Some adults may scoff if I say every 18 year old should get a credit card. But, I want to show you why you want to give your young adult an exposure to credit card early in life. After 18, they are free to sign up for any credit card in their own name. We will see what are the best credit cards for 18 year olds in this article.
But, before that I need to convince you on what are the advantages of making your 18 year old use a credit card.
Firstly, your young adult is going to learn how to handle credit in a responsible manner by exposure to credit card early in life. Sure, they will make a few mistakes of overspending and struggle to pay back debt.
But, this will teach them the value of money. Also, this will show them they are adults and they need to take of their adult responsibilities properly from now. What better time for your teen to get their first credit card than when you’re still around to offer supervision and advice?
Secondly, once they learn to build credit responsibly early in their life, their credit score is going to shoot up quickly. This way, if they want to apply for Auto loan or other types of financing, they will not need a co-signer. Thus, they will be able to stand on their own legs and lead their life.
In this article, we will be looking for the best first-time credit card for young adults.
How To Get A Credit Card For 18 Year Old?
Getting a credit card is not easy in 2020. If you are 18 and looking to get a credit card then you should consider these options to successfully qualify for a credit card. Some of the best cards for young adults can be a part of one of these categories of credit cards.
The best way to go is to start by getting a secured card. and use this until you find the right one that will fit in with your spending habits and you. Once you find that card then it will be easier for you to get that card for an adult.
With a secured card, you do not have to worry about having your identity stolen because you will be using an account where only your parents can access it. You will not be able to use this type of card unless you pay off your balance each month.
What Are Student Credit Cards?
Student credit cards are normal credit cards that are issued to students, just like adults normally get. The only difference is the limit of the spending is lower than normal credit cards and the interest rate is much higher.
However, the benefits of these cards can be more than the average cardholder needs. Student credit cards can provide you with a great way to get yourself out of debt. If you use them properly, you can build your credit history, improve your credit score, and save yourself a lot of money.
It’s also very easy to get student credit cards in the USA. Many lenders, especially big names such as American Express, Discover, and Chase, have begun to issue student cards to students to reach new customers. Discover is a great company that issues student credit cards.
Find A Job
Income source is a very important requirement for getting a credit card. If you have a job, it would be a lot easy to qualify for a credit card. You can start a freelance job as well and can provide this as your source of income to get a credit card. In my opinion, this is the best option because, by this job, you won’t have to worry about how you will pay the debt.
How To Increase Length of Credit History By Adding Authorized User?
Do you need some tips on how to increase the length of credit history by adding an authorized user? The answer is yes! This is because this service makes it possible to add a person as a co-signer, which gives the borrower more security and peace of mind that the loan will be repaid.
But, with an authorized user, you can add a borrower, as long as he has a good credit rating and is capable of repaying the loan. In this way, you can extend the loan term, increase the monthly installments, and improve your credit rating.
- The first step is to have a primary cardholder ready to add you as an authorized user. The actual process is simple to apply online for a authorized user credit card just by adding them to an existing account.
- You can have your parents add you to their accounts if they have long credit history. This way, the young adult account with no credit will inherit their strong credit profile and get a boost in credit score.
- Remember, the primary cardholder becomes responsible for the payment if the 18 year old fails to repay. So, if you are that young adult, don’t put your parents in that place if you can’t handle credit responsibly.
- If the credit card primary holder is unable to make the payments on AU card, then their credit score is going to take a hit.
- After adding the authorized user on the card, you may end up having multiple credit cards with various outstanding balances. The best option to get out of this mess is to consolidate the debt on credit cards into a single account. As the amount outstanding on the card decreases, you can also request for a lower interest rate further.
Best Credit Cards For 18 Year Olds
You may have these common questions in your mind. What makes a credit card best if you are turning 18? And, what is the best credit card for an 18-year-old with no credit? Here are some features that make a credit card the best credit card for 18 years old.
- A credit card should have a lower interest rate.
- It should have rewards programs such as cashback offers on certain purchases.
- The company offering credit cards should give a guarantee to pay the outstanding amount back in case of theft, accident, or bankruptcy.
- It allows the cardholder to build credit score slowly over time.
- The best credit cards for young adults with no credit.
However, some credit cards may contain all features and some contain a few depending on companies that are offering their credit cards for young adults. Here are some best credit cards for 18 years old.
