Best Credit Cards for Young Adults

Selecting your first card as a young adult can be challenging, because you’ll want to consider everything - low fees and excellent APR in particular. You also want your transactions to be reported to all major bureaus to increase your credit score.

These are all aspects where the Upgrade Visa® Card with Cash Rewards excels. It has no fees whatsoever, no security deposit required, and it also rewards you with a 1.5% cash back for every purchase.

Getting the Credit Card

The process of obtaining this card is quite convenient: The company clearly has a young audience in mind, because you can complete the process entirely online. All you have to do is fill out the form, and Upgrade will provide you with all the information on the credit lines you are eligible for. Filling out the form is free, and won’t negatively impact your credit score.

Once you find out the limit you’re eligible for - ranging from $500 to a whopping $25,000 - you can apply for your card. 

As with many other cards, you’ll have to wait a bit for the physical card to arrive in your mailbox. Since it is a Visa card, it will be accepted almost anywhere, and you’ll be able to start earning that cash back in no time.

Rewards Program

The rewards program with this card starts with a welcome bonus: If you make three debit transactions after opening a Rewards Checking Plus account, you’ll get a $200 bonus*! Then, it becomes all about the cash back. With it, you will receive a 1.5% cash back for every purchase you make, whether you’re buying groceries or paying your mobile phone bill.

Furthermore, this card also comes with use flexibility. Since you will pay back all your expenses in fixed installments over the next two years, you can use it both as a credit card and a line of credit. It is definitely different from how other credit cards operate, as it allows managing your finances much more easily.

However, this card lacks other rewards young adults could find beneficial. For example, you can’t pile up points or cash back to afford a more significant purchase down the road. Instead, your cashback rewards are automatically added to the next month’s balance.

Furthermore, it doesn’t offer the much-appreciated 0% introductory APR rate. This bonus might be crucial for paying off debts faster for those carrying a balance. The card also doesn’t offer a sign-up bonus, which is beneficial to anyone looking to improve their credit score.

Lastly, for young adults used to working with cash, the fact that you cannot use this card to withdraw funds at the nearest ATM can be a significant drawback. 

Pricing

The pricing aspect of this card is probably what makes it stand out. First of all, the card doesn’t have any annual fees, and you don’t have to put up a deposit. That is a significant amount of money you can use to pay off your debts faster.

Apart from the lack of these typical fees, there is no need to read the fine print for other expenses, so this is an excellent starter credit card. You’ll have to take care of paying the monthly installments, and that’s all there is. The fact that these fees are so streamlined makes budgeting very simple - something those just starting to manage their finances will much appreciate.

*To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions.

When you start on your path to financial responsibility, you’ll quickly notice that poor credit can hinder your options. As a credit card that doesn’t check your credit score, the Secured Visa® Gold Preferred® credit card is undoubtedly one of the better options for young adults with bad credit or no credit history.

It also comes with an exceptionally low APR rate and very convenient mobile and online banking options. On the flip side, this card also comes with an annual fee and a mandatory security deposit. It doesn’t have any rewards that young adults could find helpful, either.

Getting the Credit Card

Getting this card is a very straightforward process. You can apply for the card on the company’s website, where you will find a form to fill in with your details, such as name and surname, address, and whether you already have another card. The application is detailed but relatively quick to complete. The bank will draw your initial deposit from the account you’ve provided.

There is no credit score check requirement with this card, and the website promises a 60-second approval. After this, you’ll need to deposit some funds onto your card. Don’t worry; it will be available to you as soon as you activate the card, which should arrive at your doorstep within seven to 10 business days. When it does, you will need to activate it.

Some of the other cards on our list allow you to activate your card online. Unfortunately, Applied Bank requires you to contact customer support via phone to do so.

Rewards Program

Rewards aren’t this card’s priority. However, it does come with some other perks new users might enjoy.

Applied Bank’s card reports payments and transactions to all three national credit bureaus. This detailed reporting ensures quality credit building. And, since it is a Visa card, you can use it practically anywhere, even when you travel abroad.

