Best first credit card: a beginner's guide
What to consider and how to choose your first credit card
Taking on a credit card is not something to rush into. The sheer number of different types out there and the jargon attached can be baffling, making it hard to decide which card is right for you – if any. This guide helps you find the best first credit card for your needs – whether you want to build credit, spread a cost, or earn rewards – and shows how to apply safely.
In this guide...
Applying for your first credit card should not be taken lightly so we recommend reading through this guide in full before making a decision. In this guide, we'll cover...
What a credit card is, including important terms such as APR, credit limit and minimum payments.
What factors make you eligible or ineligible for a credit card.
How to choose the best first-time credit card for you.
What to consider before choosing your first credit card
Applying for a credit card is not a decision to be taken lightly. It's crucial to do your research and understand the implications of taking on this form of borrowing before you go and apply.
If you're completely new to the concept of a credit card, we've a dedicated guide to how credit cards work. But in short, a credit card can be considered a 'debt card' – because when you buy something using one, the credit card company pays for it in the short term, but you then owe it the money.
Pay off what you owe in full every month and you'll pay no interest. However, you can choose to pay off a lower amount (called a minimum monthly repayment), but this means you WILL pay interest on the remaining balance each month until the whole debt is cleared. Interest rates can vary depending on the card, though there are special cards out there that charge no interest for a set time, which we go into below.
It's also important to consider whether or not you'll even qualify for a credit card – we discuss this in the next section – plus whether or not a credit card is the best way for you to borrow, with some alternatives listed below.
How to choose your first credit card – key things to know
If you've decided to go ahead with getting your first credit card, there are a few key terms to understand before you apply:
APR
The annual percentage rate (APR) sets out how much interest you'll be charged on the card. Put simply, the higher the APR, the more interest you'll have to pay.
Interest-free days
That said, many cards – such as specialist 0% purchase cards – offer a period of time at 0% interest, so go for one of these if you can. Though beware: after the 0% period ends, the APR usually jumps to a much higher rate, so be sure to pay off everything before then or balance-transfer the debt to another 0% card.
Minimum payments
This is the lowest amount you can pay off each month without being fined and getting a mark on your credit record. It'll differ from card to card but make sure you know what you owe so you can avoid some serious financial consequences.
Credit limit
Credit cards come with a credit limit, which is the maximum amount the card company will lend you on the card. If you spend too much and go over your credit limit, you'll most likely be charged for doing so.
The average UK credit card limit varies depending on income and credit score. Typically you can expect to see credit limits of between £3,000 and £4,000, though this can be as low as £200 or higher than £10,000 based on individual circumstances.
For more info, see MSE founder Martin Lewis's full guide to credit limits.
Quick question
You should ask yourself whether you actually need a credit card before just applying for one. On the one hand, using a credit card properly can improve your credit score, as it shows lenders you're organised enough to pay off your debts.
On the other, late payments or missing payments entirely can leave a mark on your credit file, making it harder to borrow again in future. Even making just the minimum repayments can lead to hefty interest piling up on top of the debt, and cause your financial problems to spiral.
Before jumping in and applying for a credit card, consider your other options:
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Debit card: If you don't need to borrow to buy something, you might be better off without a credit card altogether. This is particularly relevant if you know you're not organised and therefore are likely to miss minimum repayment deadlines, or as a way of limiting any overspending.
You'll get a debit card when you take out a new current account – and to see our pick of the top options available, see our Best current accounts guide. -
Overdraft: If you're getting a credit card for a one-off purchase of something a little over your budget, but you know you'll be able to pay off the remainder quickly, consider using an overdraft. While going into the red with some bank accounts can land you with extortionate interest of over 40%, it's possible to get an arranged overdraft at 0% to cover these short-term, one-time buys.
Overdrafts can lead you into just as much financial strife as a mismanaged credit card, so be sure to read our full guide to cutting the cost of your overdraft. -
Personal loan: These operate in a similar way to a credit card, in that you're borrowing money and repaying it later. One way they differ is that the repayments you make are usually set with a personal loan, making them less flexible than the minimum monthly payments you get with credit cards.
However, most importantly, when it comes to borrowing a larger amount, such as £5,000+, a personal loan may offer a lower interest rate. Check out our full guide on cheap personal loans.
What are the alternatives to a credit card?
Can I get a credit card? Eligibility rules explained
So you've found the best credit card for you? Whether or not you'll qualify for it usually depends on a number of things, such as:
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Your age: Almost all credit card companies won't lend to anyone under 18.
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Your address: You'll typically need to be a UK resident to apply for a UK credit card.
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Your income: Many firms consider how much you earn. A common lower limit is £10,000 a year. If you're unemployed, this may also have an impact on your chances of approval.
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Your finances: Similarly, credit card companies will usually want to know how you've managed your money up until this point, and your application may be affected if, for example, you've been the subject of a county court judgment.
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Your credit history: Arguably the most important factor. A poor credit history will significantly harm how likely you are to get a credit card and determines the type of credit card you’ll be eligible for.
Credit card companies will ask you to give the first three pieces of information as part of your application, so they can assess your eligibility.
But be aware that they'll also search your credit file. They do this to get the final two pieces of information. This is why it's important to use an eligibility calculator before applying, to see which credit cards you've the best chance of getting. That way, you can get an impression of what the card provider is going to see about you.
