How to apply for a credit card
Editor's Note
Credit cards are an excellent tool to help you meet your financial goals.
I strategically use my cards to maximize my grocery store spending, takeout and delivery from restaurants and online shopping. That way, I can accrue points for an amazing getaway.
Of course, you can also utilize cash-back cards to save money on your monthly expenses right now or to save up for a larger purchase. Travel credit cards are the best way to get the most value from your rewards, though, as you can often extract more than 1 cent per value with your points and miles.
If you’ve never had a credit card, switching from cash or debit to credit can be a bit overwhelming, especially since so many options are available to consumers. This guide will walk you through the steps you need to take before applying for your first credit card to make sure the experience goes as smoothly as possible.
Related: How to choose the best credit card for you
Check your credit score
The first thing you need to do is figure out your credit score, which is one of the largest factors companies use to determine whether to approve your credit card application.
Generally speaking, travel rewards credit cards require higher scores than other types of cards. Because you’re able to earn rewards and reap benefits from the card, issuers want to make sure you’re a low-risk borrower.
No idea what your credit score is? Don’t sweat it, there are plenty of ways to check it free of charge. You can access free weekly credit reports here from the three major credit reporting agencies. Your report will go much deeper than your credit score, but it’s good to monitor it to ensure its accuracy and address any discrepancies.
Now that FICO has the FICO Score Open Access program, obtaining your credit score online for free is easy. For a step-by-step rundown of how to check your score at each of the major credit reporting bureaus, check out our guide on how you can check your score — absolutely free.
What’s a good credit score?
The most common credit score you’ll see is the FICO score, which consists of a number between 300 and 850. Generally speaking, a “good” credit score falls in the 670-739 range, “very good” is considered 740-799 and anything above that is “exceptional.”
To be approved for the best rewards credit cards, both travel-focused or cash back, we typically recommend applicants have a credit score of 670 or higher. That’s not to say that you can’t be approved if you have a score below that, but it does lower the odds of obtaining approval.
Related: 6 things to do to improve your credit score
Finding the right credit card
Once you know your credit score, you can start looking at credit cards that fall within your approval range. For example, if you have little to no credit, you’ll want to look at the best first credit cards, which typically don’t require an extensive credit history for approval.
If your credit score is low, you should consider improving it by applying for a secured credit card and/or becoming an authorized user on someone else’s account.
If you have an excellent credit score, the credit card world becomes your oyster. You’ll get your pick of some of the best credit cards to apply currently available.
Here are a few of the things you should look for when deciding which card to apply for:
Welcome bonus
The best rewards credit cards almost always come with large welcome bonuses that allow new cardholders to earn a large sum of points, miles or cash back after hitting a certain spending threshold in the first few months of opening the account.
Some of the best welcome offers currently available are worth more than $1,000. Make sure you choose a card with a compelling welcome offer that is attainable for your monthly budget.
Type of card
You can choose from many kinds of credit cards based on the type of rewards or benefits you’re looking for. If you aspire to travel often, a travel credit card might be a good fit. Someone more interested in saving money on expenses or saving up for a large purchase might consider a cash-back credit card.
If you’re a frequent traveler loyal to a specific airline or hotel, you should consider cobranded credit cards. It’s all about choosing a card that will help you meet your goals.
Rewards potential
Rewards cards generally have different bonus categories, from travel to dining to groceries and more. You want a card that earns rewards in the categories where you spend the most each month.
For example, if you spend a lot on groceries at U.S. supermarkets and restaurants each month, you should look into a card like the American Express® Gold Card, which offers 4 points per dollar spent in these categories (capped at $25,000 in purchases per calendar year at U.S. supermarkets and $50,000 in purchases per calendar year at restaurants worldwide; then 1 point per dollar).
If you don’t spend much money in just one or two categories each month, you can try out a card like the Capital One Venture Rewards Credit Card, which earns 2 miles per dollar spent on every purchase.
Annual fee
Unfortunately, the trade-off for higher rewards and travel benefits is often an annual fee. When considering whether to apply for a card with an annual fee, make sure you will be able to use the card enough to offset that cost.
For example, if you apply for the Chase Sapphire Reserve®, make sure you will use the $300 annual travel credit and rack up enough rewards through spending to try and offset the $795 annual fee.
If you want to start conservatively, there are also solid credit cards with no annual fee.
Benefits
Credit cards often come with other benefits aside from just category bonuses. These can differ drastically from card to card but can include things like lounge access, annual credits for travel and travel insurance protections.
Related: 5 of the most underrated travel rewards cards
Check for a pre-qualified offer
Once you’ve chosen a card to apply for, check to see if you are pre-qualified with a better offer. You can check this through the CardMatch tool.
Various cards are subject to an array of restrictions that could limit you from earning an offer on a card in the future. By not checking CardMatch or other pre-qualifying tools, you could be leaving hundreds of dollars in rewards on the table.
Related: How to use the CardMatch tool to get better credit card welcome offers
Fill out an application
Once you’ve chosen a card to apply for and checked for the best welcome offer, the hard part is over. All that’s left is to apply for your card and then maximize it.
You can apply for a credit card online, by mail or by phone. The easiest option is to do it online. A credit card issuer will ask for personal information, including your name, contact information and annual income. You’ll be asked to read the terms and conditions on associated benefits, rates and fees for the card.
Reading terms and conditions is pretty much everyone’s least favorite activity, but it’s important to know what you’re signing up for. We highly recommend reading through the offer details and fine print regarding the rates, fees and conditions for using the card benefits. That way, you won’t be surprised down the road.
Once you apply, many issuers will make a decision in seconds, but you could end up having to wait up to two weeks for an answer.
Remember that a credit card application results in a “hard pull,” which will appear on your credit report for up to two years. This could result in a temporary minor decrease in your score (generally only by a few points).
Keep this in mind if you plan on applying for other types of credit soon. A changing credit score could affect your interest rates or approval odds for things like a mortgage or car loan.
Related: 5 things to check before applying for your next credit card
Maximize your new credit card
Once you have your credit card, the fun begins. Make sure you’re using your card to its full advantage. This means using it strategically for appropriate purchases, maximizing its benefits, and ultimately redeeming your rewards to suit your goals and needs.
Follow TPG’s 10 commandments for rewards credit cards to avoid these credit card mistakes.
Related: Credit cards 101: The beginner’s guide
Bottom line
Credit cards can help you consolidate debt, save money and experience the magic of traveling the world by earning and redeeming rewards. Applying for a credit card can seem scary, but if you know what to look for, the process is actually quite straightforward. At the end of the day, having the right credit card in your wallet is worth the research and application process — especially when you go to redeem your points or miles.
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.