Best Credit Cards To Build Credit For Young Adults

Building credit as a young adult can be a daunting task, especially if you're new to the world of personal finance. But fear not! Flik Eco is here to guide you through the process of selecting the best credit card to help you build credit. This article will provide you with all the information you need, from understanding credit card lingo to finding the perfect credit card for your financial journey. Let's dive in!

Why Building Credit is Important

Having a good credit score is essential in today's financial landscape, as it can impact several aspects of your life, such as renting an apartment, obtaining a loan, and even getting a job. Building credit from a young age can be advantageous, as it will allow you to reap the benefits of a solid credit history earlier.

What to Look for in a Credit Card to Build Credit

Here are some key features to look for in a credit card to help build your credit:

• Low or no annual fee: You don't want to spend more than you have to on your credit card. Look for cards that have a low or no annual fee to minimize expenses.
• Low interest rate: A card with a low interest rate can help you save money if you ever need to carry a balance. Remember that the best way to build credit is to pay off your balance in full every month.
• Reporting to major credit bureaus: Make sure the credit card you choose reports your activity to the three major credit bureaus (Experian, Equifax, and TransUnion), as this is crucial for building your credit.
• Opportunities for credit limit increases: As you prove your creditworthiness, you may qualify for a higher credit limit. This can be beneficial, as it will lower your credit utilization ratio and boost your credit score.

Best Credit Cards to Build Credit for Young Adults

Here are some top credit card options to help you build credit:

1. Discover it® Student Cash Back

This card is tailored specifically for students, offering 5% cashback on rotating categories (capped at $1,500 in spending per quarter), and 1% cashback on all other purchases. Discover it® Student Cash Back also offers a $20 statement credit each year for good grades and has no annual fee.

2. Capital One QuicksilverOne Cash Rewards

This card offers unlimited 1.5% cashback on all purchases and has a low annual fee of $39. Capital One QuicksilverOne Cash Rewards is designed for those with average credit, making it accessible for young adults who are just starting out.

3. Secured Mastercard® from Capital One

If you have no credit history or are starting with a low credit score, a secured credit card can be an excellent option. This card requires a security deposit that will serve as your credit line. The Secured Mastercard® from Capital One has no annual fee, and you can even earn credit limit increases without providing an additional deposit.

Best Credit Cards To Build Credit For Young Adults Example:

Say you're a college student who's new to the world of credit. You opt for the Discover it® Student Cash Back card because of its student-focused benefits and cashback rewards. You use it to pay for everyday expenses like groceries, gas, and your cell phone bill and diligently pay off your balance in full each month. Over time, this responsible use of credit will positively impact your credit score, making it easier to secure loans, rent an apartment, and more in the future.

Now that you're equipped with the knowledge needed to select the best credit card to build credit, it's time to take the plunge and start building your credit history. Remember, responsibility and consistency are key to seeing improvements in your score. Be sure to share this article with your friends and family who are also on their financial journey and explore other Flik Eco guides for even more valuable personal finance tips and advice. Happy credit building!