What really matters with your first credit card

Getting your first credit card is like moving into your first apartment: It’s exciting, empowering — and, once you get used to it, pretty underwhelming.

Your first time out, “you’re not going to have a credit card that is going to have a high limit,” says Paul Golden, spokesman for the National Endowment for Financial Education. “It’s not going to have great benefits or kickbacks or reward programs probably tied to it. And that’s OK.”

A starter credit card is just that — a start. Used responsibly, it’s a way to build a positive credit history, which will help you with things like getting a better deal on a mortgage or cheaper car insurance; and it will help you qualify for a card with better terms down the road — for example, one with richer rewards. Here’s what you should look for.

When you have a thin credit file and limited income, you’re not likely to qualify for a card packed with benefits. Instead, aim for something more basic

If you already have a credit history that shows consistent on-time payments and responsible borrowing — say, from repaying student loans — it’s possible to qualify for a regular “unsecured” credit card that doesn’t require a deposit. To increase your odds of approval, apply through the bank you already use or with a preapproved offer received in the mail. If you’re in college, look into a student credit card.

Don’t have a credit history yet? Consider applying for a secured card, one that requires a cash deposit. Or ask a parent to add you as an authorized user on a card with history of on-time payments and a balance that’s far below the limit.

Avoiding an annual fee on your first credit card is a budget-friendly move that allows you to keep the card open for a long time at no cost. That can bolster your credit scores if you continue to make on-time payments on the account.