Best Credit Cards for Young Adults

One of the best credit cards for 18-year-olds is the Petal® 2 Visa® Credit Card because it rewards cardholders with up to 1.5% cash back on purchases. The card also has a $0 annual fee and is intended for beginners with limited. There's no security deposit required to open the account, either.

Best Credit Cards for 18-Year-Olds

As you can see, the best card depends a lot on your financial situation and spending habits. For example, the best credit card for 18-year-old students is the Bank of America Travel Rewards for Students. This card comes with a $0 annual fee and a high rewards rate. A student's age and earning potential are an attractive prospect for credit card issuers, so they're willing to extend offers not readily available to non-students.

In addition, some of the other best credit cards for 18-year-olds are secured credit cards, which offer the easiest approval. They require a security deposit, typically around $200 or $300. The security deposit sets the credit limit and serves as collateral for the lender. It's fully refundable after closing the account in good standing. The Capital One Platinum Secured is one of the best secured credit cards for 18-year-olds.

Best Ways for 18-Year-Olds to Access Credit

Keep in mind that the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 places limits on credit cards for 18-year-olds. Under the law, consumers younger than 21 years old must have either a co-signer or proof of a steady income to be a credit card's primary accountholder. If you can meet one of these two requirements, you'll have a pool of cards to choose from that will help you establish credit.

Another option is to become an authorized user on someone else's credit card. You can become an authorized user on any type of credit card, and you'll enjoy any benefits the card offers while you establish your credit. The primary cardholder is financially responsible for the account, and his or her card activity will also be reflected on your credit report. However, any negative information such as late or missed payments will cause a drop in both of your credit scores.

Applying for a starter credit card as soon as possible will add positive information to your credit reports and will help you build credit fast. The main thing you need to do in order to benefit from a credit card's credit building effects is to always pay your bills on time and in full.

You can build your credit at 19 by becoming an authorized user on someone else's credit card account or by getting your own credit card. You can get your own credit card when you turn 18 as long as you have an independent source of income. You can also build credit without a credit card by getting a loan – student loans, auto loans, and most other types of loans will help build your credit if you make your payments on time. You can also get a credit builder loan, which is designed for people with limited or bad credit.

If you don't have income, the easiest way to start building credit at 19 is by becoming an authorized user on someone else's account. This doesn't require a credit check or independent income. Authorized users are not responsible for paying the credit card bill. But if the primary cardholder pays the bill on time and uses the credit card responsibly, any authorized users on the account will build credit history.

Getting your own credit card at 19 will require independent income, as you can't use someone else's income that you have reasonable access to (i.e. a parent or spouse's income) on a credit application until you turn 21. Building credit at 19 is a good idea, but limited credit history could bar you from getting approved for some credit cards on your own. That said, there are plenty of starter credit cards and student credit cards that will increase your approval odds as someone with a thin credit file. Secured credit cards are another great choice.

Taking out a loan can also help build your credit, if you qualify for one. There are lots of types of loans out there, and they all require you to either provide proof of income or have someone else cosign for the loan. Getting approved for an auto loan, a student loan, or a personal loan will build your credit. Credit builder loans are upside-down loans, where you make payments to a lender in order to get the amount of the loan back when it's paid off. These are generally offered by smaller banks, credit unions, and online lenders. No matter which loan you get, good information will be reported to credit bureaus every month as long as you pay on time.

However, building credit isn't just about finding a financial institution that's willing to extend you a loan or line of credit with your limited credit history. It's also about managing your credit well. Those just starting out in the realm of credit cards should take time to learn the basics of building credit. A credit card won't get you very far if you don't know how to use it properly. And using credit properly – keeping your balance low and paying at least the minimum payment on time – is what eventually produces an excellent credit score.

The best credit cards for young professionals are the Capital One Venture, Citi Double Cash Card, and Chase Sapphire Reserve. They all offer above-average rewards per $1 spent, plus a sign-up deal of some kind, and some come with extra perks for travelers. 

Young professionals are likely to have some credit history behind them and to want a credit card that rewards an on-the-go lifestyle while not costing them too much or being too rigid with rewards redemption. You can get to know the top options a bit better below.

Capital One Venture Rewards Credit Card

Capital One Venture gives 5 miles per $1 spent on hotels and rental cars booked through Capital One Travel, and 2 miles per $1 on all other purchases. You don't have to use these miles for travel - they redeem for cash back and other items like gift cards, too - but they're worth the most when used for travel. You can use miles to book your travel through Capital One, or you can reimburse travel purchases on your statement. The credit card's wide definition of “travel” - including airfare, hotels, cruises, train tickets, taxi/bus/limo fare, time shares, and more - make redeeming for travel purchases worth it.

You'll also get 75,000 miles for spending $4,000 in the first 3 months, worth about $750 in travel redemptions. You'll need at least good credit to get this card. The annual fee is $95.

Citi® Double Cash Card – 18 month BT offer

Young professionals who don't do much traveling (and even those who do) might prefer the Citi Double Cash Credit Card. This card gives 2% cash back on all purchases - 1% when you make a purchase and 1% when you pay for it. That's twice the average rate across rewards credit cards. With cash back credit cards like this one, you don't have to worry about categories or redemption methods. The annual fee is $0 and at least good credit is required.

Chase Sapphire Reserve®

The Chase Sapphire Reserve Credit Card is ideal for the young professional who travels more often than not. That's because this card has a $550 annual fee, and it may not be worth the fee if you don't travel a fair amount. But if you do, the fee will pay for itself.

Chase Sapphire Reserve gives 60,000 points ($900 when redeemed for travel through Chase) after spending $4,000 in the first 3 months, and a $300 travel expense credit each year you renew. You'll also get an application fee credit of up to $100 for Global Entry or TSA PreCheck, and a free Priority Pass Select membership. You'll need excellent credit to get approved for this card, though, which means it's best for more established young professionals.

