Transitioning into adulthood comes with many responsibilities and privileges, including the ability to apply for a credit card. For 18-year-olds, a credit card offers not only financial freedom but the opportunity to build a solid credit history - crucial for future financial goals. But with countless options available, how do you choose the best credit card to help you build credit? Worry not! We're here to break down the top credit cards perfect for 18-year-olds to kickstart their credit journey!
Best Credit Cards For 18 Year Olds To Build Credit Table of Contents
What to Look for in a Credit Card
When selecting a credit card to build credit, 18-year-olds should consider the following factors:
No Annual Fee
An annual fee can be a burden when you're just starting your credit journey. Look for a card with no annual fee to minimize costs.
Low Interest Rate
Even though you should make every effort to pay off your balance in full each month, a lower interest rate card can save you money if you do carry a balance.
Graduated Credit Limit
Look for a card that offers a graduated credit limit, allowing you to increase your available credit as you demonstrate responsible use over time.
Credit Building Features
Choose cards that offer tools like free credit score updates, credit education, or automatic credit limit increases. These features can be valuable in helping you better understand and manage your credit.
Best Credit Cards for 18-Year-Olds to Build Credit
After reviewing these factors, we've compiled a list of the top credit cards perfect for 18-year-olds looking to build credit:
1. Discover it® Student Cash Back
- No annual fee
- Earn 5% cashback in rotating categories and 1% on all other purchases
- $20 Good Grade Reward for maintaining a 3.0 GPA
- 0% introductory APR for the first six months, followed by a variable APR based on your creditworthiness
2. Capital One Platinum Secured Credit Card
- No annual fee
- Refundable security deposit based on your creditworthiness
- Access to a higher credit limit after making your first five monthly payments on time
- Free credit score monitoring and credit-building tools through Capital One's CreditWise® platform
3. Petal® 2 Visa® Credit Card
- No annual fee or security deposit requirement
- Cashback rates range from 1% to 1.5% depending on your payment history
- Offers a high initial credit limit, ranging from $500 to $10,000
- Access to credit score tracking and budgeting tools in the Petal app
Best Credit Cards For 18 Year Olds To Build Credit Example:
Imagine Alex, an 18-year-old student starting college. Alex wants to build credit to increase financial opportunities in the future. After researching various credit card options with our recommendations, Alex decides to apply for the Discover it® Student Cash Back card.
The card supports Alex's goal of building credit while offering cashback rewards on purchases. Alex uses the card responsibly for everyday expenses and pays the balance in full each month. By doing so, Alex establishes a positive credit history – setting the foundation for better loan terms, lower interest rates, and more financial opportunities in the future.
On top of that, since Alex maintains a 3.0 GPA, there’s an additional $20 Good Grade Reward each year - a sweet bonus for a job well done!
Starting your credit-building journey at 18 is a smart move, and choosing the right credit card can make all the difference. By considering factors like fees, interest rates, and credit building features, you can secure a solid foundation for future financial success.
Remember to use credit wisely, keep an eye on your credit score, and embrace healthy financial habits to sustain and grow your credit history. As always, Flik Eco is here to support you through your financial journey. Be sure to share this article with friends embarking on their credit journey, and browse through our other guides for more valuable financial tips and insights.