Comparing Best Credit Cards For 18 Year Old Young Adult
|Credit Card||What Is It Good For?||Annual Cardholder Fee||Credit Card Rewards|
|Discover Student Cash Back Card||5% rotating quarterly cash back in certain categories||$0||5% cash back in select categories every quarter for the first $1.5K after you activate the offer. You will earn 1% on all other purchases without any limit in the form of cash back|
|Capital One Journey Student Reward Card||Good Auto pay facility||$0||1% CB on every purchase, plus you can boost the cash back rate to 1.25% if you make payments on time|
|BofA Cash Rewards card||Good welcome bonus||$0||If you have checking account with Bank of America, you may qualify to open this good credit card. But, not everyone will qualify for this as first credit card.|
You will get 3% cashback in any category you choose and 2% cashback in grocery store purchases and whole sale clubs with the max $2.5K spending in a quarter. After that, you get 1%
|Rewards+ Student Credit Card from Citi||Amazing opportunity to earn flexible reward through Citi Thank You Points||$0||2 Citi TYP per dollar spend at supermarket and gas station up to $6K in annual spending. After that, 1 point per dollar on those categories. All other categories also earn 1 Citi TYP as well|
|Wells Fargo Cashback College Card||Groceries, Drugstore and Gas bonus||$0||3% cashback on groceries, drugstore and gas purchase up to $2.5K in the first 6 months. You get 1% cashback on all other purchases|
The above information in table and the one below are the result of the best research CryptoandFire has put in. Please note that these are accurate at the time of writing to the best effort but there could be mistakes or changes in the future. So, please do your own due diligence before jumping on the opportunity.
The following cards are CryptoandFire recommendations for best credit card for 18 year old with no credit. I am confident that these will be the some of the best first time credit card for young adults. Please note that this is just my recommendation and your mileage may vary (YMMV).
Discover Student Cash back Card
Discover student cashback card is a card designed to help students make their good credit history while enjoying many perks. Some of those perks are mentioned below.
- The great thing about this type of credit card is that there are no annual fees associated with it.
- If you are paying off your debt on time, and maintaining good credit history, then you will receive many cashback rewards.
- Getting GPA 3 or higher will get you $20 statement credit up to 5 years.
- Students will get 5% cashback on purchases done by them on specified places mentioned by Discover and 1% on every purchase without any specified place and purchase limit.
- It is the best credit card when you turn 18.
Citi Rewards+ Student Card
A card that gives you a lot of rewards is Citi Rewards+ Student Card.
Below are some key features of Citi Rewards+ Student Card.
- You will receive a $25 gift card as a welcome bonus.
- In this card, you will receive Thankyou points for every purchase rounding up to 10 points.
- And If you manage to receive 100,000 Thankyou points, then you will also get 10% cash back on the first time claiming rewards.
- You can use these points for different gift cards, a statement credit, shopping, sharing your points with others, donations, and travel rewards as well.
Wells Fargo Cashback College Card
If you want to build a good credit history, Try to use Wells Fargo Cashback College Card. It comes with a lot of good features.
- There are no annual fees.
- It is the best travel credit card for young adults since it allows you to redeem travel rewards.
- If you get this card, you will have access to the FICO credit score to check your credit score and many other online tools.
Targeted or Pre-qualified offers for Student Credit Cards
Sometimes, you can be targeted or pre-qualified for a student credit card already. Just go these credit card issuers’ websites and look for pre-qualfied section. You may have to enter all your personal information. After you submit, they may do a quick soft inquiry on your credit and determine your pre-qualification status.
Once you are pre-qualified, it is easy to get approved for that credit card. But, pre-qualification is not a guarantee of approval. Remember, credit card companies will do a hard inquiry when you apply for the actual credit card. Make sure you don’t end up with a hard pull and declined credit card approval.
You may have got some mails at home, even if you have never applied for one before, and then you might be wondering whether or not the offer is worth applying for. The truth of the matter is that there are good offers available, but not all of them will be right for you.
Sometimes, bad pre-qualified credit cards for 18 year old can destroy your credit.
Should A 18 Year Old Get A Credit Card?
The answer to this question depends on that particular young adult. If you are a parent and you want your 18-year-old to have a credit card, it could be very good for your young because by doing this he/she will learn a few things mentioned.
- How to build a good credit history that will benefit them in the future.
- Mortgage lenders see credit history and they do no risk if credit history is back.
- Your child will learn a sense of responsibility when it comes to handling credit cards.
- They will be able to become independent and that is very good for them.
However, in irresponsible hands, a credit card can ruin your savings for the future badly. Credit Cards For 18 Year Old can be both a boon or bane.
If your kid does not know the importance of making payments of a credit card on a timely basis, then it would result differently. But you can teach them these things so they don’t get stuck. You can also add your young as an authorized user and can limit their spending.
Student credit cards are the best credit cards for young adults with no credit history that allows them the perks of having to pay low-interest rates and no annual fee. Credit cards for young adults starting could benefit them in many ways.
Discover student cashback card, Citi rewards + student card, and Wells Fargo Cashback college card are the good first credit cards for young adults in their university. As a parent, It is also your responsibility to get your 18-year-old a credit card and teach them how to build good credit.
Do you like the list of credit cards for 18 year old young adults starting out? Share your thoughts in the comments section.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates