When applying for a credit card, it can be overwhelming when you’re unfamiliar with the details that go into the process of a first application. It’s not only necessary to be aware of your credit standing but pay attention to the rewards available within that credit range. 

In the beginning, a credit profile will be nil, making the score less than favorable. That can mean you won’t necessarily be approved for the cards you are most interested in; credit opportunities are limited for those with little to no credit history or poor standing. 

Premium cards require good to excellent credit, which starts at roughly “670 on a FICO credit rating scale.” When applying for credit, the issuer assesses the credit profile before either approving or rejecting the application.  

If there are minimal details to render you a good borrower, the credit card company will find the application too risky for a credit opportunity and deny the request. As the borrower, it’s in your best interest to be fully prepared when applying for credit, which involves checking your credit standing. 

You can then apply with issuers specializing in working with credit ranges comparable to yours. You can also take the time to improve your profile and score before making a formal application. 

Tips To Know Before Getting a First Credit Card 

When searching for a first and beste kredittkort or best credit card, a first step in the process is to research your credit profile and score to see where you stand. With limited to no credit history or one that’s less-than-favorable, it will be less likely that you’ll have your choice of cards.  

An issuer expects prospective cardholders to carry a good to excellent score for many of the top-notch and unsecured cards. Typically, if you need to build or improve your credit status, a card specifically designed to help with your status is required. One such card is a secured credit card. 

Secured credit cards 

A secured credit card gives those with little chance for a traditional card the opportunity to improve and build to the unsecured cards. The secured choices are easier to get approval since the card companies require a refundable security deposit upfront with those.

That deposit will serve as your credit limit, often roughly “$200 to $500.” These are not for someone who needs a credit line or to borrow funds. The secured card is more of a possibility when you have some cash to help reestablish your credit.  

Cash Back/travel points 

For those with good credit, approval is more likely for rewards credit cards. These come in two primary categories with either cash back or travel points. The concept is relatively simple with cash back, with a percentage of qualifying purchases being returned almost like a discount. 

With some cash-back rewards cards, consumers will receive as much as “2 percent cash rewards on qualifying purchases. That will mean $2 back if you spend $100. Cash rewards can be redeemed for discounts on statements or deposited into your debit account. 

Travel rewards are more complex, particularly if you’re a new user. You earn miles or points with a travel card that you can redeem for flights, cruises, car rentals, and hotels, among other holiday-type purchases.  

With some travel cards, the rewards equate to approximately “1.25 miles for each dollar spent on a qualifying purchase.” With these miles, you can book travel through those carriers’ travel portals or use these for travel-related purchases in other venues. 

Why Avoid Applying for Too Many Credit Cards 

When applying for many cards quickly, your credit profile will show several inquiries, decreasing your score and appearing risky to other lending providers, making the approval process more difficult for credit.  

The recommendation is to apply for only one card at a time and then wait a couple of months before making another formal application.  

That time span allows the credit score an opportunity to recover from hard credit pulls, and it will allow you more time to make the best decision as to which card is most suited to your lifestyle and needs. Go here for guidance on choosing and applying for a credit card. 

Do You Have Adequate Income for a Credit Card Application 

A primary part of a credit card application is income, regardless of how you apply, whether online or in person. A consumer does not have to have a specific income to obtain a credit card, but this amount will be reflected in your approval and credit limit. 

Anyone over the age of 21 has the opportunity to list income for which you have “reasonable expectation of access.”  

That means you can include your primary employment salary, monies from a spouse if you have access, side gig or freelance income, or parental allowances. A student can use funds left over after tuition has been satisfied from grants and scholarships. 

What Are the Guidelines When Paying Credit Card Debt 

Carrying a small balance from one month to the next with your credit card balance is not good for your credit; this is a myth. The only result will be an accrual of interest on the balance, regardless of the amount carried over.  

A good rule of thumb is to use credit like a debit card with stringent limitations, only buying what you can pay for with that coming invoice. This will allow full payment each month and no balance carried over to the next month, meaning no interest accrual or other fees and charges. 

If you can’t pay the full invoice, at least pay the minimum amount due instead of ignoring the payment. Neglecting statements can result in serious credit issues, with the likelihood of the score falling. 

Avoid Canceling Credit but Instead Upgrade It 

When obtaining a first credit card and handling it responsibly for a certain period, you will build a credit profile or improve the one you have, allowing you to qualify for a higher category of cards. Still, you want to avoid closing the account since it will then delete that credit history from your profile. 

 Unless you’re receiving fees and charges on the account, there’s no reason to close out the account. Instead, you can apply for new credit while maintaining the old card, keeping it tucked away for occasional use to keep it up-to-date.  

You can also call the current issuer to try to graduate from a secured to an unsecured or an unsecured to a rewards card. When applying with the same issuer, there should be no need for a new application process or hard credit pull. When upgrading to a better card, you could see a higher limit or a better rate. 

A priority is to be authentic on the application when answering questions regarding lifestyle and finances. You might feel it necessary to inflate income and diminish debt responsibilities to show the credit provider that you’re financially responsible or creditworthy. 

A credit application is a legal document with repercussions, including penalties like extensive fines and jail time for being caught lying on the form. Lying or exaggerations are considered fraudulent behavior when dealing with a credit application. 

Final Thought 

A credit card can be a valuable financial tool for those looking to establish or build credit or anyone who needs to pay for unexpected or unavoidable expenses. Still, limiting the use as you would with a debit card is essential to avoid creating excessive debt or debt you can’t afford.  

When researching for credit as a first-time cardholder, it’s essential to prioritize the most critical factors for you with a new credit card and determine how you will manage usage and payments added to your monthly expenditures.  

The best choice will fit your lifestyle and satisfy your specific needs but won’t lead you down a cycle of debt.