Best Credit Cards for Young Adults

Navigating the world of credit cards can be tricky. With fees, interest rates, and rewards programs to consider, finding the right card can be overwhelming. 

We’ll explore some of the best credit cards for young adults, helping you find the perfect fit for your financial needs.

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences. Whether you’re a college student, a young professional, or someone looking to build their credit, we’ve got you covered.

Key Takeaways

• Match the card to your goal. Whether you want cash back, travel rewards or a way to build credit, there's a fit — try the Chase Freedom Unlimited® for everyday cash back, the Capital One Venture Rewards Credit Card for travel or the Discover it® Secured for credit building.

• Watch the fees and APR. Annual fees, foreign transaction fees and variable APRs from roughly 16% to 30% can quietly eat your rewards, so weigh the costs against the perks before you apply.

• Start simple and build smart. If you're under 21 or new to credit, pick one no-annual-fee student or secured card, pay the full balance on time each month and add a second card only once you've built a steady history.

Summary generated by AI, verified by MoneyLion editors

1.  Best for Cash Back: Chase Freedom Unlimited®

The Chase Freedom Unlimited® is an option of a starter card for young adults looking to maximize their cash back rewards without an annual fee. It offers 5% cash back on Chase Travel purchase, 3% on restaurants and drugstore purchases and 1.5% on all other purchases.

The long 0% intro APR period on purchases and balance transfers gives you time to pay off big purchases without incurring interest.

Pros:

• No annual fee

• Solid cash back rewards

• Long intro APR period

Cons:

• Foreign transaction fee

• High regular APR

2. Best for Travel Rewards: Capital One Venture Rewards Credit Card

If you’re a professional who loves to travel, the Capital One Venture Rewards Credit Card is your go-to. This card offers two miles per dollar on every purchase, with no foreign transaction fees, making it a great choice for frequent travelers. The miles can be redeemed for travel expenses, providing flexibility and value.

Pros:

• High rewards rate

• No foreign transaction fee

• Valuable intro bonus

Cons:

• Annual fee

• High APR

• Requires good to excellent credit

3. Best for Building Credit: Discover it® Secured

The Discover it® Secured card is a great option for just-turned adults with no credit history looking to build their credit score. With no annual fee and the opportunity to earn 2% cash back at gas stations and restaurants, this card helps you build credit while earning rewards.

Discover reports to all three major credit bureaus (Equifax, Experian and TransUnion), ensuring your credit-building efforts are recognized.

Pros:

• No annual fee

• Cash back rewards

• Helps build credit

Cons:

• High APR

• Security deposit required

• Limited rewards structure

4. Best for Students: Discover it® Student Cash Back

For students, the Discover it® Student Cash Back card offers great cash back rewards and no annual fee. This card matches all the cash back earned at the end of the first year, which is a fantastic boost for young adults.

It also provides 5% cash back on rotating categories each quarter, such as grocery stores, gas stations and online shopping like Amazon, making it ideal for diverse spending habits.

Pros:

• No annual fee

• Cash back match for the first year

• Good for building credit

Cons:

• Limited acceptance outside the U.S.

• Rotating categories for cash back

• High balance transfer fee

5. Best for Low Interest: Citi® Diamond Preferred® Card

Young adults who have debt to pay off will benefit from the Citi® Diamond Preferred® Card‘s low interest rate.

This card offers a 12 month 0% intro APR on purchases and a 21 month intro APR on balance transfers, which can help manage larger expenses without the pressure of immediate interest. It’s an excellent choice for those looking to minimize interest payments while establishing credit.

Pros:

• Long 0% intro APR period for balance transfers

• No annual fee

• Low regular APR

Cons:

• No rewards program

• Foreign transaction fee

• High balance transfer fee

6. Best for No Fees: Petal 2 Credit Card

The Petal 2 is ideal for those who want to avoid fees and still earn cash back. With no annual, late or foreign transaction fees, this card is perfect for fee-conscious young adults. It also offers 1% cash back on purchases, increasing to 1.5% after 12 on-time payments, making it a straightforward and rewarding choice.

