Best credit cards for young adults: Editorial reviews
Some of the best credit cards for young people have small welcome bonuses, but not the Chase Freedom Unlimited®. New cardholders can benefit from a 1.5% bump on all earning categories for the first year (up to $20,000 spent). This bonus has the potential to be worth up to $300!
Outside of the welcome bonus, the Chase Freedom Unlimited card gives you 3% cash back on several popular spending categories, including dining, drugstore purchases and eligible takeout/food delivery services. Best of all, you’re entitled to 5% cash back on all hotel stays and rental cars booked through Chase Travel.
▶︎ Read more: Chase Freedom Unlimited review
If you travel frequently, consider the Capital One Quicksilver Cash Rewards Credit Card. Unlike some cards, it has no foreign transaction fees, so you can enjoy the paella in Spain or the whiskey in Scotland without worrying about extra charges.
The Quicksilver Cash Rewards card also has no annual fee and gives you 1.5% cash back on every purchase.
▶︎ Read more: Capital One Quicksilver review
If you love to try trendy restaurants or go out for cocktails with your friends, consider the Capital One SavorOne Cash Rewards Credit Card. It gives you 3% back on dining, which includes takeout orders from eligible delivery services.
The SavorOne Cash Rewards card also offers 5% cash back on rental cars and hotel stays booked through Capital One Travel, making it one of the best rewards cards for young adults.
▶︎ Read more: SavorOne Cash Rewards card review
If you travel frequently, we recommend the Capital One Venture Rewards Credit Card. Cardholders earn 5 miles per dollar spent on all rental cars and hotel stays booked through Capital One Travel.
Unlike many other cards for young adults, the Venture Rewards card gives you 2 miles per dollar spent on all other purchases.
▶︎ Read more: Capital One Venture Rewards card review
We love the Blue Cash Everyday® Card from American Express because it offers a generous amount of cash back on everyday purchases. Members earn 3% back on up to $6,000 per year at U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases. Once you reach the $6,000 limit, you earn 1% on every transaction until the next year.
▶︎ Read more: Amex Blue Cash Everyday card review
Whether you ride a public bus to school or take the train to work, the Blue Cash Preferred® Card from American Express rewards you for your transit purchases. Earn up to 3% back on taxis, rideshare services, buses, trains, parking and tolls.
▶︎ Read more: Amex Blue Cash Preferred card review
Several cards on this list require excellent credit, but the Capital One Quicksilver Student Cash Rewards Credit Card is designed for students with fair credit scores, so you may qualify even if your credit history has a blemish or two. The card also gives you 1.5% cash back on every eligible purchase.
▶︎ Read more: Quicksilver Student Card review
The Capital One SavorOne Student Cash Rewards Credit Card offers 8% back on all Capital One Entertainment purchases. Cardholders also have exclusive access to premium seats, luxury experiences and other perks.
▶︎ Read more: SavorOne Student Card review
If you don’t qualify for an unsecured card, consider the Capital One Quicksilver Secured Cash Rewards Credit Card. It has a minimum deposit of $200, so it’s easy to get your account up and running. Cardholders also qualify for automatic account reviews within as little as six months, so it’s possible to increase your limit without depositing additional money.
The Capital One Platinum Credit Card doesn’t have all the bells and whistles of some cards, but it’s available to consumers with fair credit. When you sign up, you get access to CreditWise, which gives you free access to your credit reports. Capital One also does automatic credit line reviews, giving you a chance to qualify for a higher limit if you use the card responsibly.
▶︎ Read more: Capital One Platinum card review
Should young adults get credit cards?
Young adults should get credit cards if they can use them responsibly.
Credit cards have better fraud protection than debit cards, so it’s helpful to have one if you’re concerned about the security of your checking account. Many credit cards also come with travel insurance benefits, purchase protection and other perks.
Opening a credit card can help you build credit. You need a strong credit profile to rent an apartment, buy a home, purchase a vehicle or achieve other milestones. Only get one of the best credit cards for young adults if you can manage it appropriately.
Pros and cons of credit cards for young adults
How to choose the best credit card for young adults
Before you apply for a credit card, consider these factors.
Fees
Some cards have no annual fee, while others have annual fees of $250 or more. You also need to be aware of each card’s fees for balance transfers, cash advances, late payments and foreign transactions.
Rewards
Rewards credit cards give you several ways to earn based on your everyday spending habits:
-
Cash back: When you use cash-back credit cards, you earn a flat percentage of each transaction. For example, if you pay for a $184.28 restaurant bill with a card offering 3% back on dining, you’ll earn $5.53 in rewards cash.
