If you’re in the market for your first credit card, it can be difficult and overwhelming to navigate the plethora of cards, terms, promotional offers, and rewards programs. Where to even begin?
To help you through this important life step, we’ve gathered some insights to make the decision a little easier. Let’s start with the basics.
1. What is Credit?
Put simply, credit is the ability to borrow money or an item of value with the intention and promise of paying it back later. Credit is something you have to apply for, and the amount and terms of your credit are based on your credit history.
Your credit report and credit score impact how much credit you can be approved for.
A credit report is a history of your financial behavior which includes any credit accounts you have open along with their current balances, your payment history for those accounts (including late payments), loans you’ve taken out, and any financial disruptions like bankruptcy or foreclosure.
Your credit score is a three-digit number based on your credit report and credit history, which helps determine and establish your creditworthiness. A credit score generally ranges from 300 to 850, with higher numbers corresponding with better credit.
To raise that credit score and increase your creditworthiness, you need to prove that you can responsibly manage credit and pay it back on time.
While you can build credit in a number of ways, a great way to start is with your first credit card.
2. Your First Credit Card
Weird as it may sound, you need credit history to get a credit card. But what if you have never had a credit card before? Starter credit cards can help.
Secured Credit Cards
Secured credit cards are a great first credit card. They’re available to almost everyone and have a low level of risk to both the borrower and the issuer. First, you make an upfront cash deposit to secure the card. This is used to pay off your first credit card if you fail to make payments. Aside from that, it functions much like an ordinary credit card. You can use your card to make purchases, then you’re expected to pay by the due date each month. If the balance isn’t paid in full, then the leftover balance incurs interest charges. Once you close the account, your cash deposit is returned to you. To best build your credit, make sure that you make payments on time and, if possible, pay the balance in full each month.
Retail Credit Cards
Virtually every big retailer offers their own credit cards that usually have low credit limits and bonus deals on merchandise. While they generally have higher than average interest rates, if used carefully, retail credit cards can be a way to save from stores that you regularly patronize. If you decide to go this route, keep an eye on your spending and try to pay your full balance each month.
3. Keep an Eye on Interest Rates and Fees
If you do not pay off the balance of your credit card within a specified window of time, generally a month, the balance due will begin to accrue interest. The interest rate, also known as the annual percentage rate (APR), varies between different credit cards. Check out the Consumer Financial Protection Bureau’s Credit Cards Resource Center to stay up to date on interest rates and fees.
You may also be charged a late fee if you fail to make a payment on time.
Some credit cards have an annual fee. This fee also varies between credit cards, and there are many cards that do not have an annual fee. Some credit cards offer promotional terms, such as offering to waive the annual fee for your first year.
Avoid fees by making sure to pay off your balance every month on time and by searching for credit cards without an annual fee. A great way to ensure that you keep up with your payments is by using an autopay feature. Autopay allows you to pay your balance automatically every month using the payment method of your choice. This way, you won’t have to worry about making a late payment and incurring late fees.
Another great option is to use a credit card with a low APR, such as the Vantage West Platinum Visa®.
4. Rewards Programs
Many credit cards offer rewards programs to incentivize you to use their card. Rewards can range from cashback on everyday purchases, to airline mileage, to free food and drinks, and even free nights at hotels. Choosing a credit card with a rewards program is a great way to build credit while earning fun perks.
Check out the Vantage West Signature Rewards Visa®. You can receive $200 cash back1 when you spend $2,000 in the first three months. Also, 2% cash back on dining, entertainment, and groceries2; 1/5% on everything else!
Credit cards are a great way to begin establishing credit without taking on an unreasonable debt load. If you stay on top of your spending and develop good habits, credit cards can be a valuable asset in your life rather than a burden.
Ready to learn more? Here are 3 Ways To Help You Build Credit History Check out our selection of credit cards to start establishing credit.
DISCLOSURES
1To qualify and receive the $200.00 Welcome Bonus you must open a Vantage West Signature® Rewards VISA® Credit Card and make qualifying purchases, totaling $2,000 or more posted to your account, within the first 90 days of account opening. (“Purchases” do not include balance transfers, cash advances, interest, unauthorized or fraudulent charges, items returned for credit, or fees of any kind, if applicable.) The $200.00 Welcome Bonus will be awarded in the form of 20,000 Reward points, which can be redeemed for $200.00 cashback. Offer valid for new qualifying Vantage West Signature® Rewards VISA® Credit Cards only and does not apply to increases, conversions, or re-opening of a closed credit card. Members with an existing Vantage West Signature® Rewards VISA® Credit Card are not eligible for the bonus. Certain restrictions may apply.
Cash Back rewards are tracked as points and each $1 in Cash Back rewards is equal to 100 points. Points can be redeemed for cash back, merchandise, gift cards, travel, and charitable donations. Must have a minimum 2,500 points for cash redemption. Subject to change. Certain restrictions may apply. See Vantage West Rewards terms and conditions for details and restrictions of the program.
2Merchants are assigned codes based on what they primarily sell. We group certain merchant codes into categories that are eligible for the Bonus Category Points. A purchase with a merchant will not earn Bonus Category Points if the merchant’s code is not included in our Dining, Entertainment and Groceries category.
Card type and APR are based on creditworthiness. Platinum Visa introductory rates are 0.00%, for twelve months, for qualifying members. Standard rates for the Platinum Visa after a twelve month introductory period range from 9.24% – 27.24%APR. The Signature Rewards Visa has an introductory rate of 0.00%, for twelve months, for qualifying members. Standard rates for the Signature Rewards Visa after a twelve month introductory period range from 17.24% – 29.24% APR. Introductory rate offered only for new Signature Rewards and Platinum credit cards and does not apply to increases, conversions, or re-opening of a closed credit card. Rates are variable and are subject to change. Rates are based on Prime Rate and are accurate as of 09/01/2026. All loans are subject to credit approval. Membership required. Certain restrictions may apply.
Visa card holders with international transactions (such as US-dollar online purchases from a foreign country, or transactions enacted in a foreign country) will be charged, by Visa, an International Service Assessment (ISA), which is currently 1% for multicurrency transactions and for single currency transactions.
This content is provided for informational and educational purposes only. Vantage West Credit Union offers these blogs as educational resources regarding various financial topics and scenarios. We cannot and do not guarantee their applicability or accuracy with respect to your individual circumstances. We encourage you to seek personalized advice from our qualified Financial Coaches regarding your personal financial situation. Membership required. All products and services are subject to approval. Certain restrictions may apply. Federally insured by NCUA.
