Choosing your first credit card
Key takeaways
Credit cardsallow you to make a purchase now but pay at a later date
Credit cards can help you spread your payments, protect your purchases, earn cashback and rewards and improve your credit score
If you don't use your credit card responsibly you risk getting into credit card debt and making borrowing more difficult in the future
A credit card can be a useful money management tool. 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.
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.
Video text transcript
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.
If you want to build your credit score, credit-builder cards allow you to build up your credit history and are aimed at those who have no credit history or a poor credit history, because they've previously struggled with debts. They come with low credit limits, typically up to just a few hundred pounds, and higher than standard interest rates.
If you need to make a big purchase, purchase cards give a low or 0% interest rate for an introductory period, which can help spread the cost of making purchases by giving you longer to pay it off. This can be particularly useful for one-off expensive purchases, such as a new washing machine or boiler, for example, but the money will need to be paid back eventually.
If you want to earn rewards when you spend, reward cards offer incentives such as cashback, shopping points, or air miles when you use the card, so make sure the rewards are going to be useful for you when you sign up.
If you want to spend abroad without incurring non-sterling transaction fees and protect purchases when travelling, travel credit cards can help you keep down the cost of spending abroad by offering features such as fee-free purchases and more favourable exchange rates.
Credit cards are handy, but can lead to debt problems if misused which could make it difficult to borrow in the future. You should consider a card’s interest rate, credit limits, minimum repayments, and fees before applying.
It’s quick and easy to apply for your first credit card , 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.
Which type of credit card should I get?
There are 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.
The best first credit card depends on what you want to use it for.
If you want to... | You could get a... | Things to consider |
|---|---|---|
Build or establish your credit history | Usually lower credit limits and higher APRs | |
Spread the cost of a purchase | Check how long the introductory rate lasts | |
Earn cashback or rewards | Rewards may come with spending requirements or fees | |
Move existing credit card debt | Check the transfer fee and when the 0% period ends | |
Spend abroad | Check foreign transaction and cash withdrawal fees | |
Get a student-specific card | Eligibility may require a student bank account |
You don't necessarily need a specialist "first credit card". The most suitable option will depend on your credit history, income and how you plan to use the card.
Here is more information to help you make your choice:
I want to build my credit score
Credit builder cards allow you to build up your credit history and are aimed at those who have no credit history or a poor credit history, because they've previously struggled with debts.
They come with low credit limits, typically up to just a few hundred pounds, and higher than standard interest rates.
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.
I need to make a big purchase
Purchase cards give a low or 0% interest rate for an introductory period, provided you make at least the minimum payment each month. This gives you longer to pay it off and effectively helps spread the cost of making purchases.
This can be particularly useful for one-off expensive purchases, such as a new washing machine or boiler, for example, but the money will need to be paid back eventually.
I want to earn rewards when I spend
Reward cards offer incentives such as cashback, shopping points, or air miles when you use the card, so make sure the rewards are going to be useful for you when you sign up.
Also, take note of the terms of conditions. Interest rates can be high if you don’t clear your balance and missed payments could result in heavy penalties. Certain rewards cards can sometimes come with a monthly fee too.
I want to pay less interest on my debt
Balance transfer cards allow you to transfer existing debt onto a new card offering a lower or zero interest rate for a limited time.
There is usually a one-off fee for moving the debt, but the savings you make from reduced interest payments often make it worthwhile.
As with all credit cards, it’s important to keep up with minimum repayments and understand when the interest-free period expires and a higher interest rate kicks in.
I want a credit card for travelling
Foreign transaction fees and exchange rates on purchases can quickly add up, but travel credit cards can help you keep down the cost of spending abroad by offering features such as fee-free purchases and more favourable exchange rates.
Interest rates can be higher if you don’t clear your balance in full, so it’s important to use the card responsibly.
I want a credit card to help as I study
If you’re at college or university, a student credit card can make a good first credit card.
You may 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).
Missed repayments, or failing to meet the minimum monthly repayment, is likely to have a negative impact on your credit score.
What should I look for in my first credit card?
