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There is no minimum credit score needed for a credit card. Even borrowers with poor credit (a score of 300-579) or no credit card at all can qualify for some credit cards. However, options for bad-credit borrowers are limited and usually come with a high annual percentage rate (APR) and fees. Borrowers with no credit or poor credit may also only qualify for secured credit cards.

By building your credit score, you’ll have more options for credit cards with better rates, fees, and even rewards, bonuses, and perks. Read on for details on this important financial topic.

How Your Credit Score Affects Your Odds of Credit Card Approval

A good or excellent credit score typically increases your odds of credit card approval. But if you have a bad credit score, you’re not out of luck. Some credit card issuers have options for borrowers with no credit history or extremely low credit scores.

Before applying for a credit card, it’s a good idea to read the fine print for that specific card. Often, credit card companies will list their minimum credit score requirements for the card. If you’re at the bottom of the stated range or below it, you may have a harder time qualifying.

To avoid getting declined (and having an unnecessary hard inquiry on your credit report), you may want to consider a less competitive credit card that you’re more likely to be approved for based on your credit score.

What Credit Score Do You Need to Get a Credit Card?

While there is no minimum credit score to get a credit card, you’ll need a higher credit score to qualify for prime credit cards. Typically, travel credit cards and cash-back credit cards are reserved for borrowers with good to excellent credit (670 and above on the FICO^® scale).,

If you have a fair credit score, you might be able to qualify for a decent credit card with a higher APR and limited perks. A credit score in the low 600s may be enough to qualify for some standard credit cards.,

Borrowers with bad credit or no credit at all may be limited to secured credit cards (cards that require a security deposit as collateral), credit-building cards, or high-interest credit cards with high annual fees.

Recommended: How to Avoid Interest on a Credit Card

Tips for Estimating the Credit Score You Need

How can you determine a credit card’s credit score requirements? Here are a few ways to estimate the minimum score you’ll need:

•   Checking the website: Often, the credit card issuer will clearly state what credit score is required for each of its credit cards.

•   Reading reviews: If the issuer’s website isn’t clear, you may want to check third-party review websites, which often print the recommended credit scores needed for credit cards.

•   Using third-party services: Platforms such as Credit Sesame and Credit Karma can help you gauge which credit cards you’ll qualify for with your current credit score — but it’s never guaranteed.

•   Getting preapproved: Many credit card issuers offer preapproval for their cards. This means they only initiate a soft pull on your credit report (with no effect on your credit score). A preapproval is not a guaranteed yes. You still have to go through the process, but it can instill more confidence if you’re worried about your chances.

Recommended: Does Checking Your Credit Score Lower Your Rating?

Factors Affecting Your Credit Score

Building your credit score is a great way to qualify for more (and better) credit cards. But knowing how to positively impact your credit score requires that you know what affects your credit score in the first place.

FICO and VantageScore^® both assign consumers different credit scores based on their credit information. While the models are similar, each company uses its own proprietary scoring method to calculate credit scores. Both scores range from 300-850.

FICO Scoring Method

Your FICO credit score depends on five key factors:

•   Payment history (35%): The largest factor impacting your credit score is your payment history. Making on-time payments not just for loans but for things such as rent and utilities will help build your score. Late payments can stay on your credit report for up to seven years.

•   Credit utilization (30%): How much of your available credit you are using is expressed as your credit utilization ratio. Using less of the credit available to you can positively impact your score, while using more can negatively impact your credit score. Ideally, your utilization rate will be 30% or lower.

•   Credit history (15%): The length of your credit history plays an important part in your credit score. Responsible credit users should see their scores build over time, meaning the longer you keep accounts open, the more you can positively impact your three-digit credit score.

•   Credit mix (10%): Having a healthy mix of loan types (both installment credit and revolving credit) can build your score if managed properly. That means a combination of mortgages, auto loans, student loans, personal loans, and credit cards can positively impact your credit score.

•   New credit applications (10%): When you apply for new credit, lenders will make a hard inquiry on your credit report. Even if you are denied the credit, this inquiry will temporarily lower your credit score, which is how applying for a credit card affects your credit score.

Recommended: When Are Credit Card Payments Due?

VantageScore’s Scoring Method

VantageScore, on the other hand, assigns different factors a value of influence:

•   The most influential factor affecting your VantageScore is payment history, as it is with FICO.

•   Three highly influential factors include the age of credit, mix of credit, and credit utilization.

•   Two moderately influential factors are the total credit balance you maintain across all loans and your recent credit activity, including new credit.

•   The least influential factor is your available credit.

Recommended: Understanding the Different Types of Credit Cards

Tips for Building Your Credit Score

Wondering how to build your credit score to increase your chances of credit card approval? Here are some tips:

•   Understand your credit score. The first step to building your credit score is knowing how it’s calculated — and knowing what your current credit score is.

•   Make on-time bill payments. Paying bills on time is good for more than just avoiding late fees. It’s also the top factor in determining your FICO Score and VantageScore.

•   Decrease your credit utilization. By reducing the amount of purchases on your credit cards and paying them off in full every month, you’ll decrease your credit utilization, which can positively impact your credit score.

•   Become an authorized user. If you have no credit history or are recovering from bad credit, you may benefit from becoming an authorized user on a friend or family member’s credit card. If they are responsible with the card, it’s an easy way for you to build your score without applying for your own card.

