How To Get A Credit Card

22.08.2023 0 Comments

How To Get A Credit Card

What is required to get a credit card?

Proof of identification – Some credit card issuers require documentation to prove your income and that you have a U.S. address. Some issuers require a Social Security number (SSN) as proof of identity. An individual taxpayer identification number (ITIN) may also be accepted. Capital One asks for your full name, date of birth, SSN, physical address and estimated gross annual income,

What is the easiest way to get a credit card?

Secured credit cards – Secured credit cards will likely be the easiest cards to get for those with either poor credit or no credit who want to avoid outlandish fees. That’s because they require collateral upfront in the form of a security deposit, which is typically equal to the amount of your credit line and reduces the risk to the card issuer if you fail to pay your bill.

Scraping together a deposit can be its own hurdle, but that deposit is refundable when you close the account in good standing or upgrade to a regular “unsecured” product from that same issuer. The best secured credit cards feature such an upgrade path, while also reporting to all three credit bureaus.

Ideally, they also skip an annual fee.

How to open a credit card at 18?

18 years old – Consumers can apply for credit cards starting at age 18, but the law requires them to have an independent income or a co-signer. However, most major issuers don’t allow co-signers anymore. So, a person aged 18, 19 or 20 usually has to earn and prove their own income before being approved for a credit card.

Can I have a credit card at 16?

Getting a credit card before 18 – Kids younger than 18 typically can’t open their own credit card. But they may be able to access credit in other ways. One is by becoming an authorized user on someone else’s credit card account. An authorized user is a person a cardholder has granted access to use their account.

An authorized user is allowed to make charges on the card. And they might get their own card connected to the account too. But an authorized user isn’t the person required to make payments every month. That responsibility falls to the account holder. Each credit card issuer has its own requirements for authorized users.

But it’s also important to know that credit card issuers aren’t required to report authorized users’ activity to credit bureaus, If the information doesn’t appear in a credit report, it might not affect the authorized user’s credit at all.

Can you get a credit card with no credit?

Key takeaways –

You can still get approved for a credit card without a credit history. In fact, there are credit cards designed for people with no credit, such as secured cards and student cards. You’ll want to pay attention to features like fees and interest rates when shopping for your first credit card. Before applying for a credit card, be sure to do your research in terms of card details, approval requirements and more. Then, make sure to use your card responsibly in order to build your score.

These days, having good credit is less of a suggestion and more of a mandate. Let’s face it, when you have good credit, you have more opportunities. You can lease a nicer apartment and put a downpayment on a new car. Having good credit also comes in handy when you need to apply for a loan.

So, what do you do when you have no credit history whatsoever? Do you qualify for any type of credit card ? Younger people, students, immigrants and anyone afraid of the notion of debt are left wondering how they can get a credit card with no credit history. Luckily, there are ways you can get a credit card with no credit.

It is possible, and while it might take some work, the benefits go well beyond getting approved. In fact, some credit cards are designed with this type of individual in mind. However, some require collateral as a result. The idea of putting down a deposit in order to get a credit card shouldn’t cause you to run for the hills.

Can anyone get a credit card?

You can typically apply for a credit card online in a few simple steps, but it’s important to get the facts about what is included in a card application. To make the process easier, gather all the information you need before you get started.

Who can apply for a credit card What you need to submit a credit card application How to apply for a credit card How credit card applications affect your credit score

Credit card applications are open to U.S. residents — in other words, people with a mailing address in the U.S. who are over 18 and either have a Social Security Number (SSN) or Individual Tax Identification Number (ITIN). Following the passage of the Credit CARD (Card Accountability, Responsibility and Disclosure) Act of 2009, applicants under the age of 21 will need a co-signer or proof of income as part of the application process.

Are credit cards hard to get?

Key Takeaways –

Your credit score is the biggest single factor in whether you’ll be approved.If your credit score is high, you should qualify for a relatively low-interest rate and better perks.If your credit score is low, you’ll qualify only for a higher-interest card.If your credit score is very low or you’re just starting out, consider a secured credit card or a small personal loan to build or rebuild a favorable history.

