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Your first credit card

How to choose your first credit card

published: 08 December 2022
Read time: 5 minutes

Make the most of your first credit card by finding a card that best suits your needs

A credit card can be a useful money management tool - according to our data on young people and credit cards, 59% of 18-24 year olds in the UK have a credit card. But with hundreds of credit cards to choose from – how do you know which is the best first card for you?

When choosing your first credit card, the best way to find one that suits you is to ask yourself what exactly you need a credit card for and your financial situation and goals.  

Our guide can help you navigate the world of credit cards. Then, once you’ve figured out the type of card you want, MoneySuperMarket can help you compare deals, see which cards you’re eligible for and help you apply.

What to consider before getting your first credit card?

Credit cards can be handy but only if you use them wisely. When misused, a credit card can lead to debt problems, which could affect your credit score and make it difficult to secure credit in the future. So, think carefully about why you want a credit card.

Before applying for your first credit card, you should also think about:

  • Representative APR: Providers only have to offer the representative APR – or advertised interest rate – to 51% of successful applicants; the rate you are offered will depend on your financial situation  

  • Credit limit: Your credit limit will also depend on your financial situation and credit history, and you won’t usually know what it is until you receive your new card. You may be able to request a higher credit limit in the future if you pay your bills on time 

  • Credit utilisation ratio: Your credit utilisation ratio is the amount of credit you've used in relation to how much you have available. A lower credit utilisation ratio is usually seen positively. For example, if you want to improve your credit score it’s generally advisable to keep your credit utilisation at 25% or lower.  

  • Introductory APR: Some credit cards offer low or 0% interest rates to attract new customers. However, these interest rates don’t last forever – once the introductory period is over, you’ll start paying the standard interest rate. 

  • Minimum repayments: It’s best to pay off your entire balance each month. But if you can’t do this, you should aim to pay at least the minimum monthly repayment . Failing to do so will damage your credit score and could spell the end of any benefits – including low or 0% interest rate periods.  

  • Fees and charges: If you miss a payment or exceed your credit limit, you’ll probably face penalty fees and charges. Cash withdrawals from an ATM using a credit card will also typically incur fees and immediate interest, while overseas purchases usually trigger separate charges – which can be high.

Man paying with credit card

Am I eligible for a credit card?

Whether or not you can take out a credit card will depend on a number of factors, including:

  • Your age: Most providers will want you to be at least 18 to qualify 

  • Your income: Some credit cards will require you to earn a certain amount or be in full-time employment

  • Your finances: Any county court judgements or bankruptcies can put lenders off giving you credit 

  • Your credit score: Generally, the higher your credit score the easier it’ll be for you to be accepted for credit. You may have a low credit score for various reasons; not having borrowed before or missing credit card payments. Bad credit can make it harder to borrow, but you could borrow from bad credit specialist lenders  

You can avoid being rejected for a credit card – which can damage your credit score - by finding out which cards you’re likely to be offered before you apply using MoneySuperMarket’s handy eligibility checker. We can show you what cards you’re most like to be accepted for without harming your score. 

What are the pros and cons of getting a credit card?

Having a credit card comes with benefits and downsides, including:


  • Breathing space: One of the main benefits of having a credit card is it allows you to make a big purchase and put off payment until later 

  • Improve your credit: If you make your credit card payments on time then you could boost your credit score. Smartly using your credit card can help to improve your credit rating 

  • Cashback and rewards: A rewards credit card can come with benefits such as air miles and even cashback on purchases


  • Lower your credit score: If you fail to keep up with your credit card payments you run the risk of damaging your credit rating. A poor credit score will make it harder to borrow in the future 

  • Debt: If you’re unable to pay back what you’ve borrowed then you could get into debt. If you have bad credit, you’ll face high-interest rates which can make your debt even more expensive  

  • Restricted use: You might be charged for using your credit card to withdraw cash or making purchases abroad

Which type of credit card should I get?

There are lots of different types of credit cards to choose from. Finding the best first credit card for you will depend on how you plan to use it. 

Credit-builder cards

Credit-builder cards can be an ideal credit card for beginners. This is because they allow you to build up your credit history and are aimed at those who have previously struggled with debts and have no or poor credit history. What makes this a good first credit card is that they come with low credit limits, typically up to just a few hundred pounds and higher than standard interest rates.  So you’re not at liberty to overspend, through lack of experience with managing credit.

Credit-builder cards can be easier to get than standard cards, which is one reason they are the most popular choice among 18–24-year-olds, according to MoneySuperMarket data.

Student credit cards 

If you’re at college or university, a student credit card can make a very good first credit card. You’ll usually need a student bank account with the card provider to qualify, but you may be offered a range of benefits, including interest-free purchases for a limited time.  

 As with standard cards, you’ll pay interest if you don’t clear your balance in full each month (outside of any interest-free offer periods). Any missed repayments or failing to meet the minimum monthly repayment is likely to have a negative impact on your credit score. 

Other types of credit cards include: 

How to choose the best first credit card

 The best credit card for you will depend on what you plan on using it for. Here are some credit card features to consider when applying:

  • APR: APR stands for Annual Percentage Rate. APR is calculated by taking into account the interest rate on a credit card and other charges such as an annual fee. Generally, the lower the APR the better, as it’ll cost you less to borrow. When comparing credit cards with MoneySuperMarket, we let you see the advertised APR, so you can decide which is best for you 

  • Travel: If you’re a frequent flyer then a travel credit card could be in your best interest. A travel credit card typically won’t charge you for spending abroad 

  • Rewards: A credit card that comes with rewards could be a smart move for savvy shoppers. With a rewards credit card you gain ‘rewards’ from spending on your credit card ranging from cashback, air miles and shopping points

How to apply for a credit card for the first time?

Applying for your first credit card can seem daunting. Here, MoneySuperMarket breaks down the application process for you: 

  • Explaining why you want a credit card: You’ll usually be asked what you’ll want a credit card for and how it’ll be used. So, decide on the type of credit card you’re after. If you’re looking to build your credit score, then you may want to choose a credit-builder card. If you want to buy something expensive and you’d like to spread the cost, then a purchase credit card could be an option for you. 

  • Providing information: Generally, lenders will ask you for some personal details such as your salary and proof of ID. You’ll need to state your salary, so you can prove you can pay what you will owe.

  • Eligibility:  When applying for your first credit card, eligibility is something that might be on your mind. Compare credit cards with us, so you can find out what cards you’re likely of being accepted for. Knowing which credit cards, you’re more likely to be eligible for, can help you to apply with confidence. 

  • Choose the card: When picking the card you want, you need to remember that different lenders will offer different deals and interest rates, depending on your financial circumstances.

  • Getting the card: Once your application is accepted, you’ll receive your card.  

Other helpful guides:

It can be tricky choosing a credit card for the first time. Let MoneySuperMarket walk you through the different stages of the process with our range of credit card guides... 

Compare credit cards with MoneySuperMarket

Let us help you choose the best first credit card for you. It’s quick and easy. Just tell us a little about yourself and your finances, including your income, employment status, and what you want to use the card for, and we’ll give you a list of options tailored to your needs.

Our free eligibility checker will show you how likely you are to be accepted if you apply for a particular deal. Then all you have to do is pick the card you want and click through to the provider to finalise your application.  

If it’s accepted, your provider will send your card through the post for you to activate.

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.

Compare credit cards