•   Keep old cards open. Once you qualify for better credit cards, you may be tempted to close out old accounts. But each of those cards has a credit limit. By keeping the card open but not using it, you decrease your overall credit utilization and keep the average age of your credit higher. The exception: If the card has an annual fee and you’re not using it at all, it may not be worth keeping it open.

•   Only apply for credit cards when you need them. Each time you apply for a credit card, the issuer makes a hard inquiry on your credit report, which lowers your score. Because of this, it’s a good idea to wait at least six months between credit card applications — and only apply when you need to. Choose your credit card applications wisely.

Recommended: Tips for Using a Credit Card Responsibly

Getting a Credit Card With Bad Credit

Bad credit doesn’t mean you can’t get a credit card. In fact, you can find credit cards on the market designed specifically for people with bad credit. However, such cards typically have high fees and interest rates.

If you’re worried about high fees and rates, a secured credit card for bad credit may be the better option. Some secured credit cards even approve borrowers without conducting a credit check. The big difference between a secured vs. unsecured credit card is that secured credit cards require a security deposit, which acts as the card’s credit limit.

Alternatively, borrowers with bad credit may be able to qualify for a retail credit card. These cards can only be used at a specific store or chain of stores. While retail credit card credit score requirements vary, many are available to borrowers with limited or bad credit.

Recommended: What Is the Average Credit Card Limit?

Getting a Credit Card With Fair Credit

With a fair credit score (580-669 per FICO), you won’t qualify for the top rewards credit cards available. That being said, it’s still possible to get approved for an unsecured credit card with no annual fee and limited perks.

Interest rates tend to be higher for those within this credit score range, but if you can pay the card off in full every month, you won’t have to worry about racking up credit card debt. Eventually, you may even build your credit score enough to graduate to a rewards credit card with a better rate and terms.

Getting a Credit Card With No Credit

What if you have no credit history at all? Believe it or not, you can still qualify for a credit card with no credit history — though your options may be more limited.

Like borrowers with bad credit, you can likely qualify for no-frills secured credit cards if you can come up with the security deposit. Alternatively, borrowers without an established credit history can ask a close friend or family member to be added as an authorized user on their card. There are also credit cards designed for those who are currently enrolled in school and are just embarking on their credit journey.

The Takeaway

While there isn’t a minimum credit score for a credit card, having a good to excellent credit score improves your chances of approval for the top credit cards on the market (ones with robust rewards and lower interest rates). If you have a poor or fair credit score or no credit history at all, you may be able to qualify for secured credit cards or credit cards with higher APRs. By building your credit score, you may find you have more options.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

Can you get a credit card with limited or no credit history?

Yes, you can get a credit card with limited or no credit history. Borrowers with no history can look for secured credit cards or consider becoming an authorized user on someone else’s credit account. Without credit history, however, you likely will not qualify for low-annual-percentage-rate (APR) credit cards or rewards credit cards.

Can I get a credit card with a score of 600?

Yes, with a credit score of 600 (in the fair credit range), you may qualify for basic credit cards that offer limited perks, if any. You likely will not be able to qualify for a rewards credit card. However, credit card issuers may at least approve you for an unsecured credit card, though likely with a higher annual percentage rate (APR).

What is the easiest card to get approved for?

If you have no credit history (or a limited credit history) or a bad credit score, the easiest card to get approved for is typically a secured credit card. Secured credit cards present lower risk to credit card issuers because borrowers must make a security deposit that serves as collateral and their credit limit.

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Photo credit: iStock/Antonio_Diaz

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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There are millions of credit card accounts in the United States alone, and it’s estimated that 82% of adults in the U.S. have at least one credit card. Yet, many people don’t have a firm grasp on the basics of what a credit card is and how credit cards work.

If you have a credit card account, or plan on ever using one, it’s important to understand the fundamentals of credit cards. This ranges from what a credit card is and how credit card interest works to how credit cards relate to credit scores.

What Is a Credit Card?

A credit card is a type of payment card that is used to access a revolving line of credit.

Credit cards differ from other types of loans in that they offer a physical payment card that can be used to make purchases. Traditionally, credit cards have been made of plastic, but an increasing number of credit card issuers now provide metal cards, usually for premium accounts that offer travel rewards.

But a credit card account is much more than a plastic or metal payment card. It’s a powerful financial tool that can serve many purposes. Here’s a closer look.:

•   It can be a secure and convenient method of payment anywhere that accepts credit card payments. It also can be used to borrow money as a cash advance or to complete a balance transfer.

•   Credit cards can offer valuable rewards, such as cash back and travel rewards like points or miles. Cardholder benefits can also include purchase protection and travel insurance policies.

•   If used responsibly, a credit card can help you build your credit score and history, which can open up new borrowing opportunities.

•   Of course, credit cards can also damage your credit when used irresponsibly. If you rack up debt on your credit card, it can be hard to pay it off and get back in the clear (for instance, here’s what happens to credit card debt when you die).

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

How Do Credit Cards Work?

Credit cards offer a line of credit that you can use for a variety of purposes, including making purchases, completing balance transfers, and taking out cash advances. You can borrow up to your credit limit, and you’ll owe at least the minimum payment each month.

You can apply for a credit card from any one of hundreds of credit card issuers in the U.S. Card issuers include national, regional, and local banks, as well as credit unions of all sizes. Card issuers will approve an application based on the credit history and credit score of the applicant, among other factors.

