As a young person with little or no employment or credit history, it can be challenging to get approved for a credit card. Fortunately, there are credit cards designed specifically for individuals in this situation. In this article, we will review the best credit cards that are friendly to young people and discuss why each card may be a good option.
The Discover it® Secured credit card is an excellent option for young people with little to no credit history. It is a secured credit card, which means you will need to put down a deposit to open the account. This deposit serves as collateral and can be refunded when you close the account or upgrade to an unsecured credit card. The Discover it® Secured card also offers cashback rewards, making it an excellent option for those looking to build credit while earning rewards. The current APR is 27.74%.
Pros: Cashback rewards, potential for credit line increase, no annual fee.
Cons: Requires a deposit, some vendors still may not accept brand.
The Capital One Platinum credit card is another option for those with little to no credit history. This card does not require a deposit and offers a credit limit increase after making your first five payments on time. Additionally, the Capital One Platinum card offers fraud coverage and 24/7 customer service. The current APR is 29.99%.
Pros: No deposit required, credit limit increase potential, fraud coverage, no annual fee.
Cons: High APR.
The Petal 2 Visa credit card is a great option for young people looking to establish credit. This card offers cashback rewards and has no annual fee. Additionally, the Petal 2 card offers credit increases without requiring a hard credit check. The current APR ranges from 17.74% to 31.74%.
Pros: Cashback rewards, no annual fee, potential for credit limit increase.
Cons: APR range may be high for some.
The Citi® Secured Mastercard® is another secured credit card that can be a good option for those with little to no credit history. This card requires a deposit, but it also offers credit line increases and fraud protection. Additionally, the Citi® Secured Mastercard® reports to all three major credit bureaus, making it an excellent option for building credit. The current APR is 27.24%.
Pros: Credit line increase potential, reports to all three credit bureaus, fraud protection, no annual fee.
Cons: Requires a deposit, high APR.
The Capital One QuicksilverOne Cash Rewards credit card is an excellent option for young people with limited credit history. This card offers cashback rewards and has no annual fee. Additionally, the Capital One QuicksilverOne card reports to all three major credit bureaus, making it a good option for building credit. The current APR is 29.99% and it has an annual fee of $39.
Pros: Cashback rewards, reports to all three credit bureaus.
Cons: Annual fee, very high APR.
The Journey® Student Rewards from Capital One® credit card is designed specifically for students with limited credit history. This card offers cashback rewards and has no annual fee. Additionally, the Journey® Student Rewards card offers credit line increases after making your first five payments on time. The current APR is 29.99%.
Pros: Cashback rewards, credit limit increase potential, no annual fee.
Cons: High APR.
The Discover it® Student Cash Back credit card is another excellent option for students with limited credit history. This card offers a 0% introductory APR, cashback rewards, and has no annual fee.
Pros: 0% APR for 6 months (then 17.74% - 26.74%), no credit score required to apply, 5% cash back.
Cons: Rewards can be complicated.
Building credit from a young age is crucial, and many credit card companies offer cards just for young people. You’ll notice many have high APRs, but by paying off balances in full each month, you can build credit wisely - and safely.
High school freshman Finley Lewis is a self-taught day trader, and the author of 9 Rules to Dominate Your Money and Learn What 67% Of Adults Don’t Know.
He writes about financial literacy for teens, aiming to fill the gap the education system leaves in preparing young people for success in later life.
Finley has been an investor for three years, beginning his journey at the start of the Covid-19 pandemic. He has always been passionate about money and had the importance of managing and spending it wisely instilled in him at a young age. The more he learned, the more he noticed the shocking absence of financial literacy teaching in school, and he became determined to share his knowledge to help other teenagers.
Wise beyond his years, Finley recognizes that the key to building wealth is time, and he’s dedicated to making sure young people have the knowledge they need early enough to get a head start.
Finley is a straight-A student and spends half an hour a day watching Spanish TV in order to learn the language. He volunteers in the community and loves baking (just ask his friends about his chocolate chip cookies!).