Discover the best credit cards for young adults to build credit and earn rewards. Compare top options with low fees, cash back, and student-friendly features for 2024
Nearly 1 in 3 young adults between 18 and 29 have no credit history. Building best credit cards for young adults early is key for financial freedom and better loan terms later. There are many credit cards made for young adults. They help build credit, earn rewards, and manage money well.
When looking at credit cards, it’s vital to know what suits your financial needs and credit score. This guide shows the top credit card choices for young adults in 2024. It includes cards for those starting out and rewards cards for young professionals.
Key Takeaways
- Credit cards for young adults can help build credit history and establish financial independence.
- Top picks for 2024 include cards with low or no annual fees, cashback rewards, and credit-building features.
- Options range from secured cards for those with no credit history to rewards cards for young professionals.
- Understanding credit card basics, terms, and credit score requirements is crucial for choosing the right card.
- Exploring secured, student, and no-annual-fee cards can be beneficial for young adults with limited credit experience.
Understanding Credit Card Basics for Young Adults
As a young adult, it’s key to know how credit cards work. They help you build a good financial base. Using them wisely can improve your credit score, opening doors to more financial opportunities later.
How Credit Cards Build Your Credit History
Using a credit card well means your payments get reported to big credit bureaus. This helps build your credit history. Your credit score depends a lot on this history, especially your payment history.
Payment history is over a third of your FICO score. So, paying on time is very important.
Key Credit Card Terms You Should Know
- APR (Annual Percentage Rate): This is the interest rate on any balance. It’s now over 20 percent on average.
- Credit Limit: This is the max you can borrow. Try to use less than 30% of your limit, ideally under 10%, for a better score.
- Balance Transfers: Moving debt to another card with a 0% APR for a short time.
Credit Score Requirements for Beginners
Not all credit cards are the same when it comes to credit scores. Some accept “fair” credit (580-670), while others need “good” to “excellent” (700+). Knowing what score you need is important for first-time credit card users and college students.
Learning these basic credit card ideas will help you use credit wisely. This sets you up for a strong financial future.
Best Credit Cards for Young Adults: Our Top Selection
Getting into credit cards can feel overwhelming, but the right one can help a lot. Our picks for the best starter credit cards 2024 and top credit cards for young adults have great benefits. They match your spending habits and financial goals.
The Chase Freedom Unlimited® card is perfect for easy cash back rewards. It gives 1.5% cash back on all buys, with no annual fee. New users get a 0% APR for 15 months, which is great for starting your credit.
The Capital One Venture Rewards card is great for travelers. It offers 2X miles on every purchase and a big sign-up bonus. Plus, it has a $0 annual fee for the first year.
The Discover it® Secured card is good for building or fixing your credit. It requires a deposit that becomes your credit limit. Discover also matches all cash back earned in your first year.
| Card | Annual Fee | APR Range | Rewards | Sign-up Bonus |
|---|---|---|---|---|
| Chase Freedom Unlimited® | $0 | 20.24% – 29.99% Variable | 1.5% cash back on all purchases | N/A |
| Capital One Venture Rewards | $0 for the first year, $95 after | 20.24% – 28.24% Variable | 2X miles on every purchase | 75,000 miles after $4,000 spend in 3 months |
| Discover it® Secured | $0 | 22.99% – 29.99% Variable | 2% cash back at gas stations and restaurants, 1% on all other purchases | Cash back match after first year |
Choosing the best starter credit cards 2024 and top credit cards for young adults depends on your needs. Knowing what each card offers helps you make a smart choice. This is the first step to building a strong credit history.
Secured Credit Cards for Building Credit
Secured credit cards are great for young adults wanting to start or fix their credit history. You need to put down a refundable deposit, usually $200 to $500. This deposit sets your credit limit. By using these cards wisely and paying on time, you can show you’re creditworthy and boost your score.
