Banks, credit unions, and online lenders all issue credit cards

You can get a credit card from a traditional bank branch, an online bank, a credit union, or a fintech lender. Each type of issuer has different approval standards, fee structures, and card features. Where you apply matters because some issuers are stricter about credit history, some charge annual fees, and some offer rewards that others don't.

The issuer you choose also affects how you manage the card once you have it. A bank with local branches lets you deposit cash or speak to someone in person. An online-only bank or fintech lender usually has no physical location but may have lower fees because they have no branch costs. A credit union typically requires membership but often has lower rates and more flexible approval standards.

Key Takeaways

  • Traditional banks, online banks, credit unions, and fintech lenders all issue credit cards, and each has different approval rules and fee structures.
  • Banks and credit unions usually require you to open a checking or savings account first, while online lenders and fintechs may not.
  • Your credit history affects which issuers will work with you — some specialize in building credit, others require good credit to start.
  • Comparing annual fees, interest rates, and rewards across issuers before you apply saves you money over time.

Traditional banks and what they require

Most large banks — Chase, Bank of America, Wells Fargo, Citibank — issue credit cards to customers who already have a checking or savings account with them. Some require you to have held the account for a certain length of time, usually 60 days to six months. You can apply in a branch, online, or by phone.

Banks typically review your credit score, credit history, and income. They may deny you if your credit score is below a certain threshold (often 600 to 700, depending on the card) or if you have recent late payments or collections. Banks also look at your debt-to-income ratio — how much you already owe compared to what you earn. You can call the bank's customer service line to ask what credit score range they typically approve, though they won't give you a may provide.

The advantage of a bank card is stability and familiarity. You can manage it through the same app or website where you check your checking account. The disadvantage is that banks often have higher approval standards than other issuers, so if your credit is thin or damaged, you may not may have access to.

Credit unions and membership requirements

Credit unions are member-owned financial institutions that often have more flexible approval standards than banks. To get a credit card from a credit union, you must first become a member, which usually means opening a savings account and depositing a small amount (often $5 to $25). Some credit unions have membership restrictions — for example, they may only accept people who work for a certain employer, live in a certain county, or belong to a certain organization.

Once you are a member, you can apply for a credit card. Credit unions often approve people with lower credit scores or shorter credit histories than banks do, and they typically charge lower interest rates and fewer fees. Many credit unions offer credit-builder cards specifically designed for people rebuilding credit. You can find credit unions in your area through the CO-OP network or Allpoint locator, or search by employer or location on the Credit Union National Association website.

The trade-off is that credit unions have smaller card networks and fewer rewards programs than major banks. If you travel frequently or want cash-back rewards, a bank card may serve you better. But if you want lower rates and more personal service, a credit union is often the better choice.

Online banks and fintech lenders

Online banks like Ally, Charles Schwab, and Discover issue credit cards without requiring you to have a checking account with them first. You apply entirely online, upload documents (usually a photo ID and proof of income), and get a decision within days. Many online banks have no annual fees and lower interest rates than traditional banks.

Fintech lenders like Chime, LendingClub, and Upgrade also issue credit cards and often focus on people with limited credit history or lower credit scores. Some fintech cards are designed to build credit rather than maximize rewards. These lenders typically approve faster than banks — sometimes within hours — and may offer features like automatic payment reminders or spending limits you can set yourself.

The downside is that online issuers have no physical location, so you cannot deposit cash or speak to someone face-to-face. If you have a problem, you have to resolve it by phone, email, or chat. Some online banks and fintechs also charge higher interest rates than traditional banks, so read the terms carefully before you apply.

Specialty cards for building or rebuilding credit

If you have no credit history or damaged credit, you may not may have access to for a standard card from any issuer. In that case, you can look for a secured credit card, which requires you to deposit money upfront as collateral. The deposit amount becomes your credit limit — if you deposit $500, your limit is $500. You use the card like a regular card, and after 12 to 24 months of on-time payments, the issuer converts it to a regular card and returns your deposit.

Secured cards are issued by banks, credit unions, and online lenders. Discover, Capital One, and many credit unions offer them. The interest rate on a secured card is usually higher than on a regular card, and there may be an annual fee, but the purpose is to build a credit history so you can may have access to for better cards later.

Some issuers also offer credit-builder cards that work differently. Instead of requiring a deposit, they report your payments to the credit bureaus but may have a very low credit limit (sometimes $200 to $500) and a higher interest rate. These are common at credit unions and fintech lenders.

Comparing cards before you apply

Before you apply anywhere, compare the annual fee, interest rate (called the APR), and any rewards or cash-back structure. A card with no annual fee but a 24% APR will cost you more than a card with a $95 annual fee and a 15% APR if you carry a balance. A card with 2% cash back on groceries is only valuable if you spend enough on groceries to offset any annual fee.

Use a credit card comparison tool on sites like NerdWallet, The Points Guy, or Bankrate to filter by your credit score range and see which cards you are likely to may have access to for. Read the fine print on the issuer's website to confirm the APR, fees, and rewards terms. Each issuer has different rules about how rewards are earned and redeemed.

Applying for multiple cards in a short time can lower your credit score temporarily, so narrow your choices to two or three before you apply. Each application creates a hard inquiry on your credit report, and too many inquiries in a short period can signal to lenders that you are desperate for credit.

What happens after you apply

After you submit an application, the issuer will contact you if they need more information — usually by email or phone. If you are approved, they will mail the card to you or, in some cases, let you use a temporary card number online while you wait for the physical card. If you are denied, the issuer must send you a written notice explaining why, and you have the right to request a free copy of your credit report to see what they saw.

Once the card arrives, activate it (usually by calling a number on the card or logging into your account online) and set up online access so you can check your balance and make payments. Most issuers let you set up automatic payments so you never miss a due date.

Frequently Asked Questions

Can I get a credit card if I have no credit history?

Yes. A secured credit card or credit-builder card from a credit union or fintech lender is designed for people with no credit history. You will need to provide proof of income and a valid ID, and you may need to make a deposit. After 12 to 24 months of on-time payments, you can move to a regular card.

What credit score do I need to get approved?

It depends on the issuer and the card. Banks typically want a score of 650 or higher. Credit unions and fintech lenders often approve scores as low as 550 to 600. Secured and credit-builder cards have no minimum score because the issuer's risk is lower. Call the issuer or check their website to see what range they target.

Does applying for a credit card hurt my credit score?

Yes, but only temporarily. Each application creates a hard inquiry that lowers your score by a few points. The impact fades after a few months. Multiple applications in a short time have a bigger impact, so apply to only one or two cards at once.

Can I apply online, or do I have to go to a branch?

Most banks, credit unions, and all online lenders let you apply online. Some banks also let you apply in a branch or by phone. Online applications are usually faster and you get a decision within days. Branch applications may take longer but let you ask questions in person.

What documents do I need to apply?

You will need a valid photo ID, proof of income (usually a recent pay stub or tax return), and your Social Security number. Some issuers also ask for proof of address. Online lenders usually ask you to upload these documents. Banks and credit unions may accept them in person or by mail.