Starter Credit Cards

Legally, there is no minimum age for an authorized user on a credit card. That’s because authorized users aren’t entering into any kind of contract or borrowing money in their own name. But some credit card companies have their own requirements. Barclaycard authorized users must be at least 16 years old, for example, while U.S. Bank requires you to be 15 or older. American Express and Discover also use 13 years old as the minimum age for authorized users on the credit cards they issue. None of the other 15 largest credit companies have minimums, though. You could make a newborn an authorized user on your account if you want to.  

No matter how old the authorized user is, adding one is an important decision. On the one hand, it’s a great way for a young person to build credit before they’re old enough to qualify for their own account. But on the other hand, the primary accountholder has to be comfortable assuming responsibility for any charges the authorized user makes. 

Here’s the minimum age for an authorized user on a credit card:

• Chase: No minimum age
• Bank of America: No minimum age
• Citibank: No minimum age
• American Express:15 years old
• Capital One: No minimum age
• Discover: 15 years old
• Wells Fargo: No minimum age
• U.S. Bank: 16 years old
• Barclays: 13 years old
• Synchrony Bank: Synchrony issues store credit cards for over 85 retailers, and each sets its own policy.
• USAA: No minimum age 
  To be eligible for membership, you or a family member must have served in the armed forces.
• Navy Federal Credit Union: No minimum age 
  To be eligible for membership, you or a family member must have served in the armed forces.
• PNC Bank: No minimum age
• TD Bank: No minimum age
• First National: No minimum age

If you’re worried about an authorized user being irresponsible with your account, several banks allow you to manage your user’s access to credit. For instance, you may be able to set individual spending limits or get alerts when the user makes new purchases. Sometimes, you can even make it so that all purchases must be approved by you before they go through. That way, you can give someone young experience with credit while still laying down restrictions.

Most people consider their first credit card to be a “starter” credit card. As such, the types of people who typically use them include:

1. Young People

2. Immigrants

3. Divorcees & Widowers (who haven’t had credit under their own name in the last few years)

All of these groups tend to have minimal credit history, either because they haven’t been eligible to access credit for very long or because circumstances that previously allowed them to rely on another party’s credit standing have changed.
Some of us may also seek out starter credit cards when looking to start our financial lives over after previous mistakes – such as missed payments, account default, or even bankruptcy.

Everyone has to start somewhere. That, in a nutshell, is why starter credit cards are necessary. Consumers need a way to prove that they’re responsible enough to handle more robust financial products, such as a substantial home loan or a high line of credit.

Starter credit cards offer the kind of low-risk environment in which unproven consumers can show what they’ve got without the potential losses being too high for banks. They tend to have modest credit limits, modest rewards, modest fees, and modest interest rates, but they do report usage information to the major credit bureaus on a monthly basis and therefore provide an exceptionally cost-effective means by which to build credit.

The best credit cards for 20-year-olds (and 20-somethings more generally) depend on whether  you’ve already built any credit and whether you’re still in school. If you don’t have any credit history yet, you’ll want to get a starter card, like Capital One QuicksilverOne. If you’re still a student, you could get a better deal with  Journey Student Rewards from Capital One. 

But if you’re no stranger to credit and you’ve already built up a good history, you can start setting your sights on more lucrative rewards cards such as Citi Double Cash (2% cash back on everything) or Capital One Venture (2 miles per $1 on everything). 

HERE ARE THE BEST CREDIT CARDS FOR 20-SOMETHINGS: 

• For fair/limited credit: Capital One QuicksilverOne
  1.5% cash back on all purchases. $39 annual fee. 
• For college/grad students: Journey Student Rewards from Capital One
  1% cash back on all purchases or 1.25% if you pay on time. No annual fee. Can get this card with limited history or fair credit.
• For cash back: Citi Double Cash
  2% cash back on all purchases, 1% when you buy and another 1% when you pay. 0% APR on balance transfers for 18 months (3% fee). No annual fee. You need good credit to get this card.
• For travel rewards: Capital One Venture
  50,000 bonus miles when you spend $3,000 in the first 3 months. 10 miles per $1 at hotels.com/venture, and 2 on all other purchases. $95 annual fee ($0 the first year). You need good credit.
• For online shopping: Amazon.com Credit Card
  $50 Amazon gift card after you’re approved ($70 for Prime members). 3 points per $1 on all Amazon and Whole Foods purchases (5 with Prime). 2 points per $1 at gas stations, restaurants, and drugstores (1 on all other purchases). No annual fee. You need good credit. 
• For bad credit: Discover it Secured
  2% cash back on $1,000 spent per quarter at restaurants and gas stations, and 1% back on all other purchases. The first year’s cash back is matched on your account anniversary. $200 minimum security deposit. No annual fee. 

As you can see, there are good credit cards for 20 somethings of all experience levels, from bad credit to good credit and above. 

To get a credit card with no credit, apply online for a starter credit card, student credit card or other type of credit card for people with limited credit history. By choosing a card designed for people with no credit, newcomers who are at least 18 years old with enough income to afford monthly bill payments will have good approval odds. You don’t need credit history to get credit. But you do need to demonstrate the ability to repay future balances.

It’s actually pretty easy to get a credit card with no credit. You just need to follow a few simple steps. Start by making sure you really have no credit, then compare credit card offers, select the best one for your needs and submit an application. You could have a new card in your hands within 7-10 business days of applying.

But let’s not get ahead of ourselves. Instead, let’s go through the steps involved in getting a credit card for the first time with no credit history in greater detail.

Here’s how to get a credit card with no credit history:

1. Confirm you have no credit: You might have credit history without even realizing it. This could have come from being an authorized user on a parent’s credit card account. Or, it could be some sort of a mistake. And it could either put you in line for a better starter credit card or approval harder. You can check your credit report and score for free on WalletHub.
2. See if your school email still works: College students typically get much better credit cards than other people with no credit. So if you have an active “.edu” email address, it will be an asset in your credit card search.
3. Compare starter credit cards: You have to comparison shop if you want to find the best credit card deal. Your top priority should be getting a card with no annual fee whose other terms complement your spending and payment habits nicely.
4. Submit your application: Actually applying for a credit card is the simplest part of the process. Just click “Apply Now” when you find your favorite offer, and we’ll redirect you to the issuer’s secure online application page. Applying online is the fastest application method. You could even be approved instantly.
5. Get a secured card, if necessary: If you don’t get approved the first time you apply for a starter credit card, place a refundable deposit on a secured credit card. Secured cards have the highest approval odds because your deposit usually matches your spending limit.

So it’s simple to get a credit card with no credit. But once you open a credit card account, make sure to use it responsibly. Above all else, that means paying your bill on time every month and keeping your credit utilization as low as possible. That will ensure your credit score starts strong and stays headed in the right direction. You can track your progress for free on WalletHub, the first and only site with free daily credit score updates.