provider and the credit card but usually you’ll need to give the following:

Your name, contact details and address (often with a recent utility bill)
Your job and annual income
Details about any other debts you have
Your ID (a passport or driving licence)
A linked bank account (where you’ll make repayments)

Submit the application

You can apply for a first credit card in several ways – online, through an app, in a bank branch or sometimes by post. You will need to submit an application and at this point the provider will run a hard credit check. It will also run its own checks before agreeing to give you the credit card.

Depending on how it sees you, you may be offered a credit card, you may be offered one with a higher interest rate or lower borrowing limit, or they may reject you. If you’ve already used an eligibility checker you should have a pretty good idea if you will be accepted or not but these aren’t always 100% accurate.

If you are rejected, don’t panic – there are lots of reasons why this might happen and it’s important not to apply again for more credit until you’ve got an understanding as to why this has happened. If you’re accepted but you’re not happy with the interest rate or borrowing limit, you don’t have to accept the card either.

Manage repayments

You’ll need to make sure you set up a plan to pay off your credit card as late or missed payments can lead to damage to your credit score. Setting up a direct debit is one of the easiest ways to do this as it will automatically make the payments each month.

Are there any special offers for first-time credit cards?

There are often deals and discounts for new customers when signing up for a credit card. The first step is to decide what you need the credit card for, as this will help you to decide the type of credit card to apply for.

Then look at the interest rate charged and any benefits included. It may be the case that the card offers an extended 0% period for anything you buy, for example, or a higher cashback rate for the first few months.

Whatever card you go for, always compare the different options and use an eligibility checker before making an official application.

What should I use my credit card for?

Credit cards are useful when used correctly and can be very damaging if used incorrectly. Some of the things you could use a card for include:

One-off spending for unforeseen things
Overseas spending
Collecting rewards and discounts
Getting cashback
Spreading the cost of a big purchase

What shouldn’t I use my credit card for?

Credit cards are a unique way to spend, but whatever you use one for it’s important to remember that you are borrowing the money – and you will need to pay it back. You should also avoid using one for the following:

Spending more than you can pay back
Long-term spending
Withdrawing cash (you’ll be charged a higher interest rate for this)
Paying for essential things (such as utility bills or grocery shopping)