There are credit cards designed for people with nearly every credit profile, ranging from those with excellent credit to those with no credit history or serious credit problems. As with any loan, those with the highest credit scores may receive the most competitive terms and benefits.

Once approved, you’ll likely receive a credit limit that represents the most you can borrow with your card. Whether your limit is above or below the average credit card limit depends on a variety of factors, including your payment history and income.

The credit card is mailed to the account holder and must be activated before use. You can activate a credit card online or over the phone. So long as your account remains in good standing, it will be valid until the credit card expiration date.

Once activated, the card can be used to make purchases from the millions of merchants that accept credit cards. Each card is part of a payment network, with the most popular ones being Visa, Mastercard, American Express, and Discover. When you make a payment, the payment network authenticates the transaction using your card’s account number and other security features, such as the CVV number on a credit card.

Every month, you’ll receive a statement from the card issuer at the end of each billing cycle. The statement will show the charges and credits that have been made to your account, along with any fees and interest changes.

Your credit card statement will also show your balance, the minimum payment due, and the payment due date. It’s your choice whether to pay just your minimum balance, your entire statement balance, or any amount in between. Keep in mind that you will owe interest on any balance that’s not paid back.

If you don’t pay at least the minimum balance on or before the due date, you’ll typically incur a late fee. And if you pay more than your balance, you’ll have a negative balance on your credit card.

Recommended: Tips for Using a Credit Card Responsibly

Credit Card Fees

There are a number of potential fees that credit card holders may face. For example, some credit cards charge an annual fee, and some card issuers can impose foreign transaction fees, balance transfer fees, and cash advance fees. Cardholders may also incur a late fee if they don’t pay at least the minimum amount due by their statement due date.

Often, however, you can take steps to curb credit card fees, such as not taking out a cash advance or making your payments on time. For a charge such as an annual fee, cardholders will need to assess whether a card’s benefits outweigh that cost.

3 Common Types of Credit Cards

There are a number of different kinds of credit cards to choose from. Here’s a look at some of the more popular types.

Rewards Credit Cards

As the name suggests, rewards credit cards offer rewards for spending in the form of miles, cash back, or points. A rewards guide for credit cards can give you the full rundown of options. Cardholders may earn a flat amount of cash back across all purchases, or they may earn varying amounts in different categories such as gas or groceries.

Some programs, like SoFi Plus, provide exclusive benefits that go beyond standard rewards, offering additional perks for members who qualify

Balance Transfer Credit Cards

Balance transfer cards allow you to move your existing debt over to the card. Ideally, this new card will have a lower interest rate and often may offer a promotional rate as low as 0% annual percentage rate (APR). However, keep in mind that this promo rate only lasts for a certain period of time. After that, the card’s standard APR will kick back in.

Secured Credit Cards

If you’re new to credit or trying to rebuild it, a secured credit card can be a good option. Generally, when you talk about credit cards, the default is an unsecured credit card, meaning no collateral is involved. With a secured credit card, you’ll need to make a deposit. This amount will generally serve as the card’s credit limit.

This deposit gives the credit card issuer something to fall back on if you, the cardholder, fail to pay the amount you owe. But if you’re responsible and get upgraded to an unsecured credit card, or if you simply close your account in good standing, you’ll get the deposit back.

How Does Credit Card Interest Work?

The charges you make to your credit card are a loan, and just like a car loan or a home loan, you can expect to pay interest on your outstanding credit card balance.

That being said, nearly all credit cards offer an interest-free grace period. This is the time between the end of your billing period and the credit card payment due date, typically 21 or 25 days after the statement closing date. If you pay your entire statement balance before the payment due date, then the credit card company or issuer will waive your interest charges for that billing period.

If you choose not to pay your entire statement balance in full, then you’ll be charged interest based on your account’s average daily balance. The amount of interest you’re charged depends on your APR, or annual percentage rate. The card issuer will divide this number by 365 (the number of days in the year) to arrive at a daily percentage rate that’s applied to your account each day.

As an example, if you had an APR of 15.99%, the daily interest rate that the card issuer would apply to your account each day would be around 0.04%.

If you had an APR of 24.99%, the daily interest rate applied to your account each day would be around 0.07%.

Recommended: Average Credit Card Interest Rates

Credit Cards vs Debit Cards

Although they look almost identical, there are significant differences between debit cards vs. credit cards. Really, the only thing that debit cards and credit cards have in common is that they’re both payment cards. They both belong to a payment network, and you can use them to make purchases.

With a debit card, however, you can only spend the funds you’ve already deposited in the checking account associated with the card. Any payment made using your debit card is drawn directly from the linked account. Because debit cards aren’t a loan, your use of a debit card won’t have any effect on your credit, positive or negative.

And since it isn’t a loan, you also won’t be charged interest with a debit card, nor will you need to make a minimum monthly payment. You will, however, need to make sure you have sufficient funds in your linked account before using your debit card.

Another key difference between credit cards vs. debit cards is that credit card users are protected by the Fair Credit Billing Act of 1974. This offers robust protections to prevent cardholders from being held responsible for fraud or billing errors. Debit card transactions have less powerful government protections.

Lastly, debit cards rarely offer rewards for spending. They also don’t feature any of the travel insurance or purchase protection policies often found on credit cards. But you likely won’t be on the hook for an annual fee with a debit card, which some credit card issuers do charge, though you could face overdraft fees if you spend more than what’s in your account.

