Are you 18 and looking to start building credit? Congratulations! You're on the right track to achieving a solid financial future. One of the best ways to build credit is by getting a secured credit card. In this article, we'll explore some of the best secured credit cards for 18-year-olds and help you make an informed decision when choosing the right one. Get ready for a wealth of knowledge that will set you up for financial success!
Best Secured Credit Cards For 18 Year Olds Table of Contents
What is a Secured Credit Card?
What is a Secured Credit Card?
A secured credit card is a type of credit card that requires a security deposit as collateral. This deposit acts as your credit limit and helps the card issuer minimize the risk involved, especially for first-timers with no credit history. Essentially, a secured credit card is a stepping stone to building your credit.
Why 18-Year-Olds Should Consider Secured Credit Cards
- Build credit history: As an 18-year-old, you're likely starting with no credit history. A secured credit card will help you build your credit history, allowing you to access better financial products and opportunities in the future.
- Lower risk: The security deposit acts as a safety net for card issuers, making secured credit cards easier to get for those with no credit history or even bad credit.
- Financial discipline: Since your spending limit is tied to your security deposit, a secured credit card encourages responsible spending and keeping your credit utilization below 30% of your credit limit.
Best Secured Credit Cards for 18-Year-Olds
1. Discover it Secured
The Discover it Secured credit card stands out among its competitors for several reasons:
- No annual fee
- 2% cashback at gas stations and restaurants (on up to $1,000 in combined purchases each quarter)
- 1% cashback on all other purchases
- Discover's Cashback Match program doubles your cashback at the end of your first year
- Regular credit limit reviews and the potential to graduate to an unsecured card
2. Capital One Platinum Secured
Another strong option for 18-year-olds is the Capital One Platinum Secured credit card:
- No annual fee
- $49, $99, or $200 security deposit for a $200 initial credit line, depending on your creditworthiness
- Regular credit limit reviews with potential access to a higher credit line in as little as 6 months
- Free access to CreditWise for tracking and improving your credit score
3. OpenSky Secured Visa Credit Card
The OpenSky Secured Visa Credit Card sets itself apart by not requiring a credit check, great for those just starting their credit journey:
- No credit check required
- $200 - $3,000 security deposit, depending on your preference
- $35 annual fee
- Monthly reporting to all major credit bureaus
- Access to financial education resources on the issuer's website
Best Secured Credit Cards For 18 Year Olds Example:
Imagine you're an 18-year-old college freshman who wants to build credit. You decide to apply for the Discover it Secured credit card. You provide a $500 security deposit, which becomes your credit limit. Over the next year, you use your card responsibly, making small purchases and paying off your balance in full each month. Additionally, you earn cashback on your everyday spending.
At the end of the first year, Discover matches your cash back earnings, enhancing the value of the card. After a year of responsible use, you may be eligible to graduate to an unsecured Discover credit card and receive your security deposit back.
Congratulations! You now know some of the best secured credit card options available to help you start building credit at 18. Take this newfound knowledge and use it to make an informed decision when selecting a secured credit card that fits your needs best. Don't forget to share this valuable information with friends and family who might find it helpful. Also, be sure to explore other guides and resources available on Flik Eco to continue your journey to financial success!