It also has a flexible security deposit, and the possibility to increase your spending limit regularly. The initial deposit amount ranges from $200 to $1,000, but you can increase your credit limit to $5,000. This is impressive for a secured credit card with no minimum credit requirements; there is no credit limit increase fee, either.

An excellent mobile app is yet another perk of this card. We feel that all issuers should offer the same feature, as it allows people to easily track their financial activities on the go.

The ability to effortlessly track your spending patterns can be the key to accomplishing your credit-building goals. Furthermore, it’s also convenient as it allows you to pay your credit card bills wherever you are and avoid late fees.

Pricing

Charges play a crucial role when checking out your the offers on the market today. Unfortunately, this card has many of those hidden in the fine print. If you are fee-conscious, then you should undoubtedly take the time to read its pricing section.

This card brags about its low and fixed APR. It undoubtedly looks great on paper, at just 9.99%, but there’s also the annual fee, which is $48. Additionally, this card doesn’t have an introductory APR promotion or even a grace period. You should expect your interest to start accruing the moment you make your first purchase.

You should also be aware of other fees when signing up for a Secured Visa® Gold Preferred® credit card as your first credit card. This card has a $38 charge for late and returned payments. 

Card replacement and additional cards will cost $30, and you’ll need to pay the same amount for the stop-payment fee. Luckily, this card doesn’t charge an application fee, and there is no penalty APR.

The OpenSky Secured Credit Visa Card is an appealing option for college students without a credit rating and bank account. The benefit of secured credit cards is that they can help build your credit score.

Getting the Credit Card

Most of the time, when you apply for a credit card, you’ll need to open up a bank account that’s linked to it. OpenSky doesn’t have that requirement. Lower requirements and no credit check mean it’s pretty easy to get a hold of.

Since this is a secured deposit card, it will require you to make a refundable cash deposit of between $200 and $3,000, which is placed in an FDIC-insured account. Your credit limit will equal this cash deposit. If you cancel your OpenSky card and pay your balance in full, you’ll get your deposit back.

Unfortunately, OpenSky doesn’t offer you any kind of welcome bonus when you sign up for its secured card. Like other affordable cards, its primary purpose is building up your credit score.

Using the card reasonably and staying on top of your payments can improve your credit score, as your payment history will be reported to the three major credit bureaus (Experian, Equifax, and TransUnion) each month.

Rewards Program

Currently, the OpenSky Secured Credit Visa Card offers 10% cash back on purchases to its users. Also, since this is a Visa card, it comes with other benefits like:

• Zero-dollar liability policy
• Auto rental collision damage waiver
• Roadside assistance

Pricing

This OpenSky credit card for building credit charges a fair annual fee of $35. The APR is also below average for this card type: 24.89% (variable). On top of this, there’s a 3% foreign transaction fee for overseas purchases.

Unfortunately, OpenSky doesn’t offer you the option of upgrading to an unsecured card. However, with its reasonable expenses, the OpenSky Secured Credit Visa Card is a great tool that helps young adults build their credit scores from the ground up.

With this unsecured card, customers get credit score reports by signing up for electronic statements, which helps you track your credit score-building progress. However, there are a number of significant drawbacks, including the high fees and interest rates.

Getting the Credit Card

Getting your hands on a FIT™ Platinum Mastercard® is a straightforward and speedy process. First, you’ll need to apply for the credit card through the company’s website or by calling the number provided on the card issuer’s website.

Of course, the application process requires you to divulge some personal info. In addition to your full name, you’ll have to provide your Social Security number, address, and your date of birth. These are standard requirements.

The company will review your personal data and monthly income reports. This process is usually pretty quick, but it may take up to 30 days. Once this process is complete, you’ll receive the FIT™ Platinum Mastercard® within three business days via mail.

Lastly, you’ll need to activate your new credit card within 30 days of getting it. For the FIT™ Platinum Mastercard® credit card, all you have to do is go to its website or contact the company by phone to have the credit card fully activated.