To recap, here’s an overview of the differences between credit cards and debit cards.

	Credit cards	Debit cards
Can be used to make purchases	Yes	Yes
Can be used to borrow money	Yes	No
Requires depositing money before you can make a purchase	No	Yes
Requires making a minimum monthly payment	Yes	No
Can provide purchase protection and travel insurance benefits	Often	Rarely
Can offer rewards for purchases	Often	Rarely
Can help or hurt your credit	Yes	No
Can be used to withdraw money	Yes, with a cash advance	Yes

Pros and Cons of Using Credit Cards

Beyond knowing what a credit card is, it’s important to familiarize yourself with the pros and cons of credit cards. That way, you can better determine if using one is right for your financial situation.

To start, the notable upsides of using credit cards include:

•   Easy and convenient to use

•   Robust consumer protections

•   Possible access to rewards and other benefits

•   Ability to avoid interest by paying off the monthly balance in full

•   Potential to build credit through responsible usage

However, keep in mind these drawbacks of using credit cards:

•   Higher interest rates than other types of debt

•   Temptation to overspend

•   Easy to rack up debt

•   Various fees may apply

•   Possibility of harming credit through irresponsible usage

How to Compare Credit Cards

Since there are so many credit card issuers, and each issuer can offer numerous individual credit card products, it can be a challenge to compare credit cards and choose the one that’s right for your needs. But just like purchasing a car or a pair of shoes, you can quickly narrow down your choices by excluding the options that you aren’t eligible for or that clearly aren’t right for you.

Start by considering your credit history and score, and focus only on the cards that appear to align with your credit profile. You can then narrow it down to cards that have the features and benefits you want the most. This can include having a low interest rate, offering rewards, or providing valuable cardholder benefits. You may also seek out a card that has low fees or that’s offered by a bank or credit union that you already have a relationship with.

Once you’ve narrowed down your options to a few cards, compare their interest rates and fees, as well as their rewards and benefits. You can find credit card reviews and user feedback online to help you make your final decision.

Important Credit Card Terms

One of the challenges to knowing how credit cards and credit card payments work is understanding all of the jargon. Here’s a short glossary of important credit card terms to help you to get started.

•   Annual fee: Some credit cards charge an annual fee that users must pay to have an account. However, there are many credit cards that don’t have an annual fee, though they typically offer fewer rewards and benefits than those that do.

•   APR: This stands for annual percentage rate. The APR on a credit card reflects its interest rate and fees calculated on an annualized basis. A lower rate is better for credit card users than a higher rate.

•   Balance transfer: Most credit cards offer the option to transfer a balance from another credit card. The card issuer pays off the existing balance and creates a new balance on your account, nearly always imposing a balance transfer fee.

•   Card issuer: This is the bank or credit union that issues the card to the cardholder. The card issuer is the company that issues statements and that you make payments to.

•   Cash advance: When you use your credit card to withdraw cash from an ATM, it’s considered a cash advance. Credit card cash advances are usually subject to a much higher interest rate and additional fees.

•   Chargeback: When you’ve been billed for goods or services you never received or that weren’t delivered as described, you have the right to dispute a credit card charge, which is called a credit card chargeback. When you do so, you’ll receive temporary credit that will become permanent if the card issuer decides the dispute in your favor.

•   Due date: This is the date you must make at least the credit card minimum payment. By law, the due date must be on the same day of the month, every month. Most credit cards have a due date that’s 21 or 25 days after the statement closing date.

•   Payment network: Every credit card participates in a payment network that facilitates each transaction between the merchant and the card issuer. The most common payment networks are Visa, Mastercard, American Express, and Discover. Some store charge cards don’t belong to a payment network, so they can only be used to make purchases from that store.

•   Penalty interest rate: This is a separate, higher interest that can apply to a credit card account when the account holder fails to make their minimum payment on time.

•   Statement closing date: This is the last day of a credit card account’s monthly billing cycle. At the end of this day, the statement is generated either on paper or electronically, or both. It’s the day that all the purchases, payments, fees, and interest are calculated.

Credit Cards and Credit Scores

There’s a lot of interplay between credit cards and your credit score.

For starters, when you apply for a new credit card, it will affect your score. This is because the application results in a hard inquiry to your credit file. It will temporarily ding your score by a few or several points, and it will remain on your credit report for two years, though the effects on your credit won’t last as long.

Further, how you use your credit card can impact your credit score either positively or negatively. Having a credit card could increase your credit mix, for instance, which can have a positive impact. Or, closing a longstanding credit card account may shorten the age of your accounts, resulting in a negative impact to your score.

Making timely payments is key to maintaining a healthy credit score, as is keeping a low credit utilization rate (the amount of your overall available credit that you’re currently using). If you max out your credit card or miss payments, it won’t bode well for your credit score. Conversely, staying on top of payments can be a great step toward building your credit.

The Takeaway

Credit cards work by giving the account holder access to a line of credit. You can borrow against it up to your credit limit, whether for purchases or cash advances. You’ll need to pay back the amount you borrowed, plus interest, which is typically considered to be at a high rate vs. other forms of credit. For this reason, it’s important to spend responsibly with a credit card.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

How does a person shop for a credit card?

To shop for a credit card, start by looking at your credit score to determine what cards you may be able to qualify for. Then, decide what kind of card is best for your needs, such as a card with a low interest rate, one that will allow you to build credit, or a card that offers rewards. Finally, compare similar products from competing card issuers to assess which is the most competitive offer available to you.

