The 7 Best Credit Cards for 18 Year Old
A credit card is a payment card used by millions of people across the globe. Other payment cards include debit and prepaid cards. Gift cards are also payment cards but may be limited to certain stores. Credit cards are available for adults of 18 years and above with the necessary qualifications. Children can also get credit cards but under their parents or guardians. In this article, we will focus on the best credit cards for 18-year-old people.
Most credit cards require you to have a credit history to get them. There are credit cards for bad credit history and others for good credit history. Unsecured credit cards are mainly available for people with a good credit history. Someone with a bad credit history may find it difficult to get a credit card. However, some institutions offer unsecured credit cards for bad credit.
People with bad credit can also apply for secured credit cards. These have a bit lower interest rates as compared to the unsecured credit cards for bad credit. Credit cards for bad credit with no deposit have extremely high-interest rates. Also, such credit cards have lower credit limits and may not be that useful for financial help other than helping you to improve your credit scores.
What is the difference between secured and unsecured credit cards?
A secured credit card requires you to deposit some amount of money to act as security when borrowing. On the other hand, an unsecured credit card does not require you to deposit any money for security.
In addition, secured credit cards do not require you to have a credit history while unsecured credit cards require you to have a credit history with any of the financial institutions. This indicates that your relationship with a particular bank may affect how you will relate to another bank.
Moreover, secured credit cards only allow you to borrow according to the amount of money you deposit in your account. They may allow you to borrow exactly equal amounts to the one you deposit or slightly lower. This means that your deposit determines your credit limit.
An unsecured credit card gives you a credit limit depending on your credit scores. People with high credit scores get high credit limits while those with low credit scores get low credit limits.
Can I get a credit card for my business?
You can have a credit card for your business. Credit cards allow you to purchase goods and services for your business with ease. Furthermore, money in your card is saved from theft. Again, utilizing your business credit card well raises your credit scores thus allowing you to borrow more to grow your business.
If you have bad credit, you can still qualify for a credit card. There are financial companies that offer small business credit cards for bad credit to help you grow your credit scores with time. The benefits might be limited but with time, you will be able to get a better card for your business.
How do financial institutions know my credit scores?
Banks, credit unions, and savings associations get people’s credit scores from the credit bureaus. There are three main credit bureaus which include Equifax, TransUnion, and Experian. When you get a loan or a line of credit from any financial institutions, your repayment patterns are reported to all the credit unions. Any financial institution can get your credit history from the credit bureaus.
Can I get a credit card without a credit history?
You can get a credit card if you do not have a credit history. If you are just beginning your financial life, you can apply for a secured credit card for a start. This will help you to grow your credit scores and qualify for credit cards for fair credit with high limits in the future.
Alternatively, you can get a starter card from a store of your choice. As you make payments, your starter card issuer will be reporting your card usage to the credit unions thus helping you raise your credit scores.
Which are the 7 best credit cards for 18-year-olds?
Having done a lot of research on the best credit cards for 18-year olds in the markets, I have come up with the following.
1) Bank of America® Cash Rewards Credit Card for Students
This card is mainly for students. You do not have to be employed to get the credit card since you can give proof of financial support from the government or guardian. The card gives you a 3% cash back at gas stations, online shopping, restaurants, travel, drug stores, or home improvement/furnishings.
Again you can earn a 2% cash back at grocery stores and wholesale clubs. You also get a 1% cash back on all other purchases. The card has no annual fee. This makes it cheap to own as compared to other cards that require you to pay large amounts of annual fees. Learn more
2) Discover it® Secured
Since it is possible for an 18-year old to lack credit history, this card accepts even those with no credit history. Furthermore, it is one of the guaranteed approval credit cards for bad credit if you have been listed with the credit bureaus.
The card allows you to choose a refundable deposit of your own. Furthermore, you will earn a 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter.
Again, you will automatically earn unlimited 1% cash back on all other purchases. The card issuer reports to the credit unions and you can be sure that your credit scores will improve with time. Higher credit scores mean better credit cards. Learn more
3) Discover it Student Cash Back
The card has no annual fee. You will also earn 5% cash back on everyday purchases in select rotating categories up to $1,500 upon activation. Furthermore, you will earn unlimited 1% cash back on everything else you purchase using the card.
Since the card is specifically made for students, you will be able to earn a $20 statement credit each school year if your GPA is 3.0 or higher for up to the next five years. Learn more
4) Wells Fargo Cash Back College Card
With this card, you will get a 3% cash back on gas, groceries, and drugstore purchases up to $2,500 for the first six months. Also, you will earn 1% on everything else you purchase with the card. Additionally, use the card to transfer money using the routing number and account number to other people.
Moreover, the card has zero annual fees. It is such a great card that will also enable you to grow your credit scores to higher limits if you utilize it well. Again, you can access your FICO score, credit education, and tools with Wells Fargo Online. This means that you will be able to monitor your progress with time. Learn more.
5) Journey Student Rewards from Capital One
The card has no annual fee and makes it less expensive to have. It allows you to earn 1% cash back on all your purchases. When you pay your debt on time, you will boost your cash back to a total of 1.25% for that month.
Again, you will be able to get unlimited access to your credit score and tools to help you monitor your credit profile with CreditWise. This will help you to track your progress. The card does not have foreign transaction fees. If you get any technical issues with the card, the customer care is available 27/7 to help you. Learn more.
6) Citi Rewards+℠ Student Card
It does not charge any annual fee. The card has a 0% introductory APR for 15 months from the date of account opening. Thereafter your variable APR for purchases will be 13.49% – 23.49% depending on your creditworthiness. Get 2X points the amount you spend at supermarkets and gas stations for the first $6,000 per year. Thereafter, you will earn 1 point per $1 spent.
Also, you will earn 10% points back for the first 100,000 ThankYou® points you redeem per year. The Balance Transfer Fee is either $5 or 3% of the amount of each transfer, whichever is greater, for each transfer. Learn more
7) Deserve® EDU Mastercard for Students
If you are looking for a 0% interest credit card with no balance transfer fee, this might be a great choice since it does not charge balance transfer fees. However, it has a variable regular APR of 18.74%. With the card, you will be able to earn 1% cash back on all purchases. The card charges no annual fee. Furthermore, no deposit is required.
Interestingly, the card does not ask for the Social Security Number for international students. You can check whether you pre-qualify without affecting your credit score. The card also offers cell phone protection up to $600. Learn more
Bottom line
It is easy to get a credit card if you are just 18 years old and beginning life. Most of the available cards are student-oriented since this age group is mainly composed of students. You can get either a secured or unsecured credit card. Proper utilization of a credit card helps you to increase your credit scores thus qualifying for high credit limit cards.