Can I get a credit card if I’m a student?

You may not need to have a job to get a student credit card, but you’ll often need to show you have a regular income that doesn’t include your student loan. This could be regular payments from your parents or a salary from a part-time job, for example.

What credit age is good?

What is a good length of credit history? – While there’s no such thing as the perfect “age of credit,” a FICO study reveals that for people with 800+ FICO Scores, their average age of credit accounts was 128 months (a little over 10.5 years). Yet that doesn’t mean that it will take you ten and a half years to earn good credit.

  1. Those working to build credit for the first time may be eligible for a FICO Score once an account on their credit report is about six months old with payment history that’s been updated at least once.
  2. It takes even less time to be eligible for a VantageScore credit score.
  3. You might qualify for a VantageScore credit score within a month or two of opening an account and having it appear on your credit report.) Keep in mind that length of credit history isn’t the only credit scoring factor that matters.

Your positive actions with regard to payment history and credit utilization can often make up for a younger credit age. Still, older accounts in good standing tend to help your score in many situations. Plus, negative information on your credit report can have a bigger impact on your credit score than a young credit report or a thin credit file.

At what age should I get a credit card?

Young adults have enough to worry about without giving second thought to their credit scores. Yet that three-digit number can have a big impact on your financial life, and the better your score, the easier it will be to lease your first apartment, buy a car and even embark on a new career, as employers frequently check your score before you’re hired.

Why do most people start using credit cards?

Credit cards help build credit – You don’t need to have a credit card to have good credit, and you certainly don’t have to carry a balance. But careful use of a credit card is the single best way to improve your credit scores, and good credit opens many doors.

It makes it easier to find housing, whether a potential landlord is checking your credit before giving you the keys or you’re applying for a mortgage to buy a home. Cell phone providers, insurance agents and utility companies also might use your credit history to determine your eligibility and even your rates.

It can even boost your chances of landing a job, as many employers run credit checks on job applicants. If you do have a credit card, making regular small purchases, keeping your balances low and paying your bills on time will improve your credit score over time.

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Can I build credit at 17?

4. Add your teen as an authorized user – You may be able to help your teen build their credit before they’re 18 by adding them as an authorized user on your credit cards. That’s if the card issuer reports information to the credit bureaus and the credit bureaus include that information on credit reports.

Can I give my 17 year old a credit card?

Yes, you can get a credit card at 17 as an authorized user on someone else’s account. But you have to be at least 18 years old to open a credit card account in your own name. And when you turn 18, you’ll need to show that you have your own independent income to qualify.

Does a debit card build credit?

A debit card typically won’t help you build your credit. If you have a limited credit history or are looking to improve your credit score, consider becoming an authorized user or opening a credit card.

Can I live without a credit card?

Why a Good Credit Score Makes Life Easier – Your credit score is a three-digit number representing your credit history that lenders use to evaluate your risk as a borrower. Having no credit score makes it more difficult to access financing for anything from a cellphone to a car or home.

Get access to favorable credit terms. Many lenders extend the best credit card benefits and loan terms to borrowers with high credit scores. Having a good score may mean paying a lower interest rate or qualifying for higher credit limits and better rewards. Secure housing on your own. Good credit can make it easier to apply for an apartment without seeking a cosigner to help you qualify. It can also help you qualify for a mortgage without relying on a guarantor to serve as backup if you don’t make monthly payments. Protect yourself against fraud. Credit cards typically offer better fraud protection than debit cards do. If a scammer steals your credit card number to make unauthorized purchases, for example, you’ll be reimbursed and can only ever be held liable for a maximum of $50. Give your budget some breathing room. Without credit, you’ll need to use savings to pay cash for everything. It’s always wise to save for things you need and keep a flush emergency fund, But the flexibility to pay over time can sometimes be favorable to paying outright, especially for large purchases such as a home renovation.

Is it better to use credit or debit?