Can I use my credit card abroad?

Most credit card payment networks are available in most countries. As long as you visit a merchant that accepts cards from the same payment network that your card belongs to, you’ll be able to make a purchase.

How do you use a credit card as a beginner?

If you’re new to credit and working to build your score, you’ll want to make sure you’re as responsible with your card as possible. Pay your credit card bill on time, aim to pay in full if you can to avoid interest charges, and use very little of your credit limit — ideally no more than 30%. And make sure to regularly review your credit card statements and your credit report. But don’t let any of that scare you away from using your card either — it’s important to regularly use your card for small purchases to build your credit profile.

How do credit cards work in simple terms?

Credit cards offer access to a line of credit. You can borrow against that, up to your credit limit, for a variety of purposes, including to make purchases and get cash advances. You’ll then need to pay back the amount you borrowed.

How do payments on a credit card work?

At the end of each billing cycle, you’ll receive a credit card statement with your credit card balance, the minimum payment due, and the statement due date. You’ll need to make at least the minimum payment by the statement due date to avoid late fees and other consequences. If you pay off your full balance, however, you’ll avoid incurring interest charges. Otherwise, interest will start to accrue on the balance you carry over.

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Photo credit: iStock/Katya_Havok

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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You can build your credit score with a credit card, provided you use it responsibly. That means paying your bill on time every time and maintaining a low credit utilization rate, among other financial habits. This behavior can help build your credit by showing you’re diligent about meeting your debt obligations, which is something potential lenders look for.

What if you’re interested in using a credit card to build credit, but don’t yet have a credit card? In this case, there are credit cards that are marketed to those with a limited credit history who want to build their credit. Depending on your personal situation, here’s a look at the best way to build credit with a credit card.

Building Credit With a Credit Card

If you’re looking to build your credit score, a credit card could be a great place to start. Getting a credit card may be easier than getting approved for a mortgage or another type of loan. Plus, unlike most other loans, you won’t have to pay any interest with a credit card as long as you pay your statement balance in full each month.

Recommended: How to Avoid Interest on a Credit Card

8 Tips to Build Credit With a Credit Card

Curious how to build credit with a credit card? Here are eight tips to try.

1. Regularly Pay Your Bills on Time

Payment history is one of the biggest factors that makes up your credit score. If you’re focusing on building your credit score, you’ll want to make sure that you pay your bills on time, each and every month. If your credit report shows a history of late or missed payments, that can really drag down your credit score.

2. Maintain a Low Credit Utilization Rate

Another factor that helps to build credit is maintaining a low credit utilization rate, ideally under 30%. Your credit utilization rate is your total outstanding debt balance divided by your total credit limits expressed as a percentage. You can lower your utilization rate by paying down debt or increasing your total credit limit.

Recommended: What Is the Average Credit Card Limit?

3. Pay Your Credit Card in Full

In addition to paying your credit card statement by the due date, it’s also a great idea to pay the full statement balance every month, if possible. This helps lower your credit utilization rate, which is an important factor in determining your credit score. Additionally, it means you don’t pay interest on your purchases.

If you’re not able to pay your credit card statement in full, make a plan and consider adjusting your financial habits going forward.

Recommended: Understanding Purchase Interest Charges on Credit Cards

4. Become an Authorized User

If you’re not ready or can’t get approved for a credit card in your own name, consider becoming an authorized user on the credit card account of a trusted friend or family member. You’ll receive a secondary card in your name, also known as a supplementary credit card, and you can benefit from the payment history and good credit of the primary account holder. This can help you when you get a credit card on your own for the first time.

However, you’ll want to be careful about whose account you become an authorized user on. If they miss payments or pay late, it can negatively affect your credit score.

5. Use Your Card Regularly

It’s not enough to simply have a credit card — you also have to use it. Using your credit card responsibly shows potential lenders that you’re more likely to be responsible with new debt or loan obligations.

Consider using your credit card to pay some of your monthly bills to keep it in regular use. Just make sure that you’re using credit cards wisely by also setting aside money to pay off the statement in full when it comes due.

Recommended: When Are Credit Card Payments Due?

6. Consider a Secured Credit Card

If you’re having trouble getting approved for an unsecured credit card on your own, you might consider a secured credit card. With a secured card, you typically put down a refundable security deposit, which serves as your credit limit.

As you consistently and responsibly use your secured credit card, you may be able to transition to an unsecured credit card.

7. Limit New Credit Applications

Another factor that goes into determining your credit score is how many new credit applications you’ve had recently. Almost every time that you apply for new credit, such as a credit card or a loan, the potential lender will do a hard pull on your credit report. Having too many loan and credit card applications can hurt your credit score, albeit temporarily.

8. Keep Your Credit Accounts Open

If you’ve had trouble in the past with credit card debt, your first thought might be to cut up your credit card and close your account. One reason to keep your credit card accounts open is that another factor that goes into determining your credit score with the credit bureaus is the average age of your accounts. Keeping an old account open, especially if it comes with no annual fee, and managing it responsibly can be a good way to build credit.

Alternative Ways to Build Credit

Besides leveraging credit cards, there are a few other ways to build credit.

Get an Auto Loan

If you’re in the market for a new or used car, consider getting an auto loan. Like a credit card, any auto loan balance or payment history that you have will show up on your credit report. Making reliable and on-time payments on your auto loan can have a positive impact on your credit score.

