Stepping onto the threshold of adulthood, 18-year-olds have just started to enter the world of personal finance, and getting a credit card is one of the first steps. But with so many credit cards available in the market, it's hard to know which one is the best for an 18-year-old. In this article, we will dive into the world of credit cards and help you pick the best ones for young adults just starting their financial journey. So, buckle up and let Flik Eco help you choose the perfect credit card!
Best Credit Cards For An 18 Year Old Table of Contents
The Importance of a Credit Card for 18-Year-Olds
The Importance of a Credit Card for 18-Year-Olds
Building Credit History
One of the main reasons why young adults should get a credit card is to build a strong credit history. Having a good credit history will help you secure better interest rates on loans and mortgages in the future. Plus, it could also make renting an apartment or getting a job easier.
Financial Responsibility
Having a credit card at 18 teaches young adults to be financially responsible. With a credit card comes the power to spend money you don't have, and learning how to manage that power is crucial.
Features to Look for in a Credit Card for 18-Year-Olds
No Annual Fee
As a young adult, you want to minimize costs when choosing a credit card. One way to do this is by opting for a card with no annual fee.
Low Interest Rate
While you should always aim to pay off your balance in full each month, sometimes that's not possible. In such cases, having a low-interest rate card can be a lifesaver.
Student Benefits
If you're a student, it's wise to look for credit cards that offer student benefits, such as discounts or cashback on school supplies and other educational expenses.
Rewards and Cash Back
Who doesn't love rewards? Pick a card that offers cash back or points on your everyday spending, like groceries or gas.
Best Credit Cards for 18-Year-Olds
- Discover it® Student Cash Back: This card is great for students as it offers 5% cash back on rotating categories (up to $1,500 in combined quarterly purchases) and 1% cash back on all other purchases. Plus, there's no annual fee, and Discover will match all the cash back you earn in the first year.
- Capital One QuicksilverOne Cash Rewards: This card offers 1.5% cash back on all purchases with a low annual fee of $39. It’s perfect for those seeking to build credit and reap cash back rewards simultaneously.
- Chase Freedom Unlimited®: This popular card offers 1.5% cash back on all purchases, with no annual fee or minimum spending requirement. Also, you can earn a $200 bonus after spending $500 in the first three months.
- Bank of America® Cash Rewards for Students: Gain 3% cash back in a category of your choice and 2% cash back at grocery stores and wholesale clubs (up to $2,500 each quarter), with 1% on all other purchases with no annual fee.
Best Credit Cards For An 18 Year Old Example:
Imagine you're an 18-year-old student looking for a credit card that rewards you for school-related expenses. In this case, the Discover it® Student Cash Back would be an ideal option. With no annual fee, you'll be able to take advantage of cashback on rotating categories, including textbooks, school supplies, and many more, without incurring any additional cost.
Now that you have all the information about the best credit cards for an 18-year-old, it's time to take the plunge and choose the card that suits your needs. Being financially responsible and choosing the right credit card are essential life skills that you'll be glad you learned in your early years. So, go ahead and apply for your perfect credit card today! If you found this article helpful, please share it with your friends and check out other informative guides on Flik Eco's blog to enhance your financial knowledge.