Credit cards often offer better fraud protection You could be liable for much more for unauthorized transactions on your debit card. If you report the debit card as lost or stolen within two days, you’re typically responsible for up to $50.

How does a credit card work?

A credit card allows you to spend money up to a pre-set limit. You’ll get a bill for what you’ve spent each month. It‘s important to try to pay off the balance in full every month. But you’ll need to pay off at least the minimum amount. The minimum is set by your credit card provider, but must be at least 1% of the outstanding balance, plus interest, any default charges and the annual fee (if there is one).

The credit card provider will carry out a hard credit check when you apply. This will include checking your credit file. If you’ve got a good credit rating, this will improve your chances of a successful credit application. It could also give you access to cards offering the lowest interest rates and/or promotional offers. A hard credit check will show up on your credit report and will have the potential to affect your credit score. Some credit companies will perform a soft check before you apply. This type of credit inquiry will have no impact on your credit rating and will not show up on your credit report. It provides an indication of whether your credit application will be successful.

If you already struggle with managing your money or you think you might be tempted to overspend, it‘s important to avoid getting a credit card. Are you confident about managing your spending and being able to clear your balance every month? Then a credit card can be a good way to buy what you need now and pay for it each month.

Be careful how you use your credit card. There are all kinds of ways you can incur charges. If you don’t pay off your credit card balance in full at the end of the month, you’ll pay interest on your whole balance. This is unless you’re in a 0% introductory period. As a new customer, you might get an introductory rate when you first get the card.

But check whether this covers purchases or balance transfers or both. Remember, it won’t cover cash withdrawals. Also, check what the interest rate will be once the introductory period is over and make sure you repay in full before then if you can. If you’re transferring a balance from another card, you’ll usually be charged a fee, often around 2-4% of the amount transferred.

  1. You need to work out whether it’s worth paying this in order to benefit from a lower interest rate on the card you’re transferring to.
  2. If you make your payment after the monthly deadline on your statement, you’ll have to pay a late payment charge.
  3. Any 0% or other introductory rate could also be withdrawn.

Plus, other companies will see you were late paying as part of your credit record. This could have a negative impact on future credit applications, such as applying for a mortgage or a car loan. Always aim to repay as much as you can. If you only make the minimum payment, it’ll take a long time to pay off your debt and you’ll end up paying a lot more than you borrowed.

For example, if you had a £1,000 balance, are charged 22% interest and no longer use the card: By paying £70 more each month, you’d pay £370 less in total and pay off your debt three years and two months earlier. If you feel you’re not able to manage your repayments or you’ve been contacted by your card provider, help is available.

Credit card providers are obliged to contact and encourage people who have made very low or minimum payments on their credit cards for the past 18 months. This is where you have paid more in interest, fees and charges than what you have paid back to get the balance down on your credit card.

  • Lenders are required to suggest higher affordable repayments.
  • If you do not respond, or ignore the issue, and the situation persists for more than 36 months this could lead to your account being suspended.
  • Credit and debit cards work differently at cash machines.
  • With a debit card, there are no fees unless you’re using a privately operated cash machine.

If a fee is charged, you’ll be told how much you’ll be charged before you take the money out. With credit cards, your card provider will charge you a minimum amount or a percentage of your cash withdrawal if you take money out from any type of cash machine.

You might not be told about this before you take out the money. You’ll also start being charged interest by your card provider straight away, even if you pay it all off before your bill is due. The same applies to other transactions that are treated as cash – such as using a credit card to purchase foreign currency or gift cards, or for gambling transactions.

It’s best to avoid taking out cash on a credit card. A credit card cheque is like a normal cheque but the money goes on your credit card bill instead of coming out of your bank account. They’re expensive to use and it’s best to avoid them. They’re treated like a cash withdrawal, so the interest rate is higher and there are additional fees on top.

Can I get credit without a bank?

Do you need to have a bank account to open a credit card? – The short answer is no. Credit card companies will only look at your credit score, current employment and income to determine your eligibility for a credit card. As a credit card holder, it is your responsibility to pay any balances on the card, regardless of payment method.