Take Out a Personal Loan

Besides an auto loan, a personal loan is another type of debt product that typically shows up on your credit report. With a personal loan, you receive money upfront from the lender and then pay it back over time, with interest. Having a history of on-time payments on a personal loan can be another way to build credit.

Get a Cosigner

If you’re not ready to apply for credit in your own name or are having trouble getting approved for a loan or credit card, you might consider a cosigner. A cosigner is a trusted friend or family member who will sign their name to your loan alongside your own. That makes them financially responsible for the debt as well, so you’ll want to be careful about who you choose to cosign with. However, it can be a helpful step toward establishing credit.

The Takeaway

Using a credit card can be a great way to build credit — as long as you do it responsibly. Aim to use your credit card in such a way that you can pay off your statement balance in full. Showing responsible payment history over time and keeping your overall credit utilization rate low are two of the biggest factors that can build your credit score.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

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FAQ

What is the fastest way to build credit with a credit card?

Building credit is usually not something that will happen overnight. Instead, most potential lenders are looking for a history of on-time payments. It can take months or potentially even years to build your credit to the level you desire.

How do you use a credit card to build credit for the first time?

When you get a credit card for the first time, you’ll want to start using the card to pay for some of your monthly expenses. Just make sure to set aside the money for those purchases so that you can pay your credit card statement in full when it comes at the end of the month. Establishing a history of on-time payments will help you build your credit, as it shows other potential lenders that you’ll be responsible with your debt obligations.

How long does it take to build credit with a credit card?

Establishing credit is usually not something that happens over a short period of time. Instead, building your credit takes months, if not years. Demonstrating a history of reliably meeting your debt obligations is one of the biggest factors that makes up your credit score, so always aim to pay your bills on time and in full every month.

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Photo credit: iStock/Ridofranz

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Establishing a robust credit profile takes time, so teaching your children how to start building credit at 18 or even younger can help them get ahead. Building a positive credit history can play a key role in accessing competitive borrowing opportunities in the future.

If you have a teen or early adult child, there are a few ways to help them establish credit at age 18. This can include getting a secured credit card, becoming an authorized user, or implementing other strategies.

What Is Credit and How Does It Work?

When a person purchases an item on credit, they aren’t using money they already have. Instead, they’re borrowing the funds to make that purchase and promising to repay the amount, plus interest, in the future.

A credit history is a complete record of a consumer’s installment loans and revolving credit accounts. It logs data about the types of credit borrowed and their respective amounts, the lenders that issued the credit, whether payments were made on time, and each account’s status.

Creditors report this data to the three major credit bureaus: Experian®, Equifax®, and TransUnion®. Activity is submitted at regular intervals as soon as a consumer submits an application and as long as the account is active. Data is also reported when an account is closed.

Recommended: What Is a Charge Card?

Why Is It Important to Start Building Credit Early?

The earlier your child builds their credit, the more time they have to establish and positively impact their credit history and their scores. Credit scoring models, such as the commonly used FICO® Score, will use your child’s credit history to calculate their credit score.

This score is like a snapshot of your child’s creditworthiness. Businesses and lenders may refer to that score when evaluating your child for future jobs, apartment rentals, new loans, and credit cards.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

Tips to Start Building Credit at 18 Years of Age

As a parent of a teenager or early adult child, there are a handful of ways to assist them in building credit under their name.

Recommended: Tips for Using a Credit Card Responsibly

1. Add Your Teen as an Authorized Card User

One of the easiest and best ways to start building credit at 18 for your child — and sometimes younger, depending on your card issuer — is by adding them as an authorized user. As an authorized user, your child will be able to make purchases using the card, with the primary account holder remaining liable for monthly payments.

If you have a credit card in good standing, making your child an authorized user on your account lets them reap the benefits of your positive borrowing habits. See if your card issuer allows authorized users (different types of credit cards may have different policies). Also, double-check if it reports the account’s data to the credit bureaus for all users under the account.

Your credit card company might have a minimum age requirement for card users (and it often differs from the age to get a credit card independently). If your child meets the issuer’s requirement, your continued good borrowing activity on the card will get reported to credit bureaus to develop their credit file.

Recommended: How to Avoid Interest on a Credit Card

2. Work a Student Loan Into Their Education Financing Strategy

Talk to your college-bound high school graduate about strategically using a student loan to pay for some of their higher education costs. Student loans are installment loans in which your child is the primary borrower. They are designed to cover school-related expenses and are paid back over time.

Some students might be eligible for a federal student loan, which offers fixed interest rates and borrower protections, such as student loan forgiveness as well as flexible repayment and forbearance options. Although payments can be deferred on federal student loans while your child is in school, making payments during school can help them establish credit early on through student loan payment data.

Recommended: When Are Credit Card Payments Due?

3. Help Them Research for a Starter Credit Card

Getting a credit card for the first time can be an overwhelming process for your 18-year-old. There are many types of credit cards on the market with varying benefits. A credit card for individuals who are new to credit, such as a secured card, might be an effective way for your child to initiate their credit history.

With a secured card, your child will need to provide the card issuer with a deposit that sets the card’s borrowing limit. Since the issuer uses the deposit as collateral for the account, it can be easier for individuals without credit to qualify. As your child uses the card and makes on-time monthly payments on the account, that data is reported to the credit bureaus.

Recommended: What Is the Average Credit Card Limit?

