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What Are the Best Credit Cards for Young Adults?

Published June 27, 2024

6 min read

Table of contents

Key points about: choosing a credit card as a young adult

Young adults with no credit history may want to consider secured or student credit cards, both of which require no credit score to apply.
Student credit cards usually require applicants to be enrolled in college.
Young adults with positive credit history may qualify for unsecured credit cards offering higher credit limits than secured and student cards.

Young adults have a lot on their plates, whether they’re studying in college, building a career, or starting a family. And if you’re a young person searching for a new credit card, you may ask yourself, are there ideal credit cards for young adults? The answer largely depends on where you are in your credit journey. We’ll take a look at credit cards for those newer to credit and those who’ve already built a good credit history.

Different credit cards for young adults

Your credit card options change based on factors like your income, length of credit history, and responsible credit use. As a young adult, consider these card types when deciding on the best credit card.

Student credit cards

When you start college, you may be responsible for managing your finances on your own for the first time. Student credit cards are unsecured cards that let you establish your credit history as you learn what it means to use your credit card responsibly, making on-time payments each month and keeping your balance low.

You typically don’t need a credit history to get a student credit card, though you may have to provide proof of college enrolment to qualify. You might receive a smaller credit limit with a student credit card than you would with a standard card, but as you build a good credit history, you may be eligible for a credit limit increase in the future.

Did you know?

Some student credit cards let you earn rewards on purchases. For example, with the Discover it^® Student Cash Back Card, you can earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate.

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Secured credit cards

If you’re not in college and you have a low credit score or no credit history, a secured credit card may meet your credit needs. Secured credit cards require a deposit equal to the credit limit the issuer approves you for. The deposit acts as collateral should you default on your payments. Some credit card companies even allow you to earn rewards with each eligible purchase you make with your secured card.

Using your secured credit card responsibly can help you build or repair your credit history. If you use the card responsibly by making several on-time payments, your credit card issuer may return your deposit and upgrade you to an unsecured card.

Unsecured credit cards that require a credit score to qualify

If you’ve already built a strong credit history, you may be eligible for unsecured credit cards with higher credit limits than secured and student cards. And while some student and secured credit cards offer rewards, an unsecured credit card that requires good credit to qualify may offer an increased percentage of rewards for eligible purchases.

Things to consider before applying for a credit card

As you weigh your credit card options, there are some key factors to consider:

What is your credit score?

Your three-digit credit score reflects how responsible you are with credit, often influencing the credit cards you may qualify for, your interest rate, and your credit limit. A higher credit score shows lenders you’re more likely to repay your credit card debt on time, typically resulting in more credit card options and favorable terms.

Knowing your credit score could help you identify the best type of card for your current financial circumstances. If you don’t have a credit score at all, you’ll need to limit your search to student and secured cards. Some credit card companies offer pre-approval tools that let you see which cards you may qualify for before you apply—without affecting your credit score.

See if you’re pre-approved

What fees apply?

Credit cards can come with various fees, and comparing fees could help you narrow down your card search. Most credit cards charge late payment fees, which you can avoid by ensuring you pay your bill on time each month. Other types of fees depend on the card issuer and the card itself. For instance, some card issuers charge an annual fee to use certain cards.

You may also want to avoid cards that charge fees for certain transactions you anticipate making. For example, if you spend time traveling internationally, you may want a card without a foreign transaction fee. You can check a credit card’s terms and conditions to identify potential fees and help determine whether a card is a good fit.

What rewards program is best for you?

If you want to make the most of a credit card that offers rewards, you may want to assess your spending habits to find a rewards program that maximizes your earnings. For instance, some rewards credit cards offer a higher reward rate for spending in specific categories, like gas, groceries, or restaurants.

You may get the most out of your credit card by choosing a card with a program that rewards you for purchases you already make regularly. Say you pay for gas each week to commute to work; a gas credit card that offers a higher level of cash back rewards at gas stations may make the most sense for you.

What rewards program is best for you?

You may get the most out of your credit card by choosing a card with a program that rewards you for purchases you already make regularly. Say you pay for gas each week to commute to work; a rewards credit card that offers a higher level of cash back rewards at gas stations may make the most sense for you.

Credit cards can help young adults build a credit history, earn rewards, and accomplish financial goals. Understanding factors like your credit score, spending habits, and the types of cards available to you can help you find the card that’s right for you.

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