Try our free Credit Club
Sign up to MSE's Credit Club to boost your credit power – access our free tools to see how the financial world views you, including:
An Eligibility Rating that combines your credit score, affordability, and market trends.
View your full credit report – your financial CV.
Get personalised acceptance odds for credit cards and loans.
How to get your first credit card – steps & what to do if rejected
Applying for your first credit card isn't usually too complicated. Alongside all the details you provide through the credit check, credit card companies will often want some extra info from you to create a picture of your personal finances.
This usually includes the reason why you want the card – such as for home improvements, a new car or to pay off debts. You will normally need to provide some ID and you'll also need to tell them what kind of card you're applying for.
Follow our five top-tips to apply safely for your first credit card:
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Check your credit report. Your credit score isn't always the best representation of whether you'll be approved for a credit card, but it can provide some clues. If you've been in real financial difficulty in the recent past, it's unlikely you'll be approved for the longest 0% spending cards.
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Pick the right type of card. Make sure you get a card with the benefits for you. Check out our guide on the different types of credit cards for full info.
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Use an eligibility checker. See how likely you are to be accepted for your first credit card. Try out our eligibility calculator which will show you your odds of acceptance. This will help you to minimise the number of applications you have to make and also protect your credit score.
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Apply once. Repeated applications for credit can damage your credit score, so if you're rejected it's best to wait a while before reapplying – at least three months.
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Set up a Direct Debit. Once you've got your card, make sure to make the minimum monthly repayments. The best way to do this is by setting up a Direct Debit so you never forget.
If you’re rejected, pause before reapplying
It's recommended that you wait at least three months before reapplying.
Been rejected for a credit card? Stop! It's important to remain calm and collected. Rushing in to apply for a different card might be your first instinct, but getting rejected a second time in quick succession could imply to lenders that you're in financial difficulty. This may put a dent in your credit history and make your chances of being accepted even slimmer.
Plus, a practical step to take is to contact the credit card provider to find out why you weren't accepted. You can be rejected for any number of reasons – from a bad credit history, a limited credit history, to a mistake on the application form, which can affect your credit rating – so finding out why you didn't get the card will help you to focus on what you can do next time to improve your chances.
Best first credit cards for beginners (UK) — what to pick
Which to choose as your first credit card will largely depend on your own personal circumstances and what you want to use a card for. Here is a short summary of the different cards available to choose as your first credit card...
Type of card | What it does |
|---|---|
Allows you to shift debt to 0% for a set period | |
Gives you an interest-free period on new purchases | |
Offers cashback or reward points on spending | |
Good for shifting debt AND spending | |
Lets you spend abroad fee-free | |
Lets you pay cash into your bank (eg: to clear an overdraft) | |
Designed to improve your credit score |
How to use your first credit card safely
Credit cards are like fire: used right, they're a great tool, but get it wrong and they'll burn. Now you've got a card, it's important to use it right:
✅ Do make the minimum monthly repayments. Better still, pay off as much as you can afford to, to avoid paying unnecessary interest.
❌ Don't go wild and buy everything you've ever dreamed of having. You'll have to pay everything off eventually, so don't treat your new credit card as an excuse to overspend.
✅ Do set up a direct debit to make repayments. This ensures you never miss a payment and you'll avoid getting a mark on your credit record.
❌ Don't get caught out by fees. Many cards charge extra if, for example, you use them abroad or make cash withdrawals. Ensure you check for these costs beforehand.
Quick rule of thumb...
Should you get a first credit card?
✅Yes, if you’ll repay in full each month and want to build credit.
❌No, if you’re likely to carry debt or miss payments.
FAQs – common first credit card questions
The best first credit card for you will depend on what you're looking to do with it. Check out our main credit card guide for full information on what's available out there.
There isn't any single best credit card for first-time users, but you may find that you're less likely to be approved for the best credit cards if you've never had credit before. That said, make sure to use our eligibility calculator to check your odds of approval before you apply, as you might have better chances than you think.
You can usually apply for your first credit card online, though be aware that applying immediately without checking your eligibility will leave a hard credit search on your file, and applying for a card you have low odds of getting could damage your credit score and leave you without a credit card. It's best to use an eligibility calculator – either on our website or directly with the credit card provider.
The answer depends on what you want to use it for. For example, if you have a big spending period coming up, a 0% purchase card could help spread the payments across a longer time with no interest. Check out our main credit cards guide to see what you can do with a credit card. Warning: if you know you'll struggle to repay and are likely to miss minimum repayments, it might be best to avoid credit cards, as this can really damage your credit score.
The main thing to remember is that you'll have to pay off what you spend eventually, even if you have a 0% spending card with a really long interest free period. Make sure you make the minimum monthly repayments (it's best to set up a Direct Debit to avoid forgetting) and also make a plan for how to repay the debt over time. Spending money on a credit card when you know you'll struggle to repay can be financially detrimental, so it's best not to take out a credit card if you know you'll find it hard to square away.
The key thing is not to panic. Re-applying for the same or even a different credit card immediately can signal to lenders that you're desparate for cash, so it's best to wait at least three months before sending off another application. In the mean time you can try to bolster your credit score by using tips you can find in our Boost your credit score guide, which may help your next application be more successful.
What is the best first credit card?
What type of credit card is best for first-time users?
How do I get my first credit card in the UK?
When should I get a credit card?
Ho do I use my first credit card safely?
What if I get rejected for my first credit card?
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