4. Find Ways to Report Their Payment History

If your child is moving into their own apartment or has done so already, check whether their landlord is willing to report their rental payment history to the credit bureaus. Additionally, other types of nontraditional payment data can be reported to the credit bureaus by utility service providers.

Your child also might look into a service such as Experian Boost®, which is offered by the credit bureau Experian. This service helps individuals who are new to credit start their credit history by accounting for payments toward services, such as cell phone and streaming plans.

The Takeaway

Helping your child understand how to build credit at 18 can help them access favorable borrowing opportunities later on. That is assuming they maintain positive borrowing habits once they have credit accounts of their own, such as making payments on time and not taking on too much debt. Strategies can include getting their own credit card or becoming an authorized user on a family member’s card.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

Can you build your credit before 18?

Yes, parents can help their child’s credit during their high school years by adding them on their credit card account as an authorized user. Depending on the credit card, there might not be an additional fee for adding an authorized user, though some card issuers do charge an annual fee per card user.

What credit score do you start with at 18?

If a consumer hasn’t had a credit account by age 18, they simply won’t have a credit score at all, since a credit score of 0 does not exist. The lowest FICO Score possible is actually 300, but a person’s starting score is typically higher than this, unless they’ve already demonstrated poor borrowing behavior early in their credit-building history.

When should I get my first credit card?

There’s no one right age to get a credit card, but card issuers typically set a minimum age requirement of 18 for their card users. Parents can help their child access their first credit card as an authorized user, sometimes before the age of 18 years old. As an authorized user, your child can make purchases on your card and start building their credit without being liable for monthly payments.

What is the fastest way to build credit at 18?

One of the fastest ways for parents to help their 18-year-old child build credit is by adding them to the parent’s existing credit card account as an authorized user. As parents make on-time monthly payments for at least the minimum amount due, some card issuers report this positive payment data to the credit bureaus for all users listed on the account.

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Photo credit: iStock/PeopleImages

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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When you get preapproved for a credit card, you’ve met the initial criteria to receive an offer to get a credit card. In other words, you’ve popped up on a list of consumers who satisfy a credit card company’s requirements and are being invited to apply for a card.

Here, you’ll learn the details of how preapproved credit card offers work, the difference between preapproved vs. prequalified offers, and the pros and cons of preapproved offers.

What Is a Preapproved Credit Card Offer?

A preapproved credit card offer, as noted above, is an invitation from a credit card company to apply for a credit card because you seem to meet some of the conditions for approval.

Credit card issuers usually use criteria pulled from credit reporting agencies to extend these offers. If you fall within the parameters of the credit card requirements set by the card issuer, then you may receive an offer, either via email, snail mail, or over the phone, to formally apply for approval for the card.

How Do Preapproved Credit Card Offers Work?

While it sounds promising, getting a preapproved credit card offer doesn’t necessarily mean you’re guaranteed to get approved for a credit card. Even if you’re preapproved, you’ll need to properly apply.

When you do, the credit card issuer will look over your application and usually request additional financial and personal information. The credit card company will also check your updated credit report to figure out if your credit still meets its criteria (after all, credit scores do change over time).

Preapproved vs Prequalified Credit Card Offers

The terms preapproved and prequalified often are used interchangeably when it comes to prescreened credit card offers. And within the realm of credit cards, they often are one and the same. But in other types of lending, they mean different things.

•   Preapproval means you’ve been prescreened for offers by the credit card company. These credit companies work with the three major credit reporting agencies — Equifax®, Experian®, and TransUnion® — to come up with a list of consumers that meet their lending criteria.

•   Prequalified offers are usually requested by you, the consumer. To get prequalified, you typically need to provide basic personal and financial information. During the screening process, the credit card issuer will check your credit. However, it will only conduct a soft pull, which won’t impact your credit score. After reviewing the info you submitted, the credit card company will let you know if you’re likely to get approved.

With both preapproval and prequalification, you’ll still have to submit to a hard credit inquiry and potentially provide additional financial information to actually get approved for the loan product. Keep in mind that with a hard vs. soft credit inquiry, a hard pull will usually temporarily lower your score.

Benefits of a Preapproved Credit Card

Now that you know what preapproved means for a credit card, you may be wondering what the benefits are. In general, these are the upsides of preapproval, whether for a rewards card or a virtual credit card.

Indicates Your Odds of Approval

Perhaps the most obvious benefit of getting preapproved for a credit card is that you’ll have a better sense of how likely you are to ultimately get approved for the card. Although preapproval is not a guarantee of eventual approval, if a credit card issuer has already selected you to apply and neither your financial situation nor your credit hasn’t drastically changed, you’re likely within the required parameters to get the card.

Won’t Impact Your Credit Score

One of the major benefits of getting preapproved for a credit card is that it won’t impact your credit score. To get preapproved, the card issuer does a soft pull of your credit. Only if you decide to formally apply for the card will the credit card company do a hard pull of your credit.

Could Allow You to Secure More Competitive Terms

Getting preapproved for a credit card may allow you to secure a lower interest rate than you’d otherwise be able to get. This is because the lender is effectively advertising the card to you in order to get you to apply. Keep in mind, however, that your rates aren’t set until after you formally apply.

Recommended: How to Avoid Interest on a Credit Card

May Provide Access to Better Intro Offers

Another advantage of a preapproved credit card is that it might come with more lucrative perks than what’s more widely advertised to the public. You might be privy to cards with more attractive sign-up bonuses or introductory earnings opportunities. For instance, a cash-back credit card might offer a higher initial earnings rate through preapproval offers.

