Having a credit card of their own can go a long way toward helping young adults begin a journey of freedom. That being said, some credit cards work better than others. This article captures the best credit cards for young adults and the benefits of each. Show
Best Credit Cards for Young Adults
Our MethodologyWhen finding the best credit cards for young adults, we considered the impact of annual fees while also taking a look at introductory bonuses and potential cash back benefits along the way. It was also important to look at regular APR and how high interest rates would get if users aren’t making monthly payments. Lastly, we looked at recommended credit scores for each card to give the best chance at approval. Check out a more detailed explanation of our methodology here. Credit Card Annual Fee Credit Recommended Regular APR Introductory Offer Benefits None 670 – 850 15.74% – 24.49% variable $200 bonus after spending $500 in the first 3 months; 0% APR for 15 months 5% cash back at gas stations; 3% cash back on dining and drugstore; 1.5% cash back on everything else None 700 – 850 13.99% – 19.99% variable $750 bonus cash back after you spend $7,500 on purchases in the first 3 months; 0% APR for first 12 months 5% cash back on office supplies, internet, cable, phone services; 2% cash back at gas stations and restaurants; 1% cash back on all other purchases $39 600 – 699 26.99% variable None Earn unlimited 1.5% cash back on every purchase None None required 13.74% – 27.74% variable None 1 – 1.5% cash back, plus 2% – 10% bonus cash back at select merchants None None required 23.74% variable Double cash back of the cash back you’ve earned the first year 2% cash back at restaurants and gas stations; 1% cash back everywhere else $150 700 – 850 16.74% – 23.74% variable 45,000 points after spending $2,000 on purchases within the first six months 3x points at restaurants, on transit, and on travel; 1x points everywhere else $95 700 – 850 16.74% – 24.74% 60,000 bonus points after spending $4,000 in purchases within the first three months No foreign transaction fees; 3x points at restaurants, gas stations, supermarkets, and on air travel and hotels; 1x points for all other purchases  Chase Freedom Unlimited Review If you have the credit score, Chase Freedom Unlimited becomes the best overall credit card for young adults with zero annual fees and up to 5% cash back just for using it. Chase even throws $200 your way for spending $500 within the first three months of activation. You’ll need to be wary of foreign transaction fees and high APR numbers if your credit can’t get you a better deal. Why we chose it: No annual fees and plenty of cash back bonuses make Chase’s Freedom Unlimited card the best overall pick for young adults.
Annual FeeChase Freedom Unlimited is one of a handful of credit cards free of annual fees. If you can keep up with your payments, using this card shouldn’t cost you a thing. This is a blessing compared to American Express’s Green Card, charging $150 per year. Credit RecommendedChase does require a good to excellent credit score for young adults looking to use the Freedom Unlimited card. Those looking to apply should shoot for at least 670, quite high compared to Petal 2 Visa’s no credit needed. Unless you’ve built up credit through some other means, Freedom Unlimited will likely not be your first card. Regular APRThe Freedom Unlimited card features variable APR depending on your credit score when you sign up. 15.74% on the low end isn’t terrible, but those with weaker credit may look to pay upwards of 24.49%. Introductory OfferIt’s possible to receive a $200 bonus simply by spending $500 on regular purchases within the first three months of card activation. Delay that big purchase until your Freedom Unlimited card arrives and benefit from free money. As you get your feet wet with the card, you won’t have to worry about APR for the first 15 months. Both offers stand out when Petal 2 Visa’s card doesn’t give a thing. BenefitsAs you use your Chase Freedom Unlimited Card, you’ll earn cash back no matter where you are. Rates include 5% back at gas stations and 3% on dining and drugstore purchases. Everything else still brings in 1.5% cash back, which is the maximum you can get with the Petal 2 Visa card. Ink Business Cash Credit Card – Best for Business Owners Review Ink Business Cash gives generous cash back on office purchases from supplies to internet and cable. You’ll need a high credit score to land the card, but there are no annual fees. If you’re spending $7,500 in the first few months to grab that $750 bonus, chances are you’ll hit the yearly rewards cap at $25,000. If your business takes you overseas, watch out for 3% foreign transaction fees. Why we chose it: Business owners can take advantage of the Ink Business Cash’s introductory bonus and cash back offers on top of no yearly fees.