Rewards Program

Unfortunately, this card has no sign-up bonuses or rewards for purchases. However, there are a few other notable perks that customers get to enjoy. For starters, if you sign up for electronic statements, you’ll get access to credit score reports.

This feature makes FIT™ Platinum Mastercard® one of the best credit cards for young adults with no credit score, as it enables them to track their progress and improve their standing.

FIT™ Platinum Mastercard® gives customers access to a knowledge base of articles, which offers guidance on various topics, including how to build their credit score.

If that’s not enough, customers get to enjoy peace of mind thanks to the $0 fraud liability feature, which means that you can’t be held responsible for unauthorized charges to your card. This is a handy security component whether you’re shopping online or traveling overseas.

Pricing

The most notable downside and perhaps the dealbreaker is the high APR coupled with the high monthly fee. The fixed 35.90% APR is the highest rate on our list, and there is no 0% introductory APR promotion.

Moreover, the monthly fees are activated after the first 12 months. With the $99 annual fee during the first year (then $125), you’ll get a $301 credit limit once the annual fee is deducted. Still, it is one of the best credit cards for young adults with bad credit if you can reap all its benefits in the first year.

Another expense worth mentioning is the $99 one-time fee that is charged even before your account is opened. It’s certainly an unusual pricing method for an unsecured credit card that won’t sit well with everyone.

The secured Mastercard from First Progress stands out with its below-standard APR and the fast track it offers users to a better credit score.

Getting the Credit Card

The First Progress Platinum Select Mastercard Secured Credit Card requires no credit history check or minimum credit score for approval.

After you fill out an online application, you’ll be offered the Expedited Processing option, which allows you to receive the card within seven days of applying.

This fast-tracked process costs $19.95 and will be applied to your card along with the security deposit amount you select. If you apply without the expedited process, your request shouldn’t take more than three weeks, as is the case with most secure credit cards. 

Rewards Program

At present, the First Progress Platinum Select Mastercard Secured Credit Card offers 1% cash back reward. Additionally, this is a Platinum Mastercard, meaning that all the perks of standard, Gold, and Platinum cards apply. Some interesting ones include: 

• Zero-dollar liability for fraudulent charges
• Rental insurance
• Access to the Fuel Rewards Network
• Coverage for extended warranty 
• Purchase protection

Regular reports of your credit history are sent each month to the three major credit bureaus: Equifax, Experian, and TransUnion. If you regularly keep up with your payments, this will cause your credit score to improve. 

Pricing

The purchase APR for Platinum Select cards is 18.49% (V), which is significantly lower than the industry standard. You’ll have to pay an annual fee of $39, but that’s also lower than what you’d get with most secured cards.

Since this is a secured credit card, a safety deposit of between $200 and $2,000 is required. This amount will represent your line of credit once you get approved for the card.

Foreign transactions incur a 3% fee. Also, for any late payments, you may be charged up to $41, which is a similar deal to what you’d get with other cards. Overall, the First Progress Platinum Select Mastercard Secured Credit Card is a great stepping stone to a healthy credit score.

Petal focuses on rewards rather than fees and provides credit cards that are ideal for first-timers. There are some interesting perks that come with it, including 24/7 roadside assistance and a damage collision waiver for auto rentals. And that’s not all.

Getting the Credit Card

It’s worth mentioning that this is an unsecured card, meaning that it doesn’t require a deposit. However, getting approved for a Petal card takes a bit of time and involves screening each candidate. Petal uses algorithms when deciding who to approve for this card.

The company takes into account any outstanding debt, late payments, and bankruptcies. If you don’t have any of those in your credit history, you’ll likely get approved.

Unlike most secured credit cards, this one has a very high credit limit of up to $10,000. The exact amount depends on the aforementioned screening process and the credit score.

As such, young people who have never had a credit card before will most likely get a significantly lower limit, with the lowest option being $300. On the plus side, you won’t have to put money on the card right away, so it’s still a better option than what some of the competition is offering.

Rewards Program

Petal keeps things simple when it comes to credit card rewards: There’s no welcome bonus, but there is an ongoing cashback deal that improves over time.

