Credit cards can be an important tool in building a healthy financial future. When used responsibly, credit cards can help you build a solid credit history, making it easier for you to finance major purchases – like a home or car – in the future.
Even if you don’t have a particularly good credit history, you can still qualify for a credit card. We sat down with Chase Bank and they explained how you can apply for a credit card, what to look for in a credit card, and how credit cards can help you achieve your future financial goals.
How do I start?
If you already have a checking or savings account in good standing, consider applying for a credit card through your current bank. You can apply online or visit a bank branch and work with a representative there. Be sure to research all of your credit card options.
You can also apply for the card online at any financial institution. Wherever you apply, you will typically be required to provide your social security number or individual tax identification number, sources of income, and proof of monthly housing or rent.
What should I look for in a credit card?
You may find it helpful to find a card with no annual fee so you don’t have to spend money on the card out of pocket. You should make sure your credit card issuer reports to all three credit bureaus. This will help you build your credit history across the board and improve your chances of getting credit cards and loans in the future.
How can I build credit with credit cards?
There are many ways to borrow with credit cards and improve your credit score. Pay on time and avoid “overdrawing” your card. Keep your balance low by keeping your credit usage under 30% of the card limit.
The best way to build a credit history is over time, so make sure your credit card account stays open even if you don’t use the card often.
What if I don’t have a credit history?
While this probably won’t prevent you from getting a credit card entirely, it may impact the types of cards and terms you’re approved for.
Card issuers consider factors such as your credit score, income and employment. Your credit history greatly influences your credit score, so if you don’t have a credit history, your card may come with higher interest rates. You may also have a lower credit limit because you haven’t yet proven you can pay money back on time.
Finally, making on-time payments can help you build a good credit history, which may earn you lower interest rates and higher credit limits.
If you don’t qualify for a regular credit card, consider starter credit cards for credit beginners. These include:
- Credit cards for students. These cards are typically designed for students who have never had a credit card before and are looking for helpful benefits, such as no annual fees.
- Save credit cards. Retailers may approve a card for applicants with a poor credit history. Store cards typically have a higher interest rate, but payments still become part of your credit profile. Remember to pay off the balance each month to avoid interest rate increases.
You can also ask to become an authorized user of someone else’s card. If the other person makes their payments on time, that will also affect your credit report.
Get good credit with credit cards
Applying for and using a credit card responsibly can be a step toward building a solid financial future. As you build your credit history, you can use tools like Chase Credit Journey to review and monitor your credit score so you can stay on top of your financial goals.
+++
For informational/educational purposes only: The views and strategies described may not be suitable for everyone and do not constitute specific advice/recommendations for any particular person. The information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not guarantee its completeness or accuracy.
Deposit products offered JPMorgan Chase Bank, NA Member FDIC
© 2024 JPMorgan Chase & Co.