-
Miles: Some travel credit cards reward you in the form of airline miles instead of points or cash back. Typically, you earn a certain number of miles for every dollar spent.
-
Bonus points: Several credit cards give you bonus points instead of cash back or miles. For example, some Chase cards give you Chase Ultimate Rewards® points.
-
Welcome bonuses: Review the terms of each credit card offer carefully. You may qualify for a welcome bonus if you spend a certain amount of money shortly after opening your account.
Other benefits
Credit card companies are competing for your business, so many good credit cards for young adults come with extra benefits. The benefits available depend on which card you choose, but you may have access to travel insurance, extended warranty protection, purchase protection and rental car collision coverage.
Some cards also offer credit-building tools to help you create a strong financial future. For example, many credit card companies give you access to at least one of your FICO® scores.
Credit score requirements
To get a credit card, you must meet the issuer’s minimum score requirements. If you’ve never checked your credit scores, do so before you apply for a card. Knowing where you stand makes it easier to narrow down your options.
Note that credit scores aren’t the only factor a credit card company uses to determine your eligibility. You also need enough income to support your spending. If you have no income or a very limited amount of income, you may not qualify, even if you have a strong credit profile otherwise.
Deposit requirements
Some credit cards, known as secured credit cards, require a deposit. Generally, this deposit becomes your line of credit. For example, if you deposit $500, you can spend up to $500 on your credit card. Check the minimum deposit requirements carefully, as it doesn’t make sense to apply for a card with a $1,000 minimum deposit if you only have $500 available.
Types of starter credit cards for young adults
If you’re looking for the best first credit card for young adults, you may need to open a starter credit card. Starter cards are for people with limited credit histories who want to increase their scores and demonstrate they can manage credit responsibly.
Unsecured subprime credit cards
Subprime borrowers have credit scores ranging from 580 to 619. With scores in this range, you won’t qualify for products aimed at consumers with strong credit histories. The good news is that some companies offer unsecured subprime credit cards.
An unsecured card doesn’t require a deposit, so if you meet the minimum requirements, you can open an account even if you don’t have much cash on hand. It’s easy to get approved, and you may even earn some rewards on each purchase. However, subprime cards have high fees and usually don’t allow you to upgrade once your credit scores improve.
Secured credit cards
As noted earlier, a secured credit card requires a deposit before you can open an account. If you use the card responsibly, the issuer may convert your secured card into an unsecured card and return your deposit at some point. Unless you deposit a lot of money, be prepared to contend with a low limit.
Student credit cards
Student credit cards are for students who want to build their credit. You typically have to be enrolled in college, trade school or some other type of postsecondary education to qualify for this type of credit card. Most students have limited experience with credit, so student cards often have high interest rates and low fees.
▶︎ See our picks: Best credit cards for fair credit
Credit card tips for young adults
Follow these best practices for young adults using a credit card:
-
Set up automatic monthly payments. Making on-time payments is critical for building good credit. Set up automatic monthly payments to reduce the risk of forgetting your payment due date.
-
Spend only what you can afford to pay in full. Your payment history has a big impact on your credit scores. To avoid large amounts of debt, spend only what you can afford to pay in full.
-
Keep credit utilization low. Credit utilization refers to how much credit you’re using compared to your total credit limit. We recommend keeping your utilization below 30%.
-
Use rewards and benefits. If your new credit card comes with rewards and extra benefits, make sure you use them. You may qualify for discounts, cash back and other perks.
-
Review your transactions each month. If you don’t review your transactions regularly, you may not notice fraudulent charges until it’s too late to dispute them. Reviewing your account also makes it easier to spot errors.
-
Keep an eye on your credit score. Once you open a credit card, keep an eye on your credit score. Check it at least monthly to better understand how your spending habits affect your credit profile.
-
Don’t close your card. If you’re not using your credit card, don’t close the account. Closing credit cards reduces your average age of accounts, which may have a negative impact on your scores.
How to apply for a young adult credit card
Before you apply for a credit card, make sure you understand the minimum requirements.
The credit score needed depends on what type of card you want to get. If it’s a subprime card, you may qualify with low credit score. Other cards require good credit scores in the 700s or above.
When you’re ready to fill out the application, provide the following information:
- Legal name
- Address
- Telephone number
- Social Security number
- Housing status (own or rent)
- Monthly mortgage/rent
- Income
How many credit cards should a young adult have?
If you don’t have much experience managing credit, we recommend starting with one card. Once you’re comfortable with making payments and tracking your balance, you can always apply for a second one.
Explore related articles by topic
You’ve viewed 3 of 3 articles
LOAD MORE