Discover it® Secured Card Features
The Discover it® Secured Card is a top pick for secured cards. It has many benefits to help you build credit, including:
- No annual fee and no credit score needed to apply
- Earn 2% Cashback Bonus® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter
- Automatic monthly account reviews to possibly upgrade to an unsecured card and get your deposit back after 7 months
- Credit limit starting at $200, potentially up to $2,500
Capital One Platinum Secured Benefits
The Capital One Platinum Secured Credit Card is another good option. It offers:
- Security deposit starting from $49 to $200, based on your credit history
- Initial credit line of $200
- No annual fee
- Chance to move to an unsecured card and get your deposit back
Security Deposit Requirements
The deposit for secured credit cards is usually refundable. It can be returned once you show good credit behavior over time. This deposit acts as your credit limit, helping those with little or bad credit get a card and start building their score.
| Card | Security Deposit | Credit Limit | Annual Fee | Rewards |
|---|---|---|---|---|
| Discover it® Secured Card | $200 – $2,500 | Matches deposit | $0 | 2% Cashback Bonus® at Gas Stations and Restaurants |
| Capital One Platinum Secured Credit Card | $49 – $200 | $200 | $0 | None |
Secured credit cards are a great tool for young adults to build or rebuild their credit. By using these cards wisely and paying on time, you can show you’re creditworthy and improve your score over time.
Student Credit Card Options
As a college student, building credit is a smart move towards financial freedom. There are many credit cards made just for students. These cards, like the Discover it® Student Cash Back and the Bank of America® Travel Rewards credit card for Students, help you earn rewards and start building your credit.
Student credit cards often don’t have an annual fee, making them easy to get. They also offer 0% APR on purchases and balance transfers for a while. This lets you learn about credit without worrying about interest. Plus, they might teach you about credit and how to manage money wisely.
Looking for a card that rewards you for dining or travel? There’s a student credit card for you. By picking the right card and using it wisely, you can lay a solid foundation for your credit. This will help you financially long after college.
| Card | Annual Fee | Welcome Offer | Introductory APR | Ongoing APR | Rewards | Credit Score Requirement |
|---|---|---|---|---|---|---|
| Discover it® Student Cash Back | $0 | $50 cash bonus | 0% for 15 billing cycles | 19.24% – 28.24% variable | 5% cash back on rotating categories (up to $1,500 per quarter), 1% on all other purchases | No credit history required, Good/Excellent |
| Bank of America® Travel Rewards for Students | $0 | 25,000 points (equivalent to $250 statement credit) | 0% for 15 billing cycles | 19.24% – 29.24% variable | 1.5 points per $1 spent on all purchases | No credit history required, Good/Excellent |
| Capital One Savor Student Cash Rewards Credit Card | $0 | $100 cash bonus | 0% for 15 billing cycles | 26.99% variable | 3% cash back on dining and entertainment, 2% at grocery stores, 1% on all other purchases | No credit history required, Good/Excellent |
Using your credit card wisely is crucial for a good credit score. Pay on time, keep your balance low, and know your card’s rules. This way, you’ll be on the path to financial success for years to come.
Rewards Credit Cards for Young Professionals
Choosing the right rewards credit card is key for young professionals. It helps you get the most from your spending and enjoy great benefits. Whether you want cash back, travel rewards, or big sign-up bonuses, there are many choices.
Cash Back Programs
Cash back credit cards are a hit with young adults. They make earning rewards on daily buys easy. For example, the Chase Freedom Unlimited® card gives 4.5% cash back at drugstores and restaurants. Plus, it offers 6.5% cash back on travel booked through Chase Travel℠.
Travel Rewards Options
Travel lovers should check out cards like the Capital One Venture Rewards Credit Card. It comes with a 75,000 miles bonus after spending $4,000 in the first 3 months. The American Express® Gold Card also stands out. It gives 4X Membership Rewards® points on dining and groceries, up to $50,000 a year.
Sign-up Bonuses Worth Considering
Many cards offer big sign-up bonuses to new users. The Chase Sapphire Preferred® Card gives 60,000 bonus points after spending $4,000 in the first 3 months. The Citi Strata Premier℠ Card offers 75,000 bonus ThankYou® Points after spending $4,000 in the first 3 months.
For rewards credit cards for beginners and cash back credit cards for young adults, there’s a lot to choose from. Think about your spending and goals to find the best card. It will help you build credit and earn valuable rewards.