Whether you travel frequently or stay put most of the time, credit cards can be rewarding no matter which bracket you fall into as a young professional. Take your time to weigh out what you want in a credit card versus how you spend your money. And whichever rewards you end up choosing, make sure you redeem them often.

You can get a credit card without a job. Most credit card applications have a section for employment information, but you can also put student, homemaker or unemployed. Annual income and assets are more important than employment status when applying for a credit card, though.

Income is usually from a job, but it can also come from other sources like an inheritance or investments. Your assets are anything of value that you own. For example, if you have a rental property, the property would be an asset. And the rent you charge would be part of your income.

If you're under 21 years old, you'll need your own income source to qualify for a credit card. That could include a regular allowance from your parents, though. If you're over 21, you can list household income that you have reasonable access to. For example, a stay-at-home parent could list their spouse's income. Without a job or any income, a credit card will be much more difficult to get.

How to get a credit card without a job:

• Put down non-employment income: You can list alimony, disability benefits, certain scholarships, and investment or rental income, for example.
• List shared income: If you have consistent access to someone else's income, you can list that. For example, it could be an allowance from a relative (if you're under 21 years old) or your partner's pay (21+).
• Become an authorized user or get a joint account with someone else: An authorized user can make charges on someone else's account. But the primary cardholder owns the account and is legally responsible for paying the bills. This option is the easiest way to get a card and start building credit. You can also get a joint credit card from U.S. Bank without a job, as long as the co-owner has enough income. But in a joint credit card arrangement, both people are liable for the debt.
• Get a secured card: To get a secured card, you must put down a security deposit (usually $200+), which serves as the credit limit. Since there is no possibility of borrowing more than you can pay, secured cards are easier for people with limited income or bad credit to get.

You can get a credit card without a job as long as you have enough income or assets to pay your bills. So being out of work doesn't mean losing out on the opportunity to improve your credit score or enjoy the convenience of plastic.

The most important piece of credit card advice for young adults is to get a first credit card as early as possible and then use it responsibly, by spending within your means and not missing due dates. If you do that, you'll be able to graduate to a great second credit card sooner.

The credit building efforts can start way sooner. Becoming an authorized user on an adult's account is the only way to get credit before you turn 18. This can add positive information to your credit reports each month and help you build credit faster.

Yes, you can get a credit card for your teenager by making them an authorized user on one of your credit card accounts, or by helping them apply for their own credit card if they are 18 or older. For teens under the age of 18, becoming an authorized user on someone else's account is the only way to get a credit card.

Best Credit Cards for Teenagers

• Petal® 2 Visa® Credit Card
• Deserve® EDU Mastercard for Students
• Chase Freedom® Student credit card

Ways to Get a Credit Card for Your Teenager

Make your child an authorized user on one of your credit card accounts.

Adding a teenager as an authorized user on your credit card account is the easiest way to help your teen build their credit. It's easy to do, and usually it's free, too. Your child will get their own credit card with their name on it, and purchases made with their card will come out of your account's credit limit. All the bills will have your name on them, too, and you're the only person who will be responsible for paying them.

As long as you pay your credit card bills on time, your child's credit score will benefit from the card, even if they never use it. If you don't pay your bills on time, your child will be able to successfully dispute the account and get it removed from their credit report.

Help your teenager apply for their own credit card if they are 18 or older.

If your teen is old enough and has the independent income required to make monthly bill payments, you can help them pick the best credit card to apply for. In most cases, this will be a student credit card, but there are plenty of other good starter credit cards to choose from as well.

It's important to note that applicants who are under 21 years old can only list independent income on a credit card application. For example, they cannot include income from their parents, unless the money is in a shared account that the teen has access to.

The best credit card for young travelers is the Bank of America Travel Rewards Credit Card for Students. 

It's a good option if you're a student who wants to reduce the cost of travel without paying an annual fee, both because it has appealing travel rewards and because it doesn't have a foreign transaction fee, so no surcharges when you travel abroad or purchase from internationally-based merchants.

If you're not a student, Capital One Platinum might be your best choice, considering the lack o an annual fee and foreign transaction fees, however, it has no travel rewards.

The best credit cards for young adults who love dining out are the Capital One Savor Cash Rewards Credit Card, the Chase Freedom Unlimited®, and the Capital One SavorOne Cash Rewards Credit Card. All 3 of these credit cards give at least 3% back on dining purchases and have low or no annual fees.

People with less-than-good credit, however, may want to try the Bank of America® Customized Cash Rewards Secured Credit Card, the Petal® 2 Visa® Credit Card or the Capital One QuicksilverOne Cash Rewards Credit Card. All 3 are good options because they give above-average rewards on dining purchases and are easier to get than the best cards overall.

The best credit card for young adults with credit card debt is the Chase Slate Card because it has no balance transfer fee for the first 60 days, it offers 0% for 15 months on balance transfers, and you can get it with good credit.

If you're a student with no credit, you could be in luck. The BankAmericard Credit Card for Students offers 0% for 21 months on balance transfers but has a 3% (min $10) transfer fee, unlike the Chase Slate Credit Card. Both cards have $0 annual fees.

When you're in credit card debt, a balance transfer can be a good way to stop (or slow down) the runaway train of accruing interest while you pay off your debt. But only if you can get a balance transfer credit card that has a low or $0 balance transfer fee and a low- or no-interest period on balance transfers. If the card you're transferring your debt to does not have a lower APR on balance transfers and it has a balance transfer fee, odds are good that you won't be saving any money by doing a balance transfer.