How to Apply for a Credit Card for the First Time

Having a credit card is a powerful way to build credit and credit history. It's a big step, but not a difficult one to take — if you know what to expect. Reviewing the details in advance could save you time and trouble later. In this article, we'll describe what you need to do to apply for a credit card for the first time.

When you apply for your first credit card, you might be surprised at what's required. But don't worry, it's all routine information.

Card issuers may ask for:

• Your full legal name
• Date of birth
• Current address and whether you rent or own and if you've recently moved
• Your Social Security number
• Your gross annual income
• Your employer's address and phone number
• Your bank account information

In many states, you have to be at least 18 years old to legally sign a credit card application and contract. And if you're under 21, credit card issuers require proof of steady income to ensure you'll have sufficient income to pay your bills. Otherwise, you'll need a cosigner to be considered for a new card.

When looking at getting a first credit card, there's a few things to consider. Before settling on a card, compare fees, rates, and any incentives.

• Is there an annual fee? Before choosing a card that charges annual fees, check out all the available options. Many credit cards are available that don't charge annual fees. Look at those first
• Are there other credit card fees that might be charged? If you plan to use the card for cash advances, for example, review the cash advance fees. A $3 ATM fee doesn't sound like much, but if you incur it every three days, that's $30 a month
• Do you plan to use your card overseas? If so, review any associated fees. Some cards have high foreign transaction fees. A credit card company may add currency exchange charges, like 1% or 2%, to convert money to local currency
• What's the annual percentage rate (APR)? Shop around for a low APR, even if you don't plan on carrying a balance for more than a month. There may come a time—emergencies or big purchases—when you'll be glad to have a lower interest rate

One of the first things a credit card issuer does when you apply is obtain your credit report. This typically comes from one or more of the three major credit bureaus, which handle most credit reporting. The credit check is called a "hard inquiry." It causes a minor drop in your credit score, so limit the number of applications you submit. Identify your best choice and apply to that one. If you're not approved, you might wait a few months before trying again, just to space out the inquiries.

Credit reports from the major credit bureaus show your credit history, including the types of loans, the dates accounts were opened, your credit limit, and your account balances. It also shows your record of making on-time payments—and late payments. Your credit score is, essentially, a grade reflecting your credit report.

It's a good idea to get your free annual credit report^† before you apply for a credit card. Review your information, and make sure there's nothing there to derail your application. If you see any incorrect or missing information, file a dispute with the bureau responsible.

Credit scores will most likely be a factor in the APR and credit limit that credit card companies offer. In general, a higher credit score results in lower APRs and higher credit lines.

Many credit cards have minimum credit score requirements—though some issuers make exceptions. If you don't have prior credit history (or little credit) there are still options for a starter credit card.

• Have someone (a family member or close friend) add you to their existing credit card. As an authorized user, you'll get a card of your own to use. And credit agencies will generally add the card account to your record as well. Your available credit may be at the discretion of the primary account holder—they may be able to set charge limits
• Another option you might consider is a secured credit card. These are different than the typical, unsecured credit card. With a secured card, you make a security deposit after you open the account. The amount you deposit with the card issuer defines your credit limit. For example, deposit $500 and you get a $500 credit limit. Secured credit cards are a popular choice for people who are trying to build credit. After making regular, on-time payments, some secured cards increase your credit limit without requiring additional deposits. The account might also switch to a regular credit card. These cards—along with responsible credit management—are a good method of establishing credit

It's a balancing act to find the best credit card for your personal needs. Do the proper research. Compare the options, fees, interest rates and benefits to find a card you'll be happy with in the long run.

TD Bank has several great credit card choices. Their cards offer online access to your account, and you can apply for any of them online .There's even a secured credit card with Cash Back rewards.