A Guide To Opening Your First Credit Card
Opening your first credit card is one of the rites of passage into genuine adulthood, but with so much conflicting information, it can all get confusing fast!
Let First City walk you through the process to help you build a strong credit score and credit history that will serve you well throughout your life.
Choosing a credit card
The way people typically build a credit history is by opening a credit card. But ironically, many credit cards won't accept your application because you don't yet have that credit history!
You'll need to build your credit history from the ground up, starting with cards that offer a very low limit or a secured credit card, such as our Secured Visa Platinum. Our Secured Visa Platinum credit card is funded by a specific designated dollar amount in your shared savings account, which would also be your credit limit for the card. Once you feel you've established enough credit history, you can always apply for a regular unsecured credit card. You can always stop by any of our branch locations and ask about our credit cards or visit our website.
Don't apply to just any card that'll have you. Look for these features when making your choice:
- No annual fees. You shouldn't have to pay money to use your card. Sometime in the future, you may want to open up a high-perk card with an annual fee to match, but for now, just concentrate on building your credit score.
- A low interest rate. For your first credit card, you likely won't be offered a really low interest rate, but that doesn't mean you should be taken for a ride. Shop around for a card offering a reasonable rate, maybe only slightly higher than the average rate.
- Incentives for good behavior. Why not earn brownie points for playing by the rules? Look for a card that offers incentives, such as a bonus each month when the bill is paid on time, a waived first late-payment fee or no foreign-transaction fees.
Credit card dos and don'ts
Once you've opened your card, or cards, make sure you use them to build and maintain that excellent score. Follow these guidelines and you won't go wrong:
- Pay your bill on time each month.
- Check your credit score monthly.
- Review your statements for suspicious activity.
- Keep your cards in a safe place.
- Accept offers of a higher line of credit.
- Pay just the minimum balance due each billing cycle.
- Open new cards just before taking out a large loan, like a mortgage or auto loan.
- Use all of your available credit.
- Allow unsecured websites to save your card information.
- Share your card information with anyone.
Your Turn: Did you recently open your first credit card? Share your best tips on the process with us in the comments!