How To Get Your First Credit Card

Understand the credit card landscape for young adults

Man holding credit card — Tara Moore Getty Images

Getting approved for a first credit card can be tough, especially if you're younger than 21 and more so if you don't have a job.

Federal law requires adults younger than 21 to have verifiable income before they can be approved for a credit card without a cosigner. Income must be from a job. However, child support or government benefits may allow you to be approved.

If you don't have income, then you'll have to find someone who's willing to open a joint credit card with you or make you an authorized user on one of their credit cards.

Another thing that makes it tough to get a first credit card is an insufficient credit history.

Know where to go to get your first credit card

Female customer handing credit card to store owner for payment — Hero Images Getty

If you're enrolled in college, you have a good chance of getting approved for a student credit card from a major credit card issuer. However, some student credit cards have high interest rates and annual fees, both bad options for a first credit card.

If you've been responsible with a checking or savings account, try applying for your first credit card at your bank. An existing banking relationship can improve your chances of getting a credit card application approved, especially if you've handled your account responsibly. You can apply online, but visiting a bank branch would put you face-to-face with a representative who may have more authority to get your application approved.

Retail and department stores typically have more favorable approval odds. On the downside, they have high interest rates that make it expensive to carry a balance from one month to the next. Another downside of these cards is they aren't versatile—you can use them only in that store. However, retailers often encourage spending by offering discounts for using the card and having a retail store credit card as your first credit card can help you build up a good enough credit history to apply for a major credit card within a few months.

When your lack of credit history keeps you from getting a standard credit card, you can apply for a secured credit card. You make a deposit against the credit limit of the account. The bank holds the deposit just in case you don't make your payments as agreed. You may have the chance to convert it to an unsecured credit card later on. Be sure the card issuer reports payments to the credit bureaus so you can build credit and eventually get an unsecured credit card.