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Can everyone have a credit card?

Can’t Get a Credit Card? Try These Alternative Options MORE LIKE THIS Getting a credit card without a credit history can present many obstacles if you can’t meet the requirements imposed by the traditional scoring model. are sometimes an option, but they require an upfront deposit and might not work for everyone.

  1. Alternative credit card issuers are trying to bridge this gap by using their own nontraditional underwriting standards to assess creditworthiness based on factors such as income, employment and bank account information.
  2. Some of these products function like traditional credit cards, while others are more akin to,

But the point is that even if you have bad credit, limited credit or no credit at all, you have options — and some may be, Consider these alternative credit cards. While any credit card can adjust its rewards, benefits and fee structure at any time, new cards from startup financial technology companies as they find their place in the market. NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. Petal’s issuing bank,, might not rely solely on credit scores to determine who qualifies for this credit card.

It can use a “machine-learning” underwriting model that considers such things as applicants’ income, expenses, savings and debts. The Petal® 2 “Cash Back, No Fees” Visa® Credit Card reports your payments to the : TransUnion, Equifax and Experian. These companies record the information used to calculate your credit scores.

The card does not require a security deposit and even offers a cash-back rewards program. The annual fee for new cardholders is $0, and you won’t be charged late fees, overlimit fees or foreign transaction fees. (The card does not allow cash advances or balance transfers.) » MORE: If you don’t have a strong enough cash flow or credit history to qualify for this card, then the might be an option.

It, too, has no security deposit, nor does it have an annual fee for new cardholders — though it offers less robust rewards, a higher potential APR and a lower possible credit limit. (It’s also possible to incur fees with this version of the card, though they’re avoidable with responsible use.) Read here to see,

» MORE: NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more. The Mission Lane Cash Back Visa® Credit Card is a no-deposit, $0 -annual-fee credit card or above (FICO scores of at least 630).

It earns either 1% or 1.5% cash back on all purchases, depending on your card’s terms, and it helps you build credit by reporting payments to all three major credit bureaus. Factors beyond just credit scores are reviewed to determine your eligibility. For instance, payment history, income, credit usage and debts are taken into account.

You may also be asked to provide copies of W-2s, pay stubs or benefits documents to verify your income. The company considers whether you’re eligible for a credit limit increase at least once within the first 12 months of opening the account. » MORE: If you have only poor credit (FICO scores of 629 or lower), you may qualify for a different version of this product, called the,

Unlike the cash-back version, this one doesn’t earn rewards, and you may owe an annual fee of $0-$59, When you go through Mission Lane’s pre-qualification process, you’ll learn which offer you’re eligible for. NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.

The AvantCard Credit Card requires that you have some credit history established, at least limited or fair credit. It weighs that factor along with your income and debt to determine eligibility. It’s issued by WebBank, but as of this writing the card may not be available in every U.S.

  1. State. For a $39 annual fee, you’ll get a card that reports to all three major U.S.
  2. Credit bureaus.
  3. It doesn’t earn rewards, but it will save you money on foreign transaction fees, and you don’t have to pay a security deposit.
  4. As a Mastercard, it will also be widely accepted by merchants abroad.
  5. Credit limits range from $300 to $2,000, which is on the lower end compared with some alternative credit cards.

It’s not a bad choice for those with thin credit files, but if you have at least, better options are available. » MORE: Review of the NerdWallet’s ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.

The Grow Credit Mastercard, issued by Sutton Bank, is ideal for those with no credit or poor credit (FICO scores of 629 or below). It’s a virtual card that allows you to build credit while paying for qualifying monthly subscriptions that include eligible bills, TV, music and other streaming services.

How To Get Approved For Any Credit Card 2023

It’s one of the few, Instead, the company has its own proprietary technology that looks at income to evaluate creditworthiness. To weigh that information, Grow Credit requires that you link a bank account. You can choose one of four membership plans, depending on eligibility.