No Annual Fee Credit Cards for Beginners
As a young adult, finding the right credit card can seem tough. Luckily, there are many no annual fee credit cards that are perfect for beginners. These cards offer rewards and benefits without the extra cost of an annual fee. They’re great for those just starting to build their credit history.
The Chase Freedom Unlimited® card is a top pick. It gives 1.5% cash back on all purchases, with no limit. Plus, it offers a $200 bonus when you spend $500 in the first three months. The Bank of America® Travel Rewards Credit Card is also excellent, with 1.5 points per dollar spent and a 25,000-point bonus after spending $1,000 in 90 days.
For students, the Discover it® Student Cash Back card is a great choice. It offers 5% cash back in rotating categories and matches all cash back earned in the first year. The Wells Fargo Active Cash® Card is another good option, with 2% cash back on all purchases and no annual fee.
| Card | Intro Offer | Rewards Rate | Annual Fee | Regular APR |
|---|---|---|---|---|
| Capital One Savor Cash Rewards Credit Card | $250 Cash Back after spending $500 on purchases within 3 months | 1% – 8% | $0 | 19.74% – 29.74% (Variable) |
| Wells Fargo Active Cash® Card | Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months | 2% | $0 | 19.49%, 24.49%, or 29.49% Variable APR |
| Prime Visa | Get a $200 Amazon Gift Card instantly upon approval exclusively for Prime members | 1% – 10% | $0 | 19.99% – 28.74% Variable |
Choosing a no annual fee credit card is a smart move for young adults. It helps build credit and offers rewards and cash back without extra cost. These cards are a responsible way to manage finances and build a strong credit profile.
Low Interest Rate Options for New Cardholders
As a young adult, finding credit cards with low interest rates can be a game-changer. There are many low interest credit cards and 0% APR credit cards for young adults out there. These cards offer the flexibility and affordability you need.
0% APR Introductory Offers
Many credit card issuers offer 0% APR introductory periods. These periods can last from 12 to 21 months. This gives you time to pay down balances or finance big expenses without interest.
Cards like the Citi® Diamond Preferred® Card, Wells Fargo Reflect® Card, and Citi Double Cash® Card offer 0% intro APR for 18-21 months.
Balance Transfer Opportunities
If you’re looking to consolidate debt, balance transfer credit cards are a good choice. These cards often have 0% APR introductory offers on balance transfers. This lets you pay down your debt interest-free for a long time.
The Chase Freedom Unlimited® and Blue Cash Preferred® Card from American Express are two cards that offer 0% intro APR on balance transfers for 12-15 months.
Regular APR Considerations
While the introductory 0% APR offers are great, it’s important to look at the regular APR too. Regular APRs for low interest credit cards can range from 17.49% to 29.99%. So, think about the long-term interest rates when choosing a card.
| Card | Intro APR | Regular APR | Key Features |
|---|---|---|---|
| Citi® Diamond Preferred® Card | 0% for 21 months on Balance Transfers | 17.49% – 28.24% Variable | Recommended for excellent credit, no annual fee |
| Wells Fargo Reflect® Card | 0% for 21 months on qualifying Balance Transfers | 17.49%, 23.99%, or 29.24% Variable | Flexible payment due dates, no annual fee |
| Citi Double Cash® Card | 0% for 18 months on Balance Transfers | 18.49% – 28.49% Variable | 2% cash back on all purchases, no annual fee |
By using low interest credit cards and 0% APR credit cards for young adults, you can manage big expenses and consolidate debt. This helps you build your credit history without high-interest charges. Think about the introductory offers and long-term APR when picking the right card for you.
Credit Building Features and Benefits
Certain credit cards have features that help with building credit. Many credit building credit cards for young adults report to major credit bureaus. This is key for a good credit profile.
Regular reporting shows you use credit wisely. It can also boost your credit score over time.
Some cards, like the Capital One Platinum Credit Card, let you increase your credit limit. This is good for keeping a low credit utilization ratio. This ratio is important for your credit score.
Many cards also give you free access to your credit score. They offer tips and resources to improve your credit health.
When looking for easy approval credit cards for young adults, think about what you need. You might want a secured card for starting out or a rewards card for good habits. Using these features can help you achieve financial success and a better credit score.
