The best credit cards for young adults ultimately depend on a number of important factors, including the purpose of the card, how frequently the card will be used, the ability of the young person to pay down the card, and more.
In this article, we’re going to discuss these factors and help young adults (and their families) decide which credit cards are best suited to their needs. In the process, we will also be answering common questions we receive on the topic.
This article is part of our free series on US credit cards and US banking, including how to get a US credit card for foreign nationals, which you can access by clicking here right now.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Best Credit Cards for Young Adults
- What Is the Best Credit Card For a Young Professional?
- How to Get a Credit Card for a Young Adult?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Best Credit Cards for Young Adults
Best credit cards for young adults include those that help a young person establish a strong credit history, manage their credit utilization appropriately, and help them develop good credit card repayment habits. That said, the specific credit card that a young adult may want to consider will ultimately depend on the specific goals that they have.
In most cases, a young person (and their family) are looking to establish a good credit history so they can access debt financing in the future. If this is the case, student and credit-building credit cards are effective cards to consider.
Alternatively, if you’re looking to reduce the overall interest on your outstanding debt, transfer credit card balances from an existing provider to a new credit provider might also be worth considering.
Other young adults may have already used strategies to establish credit history and may be looking to access more benefits. In these cases, cash rewards and travel rewards cards may be of interest. However, in these cases, it is often important to review the specific approval criteria before applying to ensure that the young person qualifies for the card and knows how to build credit without a credit card or with a credit card.
What Is the Best Credit Card For a Young Professional?
What is the best credit card for a young professional will ultimately depend on the specific objectives that the young person is trying to optimize for. Likewise, factors such as age, credit history, and level of financial education will also play a part in the decision-making process.
For example, there are many different types of credit cards that young professionals can apply for. These cards range from cards to help establish credit initially to cards with cash and travel rewards.
With this in mind, let’s review the different categories of credit cards to help you decide which cards are going to be best for your requirements.
Credit Cards With Cash Rewards
Credit cards with cash rewards refer to cards that provide a percentage back on the value of qualifying transactions. In most cases, different categories of cash-back rewards get issued, depending on where you use the card.
Credit Cards for Young Adults Who Travel
Credit cards for young adults who travel frequently include cards that allow individuals to earn travel rewards points when they spend. In most cases, these cards also include sign-up bonuses, which require the cardholder to be able to meet spending thresholds within the first few months of holding the card.
Credit Cards With No Credit History
Credit cards with no credit history requirements include student credit cards and credit builder credit cards. Additionally, secured credit cards fit into this category, however, they are not the same as the other unsecured credit card options mentioned on this list.
Company Credit Card for Young Professionals
Company credit cards for young professionals will vary depending on the company, the card issuer, and why the individual needs a card. In most cases, these applications will be completed under the guise of the company where the young professionals work, so there will be limited flexibility in which card issuer to choose from.
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How to Get a Credit Card for a Young Adult
To get a credit card for a young adult, it’s important to start by only considering cards that are designed to help young adults build a credit history. Credit cards that meet these criteria are typically called student credit cards or credit builder credit cards.
That said, if a young adult is able to establish a credit history before applying for these cards, it’s possible that they will qualify for adult credit cards if they meet the specific requirements. With this in mind, here’s a look at the requirements for credit cards for young adults.
Requirements for Obtaining a Credit Card as a Young Adult:
Requirements for obtaining a credit card as a young adult include being over the age of 21 or requiring a cosigner and having a sufficient annual income to pay off the credit limit of the card.
That said, even if a young adult is able to meet these requirements for obtaining a credit card, it does not mean that they can apply for any card they like. In most cases, young adults should focus their attention on credit cards designed to help them build credit.
Do Young Adults Need a Credit Score to Get a Credit Card?
No, young adults do not need a credit score in order to get a credit card. In fact, there are specific credit cards for young adults to start establishing credit scores.
However, it can help to have a baseline credit score before applying for their first card. So, in many cases, young adults are encouraged to use the available strategies to start building a credit score before they need to start applying on their own.
Do I Need a Cosigner to Get a Credit Card?
No, most people do not need a cosigner to get a credit card if they are over the age of 21 and have a sufficient credit history in order to qualify for the card that they are applying for. If you are not yet 21 or do not have a sufficient credit history to be approved for a credit card, then you will need a cosigner in order to qualify.
Frequently Asked Questions
Below are three of the most common questions we receive from people looking into the best credit cards for young adults. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is the Best Credit Card for Beginners?
The best credit card for beginners is going to be a student credit card or a credit builder credit card. However, in most cases, this is the second step in building credit. The first step is becoming an authorized user on a parent or guardian’s credit card, which will help build initial credit.
What Credit Card Issuers Are Best for Young Adults?
Credit card issuers that are best for young adults will include most of the major card issuers like Chase, Bank of America, Discover, and Capital One. However, each of the card issuers may offer something different, ranging from specific bonuses to the ability to have a secured credit card. With this in mind, young adults and their families must choose the specific card that is best for them.
What Is the Best Credit Card For Young Adults?
The best credit card for young adults is often a credit builder credit card that allows young adults to effectively establish a credit history. That said, many believe that cash-back cards are a better choice. With this in mind, it’s important to point out that choosing the best credit card for a young adult is a personalized decision, which requires an understanding of the credit goals and the financial education of the young adult.
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