Annual FeeThe Ink Business Cash card doesn’t have annual fees, just like Chase’s Freedom Unlimited or the Patel 2 Visa card. This speaks to business owners trying to keep costs to a minimum. Credit RecommendedAs a business card with high rewards, young adult company owners will have the best chance of approval with credit scores above the 700 mark. This isn’t far off from Chase’s recommended 670. Regular APREven on the high end, the Ink Business Cash card’s standard APR rates are lower than most cards. A 19.99% worst case for Ink is still quite a bit better than Petal 2 Visa’s 27.74%. Introductory OfferInk Business Cash has a massive $750 bonus for business owners who can spend $7,500 within the first three months of card use. This shouldn’t be too much of a challenge if setting up an office space for the first time. While accruing debt, you won’t need to worry about APR for the first 12 months. BenefitsCardholders receive 5% cash back on all office supplies, phone, internet, and cable services. There’s also 2% cash back for gas stations and restaurants, with 1% on everything else you buy while using the card. There’s something magical about knowing you’re earning 1.5% cash back every time you make a purchase. Rewards have no upper limit and never expire, and you can trade them in for cash or gift cards. As you build rapport with Capital One, the company will review your credit line and increase it over time. There aren’t any introductory offers, a high APR, and an annual fee you’ll have to come to terms with. Why we chose it: The Capital One QuicksilverOne Cash Rewards Credit Card lets you earn 1.5% cash back any time, anywhere, with no limit.
Annual FeeCapital One charges a $39 yearly fee for the use of its QuicksilverOne Cash Rewards card. While not a ton of money, it doesn’t look great next to Chase Freedom Unlimited’s lack of fees. Credit RecommendedYou’ll need to have a decent credit score to have a shot at the QuicksilverOne Cash Rewards card. Chances are you can get approved with a score of 600, a bit lower than Chase Freedom Unlimited’s 670. Regular APRThe QuicksilverOne Cash Rewards’ regular APR rate is incredibly high and locked in initially at 26.99%. This is not a card you’ll want to miss payments on. Introductory OfferThere’s no introductory offer for the QuicksilverOne Cash Rewards card. Not a deal-breaker, it’s still a bummer when looking at the $200 bonus Chase’s Freedom Unlimited card gives. BenefitsThis cash back card really shines here, with a 1.5% return on every single purchase you make. Best of all, there’s no limit to how much you can earn, and rewards never expire. You can exchange them for cash or gift cards any time you’d like. Petal 2 Visa® Credit Card – Best Credit Card for Young Adults With No Credit Review The Petal 2 Visa card is a great way to grow credit score, offering cash back incentives for young adults who pay off debt on time. There are no credit requirements to sign up and zero fees to worry about down the road. You won’t have any introductory offers to look forward to, and those with questionable history may have to deal with high APR numbers. Why we chose it: The Petal 2 Visa card screams “pick me” for any young adult without credit. Zero annual fees and cash back options sweeten the deal further.
