Are you 18 and looking to establish your credit for the first time? Building credit can be a challenging task, but it is essential to prepare for a strong financial future. In this Flik Eco guide, we'll show you the best credit card options for 18-year-olds that help build credit and set you up for success in the world of personal finance. Let's dive in and learn about credit cards tailored for young adults who want to kick-start their credit journey.
Credit Cards For 18 Year Olds To Build Credit Table of Contents
What to Look for in a First Credit Card
When searching for your first credit card as an 18-year-old, consider the following features:
- No annual fee
- Low interest rate
- Ability to graduate to a better card later on
- Credit-building tools like credit score monitoring
- Rewards (cash back, points, or travel) for responsible use
Not all credit cards are created equal, so let's look at some of the top options for 18-year-olds to build credit.
1. Capital One QuicksilverOne Cash Rewards Credit Card
This card is ideal for young adults with limited credit history. It offers 1.5% cash back on all purchases and has a reasonable annual fee of $39. Capital One also provides a CreditWise feature, allowing you to monitor your credit score and understand its factors.
2. Discover It Secured Card
A secured card requires a security deposit, which helps reduce risk for the issuer. The Discover it Secured Card offers 2% cash back on up to $1,000 spent per quarter on gas and dining, and 1% cash back on all other purchases. The deposit you provide will be your credit limit. This card has no annual fee and offers free access to your FICO score.
3. Petal 2 "Cash Back, No Fees" Visa Credit Card
The Petal 2 Visa Credit Card is a unique option for those with no credit history. Instead of relying on a credit score, Petal evaluates your financial behavior, such as income and expenses, when determining eligibility. It offers 1% cash back on all purchases, which increases to 1.5% after 12 on-time payments. This card has no fees or security deposit required.
4. Bank of America Cash Rewards for Students
This student credit card offers customizable rewards, with 3% cash back in a category of your choice (gas, online shopping, dining, or travel) and 2% cash back on grocery store purchases. In addition, the Bank of America card offers a 0% introductory APR for the first 15 months, allowing you to build credit without accruing interest during that time.
Credit Cards For 18 Year Olds To Build Credit Example:
Jessica just turned 18 and is heading to college. She wants to start building her credit early, so when she graduates, she'll have a good credit score for renting an apartment or getting an auto loan. After researching her options, she decides to apply for the Discover It Secured Card.
She provides a $200 security deposit for her card and begins making small purchases. By using the card for her phone bill, groceries, and gas while paying off the balance in full each month, she demonstrates responsible credit use without accruing interest.
Throughout the year, Jessica tracks her credit progress with Discover's free FICO score access. Within 12 months, her score demonstrates strong growth and responsible credit management. As a result, she is offered an unsecured card with a higher credit limit and better rewards.
As an 18-year-old looking to build credit, it's essential to find a card that best suits your needs and financial goals. With the right card and responsible credit usage, you can establish a strong credit foundation that will serve you well in the future. We hope this Flik Eco guide helps you make an informed decision that puts you on the right track to financial success. If you found this article helpful, don't forget to share it with your friends and explore other incredible guides on Flik Eco!
