10 Best First Credit Cards For Young Adults This Year

Before getting a credit card, it is important to know the different types of credit cards offered and what each of them offers to find the best first credit card for young adults. This way, you can choose the one most suited to your needs.

• Secured Cards: Secured cards use a cash deposit that serves as collateral for the card. It’s offered to people with no or limited credit history the opportunity to build credit and are easiest to qualify for.
• Unsecured Cards: They are the traditional types of credit cards and do not need a security deposit. However, unsecured cards usually have a higher credit score and income requirements and there may be higher interest rates and fees for those who don’t maintain a good credit score.
• Student Credit Cards: Student credit cards are designed specifically for students, offering lower interest rates and other perks tailored to their needs.
• Prepaid Cards: Prepaid cards are more like debit cards and cannot help in building a credit history. With these cards, the cardholders deposit an amount in the card and that is what they can use only. There is no borrowing or credit involved.

When selecting the best first credit card as a young adult, there are several factors to consider. You should use these to compare the different credit cards for your young adults to choose the best one for yourself.

• Low or no annual fees: Make sure that you’re aware of any fees and penalties associated with the credit card, such as annual fees or late payment charges. Annual fees can add up quickly and reduce the amount of money available to cardholders. As a young adult, it’s important to try to find a credit card with no or low annual fees, so that you don’t need to spend more than necessary on your card. The more young adults understand what fees could be charged, the better prepared they’ll be to avoid them.
• Low Interest Rates: Interest rates are an important factor to consider when choosing a credit card, as higher rates can make it more expensive to pay off a credit card balance. It’s best for young adults to look for cards with low interest rates as well as a 0% introductory (APR) period. Additionally, paying off the balance in full each month can help keep interest costs low.
• Rewards and Benefits: There are numerous credit cards that offer rewards and benefits such as cash-back, points, or miles for making purchases. Be on the lookout for these rewards programs, as they are a great way for young adults to save money and learn how to responsibly manage their credit – all while being rewarded for it.
• Credit Limit: The credit limit is the maximum amount of money a cardholder can borrow on the card. Young adults should consider their spending habits and find cards with limits that they can responsibly manage.
• Credit score: Young adults should be aware of the credit score requirements for each card they are considering. Knowing their own credit score and researching credit cards that meet those requirements can help young adults find the best cards for themselves.
• Co-signing Requirements: Some credit cards require a co-signer if a teen does not have enough of a financial history or credit score to qualify on their own. Take this into consideration when selecting a card and make sure that your co-signer of choice is comfortable with the agreement.
• Level of Responsibility: Make sure to consider how much responsibility you can handle when managing your own credit card, as well as any tools or resources that will help you to better manage your finances. Doing this will ensure that you don’t run into debt, thereby getting the most out of your credit card.

When applying for a credit card for the first time as a young adult, provided that the requirements for eligibility have been met, the process to secure one is simple. Below are the general eligibility requirements and steps to apply for a credit card.

General Eligibility Requirements:

Here are the typical eligibility requirements for credit cards for young adults:

• Be at least 18 years old
• Have a valid government-issued ID or Social Security Number
• Have an income (which can include a part-time job, allowance from parents, or student loan)
• Demonstrate responsible use of credit

Steps to Apply for a First Card

The following are steps to apply for a credit card.

1. Gather Documents: Before you can apply, you will need to have some documents handy that may include proof of identity and address, employment information, bank statements or other financial documents, and authorization for a credit check applicable.
2. Compare Offers: Look through different credit card offers to find the one that best fits your needs. Make sure you compare factors such as Annual Percentage Rates (APRs), bonuses, rewards, and fees associated with credit cards.
3. Fill Out Your Application: Once you have chosen a credit card, fill out the application form. This will usually involve entering your personal information, such as your address, date of birth, and current employment status.
4. Submit Your Application: After you’ve filled out the application form, ensure that you double-check it for accuracy before submitting it. Having done that, all you need to do from here is wait for a response from your chosen lender.

Getting a credit card involves both benefits and potential drawbacks that include the following:

Pros of Credit Cards:

• Establishes credit history by on-time and complete payments
• Allows you to manage expenses responsibly and build good financial habits
• Helps with emergencies or major purchases for which you might not have enough cash/savings for
• Earn rewards, such as cashback, discounts, or travel points
• Easier to carry as compared to cash

Cons of Credit Cards:

• Potentially high-interest rates if payments are not made on time or if you don’t have good credit
• Can lead to debt if not used responsibly
• Can hurt your credit if you miss your payments or pay late
• Potentially high annual fees for some cards
• Temptation to overspend

By keeping the following tips and tricks in mind, young adults can use their first credit card responsibly and benefit from the rewards associated with having one.

• Keep track of your spending: The first and most important tip when using a credit card is to keep track of your spending. Create a budget to help you stay within your means and ensure that you only spend what you can afford. Automated reminders are also helpful in keeping up with payments and avoiding late fees or any other charges for not paying on time.
• Read the terms of your agreement: Before signing up for a credit card, make sure to read the terms and conditions so that you understand all the features associated with your card. Look for potential fees, interest rates, and rewards – such as cashback or airline miles – to help get the most out of your staying credit up. Additionally, you should never sign up for a card with hidden costs or fees that could catch you by surprise.
• Pay at least the minimum amount due: Once you have your credit card in hand, make sure to pay at least the minimum amount due each month on time. Missing payments and late fees can negatively affect on your credit score, resulting in higher interest rates for future borrowing. It’s also essential that you stay on top of your payments each month so that you don’t get overwhelmed with debt.