How to Choose Your First Credit Card

## Getting Your First Credit Card Your first credit card is an important financial milestone. It's your opportunity to start building a credit history, which affects everything from future loan rates to apartment applications. ## Types of Starter Cards ### Secured Credit Cards Secured cards require a cash deposit (usually $200-$500) that serves as your credit limit. They're the easiest to get approved for and are designed specifically for building credit. ### Student Credit Cards If you're a college student, student cards offer lower credit limits and more forgiving approval requirements. Many come with rewards tailored to student spending. ### Store Credit Cards Retail store cards are often easier to get approved for but typically have higher interest rates and limited use. ## What to Compare ### Annual Fee Many starter cards have no annual fee. Avoid paying a fee unless the card offers significant benefits. ### Interest Rate (APR) While you should aim to pay your balance in full each month, knowing your APR matters for months when you can't. ### Rewards Some starter cards offer cashback or points. Even small rewards add up over time. ## Building Credit Responsibly 1. **Pay on time, every time** — payment history is 35% of your credit score 2. **Keep utilization low** — use less than 30% of your credit limit 3. **Don't close old accounts** — length of credit history matters 4. **Monitor your credit** — use free tools to track your progress