Eric Rosenberg
11 min
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After 20 hours of research evaluating 50 products, we picked Capital One Quicksilver One as our top choice.
According to a study by Bankrate, 67% of millennials aged 18-29 do not have a credit card. This is partially because millennials do not like debt, according to Facebook research.
It also has to do with the fact that most millennials just don’t know how to handle credit cards.
That's why it's important to find the best credit cards for young adults, one that addresses their particular needs.
But that’s not all:
Under the law, people under the age of 18 cannot be considered for a credit card on their own, while according to the CARD Act of 2009, people under the age of 21 cannot obtain a personal credit card without proof of income or an adult co-signer with good credit standing.
Despite these things, you should still give this list of the best credit cards for young adults a serious look.
Here’s the deal:
According to Bankrate’s chief financial analyst Greg McBride, millennials are making a big mistake by not using credit cards. Millennials are spending more than previous generations, an average of up to $9,600 on groceries per year, and $2,800 eating out. When charged to the right credit card, this behavior can rack up rewards like rebates and dream vacations.
Having a credit card is also ideal for situations where you might need extra security when making payment. Debit cards are protected from fraud, but credit cards have stronger fraud protection. Credit cards can also offer insurance for big purchases.
Credit cards can also help you in emergencies, when you don't have cash, not to mention, make traveling abroad easier by not having to worry about bringing large sums of money. Most importantly, credit cards can help you build your credit score. There are certainly means for building your credit score without credit cards, but these options might take longer.
If you want to try a credit card but are scared of what you might do with it, try starting out with a secured credit card first.
What’s the bottom line?
There are plenty of options to choose from, but these are the best credit cards for young adults.
Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
This article was last updated August 29, 2019 but some terms and conditions may have changed or are no longer available. For the most accurate and up to date information please consult the terms and conditions found on the issuer website.
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Application Process: Apply online and get a response within 60 seconds.
Rewards: The card offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases.
Bonus Offers: Discover matches the cash-back rewards you accumulate during your first year, with no limits.
Annual Fee: None.
Details:Discover it® Secured Card »Application Process: Online, through Chase.
Rewards: Earn 2X points on travel and dining purchases worldwide, and 1 point per dollar spent elsewhere.
Bonus Offers: Earn 50,000 rewards points for every $4,000 spent for the first three months, which is $625 towards travel when redeemed through the Chase Ultimate Rewards program. If you add an authorized user who makes a purchase within the first 3 months, you’ll earn an additional 5,000 points.
Annual Fee: $0 for the first year, then $95.
Details:Chase Sapphire Preferred® »
Application Process: Apply online, and get a decision within 60 seconds or less.
Rewards: Earn 1% cash back when you make a purchase, then 1% back when you pay it off. You can claim your rewards as a statement credit, gift card, or a check in the mail, with a minimum cash back redemption amount of $25 required.
Annual Fee: None.
Details:Citi® Double Cash Card »This is a high earning cashback rewards card perfect for people who love dining out. Earn 3% at restaurants and 2% on groceries with no annual fee.
Details:Capital One Savor Card »There's a lot to love about the Chase Freedom Unlimited cash back credit card. It provides a high rewards rate with no nonsense in terms of rotating spending categories - just a flat 1.5% back on every purchase you make with the card. With responsible use, you won't have to pay a penny to use this card, as there's no annual fee.
As far as actually getting the cash back you've earned, there's no minimum required for redemption, and cash back earnings can be redeemed for any amount (unlike the Chase Freedom card, which requires a minimum $20). On top of that, there's a relatively small minimum spend required to earn the lucrative account opening bonus.
The Chase Freedom Unlimited card doesn't offer any specific bonus categories, due to its nature as a flat-rate cash back credit card. So those who know their high-spending categories (like groceries, for example) may want to opt instead for a cash back credit card that caters to their spending habits.
While going through this list, you'll also notice that it's not the highest flat-rate cash back card around. There's also a foreign transaction fee, so if you want a credit card specifically for international travel you should look into opening a credit card that caters specifically to travelers.
Application Process: Online, over the phone, or at a branch. Online is the easiest method, but it's nice to know that you have options!
Annual Fee: No annual fee! How's that for maximizing the money in your pocket? Balance transfer fees are $5 or 5% of the transferred amount (whichever is greater).
APR: 0% for the first 15 months, then a variable APR of 16.24% to 24.99%.
Rewards: You can redeem your rewards as cash back in the form of:
Or, you can also redeem rewards using the Chase Ultimate Rewards points. Ultimate Rewards points are worth 1 cent each and may be claimed through the Ultimate Rewards portal for:
Bonus Offers: Earn a $150 bonus after spending $500, within 3 months after opening a new account. Additionally, you can also earn $25 if you opt to add an authorized user of the card, and that person makes their first purchase within the 3 month period.
Details:Chase Freedom Unlimited® »Application Process: Apply online and get a response within 60 seconds.
Rewards: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate; unlimited 1% cash back on all other purchases.