Credit cards can be handy, but can lead to debt problems if misused, which could make it difficult to borrow in the future. Before applying for your first credit card, you should think about:
Interest rate
The higher it is the more you’ll owe if you don’t clear your balance in full each month. Providers only have to offer the advertised interest rate – or representative APR – to 51% of successful applicants, so the rate offered will depend on your financial situation.
Introductory interest rate
Some credit cards offer a low or 0% rate to attract new customers. However, these interest rates don’t last forever – once the introductory period is over, you’ll be charged interest at the standard rate, which will be substantially higher.
Credit limit
Your credit limit will depend on your financial situation and credit history and you won’t usually know what it is until you receive your new card. While you can’t choose your credit limit, you need to be aware of it so you don’t exceed it, which could result in declined transactions or additional charges.
Credit utilisation ratio
Refers to the amount of credit you've used in relation to how much you have available. If you want to improve your credit score it’s generally advisable to keep your credit utilisation at 25% or lower. This suggests your finances are not being stretched to the limit.
Minimum repayments
If you can’t pay off your entire balance each month, 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 may trigger separate charges – which can be high.
What first time credit card offers are available in the UK?
When you’re applying for your first credit card, you’ll often find deals designed especially for beginners. These cards usually have smaller credit limits and straightforward features, helping you to build your credit history without taking on too much risk. Typical benefits include:
0% interest on purchases for a set period: this can help you spread the cost of essentials or larger items, provided you clear the balance before the deal ends.
Low or no annual fee: so you don’t pay extra just to have the card.
Simple rewards or cashback: some starter cards may give a small percentage back on your spending or discounts with certain retailers.
Accessible credit limits: usually lower than with regular credit cards, so you can borrow manageable amounts while you learn how to handle credit.
These features are designed to help you borrow affordably while you establish a positive repayment record. Always check the terms carefully and be clear on what interest rate will apply after any introductory deal finishes.
What are the pros and cons of getting a credit card?
Advantages
Breathing space: One of the main benefits of having a credit card is it allows you to make a big purchase and spread the payments out, or delay them, until a later date.
Improve your credit rating: If you make your credit card payments on time then you could boost your credit score, helping you borrow more, and at better rates, in the future.
Cashback and rewards: A rewards credit card can come with benefits when you make a purchase such as cashback, air miles or points that can be redeemed for vouchers.
Disadvantages
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.
Hidden’ fees: You might be charged for using your credit card to withdraw cash or making purchases abroad. Our guide to credit card fees and charges explains more.
What are the differences between credit cards and debit cards?
If you’re new to managing money, it’s useful to understand how credit cards differ from debit cards. Debit cards are simple and low-risk, while credit cards can help build your financial history and give you extra protection.
Spending power: Credit cards let you borrow up to a set limit, while debit cards only allow you to spend the money already in your account, unless you have an overdraft.
Credit history: Using a credit card responsibly can help build your credit score. Debit cards don’t affect your credit record.
Interest and fees: With a credit card, you’ll pay interest if you don’t clear your balance in full, and there may be late payment fees. Debit cards don’t charge interest, but going into an overdraft can trigger fees.
Purchase protection: Credit cards can offer extra protection on purchases between £100 and £30,000 under Section 75 of the Consumer Credit Act. Debit cards don’t provide this, although chargeback may still apply.
Risk of debt: Credit cards often carry a higher risk because you can borrow money you don’t have. Debit cards are usually lower risk because you’re only spending your own funds, unless you go into an overdraft.
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:
How do I apply for my first credit card
Before making an application, it's worth checking your eligibility first. This can help you avoid applying for cards you're unlikely to get.
1. Decide what you need the card for
Think about whether you want to build credit, spread the cost of a purchase, earn rewards or use the card abroad.
2. Check your eligibility
Use MoneySuperMarket's eligibility checker to see which cards you're likely to be accepted for. It uses a soft credit search, so checking your chances won't affect your credit score.
3. Compare your options
Look at the APR, credit limit, fees, introductory offers and rewards rather than focusing solely on your acceptance chances.
4. Apply
Once you've chosen a card, you'll be taken to the provider to complete your application. The lender will make the final decision and confirm your credit limit.
5. Set up your repayments
Once you have the card, set up a Direct Debit for at least the minimum repayment and aim to clear the balance in full each month if you can.