Annual FeeYoung adults will rejoice that the Petal 2 Visa card doesn’t charge annual fees for use. Not having to deal with this charge is a breath of fresh air compared to Citi Premier’s $95. Credit RecommendedThe biggest draw of the Patel 2 Visa card is the lack of a credit score requirement. This isn’t a guarantee that you’ll be approved, but it is certainly easier for those without a credit history. Furthermore, it’s a great card to build credit and lower your APR rate. Regular APRThe Petal 2 Visa has a significant regular APR range that varies depending on a few factors when you apply. 13.74% on the low end is solid, especially next to Capital One QuicksilverOne’s 26.99% starting rate. On the high end, the Petal 2 can be just as high at 27.74%. Introductory OfferThere are no introductory offers for the Petal 2 Visa card. It’s uncommon to see deals on an entry-level card. BenefitsYou can snag 1% cash back on purchases right out of the gate with the Petal 2 Visa card. If you make regular payments, you can increase this amount to 1.5% over time. These numbers are comparable to everyday purchases from even Chase Freedom Unlimited. Picking the right vendors could award you up to 10% cash back. Discover it Secured Credit Card – Best for Young Adults With Low Credit Review Young adults with low credit need not worry about applying for the Discover It Secured card. If you’re accepted, you won’t have to worry about yearly fees and get to generate cash back every time you make a purchase. As a secured card, you will have to drum up a $200 security deposit and deal with a high regular APR. Although a great beginner card, a low maximum credit limit doesn’t bode well for big purchases. Why we chose it: Discover It Secured has no fees and pays you in cash back bonuses as you work to build credit.
Annual FeeJust like the Chase Freedom Unlimited card, Discover It Secured doesn’t charge any annual fees. Users can instead focus on making purchases and building credit. Credit RecommendedContrary to Chase Freedom Unlimited’s 670 credit score minimum, the Discover It Secured card has no such requirements. Even those with bad credit can apply, although there’s no guarantee of acceptance. Regular APRWhen signing up, you’re stuck with a rather high 23.74% APR. Its variable nature means it can shift over time, but it’s important to make every effort to pay up on time. Introductory OfferJust for being a customer, Discover pays out double the cash back you’ve earned during your entire first year of use. This is a one-time deal, but that extra money can go a long way. BenefitsThe It Secured card rewards you with 2% cash back at restaurants and gas stations just for making a swipe. All other charges bring in 1%, a bit lower than Chase Freedom Unlimited’s 1.5%. American Express Green Card – Best for Young Professionals Review A 45,000 point introductory offer is an enticing welcome gift, especially when you can navigate the pitfalls of American Express’s point system and get the biggest bang for your buck. If your job has you traveling, the Green Card gives bonus points for flights and transit to and from the office. There is a steep annual fee, and you’ll want a high credit score before you apply. Why we chose it: The American Express Green Card awards bonus points for purchases young professionals need to find success in their endeavors.
Annual FeeAmerican Express charges a lofty $150 annual fee for its Green Card. This amount really stands out when next to Chase Freedom Unlimited or Petal 2 Visa and their free-to-use cards. Credit RecommendedA card for young professionals demands a high credit score. Your best chances of success come with a score of 700 or higher, which is no different than the Ink Business Cash card. Regular APRAPR ranges between 16.74% and 23.74%, depending on a number of factors when you sign up. These numbers are quite similar to Chase’s Freedom Unlimited card. Introductory OfferAmerican Express uses a point system for rewards, where a point translates to somewhere between 0.5 and 1 cent when cashing them in. Young adults able to spend $2,000 within the first six months of opening their Green Card will receive a whopping 45,000 points toward rewards of their choice. BenefitsYou’ll typically earn one point for every dollar you spend using the American Express Green card. When it comes to restaurants, travel, and transit, American Express hands out triple the points instead. Citi Premier Card – Best for Young Adult Travelers Review Once you’ve mastered the confusing point system, you’ll see how the 60,000 point introductory offer equates to $600 in gift cards to spend at your leisure. The Citi Premier card appeases young adult adventurers with bonus points on travel expenses and zero foreign transaction fees. You will need a high enough credit score for approval and have to pay $95 each year to continue using the card. Why we chose it: A lack of foreign transaction fees and bonus points for travel expenses make the Citi Premier card a great travel companion.