You’ll start with a 1% cash back on all spending. If you make your credit card payments on time for six months in a row, your card gets upgraded and you’ll earn 1.25% cashback. After a full year of regular payments, you’ll reach the final rewards category of 1.5% cashback on each purchase. What’s more, you can get 2% to 10% back at specific locations.

Although 1.5% is the highest rate you can get for most purchases, there’s no maximum amount for the cash back, and as long as your payments are on time, the percentage won’t be reduced.

Every merchant has the option to partner with Petal and enter the Petal Offers program, which offers some additional discounts or better cashback deals. These are usually time-limited deals and can net you up to 10% cash back.

Pricing

The Petal 2 Visa credit card has no membership fees. Even though there is no annual fee, you’ll still pay APR on each transaction. APR is variable and ranges between 18.24% - 32.24%. There are also no extra fees on foreign transactions.

The Chase Freedom Flex℠ Credit Card is a card that is often recommended due to benefits such as no APR for the first 15 months, no annual fee, and attractive rewards. Truth be told, this financial product isn’t the easiest one to acquire due to the high credit score requirements. Therefore, if you have a good credit score, be sure to check this card out. 

Getting the Credit Card

The process of obtaining the Chase Freedom Flex℠ Credit Card is quite simple and is completed online. You fill out a form with information about yourself, from your full name and address, to your Social Security number and total gross annual income. 

You can get pre-approved for the card with no effect on your credit score. However, when you apply for this financial product, Chase will perform a hard credit inquiry, which will hurt your credit score a bit. The credit score you will likely need to be eligible for this Chase card is at least 670.

Rewards Program

You get a $200 bonus with an additional 5% grocery store offer, which can total up to $800. To be eligible for this bonus, you need to spend at least $500 in purchases within three months of acquiring the card.

Additionally, there are rewards updated on a quarterly basis. Currently, you can earn a 5% cash back on eligible purchases carried out at Walmart using PayPal. That’s not all, as you may also receive:

• 5% on travel purchased through Chase Ultimate Rewards
• 3% cash back on restaurant dining, including takeout and qualifying delivery services
• 3% cash back on drugstore purchases
• 1% cash back on all other purchases

Pricing

A significant benefit of the Chase Freedom Flex℠ Credit Card is that you won’t be charged an APR for the first 15 months, making it an optimal choice for your first credit card. However, remember that the percentage you’ll have to pay afterward is on the higher side, as it ranges from 17.99% to 26.74%.

The APR you’ll get charged depends on your creditworthiness, which makes this card best suited for those with better credit scores. Nevertheless, if you choose this product, you save up on annual fees, as there aren’t any with this product.

Issued by Citigroup, an American multinational company, this card is an excellent choice for students and young people who want a cashback rewards program on their cards.

Getting the Credit Card

The application procedure can be completed online. Alternatively, you can call the bank’s customer service and ask the agents to guide you through the process.

One of the reasons the Citi Double Cash Card is on our list is that you don’t need to have any money to get the card. Citi Double Cash Card is an unsecured card, meaning that there are no deposit requirements for you to fulfill.

However, like with many other credit cards, you need to provide your credit score and credit history to the bank. Based on your creditworthiness, the bank will decide on the size of your credit limit.

Rewards Program

Citi Double Cash Card is especially attractive to young consumers because of its cashback rewards. Unlike standard cashback rewards that usually include 1% returns, Citi Double Cash Card offers a 2% reward program for all purchases. Every time you make a purchase, you’ll earn 1% cashback, while the other 1% you’ll get after your payment is completed. 

You’ll need to pay your account balance on time to earn the cashback rewards. These are, however, not available on balance transfers, cash advances, or returned items. 

There used to be a minimum of $25 to redeem the cashback offer, but now you may do so at any amount. You can opt for a check, credit card statement, or direct deposit. Another option is to convert earned money into ThankYou Points.

You can convert as little as $1 in cash rewards and redeem points for gift cards or use them for Shop with Points purchases at Amazon.

Pricing

The Citi Double Cash Card is a good option for young adults because there are no annual fees. Moreover, in the first 18 months, consumers are freed from paying any APR on balance transfers.