Each one has a different price point, a different monthly spending limit, and different subscriptions that are covered. For instance, the free membership plan allows you to build credit with subscriptions like Netflix, Pandora, Spotify, Amazon Prime and others. The paid membership plans include “premium” subscriptions, allowing you to build credit with Verizon Wireless, AT&T, Sprint or T-Mobile payments, among others.

The Grow Credit Mastercard functions like a credit card in some ways, but you’re not free to spend on any purchase. You can charge only those specific subscription transactions. The line of credit itself is small, but payments are reported to all three major credit bureaus.

  1. The card doesn’t allow you to carry a balance from month to month either, and as a result it doesn’t charge interest or fees (beyond what you might owe for one of the paid membership plans).
  2. » MORE: NerdWallet’s ratings are determined by our editorial team.
  3. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.

The Chime Credit Builder Visa® Credit Card offers some of the buffers you may need when you’re getting a first or second chance at building credit. And while technically it’s a secured card, it lacks some of the obstacles that come with many products in that class.

  • For instance, you don’t have to undergo a or pay a minimum security deposit upfront.
  • Chime can look at income to determine whether you’re eligible for the card.
  • To do this, it requires you to have a Chime Spending Account and at least $200 in direct deposits made to that account within the past 365 days.

The money you move from that Chime Spending Account to the Credit Builder secured account determines the amount you can spend with the card. That money can also be used to pay off your balance. When you make a payment, it’s reported to all three major credit bureaus.

Also unlike many other secured credit cards, this card doesn’t allow you to carry a balance from one month to another, and it doesn’t charge interest or fees. On July 6, 2021, the nonprofit news organization ProPublica reported that Chime customers had their accounts closed without notice, leaving them without access to funds.

In ProPublica’s report, Chime said many account closures were linked to fraud, but it also admitted that several of the closures had been mistakes. If your account is closed by Chime or other neobanks without notice, there are to potentially remedy the situation.

The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

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» MORE: Image courtesy of Varo The Varo Believe Secured Credit Card requires a security deposit, but you get to choose the amount. That kind of flexibility makes it possible to build credit without straying from your budget. It does report to all three major credit bureaus, but doesn’t work exactly like a traditional credit card.

  1. For instance, it doesn’t charge interest or fees since you can’t carry a balance.
  2. And there’s no hard credit check when you apply.
  3. To qualify, you need a Varo bank account that has received direct deposits of at least $500 in the past 90 days.
  4. You can only spend as much as you deposit in the secured account, so you can’t rack up debt.

Cardholders will also have a chance to snag incentives through Varo’s online offers when they shop with select retailers. » MORE: Typically, any credit history you may have built in your native country will not follow you to the U.S. But in late 2019, AmEx teamed up with international credit-reporting startup Nova Credit to that can translate eligible international credit reports from qualifying countries into U.S.-equivalent credit reports.

  • The feature is currently limited to credit reports from qualifying credit bureaus in Australia, Canada, India, Mexico, the United Kingdom, Brazil, the Dominican Republic, Kenya, Nigeria, the Philippines, South Korea, Spain and Switzerland.
  • Other alternative credit card options may also be on the horizon.

It’s still a relatively new market with plenty of room for other companies. » MORE: Frequently asked questions Why can’t I get a credit card? You can’t get a credit card if you’re under 18, have, lack enough income, or have credit scores that are too low to meet the credit card issuer’s requirements.

  • And in most cases, if you don’t have a Social Security number, you won’t be able to apply.
  • Some alternative credit cards may allow you to sidestep some of these obstacles.
  • What qualifies you to get a credit card? You have to be at least 18 to qualify, and even then there are a lot of to meet, especially for those under 21.

For instance, you need to have enough income and meet the issuer’s credit requirements. The amount of debt you have in relation to your income is also considered. Most cards also require a Social Security number. With the right strategy, you can, By knowing your credit score and other factors, you can apply for credit cards that are within reach.