Pros:

• No fees

• Cash back rewards

• No credit history required

Cons:

• High APR range

• No intro APR offer

• No sign-up bonus

7. Best for Rewards: Blue Cash Preferred Card

If you're just starting out, you may not have enough of a credit history to qualify for the more premium credit cards. The Blue Cash Preferred Card from American Express is a great place to start while you build up your credit history.

You can earn up to 6% cash back on groceries (up to $6,000 a year in purchases) and select streaming subscriptions. You can also get 3% cash back on gas and transit purchases.

Pros:

• Great cash back rate for groceries

• No foreign transaction fees

• Valuable intro bonus

Cons:

• High annual fee

• Requires excellent credit

• No intro APR period

8. Best for Travel: Bank of America® Travel Rewards Credit Card

The Bank of America® Travel Rewards Credit Card offers great travel rewards without the hassle of foreign transaction fees for young adults who travel  frequently. You can earn 1.5 points for every dollar spent on all purchases, which can be redeemed for statement credits.

Pros:

• No annual fee

• No foreign transaction fees

• Competitive rewards rate

Cons:

• Requires good credit

• No cash back option

• Limited to Bank of America customers

9. Best for Limited Credit: Platinum From Capital One

The Platinum From Capital One card is designed for those with limited or fair credit who want to build or rebuild their credit. It offers the chance for a higher credit line after making on-time payments for the first five months. With no annual and foreign transaction fees, it’s a great choice for young adults looking to improve their credit scores.

Pros:

• No annual fee

• No foreign transaction fees

• Opportunity for credit line increase

Cons:

• High APR

• No rewards program

• No intro APR

Pros and Cons of Credit Cards for Young Adults 

While credit cards offer many benefits, they also come with potential downsides. Here’s a quick look at the pros and cons.

How To Compare Credit Cards for Young Adults

When choosing a credit card, consider the following factors to find the best fit for your needs.

• Annual fee: Look for cards without an annual fee if you’re just starting out.

• APR: Consider the interest rate, especially if you plan to carry a balance.

• Rewards: Choose a card with rewards suited to your spending habits.

• Credit score requirements: Make sure you qualify for the card based on your credit score.

• Credit-building features: Look for cards that help you build credit, such as secured cards.

• Sign-up bonuses: Consider the value of introductory bonuses.

• Issuer reputation: Choose a reputable issuer known for good customer service.

Choose the Best Credit Card for Your Needs

Finding the best credit card as a young adult is a step towards a secure financial future. By understanding the different types of cards available and what they offer, you can make an informed decision that aligns with your financial goals.

FAQs 

How old do you have to be to get a credit card?

You must be at least 18 years old to apply for a credit card, but if you’re under 21, you must show proof of income or have a cosigner.

What credit card should I get at 18?

Consider a secured credit card or a student credit card, like the Discover it® Student Cash Back, to start building your credit history.

What are the best credit cards for young adults?

Depending on what benefits you are looking for, some of the best credit cards for young adults include the Chase Freedom Unlimited®, Capital One VentureOne Rewards Credit Card, and Discover it® Secured.

How many credit cards should young adults have?

It depends on your financial situation, but starting with one or two cards can help you build credit without overwhelming your finances.

Key Terms

• Annual percentage rate (APR): The yearly cost of borrowing on a credit card. It shows how much interest you may pay if you carry a balance.

• Balance transfer: Moving debt from one credit card to another, often to save on interest. Many balance transfers come with a fee.

• Secured credit card: A credit card that requires a refundable security deposit. It can help you build credit when you’re new to credit or rebuilding.

• Credit score: A number based on your credit history that helps lenders judge how likely you are to repay debt on time.

• Foreign transaction fee: A fee some cards charge when you make purchases outside the U.S. or in a foreign currency.

Sources:

• Consumer Financial Protection Bureau: Credit cards key terms

• Federal Trade Commission: Charge Cards - Secured Credit Cards - Debit Cards

• Consumer Financial Protection Bureau: What is a credit score?

• Consumer Financial Protection Bureau: Credit card contract definitions

Summary generated by AI, verified by MoneyLion editors