Could Get a Longer Intro APR for Balance Transfer Cards

For balance transfer credit cards that allow you to transfer your existing debt over to the new card, you might be able to get a lower introductory credit card annual percentage rate (APR) for longer through preapproved offers. This could make it easier to pay off your balance in full before the regular interest rate kicks in.

Easier for You

Because credit card companies have vetted you and know that you’ve passed at least some of its criteria, you don’t have to spend time researching cards. Instead, these offers are coming to you. Still, when choosing a credit card, it doesn’t hurt to take a look around to make sure this is truly the right fit for you.

Drawbacks of a Preapproved Credit Card

While there are benefits of preapproved credit card offers, there are drawbacks to them as well.

Might Not Be the Best Card for You

While you don’t have to jump through the same hoops as you would looking for a credit card on your own, the credit card you’re preapproved for may not be the right one for you. It might be a good idea to spend some time doing your own research and understanding differences in how credit cards work even if you do get preapproved.

Could Get Flooded With Unwanted Offers

Preapproval offers mean you receive a lot of unsolicited emails, mail, or phone calls. Especially if you’re not in the market for a new credit card, you could feel inundated with offers you don’t necessarily want or need.

Potential for Theft of Personal Information

There’s a chance that a would-be criminal hoping to commit identity theft could intercept your prescreened offer and get hold of your name and mailing address. The good news is that a fraudster would likely need information beyond what’s included in a preapproval offer.

Temptation to Open More Cards

Receiving preapproved offers for credit cards may tempt you to open a new credit card you don’t necessarily need, especially if the preapproval offer includes a lucrative sign-up bonus or an extended introductory APR offer. Especially if you’re already set with your lineup of credit cards, this might entice you to take on more cards and debt than you can comfortably manage.

When You May Need Credit Card Preapproval

You might want to receive a preapproved credit card offer if you’re in the market for a new credit card and would rather not go through the full process of researching credit cards. As you know you already meet certain lending criteria, the odds of getting approved for a card can be improved.

Keep in mind, however, that you don’t need to get credit card preapproval in order to apply for a credit card. If you’re getting a credit card for the first time and have a limited credit history, for instance, you’re likely not going to get so many preapproval offers, but that doesn’t mean you can’t still try applying.

Recommended: What Is the Average Credit Card Limit?

Tips for Getting a Preapproved Credit Card Offer

If you’d like to get preapproved offers, you’ll want to opt in by visiting OptOutPrescreen.com. From there, you can choose to get these offers through the mail, email, or via phone.

Instead of waiting for offers to come to you, you can also get preapproved by visiting a credit card issuer’s website and applying for prequalification. This typically requires providing basic personal and financial information.

Recommended: How Long It Takes to Get a Credit Card

Tips for Improving Your Chances of Preapproval

While you can still get preapproved for offers if you have not-so-great credit, it’s a strong credit score that will get you offers with the most favorable terms and rates. To maintain or build your credit score and thus improve your chances of approval, make sure to do the following:

•   Avoid late payments.

•   Keep your credit utilization rate low.

•   Aim to keep cards open.

•   Don’t apply for too many new accounts.

•   Maintain a diverse mix of different forms of credit.

Recommended: When Are Credit Card Payments Due?

How Does a Preapproved Credit Card Impact Your Credit Score?

A preapproved offer for a credit card doesn’t impact your credit score. As mentioned earlier, lenders will do a soft pull of your score, which doesn’t affect your score.

But if you decide to apply for a card, the credit card issuer will do a hard pull of your credit. This will most likely ding your score, though generally only temporarily.

Opting Out of Preapproved Credit Cards

If you don’t want to get flooded by preapproval offers, you can decide to opt out. Visit the website OptOutPrescreen.com and follow the simple steps outlined on the website to do so. You then won’t be included on lists to get considered for preapproval for five years.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

The Takeaway

A preapproved offer for a credit card means you’ve met certain lending criteria to most likely get approved for a specific card. You’ll still need to officially apply to secure approval, though. But if your credit score and financial history are the same as when you initially received the offer, there’s a high likelihood you’ll get approved.

Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.

Enjoy unlimited cash back rewards with fewer restrictions.

FAQ

How long does it take to get a credit card if you are preapproved?

It depends on the credit card and credit card company. If you’re preapproved for a card, you’ll still need to officially apply. If you do get approved for a card, it could take anywhere from five business days to two weeks for your card to arrive in the mail.

Can you get denied after preapproval?

In some cases, yes. For instance, if your credit or financial situation changed between the time you received a preapproved offer and when you applied, you might get denied.

Can I get a credit card if I am not preapproved or if I don’t qualify for a credit card?

You don’t need to get preapproved for a credit card, but it skips a few steps and can boost your odds of getting a card. However, you will need to qualify for a credit card by meeting the credit card company’s lending criteria. If you don’t qualify, you might consider applying for a secured card, which uses your cash deposit as your spending limit.

Should I still apply if I am not preapproved for a credit card?

Just because you aren’t preapproved doesn’t mean you won’t be able to get a particular credit card. Spend some time doing your homework to figure out which cards are a good fit for your needs and financial situation. When choosing a credit card, it’s important to check the rates, credit limits, and fees.

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Photo credit: iStock/akinbostanci

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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