The best credit cards for young adults are those that reward you most for how you spend your money. If you like to travel, choose a card that offers airline miles or hotel points and provides benefits like upgrades, waived fees, and other perks. For foodies, find a credit card that will earn extra rewards or cash back when you go out to eat.
Additionally, you want to avoid paying big fees for benefits that you aren’t going to use. Some high-end credit cards offer amazing perks, but if you’re not in a position to use them, you’re just wasting your money. A credit card with no annual fee or one that is less than $100 per year is perfect for most people.
This article will cover
- What You Need To Know As A Young Adult
- How To Choose The Right Card For You
- Credit Cards For Paying Off Debt
- Credit Cards Based On Your Credit
- Best Credit Card Tips For Young Adults
- What Are The Best Credit Cards For Young Adults?
What You Need To Know As A Young Adult
Credit cards can be a good or bad thing, depending upon how they are used. It is incredibly easy to get into massive debt that will haunt you for years. However, if you have discipline and pay off your credit cards in full each month, you can earn a lot of rewards and enjoy amazing benefits.
Even if you don’t use a credit card for everyday purchases, a credit card is a must in today’s society. Many stores no longer accept cash and checks don’t offer the same purchase protection that a credit card can provide. If you don’t have a credit card, it will be difficult to book a hotel room or reserve a rental car.
| Card | Best For | Credit Score Required |
|---|---|---|
| HSBC Cash Rewards Mastercard | Cash Back | Excellent/Good Credit |
| Citi Double Cash Card | Cash Back | |
| Discover it Miles | Travel | |
| Capital One QuicksilverOne | Cash Back | Average/ Fair Credit |
| Capital One Platinum Credit Card | No Annual Fee | |
| Journey Student Rewards Capital One | Students | |
| Capital One Secured Mastercard | First Credit Card—Credit Builder | Limited /No Credit |
| Discover it Secured | Cash Back—No Credit |
How To Choose The Right Card For You
Choosing the right credit card is important. The benefits I like may not be the same as what you need. There are many credit cards to choose from. There is no perfect credit card, but there is a credit card that is perfect for you.
Rewards Credit Cards
Everyone is talking about credit card rewards. They are awesome and have changed my life. However, you have to remember the number one rule of credit card rewards – never pay interest.
No matter how many rewards you earn, they will never be worth more than the interest a bank will charge you if you don’t pay off your balance in full every month.
Low-Interest Rates
Having a low interest is a good backup in case you ever need to carry a balance. Life happens and sometimes your emergency fund is not large enough to cover an unexpected expense.
If you cannot pay off your credit card balance right away, consider a zero percent balance transfer credit card offer or a debt consolidation loan. These will reduce or eliminate the credit card interest you pay and save you money.
Perks and Benefits
Some credit cards offer amazing benefits. They will provide upgrades, elevated loyalty status, and save you money. Before you apply for a credit card, just make sure that perks match your lifestyle and goals.
Annual Fees
For most people starting out, the best credit cards for young adults will not have an annual fee. Once you get familiar with using a credit card responsibly, it is ok to pay an annual fee as long as the benefits outweigh any fees you are charged.
Credit Cards For Paying Off Debt
If you have debt, credit cards offer a great way to reduce or eliminate your interest payments. You can apply for a zero percent balance transfer credit card that will give you an interest-free loan for a year or more. This will allow you to focus your payments on reducing the balance instead of giving the bank more profits.
Credit Cards Based On Your Credit
To be approved for a credit card, the bank will perform a hard inquiry on your credit report. The bank will review your payment history, your credit score, and how much new credit you’ve applied for recently.
The higher your credit score, the easier it is to get approved for the credit card you want. Read this article for tips to increase your credit score quickly.
Easy Credit Cards With Good Credit
If your credit score is already established and you have good credit, there are easy credit cards that you can be approved for. With an above average credit score, you should get approved for credit cards with great benefits, lower interest, and reasonable fees.
The HSBC Cash Rewards Mastercard provides a $150 bonus after spending $2,500 within three months and an unlimited 1.5% cash back every time you use the credit card.
Starter Credit Cards With Fair Credit
Young adults with fair credit need to focus on improving their credit score so they can get the best benefits. By using your new credit card responsibly and paying the balance in full each month, your credit score will grow.
The Capital One Quicksilver credit card also offers a $150 bonus when you spend $500 within the first three months. Cardholders receive an unlimited 1.5% cash back on every purchase. What I like best is that this credit card offers an introductory 0% on purchases and balance transfers for the first 15 months.
First Time Credit Cards With Limited Credit or No Credit
If you have a limited credit history, your choices are limited. But just because you have fewer options, that doesn’t mean you have to settle. When you use the right first time credit card responsibly, you will be rewarded with a higher credit limit in as little as six months.
The Capital One Platinum credit card is one of the best credit cards for people with no credit. I love that they will raise your credit limit after you’ve made your first five monthly payments on time. Credit utilization is a big factor in your credit score, so this is a huge benefit that will improve your credit.
What If You Have Bad Credit
We’ve all made mistakes in the past. If you have some bad marks on your credit report, they will disappear over time. To get a credit card today, you can apply for a secured credit card that will help you build your credit score faster.
The Capital One Secured Mastercard is a no annual fee card that is excellent for first time credit card applicants. Your security deposit is refundable and determines how large of a credit limit you receive. After making your first five payments on time, Capital One will actually increase your credit limit.
Best Credit Card Tips For Young Adults
If you’re thinking of getting an easy credit card or first time credit card, you will want to use these tips to boost your credit score and build your credit.
Get A Credit Card As Soon As Possible
The sooner you begin building your credit with a starter credit card, the better off you’ll be. One of the factors of your credit score is the length of your credit report. To get the best credit score, you’ll need an average age of credit of at least five to eight years. Apply today and you’ll be one step closer to achieving your best credit score.
Set Up Automatic Monthly Payments
Life happens. Although we all intend to pay off our credit card in full each month, sometimes we forget or we’re traveling and don’t have access to the internet. By setting up automatic payment of the minimum amount due, you’ll never get him with a late fee or receive a late payment notice on your credit report.
Keep in mind that you’ll still need to manually pay the rest of the balance to avoid paying interest.
Use Less Than 30% Of Your Credit Limit
How much of your credit limit is very important. This is known as credit utilization. It is a good idea to keep your balances at 30% or lower than your credit limit. To get the best credit score possible, you’ll need to keep it below 10%.
Review Your Transactions Each Month
Hackers and thieves are everywhere. Make sure that you review your monthly statement every month to ensure that there are no charges on your account that you didn’t make. Most credit cards offer zero liability if you report the unapproved charges right away.
While reviewing your monthly activity also take a look at how you’re spending your money. Can you cancel that subscription? Do you need a better credit card that offers bonus rewards for the category you spend the most?
Keep An Eye On Your Credit Score
As we’ve talked about, your credit score matters. By being responsible with your credit card, your credit score will improve. When it does, this is an opportunity to upgrade to a better credit card with more benefits, lower fees, and reduced interest rates.
What Are The Best Credit Cards For Young Adults?
The best credit cards for young adults is the one that helps you meet your goals. Whether you are looking for credit cards for people with no credit, the best credit card for students, or easy credit cards with great rewards, there is a credit card that is perfect for you.
As a young adult, what features and benefits are important to you?
Maybe you are looking for a first time credit card?
Maybe you want a cash back credit card or one that earns airline miles or hotel points so you can travel for free?
Let us know in the comment section below!