Getting your first credit card can feel like a big step towards adulthood, especially when you're 18-years-old. But, as you're leaving adolescence and learning to manage your finances, what are the best credit card options for young adults? Fear not! We at Flik Eco have got you covered. We've compiled a list of good credit cards for 18-year-olds that will make managing your finances a breeze!
Good Credit Cards For 18 Year Olds Table of Contents
Understanding Credit Cards for 18-Year-Olds
Understanding Credit Cards for 18-Year-Olds
Before diving into the list of credit cards, it's crucial to understand that credit cards for 18-year-olds are not your typical credit cards. They often have lower credit limits and higher interest rates to account for the applicant's lack of credit history. As an 18-year-old, you may be starting from scratch when it comes to building credit, so it's essential to be mindful of your spending and payment habits to set yourself up for financial success.
Types of Credit Cards for 18-Year-Olds
When choosing the right card for your needs, you'll notice that there are different types of credit cards available. Let's take a look at the most common types, so you can have a better understanding of your options:
- Student Credit Cards: These cards are specifically designed for college students and often come with perks like cashback rewards on school-related expenses.
- Secured Credit Cards: These cards require an upfront security deposit, which is typically equal to your credit line. It's ideal for those with no credit history or a minimal credit score because it allows you to build credit safely and gradually.
- Rewards Credit Cards: These cards offer rewards like cashback, points, or miles, but are usually reserved for people with an established credit history. However, some options cater to young adults, just starting on their credit journey.
Good Credit Cards for 18-Year-Olds
Discover it® Student Cash Back
This card comes with 5% cash back on everyday categories, such as Amazon, restaurants, and gas stations. Plus, it offers a Cashback Match™ feature where all the cash back you earn during your first year is matched automatically. The card's APR varies between 12.99% - 21.99%, so it's essential to pay your balance in full every month to avoid spending more in interest fees.
Capital One QuicksilverOne Cash Rewards Credit Card
This card offers 1.5% cash back on all purchases with a $39 annual fee. Although there is an annual fee, it's an excellent option for 18-year-olds looking to build credit and earn rewards along the way. Plus, Capital One allows you to access a higher credit line after making on-time payments for the first six months.
Deserve® EDU Mastercard for Students
This card is perfect for international students and those without a social security number. It offers 1% cash back on all purchases, and the exciting part? There is no annual fee, foreign transaction fees, or late payment fees!
Citi® Secured Mastercard®
As a secured card, the Citi® Secured Mastercard® requires a security deposit equal to your credit limit. It comes with no annual fee and helps you build credit by reporting to the three major credit bureaus. This card is a great starting point if you're new to the world of credit.
Good Credit Cards For 18 Year Olds Example:
Let's say John, an 18-year-old college student, decides to apply for the Discover it® Student Cash Back card. He makes $1,000 in purchases every month, with $500 of that going towards school-related expenses, earning him $25 in cashback rewards every month. At the end of his first year, Discover matches his rewards, giving him an extra $300 cash back! John makes sure to always pay his balance in full and on time, and by the end of his first year, he's not only earned rewards but has also successfully built his credit.
There you have it! With the right credit card and responsible spending habits, you can start building credit, earn rewards, and set yourself up for financial success. Remembering that you are in control of your financial future, it's essential to find a credit card that best matches your needs and habits. Be sure to share this guide with friends starting their financial journey and explore other Flik Eco resources to help achieve your financial goals.