Bonus Offers: Score a $150 Bonus after you spend $500 on purchases during your first 3 months as a cardholder. Get $25 more when an authorized user makes their first purchase in the same 3 month period.
Annual fee: None.
Details:Chase Freedom® »There's no minimum amount required for reward redemption, so you don't have to overspend in an attempt to collect your rewards. Some cardholders have the option to upgrade to the regular Quicksilver card without a hard credit pull, so you can use the QuicksilverOne as a starter card.
The interest rate is high, so try to graduate to the regular Quicksilver card if your credit improves from average to good.
Application Process: Apply online in a minute or two, then receive an immediate approval or denial. Occasionally it takes 7 to 10 days for Capital One to reach a decision.
Annual Fee: There's a $39 annual fee, but at least you don't have account maintenance fees or foreign transaction fees.
Rewards and Redemption Options: You earn 1.5% cash back every time you swipe your card for an approved purchase, and you aren't confined to specific rewards categories. There's no minimum required for redemption, and rewards never expire.
You can redeem rewards via a statement credit, check, gift card, or charity donation.
Bonus Offers: None, but you'll qualify for some if you eventually upgrade to the regular Quicksilver card.
Details:Capital One Quicksilver One »Want to build credit, but have no clue where to start? You’re in the right place.
We know that it’s tricky to choose a credit card when you’re a young adult, especially if you’re new to the world of personal finance. That’s why we’ve taken the time to answer common credit-related questions from people just like you. We cover everything from the application process to the importance of paying your monthly statement on time, so browse our FAQs for tons of insider info on credit cards for young adults.
General Information About the Best Credit Cards for Young Adults
A credit card for young adults is a line of credit that is designed for young adults, such as college students and recent graduates. In some cases, your line of credit is self-funded via a security deposit (more on that below). Other times, a bank funds your line of credit, and then you repay the bank by sending payments to your credit card company.
Nope, that’s generally not a requirement if you’re applying for a credit card geared toward young adults. There are some exceptions, of course.
However, if you aren’t a young adult, you might prefer different cards than the ones referenced in this article. Check out these articles instead:
Credit cards for young adults are generally designed for individuals who don’t have much experience with personal finance products. They are set up to benefit young cardholders and help them build or establish credit.
Most credit cards, including the ones in our list of faves above, are unsecured. That means you don’t have to provide collateral to get a line of credit. Your line of credit is funded by a bank or credit union on the credit card’s behalf.
A secured credit card is funded by your own money. You send a deposit, and then the credit card company activates your card. The amount of your security deposit often determines how much credit you receive, but some companies offer partially secured cards.
A partially secured card is a line of credit that’s funded by you and a financial institution. For example, you may pay a security deposit of $100 but receive a credit line of $200. If you do not default on your payments or violate your cardholder agreement, you can request a refund for your full or partial security deposit when you close your credit card account.
Yes, but we don’t recommend it if you have other options. Make sure you’ve applied for scholarships, Pell Grants, and student loans before you rack up debt on your credit card.
You can use your credit card to pay for nearly everything (as long as it’s legal!), but we encourage you to use it responsibly. We’ll discuss this more under the section titled “How a Credit Card for Young Adults Can Affect Your Credit.”
It’s hard to just choose one card as the best credit card for young adults because everybody has unique spending habits and financial goals. With that in mind, we’ve compiled a list of our 4 favorite credit cards for young adults:
We’ve also compiled a list of the best credit cards for college students that you might find helpful.
The Application Process for Credit Cards for Young Adults
Many credit cards for young adults have an online application that provides a response in less than a minute or two. You may also have the option to apply over the phone, via postal mail, or at a local bank or credit union.
We know it’s a total bummer when you don’t get approved instantly, so we’ll explain why it happens. When you get the dreaded “we are still processing your application and will contact you within 7 to 10 days” response, it does not mean your app got rejected. It means that something on your app flagged a manual review rather than a computer-generated approval.
Here are some common issues that may lead to a manual review:
If you don’t receive an instant approval, contact the credit card company to see if you can speed up the application process. They may need additional information from you.
If you have decent credit, you can get a credit card without having your parents cosign on the application. However, there might be benefits to applying with your parents, including:
If your parents have bad credit, we don’t recommend having them cosign. Their financial history and current spending habits may impact your future credit history in a negative way.
Check the terms of service before you apply for a credit card for young adults. Many credit card companies provide information on deal breakers that cause immediate rejection, such as:
You may also get rejected for a card if you have a low FICO score, a high debt-to-income ratio, and/or multiple accounts in collections.
After you fix the issues that contributed to your rejection, which may take a while. If you’re unsure why you got rejected, you can request a statement of explanation from the credit card company.
We recommend waiting at least 6 months, preferably much longer - like a year or two - before reapplying for a card. This gives your credit history time to show a pattern of responsible behavior after you fix the issues that caused the card rejection.