Am I eligible for a credit card?
To take out your first credit card, lenders will assess your circumstances before deciding whether to accept you.
They may consider:
Your age: You generally need to be at least 18.
Your income: Some cards have minimum income requirements.
Your employment and financial circumstances: Lenders will consider your ability to afford the borrowing.
Your credit history: If you've never borrowed before, you may have a limited credit history, which can make it harder to qualify for some cards.
Existing debts and financial commitments: Lenders will consider your current borrowing and repayments.
Your address and electoral roll information: This can help lenders verify your identity and circumstances.
Having no credit history isn't the same as having a poor credit history. If you're new to borrowing, a credit-builder card may be an option, although these often have lower credit limits and higher interest rates.
How much credit can I get on my first card?
If you've never had a credit card before, you can typically expect a lower initial credit limit, typically between £200 and £1,500 if you have little to no credit history. This can help you keep your borrowing manageable while you establish a credit history.
However, there's no standard credit limit for a first credit card. The lender will decide how much you're offered based on your circumstances and its own lending criteria.
You won't normally be able to choose your credit limit. Even if you're pre-approved for a card, the lender will confirm the final limit when it makes its final decision.
Try not to view a higher credit limit as a benefit in itself. Only borrow what you can comfortably afford to repay.
How should I use my first credit card responsibly?
Using your first credit card well can help you build a strong credit history and avoid unnecessary costs. The key is to treat it as a payment tool rather than extra income.
Set up a direct debit: Make at least the minimum repayment each month to avoid missed payments and credit damage.
Pay in full where possible: Clearing your balance each month helps you avoid interest charges.
Keep spending under control: Try not to use your full credit limit. Low credit utilisation can support your credit score.
Avoid cash withdrawals: Cash advances usually trigger fees and immediate interest.
Stay on top of statements: Check your account regularly for errors or signs of fraud.
Plan repayments before spending: Only charge what you’re confident you can repay.
What should I do if I’m refused my first credit card?
Don't immediately apply for several other cards if your first application is declined. Multiple applications can leave hard searches on your credit report and may make it harder to get credit.
Instead, check your credit report for any errors or outdated information and make sure the details on your application, such as your income and personal information, are correct.
If you want to try again, use an eligibility checker first to see which cards you're likely to qualify for. If you have a limited or poor credit history, a credit-builder card may be an option.
However, if you're already struggling with debt or can't afford to take on more borrowing, consider getting free debt advice before applying for another card.
Should I use my first credit card for cash withdrawals?
Usually no. Withdrawing cash on a credit card often triggers fees and interest immediately and can be one of the most expensive ways to borrow.
What are some alternatives to credit cards?
If you can’t get a credit card yet, or would rather not use one, there are other options to manage your spending or build your financial profile:
Debit cards: Spend only what’s in your account without paying interest on borrowed funds.
Prepaid cards: Load money in advance and use them like a regular card.
Secured cards: Less common in the UK. They require a deposit, but can help build your credit history.
Arranged overdrafts: Useful for short-term borrowing through your bank account, but watch out for fees.
Buy now, pay later (BNPL) schemes: Let you spread the cost of purchases. Can be risky if payments are missed. BNPL products can affect affordability and some now appear on credit files.
Credit-builder loans or savings schemes: Specialist products designed to help you improve your credit record over time.
Personal Finance & Insurance Expert
Our expert says...
"There are many benefits to having a credit card, from being able to spread the cost of a big payment such as a holiday, to earning cashback or rewards on your spending.
They're also a good backup in case you lose your debit card or for emergency spending.
However, if you don’t use a credit card properly and make payments on time, you’ll end up paying interest on the money you borrow and could risk damaging your ability to get credit in the future."
Other useful guides
It can be tricky choosing a credit card for the first time. If you need more information to decide, we have a wide range of credit card guides to help, such as:
Compare credit cards with MoneySuperMarket
It’s quick and easy to apply for your first creditcard. 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.
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Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
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Collette is an experienced Content Writer at MoneySuperMarket, helping people make sense of money and insurance topics without the jargon. She shares her experience as a first-time Mum and top...