Annual FeeCiti’s Premier Card has a $95 annual fee to keep your account active. While steep, it’s still cheaper than American Express’s Green Card’s $150 yearly charge. Credit RecommendedYou’ll need to be at the upper end of the credit score spectrum to maximize your chances of landing a Premier card. This is notably higher than the Petal 2 Visa or Discover It Secured card, but the benefits are also higher. Regular APRThe Citi Premier card’s APR lands right in the same range as the Chase Freedom Unlimited card or the American Express Green card. If you can’t pay your debt off on time, expect to see interest rates between 16.74% to 24.74%. Introductory OfferLike American Express, Citi uses a point system for its rewards, with one point equal to a cent. Should you spend $4,000 within the first three months of signing up, Citi will reward you with 60,000 bonus points usable in the form of gift cards. Time to book that flight! BenefitsThere’s no need to worry about foreign transaction fees when you travel with the Citi Premier card. You’ll also earn 3x points on air travel, hotels, restaurants, supermarkets, and on gas. All other purchases still earn one point per dollar spent. Methodology for the Best Best Credit Cards for Young AdultsWhen choosing a credit card, you want to find one that works for you. We considered the following when picking out the best credit cards for young adults.
Frequently Asked Questions (FAQs) for Best Credit Cards for Young AdultsCredit cards can be a confusing topic for young adults and parents alike. This FAQ answers some of the top questions you may have. How Many Credit Cards Should a 25 Year Old Have? Different cards offer varying benefits and work best in specific situations. There’s no credit score punishment for having several cards as long as you’re faithful in paying them off. Having too few cards can make it difficult for a credit score calculator to get an accurate read. Somewhere between two and five cards appears to be the sweet spot. Is It Smart to Have a Credit Card at 18? It’s a good idea to start building credit as soon as you can. Young adults can begin applying for credit cards at 18 years of age, but it may be a challenge to get approved unless a parent co-signs. Does Closing a Credit Card Hurt Your Credit? Closing a credit card won’t hurt your credit score as long as you’ve paid off the balance. However, holding onto an unused card gives you another line of credit that can show up positively on a credit report. How Many Times a Month Should I Use My Credit Card To Build Credit? The more you use your credit card, the more you’ll build credit. Some agencies require frequent use to keep an account open. Just remember to make regular payments, so your credit doesn’t take a hit. Bottom Line on the Best Credit Cards for Young AdultsHaving a credit card can do wonders for a young adult trying to find his or her place in the world. However, individuals need to be wary of interest rates and fees that can drain the bank. The best credit cards are manageable, offering incentives while building credit at the same time. About the Author: Noah is an American copywriter on a mission to help clarify the nuances of the business world through unique insights stemming from backgrounds in both engineering and the medical field. When not working, you’ll likely find him running or traveling. Which credit card is best for building credit history?Best Credit Cards to Build Credit of November 2022. Best overall. Capital One Platinum Credit Card.. Cash back rewards. Capital One QuicksilverOne Cash Rewards Credit Card.. Balance transfers. Discover it® Secured Credit Card.. Low APR. ... . Dining rewards. ... . Secured card with a low APR. ... . Secured card with a low deposit. ... . Students.. What bank is best for a first time credit card?MoneyGeek's Take: Top First-Time Credit Cards in 2022. Capital One QuicksilverOne Cash Rewards Credit Card. ... . Indigo® Platinum Mastercard® ... . Credit One Bank® Platinum Visa® for Rebuilding Credit. ... . Merrick Bank Double Your Line® Secured Credit Card. ... . OakStone Platinum Secured Mastercard® ... . Citi® Secured Mastercard®. What credit card Shoyls I get just starting out?WalletHub's Take: The Citi Secured Mastercard is a good secured credit card for people who are new to credit because it has a $0 annual fee and requires a refundable security deposit of just $200. Those features make it easy to get approved and begin building credit inexpensively.
What credit card can I get the fastest?Top credit cards you can use instantly after approval. Bank of America® Premium Rewards® credit card.. Amazon Prime Rewards Visa Signature Card.. United℠ Explorer Card.. Upgrade Triple Cash Rewards Visa®. SoFi Credit Card.. Other notable options.. Major issuers and their policies on instant credit access.. |
Best credit cards for young adults to build credit
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