When it comes to selecting the best credit cards for 18 year olds, there are several factors that you should consider. Firstly, you need to look at your current financial situation and determine what kind of credit card you need. Secondly, it is important to understand what credit cards offer the best perks and benefits for 18 year olds. In this article, we will highlight some of the top credit cards available for 18 year olds.
Factors to Consider
Before applying for a credit card as an 18 year old, it is essential that you assess your financial situation. As a young adult, your credit history may be limited or nonexistent. Hence, there are certain factors that you should consider before choosing a suitable credit card.
While your credit score may not be great when you’re just starting out with credits cards as an 18 year old, paying off monthly balances on time can help improve your score quickly.
How often do you plan on using your credit card? If you have a part-time job or plan to use the card primarily for small purchases, then a low limit card may suffice. However if you plan on making larger purchases like electronics or tickets then go get something with more power.
Interest rates can vary significantly between different types of cards and different issuers. It is essential that you read through the terms and conditions carefully before applying for any particular card to make sure their interest rates align with what seems reasonable and affordable.
Credit cards may come with rewards programs which include cashback or points earned from purchases that are redeemable in various ways (i.e gift cards). Read up on these programs thoroughly since you certainly want benefits that match your lifestyle and preferences.
Top Credit Cards for 18 Year Olds
Now let’s focus on reviewing various options available in the market for 18-year-olds.
Discover it® Student Cash Back
This card is designed specifically for students with little to no credit history. It offers a cashback rewards program, where cardholders can earn 5% cashback on rotating categories every quarter (up to the quarterly maximum of $1,500 in purchases). The card has a $0 annual fee and also features an intro bonus offer where your first year of cash back earnings are matched at the end of the year.
Chase Freedom® Unlimited
Chase’s Freedom Unlimited is another excellent card that is ideal for young adults since you can receive unlimited 1.5% cash back on all purchases made with the card. In addition, there’s no annual fee – An extra plus point! There is also an option to earn a sign-up bonus after spending a certain amount of money within the first few months after opening the account.
Capital One QuicksilverOne Cash Rewards Credit Card
This credit card from Capital One provides users with 1.5% cashback on all purchases made using the card. It requires no balance transfer fees and no foreign transaction fees either, making it one of the top cards for students who may travel overseas frequently while still being able to gain rewards. Keep in mind though that this particular credit card has an annual fee of $39.
Blue Cash Preferred® Card from American Express
American Express’ Blue Cash Preferred Card caters to young adults who want better rewards but are willing to pay an annual fee of $95 if they spend enough annually to make up for this expense. Cardholders receive 6% cashback on select U.S streaming services and supermarkets as well as an additional 3% back at select U.S gas stations and transit systems like buses or subway stations.
Picking out your first credit card isn’t easy – simply because there are so many options available and you’ll be putting yourself down a path of lifetime benefits and rewards. But by analyzing the various factors that come into play when selecting a credit card, students can make an informed decision about which card is best suited for them.
The cards we’ve discussed above all offer unique features for 18 year olds, making them all worthy contenders. However always remember that a credit card should be used wisely to establish good credit history rather than just misused as a quick way to make purchases easily. With the right strategy and approach, using credit wisely could lead you towards getting more sophisticated cards in the future with even greater rewards and benefits!
What are the best credit cards for 18 year olds?
The best credit cards for 18 year olds are those designed specifically for individuals with limited credit history. These options often come with lower credit limits and higher interest rates, but they can be a great way to start building your credit