How to get your first credit card

Thinking of getting a credit card for the first time? Read our guide to find out if a card is right for you, how to choose one and what you need to do to get accepted.

Is it a good idea to get my first credit card?

Credit cards have several advantages, but they also have risks and so don’t suit everyone. Below are some important things to know before you apply for your first credit card.

Protection on your purchases

Credit card purchases between £100 and £30,000 are usually protected under Section 75 of the Consumer Credit Act 1974. These rules mean your lender should help you if there’s an issue with your purchase, like the retailer failing to deliver the goods or services you’ve paid for. Some people get their first credit card to protect an important purchase, like airline flights.

Credit limits

You can spend up to an agreed amount on your card – this is called your credit limit. Cards are often advertised with a range or maximum limit. The actual limit you’ll be offered will depend on things like your credit score and income.

Revolving credit

Credit cards are a type of revolving credit which means you can use and repay up to your credit limit as often as you like (as long as you stick to the lender’s terms). This is different from loans where you borrow a set amount and your loan ends when you’ve paid back the amount borrowed plus any charges.

Flexible monthly payments

With a credit card, you can choose how much you pay off each month as long as it’s at least the minimum amount. You’ll see the minimum amount on your monthly statement, along with the payment deadline and the total amount you owe (called your balance). You should make payments on time and in full — late payments lower your credit score and can lead to fines, defaulting and even legal action. Paying off your full balance means you won’t be charged interest. If you carry your balance to the next month you’ll pay interest on it, which can get expensive as credit cards typically have high interest rates.

Interest, fees and APR

Interest is the cost of borrowing. It’s calculated as a percentage of the amount you owe, called the interest rate. Lenders may also charge annual fees, as well as fees for things like balance transfers, cash withdrawals, international transactions and late payments. The annual percentage rate (APR) reflects the cost of interest and some fees — so it can be helpful to look at this when you’re comparing credit cards.

What credit score do I need to get my first credit card?

A higher score means you’re more likely to get approved for credit. But there’s no magic number that guarantees approval. Each lender has their own criteria, meaning some may refuse you credit while others may accept you. Lenders won’t tell you their criteria. But Experian can help you skip the guesswork. When you search cards with us, we calculate your chances of approval based on your unique data.

We're a credit broker, not a lender^†

Will a credit card hurt my score?

Your score dips when you apply for a credit card because a hard credit check is recorded on your credit report. But your score should recover over time if you take care of it. How you manage your card can also affect your score. Paying the full balance on your card each month should improve your score, whereas late payments and carrying a large balance will lower it.

Do I need a credit card to build credit?

Your credit history helps lenders understand how likely you are to pay them back. They may be less likely to approve you for a card if you have little or no credit history, which is common if you’re new to the UK or have never used credit before. Getting your first credit card is one way to build good credit as long as you pay off your balance in full each month.

There are other ways to build credit and improve your score, including:

• Making mobile phone contract payments on time and in full
• Making monthly utility payments (like gas and electricity) on time and in full
• Registering to vote at your current address
• Sharing information about your regular spending, such as digital subscriptions and Council tax payments, with Experian Boost.

What’s the best credit card for beginners?

Credit-builder cards can be a good credit card for beginners as they’re typically easier to get approved for and have lower limits. You may have to accept a higher APR but remember you won’t pay interest if you pay the full balance each month.

Credit-builder cards aren’t right for everyone. Some alternatives include:

• Purchase cards – these can help you spread a large expense over time. They often come with an interest-free promotional period. Try to pay off your balance before this period ends and you’re put on the lender’s standard variable rate which is typically high.

• Money transfer cards – these let you borrow cash from your card by transferring an amount to your bank account. Like purchase cards, money transfer cards often have a 0% promotional period, after which your rate will go up. There’s usually a fee for each transfer.

• Rewards cards – these cards offer rewards such as air miles or cashback. Check the lender’s conditions for earning and spending them. There’s often an annual fee so make sure it doesn’t outweigh the value of your rewards.

• Travel cards – these can be a cheaper way to spend abroad. They typically offer the best currency exchange rates and don’t charge for international transactions. They’re usually not suitable for long-term borrowing due to high APRs.

We're a credit broker, not a lender^†

How do I choose my first credit card?

What’s suitable for one person might not be right for another. When choosing your first credit card, here are some things to consider:

• Why do you want your first credit card? Are you looking to build credit, spread a large expense, borrow cash, earn rewards or spend money abroad? Knowing why helps you choose the right type of credit card.

• What’s your credit score? You can check your Experian Credit Score for free. Your score is updated every 30 days if you log in. You’ll usually need a good credit score to get a purchase, money transfer, rewards or travel card. If your score is less than perfect, you may be able to get a card for bad credit.

• What can you afford? Think about how much you really need to borrow and how to track your credit card spending. It may be wise to get a lower limit while you’re getting used to your first credit card.

How should I find my first credit card?

Search the market to find the best offers. Comparing credit cards with Experian is free, takes less than two minutes and won’t affect your credit score. Plus, we calculate your eligibility so you can apply with confidence. Look out for the pre-approval label — this means you should get approved at the rate shown if you apply.

We're a credit broker, not a lender^†

How do I apply for my first credit card?

Applying for credit cards can usually be done online or over the phone. The lender will ask about things like your full name, date of birth, address history, income, employment and monthly spending. They may ask for photo ID, payslips and other evidence.

How should I manage my first credit card?

Using your card responsibly can protect your score and help you get approved by other lenders in the future. Pay at least the minimum amount each month but more if you can afford it. Clearing the full balance each month means you won’t hurt your score or pay interest. If things change in the future and your card isn’t right for you anymore, consider switching cards. Just be aware that closing unused cards may affect your score.