Note, however, that the introductory period with a 0% APR doesn’t apply to purchases. After the welcome offer expires, the standard APR applies on balance transfers, as well. It will be between 17.74% and 27.74%, depending on your credit score.

Be aware that there is a high APR for cash advances (28.99%) and late or returned payments (29.99%).

As its name suggests, Discover it Secured is a secured card, which means that the issuer requires you to make a deposit when signing up. This deposit covers any late payments and is returned to you once you upgrade to an unsecured card.

Getting the Credit Card

Before you can start paying with Discover it Secured and collecting its rewards, there are several steps to complete. With Discover, applying for a credit card also means opening a bank account. This is the only option for financing the credit card, which could be problematic for some people.

Although it’s not ideal in the short term, you’ll probably need that bank account for work-related transactions down the road.

One of the main reasons Discover is so highly regarded is the low security deposit - the minimum is $200, while the maximum deposit (and credit limit) is set at $2,500. A major perk of this financial product is that there aren’t any credit score requirements, so anyone can apply.

The card can also be upgraded: Seven months after signing up, you’ll be given the option of switching over to the unsecured version of the card. This means you’ll get your deposit back while keeping the same account and your credit score unaffected.

Rewards Program

The introductory offer here is very generous: Discover’s cashback program enables you to earn cash back and then reclaim it in a number of ways.

Speaking of cash back, this card is the perfect companion for every young driver. It earns you 2% cash back at gas stations and restaurants for up to $1,000 each quarter. All other purchases are eligible for 1% cash back. There’s also the Cashback Match, which allows you to get an automatic match of all the cash back you've earned at the end of your first year.

Pricing

The Discover it Secured card comes with no annual membership fees. On the other hand, the APR is unavoidable. During the first six months, your APR will be 10.99% on every balance transfer. After that, it goes up to 25.99% and becomes variable.

This is a bit higher compared to other cards, but there’s a silver lining: Discover won’t charge you any fees on your first late payment. It’s not much, but it helps.

The right starter card isn’t always the one with cash back and discounts. Maybe you’re traveling a lot. Maybe you’re running a startup company and have a lot of meetings out of town. In these instances, a travel rewards card like the Capital One Venture Rewards credit card is ideal, as it dishes out rewards in the form of bonus miles.

Getting the Credit Card

The Capital One credit card application process is a little more rigorous compared to other names on our list. Many other companies tend to overlook very low credit scores, but Capital One requires a credit score of at least 670.

In addition to the high credit score, candidates can’t have any bankruptcies or loan defaults on their records. Preferred candidates have had no loans or credit cards for at least three years.

Rewards Program

When you compare the perks and the requirements, this card is definitely worth it. Venture is all about those free travel miles, granting you free flights across the country and upgrades to business class. You get 75,000 bonus miles if you spend $4,000 within three months of opening an account, for example.

It’s not an excellent choice just because you get two miles for each dollar spent, but also because of the bonuses you can score along the way. For example, if you spend $100 a month on various purchases, you’ll be rewarded with 2,400 miles per year.

The Capital One Venture Rewards credit card also comes with fraud coverage and $100 in credit for Global Entry or TSA application fees. It’s worth noting that you can use these points for accommodation and with over 15 airline companies partnered with Capital One.

Pricing

As expected, such a great rewards program comes at a price. There is an annual fee of $95, which is somewhat steep considering that many other cards tailored to young adults waive these fees in favor of a higher APR. Speaking of APR, it’s variable and ranges from 18.99% to 26.99%.

If you’re looking for an affordable credit card, this might not be the ideal option. But if you’re a frequent traveler who wants to take advantage of the rewards program, we highly recommend it.

With lots of rewards and no membership fees, Chase Freedom Unlimited serves a broad spectrum of customers.

Getting the Credit Card

Before we look at the rewards, let’s examine the requirements. Chase isn’t the kind of company where just anyone can get a credit card, which is why it has a minimum credit score requirement of 600. Luckily, you won’t be required to place a deposit, but the exact limit will depend on your credit history.