Fees, Deposits, and APR
It’s free to get a credit card unless your card charges an activation fee, an annual fee, or a security deposit. A security deposit is refundable if you use your card responsibly, but activation fees and annual fees are generally not.
It means that your FICO score probably needs some TLC, so you are a risky applicant. Instead of denying your application, the credit card company wants you to fund your own line of credit with a security deposit.
A security deposit is refundable, sometimes with interest, if you follow the cardholder agreement. If you file for bankruptcy or have your credit card account closed due to nonpayment, you probably won’t get your security deposit back.
Your card might have an annual fee, but those are more common in rewards cards or cards geared toward adults with excellent credit. You may have an activation fee if you get a card for people with bad credit, but most cards we’ve reviewed don’t charge upfront fees.
Here are some other fees you may encounter while using a credit card for young adults:
You can limit the number of fees you pay by using your card responsibly. Pay your bill on time, and avoid using your credit card to withdraw cash from an ATM unless it’s an emergency.
An APR is an annual percentage rate. The Consumer Financial Protection Bureau explains how an APR works by describing it as “the price you pay for borrowing money.” We agree with this definition.
An APR is often avoidable if you pay off your entire credit card balance before the due date. If not, you may pay an APR that’s generally somewhere between 10% to 35% for your purchases. You’ll know what your variable APR is when you apply for a credit card, so there shouldn’t be any surprise expenses each time you use your card.
Each credit card has its own guidelines for determining a cardholder’s APR. Some cards give every customer the same APR, but that’s not the norm.
Your APR is generally determined by creditworthiness, which means whether your credit is good or bad. If you have bad credit, you’ll probably have a high APR because it’s risky for credit card companies to give you a line of credit.
How a Credit Card for Young Adults Can Affect Your Credit
It might - as long as you use it responsibly. Don’t make frivolous purchases with your card, and don’t max it out.
Pay your bill on time, every time, and try not to utilize more than 30% of your available credit. That means you shouldn’t charge more than $90 total if you’ve got a $300 credit line.
Many credit cards for young adults offer free credit monitoring, so that’s one option. You can also request a free credit report each year from the three major credit bureaus.
Credit Karma and Credit Sesame let you monitor your credit report for free, but neither site provides free copies of your official credit reports. You can request those by visiting AnnualCreditReport.com. If you want your FICO score, check out MyFico.com.
This is a common complaint from credit card applicants, and it happens when a company runs a hard inquiry rather than a soft inquiry. In the future, you can prevent this by using preapproval tools before you apply for cards. These tools use soft inquiries that do not affect your credit score.
If you have bad credit or no credit, your credit score may jump several points as soon as you get approved for a new credit card. However, it takes months - sometimes years - for your credit score to drastically change when you start building credit.
Yes, if you use your secured card responsibly. Credit bureaus treat secured credit cards the same way they treat unsecured cards. If you pay your monthly bills on time and keep your credit utilization ratio low, a secured card can help improve your credit.
Potential Concerns About Credit Cards for Young Adults
Make sure the credit card company knows! If possible, contact them before your bill is late to explain what’s going on in your life. They may extend your due date or offer to waive the late fee if you are honest about your situation.
Even if the credit company isn’t willing to work with you, they might keep your card open if you let them know you’re experiencing a temporary financial setback. If they don’t hear from you, they might close your account or lower your credit line.
Your credit card company will issue a replacement card (there might be a fee for this) and cancel the original card. Make sure you contact your credit card company ASAP if your card is missing, as your account might get hit with fraudulent charges if you wait too long.
Yes, you can dispute the fraudulent charges, but it takes time to do that. It’s easier to prevent them from happening in the first place by telling a credit card company your card is gone.
Yikes! Okay, before you panic, answer the following questions:
We mentioned cars and hotel rooms above because sometimes they place authorization holds on credit cards and debit cards. Alternately, you may have simply forgotten you signed up for a subscription box or an automatic debit for a bill.
If none of these situations apply, contact your credit card company immediately. These charges may be the result of identity theft or a compromised card number. Your card company can help you remove them from your statement.
A credit card isn’t a checking account, so it’s difficult for you to go over the limit. The exception is if you have a monthly maintenance fee, an annual fee, a late fee, or APR interest that hits after you have maxed out your card.
If you manage to go over the limit for your credit card, you might get hit with an overlimit fee. Even if you don’t have a fee, try to avoid going over your limit; it doesn’t look good on your credit report.
Contact your credit card company if it’s been more than a week or so. Refunds generally take a few days to appear on credit card statements. That means it’s totally normal if you return a pair of socks to Target and don’t see your refund 15 minutes later.
Hold on to your receipt for the returned item until the correction appears on your statement. You may need to show the credit card company if you don’t see your refund after the normal processing timeframe passes.
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Maddy Osman creates engaging content with SEO best practices for marketing thought leaders and agencies that have their hands full with clients and projects. Learn more about her process and experience on her website, www.The-Blogsmith.com and read her latest articles on Twitter: @MaddyOsman.
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