  1. Why was my credit card application rejected? A credit card application may be denied if you have a short or spotty credit history or insufficient income.
  2. Too much debt may also be a red flag for a credit card issuer, as can the number of accounts you’ve opened recently.
  3. After getting denied a credit card, it’s important to,

It can help you decide whether to apply for a credit card that’s more within your reach or hold off until you can improve your finances. Does a declined credit card application hurt your credit score? When your, the rejection itself doesn’t hurt your credit scores, but the application process may cause a temporary drop in them.

That’s because lenders typically conduct a to check your credit when they’re evaluating your application. But your scores can bounce back eventually with responsible credit use. How can I get a credit card without a Social Security number? When you don’t have a Social Security number, you can get a credit card with an or alternative documents if the issuer allows it.

An ITIN has nine digits and can be used in place of a Social Security number on some credit card applications. Some alternative credit cards — like the — don’t require a Social Security number upfront. That card instead allows international students without a Social Security number to apply with a student visa, passport ID and school documents, such as an I-20 form or DS 2019.

For more on how to apply for a credit card without a Social Security number,, Why can’t I get a credit card? You can’t get a credit card if you’re under 18, have, lack enough income, or have credit scores that are too low to meet the credit card issuer’s requirements. And in most cases, if you don’t have a Social Security number, you won’t be able to apply.

Some alternative credit cards may allow you to sidestep some of these obstacles. What qualifies you to get a credit card? You have to be at least 18 to qualify, and even then there are a lot of to meet, especially for those under 21. For instance, you need to have enough income and meet the issuer’s credit requirements.

The amount of debt you have in relation to your income is also considered. Most cards also require a Social Security number. With the right strategy, you can, By knowing your credit score and other factors, you can apply for credit cards that are within reach. Why was my credit card application rejected? A credit card application may be denied if you have a short or spotty credit history or insufficient income.

Too much debt may also be a red flag for a credit card issuer, as can the number of accounts you’ve opened recently. After getting denied a credit card, it’s important to, It can help you decide whether to apply for a credit card that’s more within your reach or hold off until you can improve your finances.

  1. Does a declined credit card application hurt your credit score? When your, the rejection itself doesn’t hurt your credit scores, but the application process may cause a temporary drop in them.
  2. That’s because lenders typically conduct a to check your credit when they’re evaluating your application.
  3. But your scores can bounce back eventually with responsible credit use.

How can I get a credit card without a Social Security number? When you don’t have a Social Security number, you can get a credit card with an or alternative documents if the issuer allows it. An ITIN has nine digits and can be used in place of a Social Security number on some credit card applications.

Some alternative credit cards — like the — don’t require a Social Security number upfront. That card instead allows international students without a Social Security number to apply with a student visa, passport ID and school documents, such as an I-20 form or DS 2019. For more on how to apply for a credit card without a Social Security number,,

About the author You’re following Melissa Lambarena. Visit your page to see all the writers you’re following. new Follow for more nerdy know-how Keep up with your favorite financial topics on NerdWallet. Melissa is a credit cards writer at NerdWallet. Her work has been featured by The Associated Press, New York Times, Washington Post and USA Today. : Can’t Get a Credit Card? Try These Alternative Options

Can I get a credit card if I’m a student?

You may not need to have a job to get a student credit card, but you’ll often need to show you have a regular income that doesn’t include your student loan. This could be regular payments from your parents or a salary from a part-time job, for example.

Is it hard to get first credit card?

To Build Credit – Whether financing a new cell phone or buying a house, credit reports and scores are used by lenders to evaluate your creditworthiness and establish your borrowing terms. Credit scores are based on how you’ve managed debt in the past, and lenders use your score to establish the level of risk you pose as a borrower.

If you have a long history of making on-time payments and managing debt responsibly, you likely have a good credit score and may have a better chance of getting approved for credit with favorable terms. If you don’t have much experience with credit or have negative factors weighing you down, such as late payments in your credit history, you may have difficulty receiving approval for a new account.

If you do receive approval, you’ll likely receive less favorable terms. Credit cards help you build credit because credit card issuers typically report your account and activity to the national credit bureaus —Experian, TransUnion and Equifax. The bureaus then use this information to create your credit reports, which are the basis of your credit scores.