Rewards Program

In the rewards department, Chase definitely delivers. You can earn bonuses on just about anything. Initially, you can score a $200 bonus if you manage to spend $500 during the first three months after opening an account.

In addition, every purchase made in all grocery stores except for Target® and Walmart® during your first year is eligible for a 5% cash back on up to $12,000 in total annual spending.

You can also net 3% of your money back in restaurants and on drug store purchases, and 1.5% cash back on every other purchase. Chase often has time-limited deals with its partners for even greater rewards.

The point conversion here is highly flexible. Once you’ve accrued some credit card points, you can convert them into cash, gift cards, travel bookings, and even Amazon purchases.

Pricing

The best things in life are free, and so is the membership at Chase Freedom Unlimited. In fact, during your first 15 months, you won’t need to pay a dime. The APR is 0% during this period. Then, it ranges between 17.99% and 26.74%.

If you have a great GPA, you should consider Discover it Student Cash Back. Attractive cashback options, appealing rates, rewards, and a referral program are among the great perks of this card. 

Getting the Credit Card

It’s easy to apply for this card online, in person, or over the phone. Most importantly for anyone just starting college, the Discover it Student Cash Back card doesn’t require a credit score. However, remember that you’ll need to submit proof of your education status and grades.

Rewards Program

The Discover it Student Cash Back card’s reward program has terrific rewards and cashback options for users. The most exciting part of the program is 5% cash back for rotating purchase categories of up to $1,500 per quarter.

For any other purchases, a flat 1% cashback rate is applied. If you plan your expenses for each quarter, this is one of those great cashback credit cards. You have to apply for these cashback options quarterly, so setting up a reminder can be handy. 

Discover has an app on both Google Play and App Store to help you track these rewards and other valuable features. The app allows you to check your FICO score for free, contact customer service, get a free Social Security number alert, and freeze the card in case you lose it. 

Students with a GPA of 3.0 or higher are eligible for the Good Grade Reward of a 1% cash bonus. The Discover it Student Cash Back card is the first credit card we’ve reviewed that offers this type of reward. The bonus can be earned once per year for up to five years. 

With Discover’s referral program, you can earn a $50 to $100 statement credit for each approved referral. 

Pricing

Discover offers favorable pricing for its Student Cash Back card. First up, there’s no annual fee for maintaining the account. The introductory APR of 0% is applied for the first six months, after which the standard 15.99% - 24.99% variable purchase APR applies. 

Discover knows its target demographic is students who are busy hitting the books. That’s why you won’t be charged a late fee for your first late payment.

For students with limited credit history who want favorable pricing with great rewards, Bank of America Cash Rewards Credit Card may be the right choice.

Getting the Credit Card

To get approved, you need to have a limited credit history. Keep in mind that for college students under 21, the Credit CARD Act of 2009 applies, so you will be required to have a cosigner or proof of independent income.

Rewards Program

New cardholders are eligible for a $200 online cash reward if they spend at least $1,000 on purchases within three months - 90 days, to be exact - of opening their account. This welcome bonus has a much lower requirement than most other cards.

The Bank of America student card has nice perks for its holders. For a 3% cashback offer, you can choose one of the following categories: gas, online shopping, dining, travel, drug stores, or home improvement. Grocery stores and wholesale clubs are eligible for 2% cash back.

These offers give back up to $2,500 quarterly in your chosen category. For all other purchases, you get 1% cash back.

With your mobile banking app or via online banking, you have the option of checking your FICO score for free. You’ll also get an overview of factors that influence your credit score and helpful advice for improving it.

Pricing

Bank of America’s offer is reasonably priced. There is no annual fee for the account, which is always a good start. 

When you open your account, you’ll be offered the option of transferring your balance from other accounts. The transfer fee is 3% per transaction or a minimum of $10.

The introductory APR of 0% is available for 18 billing cycles for any balance transfers and purchases you make within 60 days of opening your account. After that, depending on your creditworthiness, a variable APR of between 16.99% and 26.99% is applied.