Choosing the best credit cards for young adults to meet their financial needs can be overwhelming. With so many options, knowing which one will give you the best deals and rewards can take time and effort. This blog post will examine the six best credit cards for young adults in 2023.
1. Chase Freedom Flex
The Chase Freedom Flex Card is an excellent choice for first-time credit cards for young adults and young beginners in the field of credit cards.
It has no annual fees and offers 5% cash back on purchases of up to $1,500 on quarterly rewards you unlock, 5% cash back on trips designated by the Chase Ultimate Rewards portal, and 3% cash back on food and drug stores—1% cash back on purchases and all other purchases. You will also receive a $200 bonus after spending $500 on purchases in the first three months of account activation.
Pros
- Free rewards with 5% cashback on trades and 1% cash back on all other purchases
- No annual fee
- 0% on merchandise purchases and balance changes for the first 15 months
Cons
- Spins categories may not fit your usage habits
- 3% exchange rate
- Higher APR than other cards
2. Discover Student Cash Back
Discover It Student Cash Back Card is a good choice for college students and teenagers still in school. It has no annual fees and offers 5% cashback on product turnover every quarter (quarterly cashback on every transaction), plus 1% cash back on every purchase. Also read about can you pay student loans with a credit card?
You will also receive a $50 credit card after making your first purchase within three months of opening your account.
Pros
- Exciting Rewards with 5% cashback on match groups and 1% cash back on all other purchases
- No annual fees
- 0% APR on merchandise purchases and balance transfers for the first 6 months
- Good points program
Cons
- Currency group may not suit your spending habits
- 3% country exchange difference
- Discover may not earn as much as other cards
3. Capital One Quicksilver Rewards
Capital One Quicksilver Cash Card is another excellent option for young people. It has no annual fees and offers 1.5% cash back on every purchase.
You will also receive a $200 bonus after spending $500 on purchases made within three months of opening the account.
Pros
- Fixed 1.5% cash back on all purchases
- No annual fees
- No foreign exchange fees
- 0% APR on purchases and balance transfers for the first 15 months
Cons
- Select products with lower prices and higher rates than other cards
- No additional categories for higher rewards
- Higher compared to other cards APR
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4. Bank of America Savings Card
Bank of America Savings Card is an excellent option for young teenagers. It has no annual fees and offers 3% cash back on your chosen categories (gas stations, online shopping, dining, travel, pharmacy, or home improvement/furniture) and 2% cash back (up to $2,500) on grocery and commercial purchases. Quarterly select category/grocery/retail store purchases), plus 1% cash back on all other purchases.
You will also receive a $200 bonus after making a minimum purchase of $1,000 within the first 90 days of opening the account.
Pros
- Gifts with 3% cash back in the category you choose, 2% cash back at markets and wholesalers, and 1% cash back on all other purchases
- No Annual Fee
- 0% for APR purchases and balance transfers for the first 15 months
- Friendly Customer Service in the USA
Cons
- A group with a 3% monthly return should be selected
- Compound 3% and 2 quarters will be limited to $2,500 Return Class
- 3% Foreign Trade Fee
Read also – Top Credit Cards with $1,000 Limit & Guaranteed Approval
5. Citi Dual Cash Card
Citi Dual Cash Card is an instant option that rewards you for purchases and cashback. It has no annual fees and offers 2% cash back on every purchase, i.e., 1% cash back on purchases and 1% cash back on payments. You also get an initial ICU of 0% on balance transfers for 18 months (after that, it’s a variable APR of 13).
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Pros
- Fixed 2% cash back on every purchase (1% on purchase, 1% on payment)
- No annual fee
- No category limit on cashback
- 0% APR for first 18 months on account transfers (However, purchases are not included)
Cons
- No Registration Fee
- No 0% APR Purchase Offer
- 3% Fee Pay Abroad
Read also – Best Credit Cards After Bankruptcy
6. American Express Blue Cash Preferred
American Express Blue Cash for daily purchases is suitable. The Preferred Card is one of the best credit cards for young adults who earn cashback rewards on their cards. It has an annual fee of $95 but offers 6% cashback in the US.
US Supermarkets (up to $6,000 on annual purchases, then 1%), 6% cash back on select US streaming subscriptions, 3% cash back in the US gas station, transportation, and 1% cash back on all other purchases.
You will also receive a $250 credit card after spending $1,000 in the first three months after opening the account.
Pros
- Get 6% cash back on US purchases with American Express Blue Cash Preferred.
Food (up to $6,000 per year), 6% on select US streaming services, 3% on US gas stations and transportation, and 1% on all other purchases. - If you spend $3,000 within 6 months of opening the account, you will receive a $300 credit card.
- No first-year annual fee. American Express Blue Cash Preferred is an attractive option for those who want to earn rewards without paying the high annual fee.
- The card has purchase protection on eligible products; This means that if eligible products are purchased with a damaged or stolen card path, you can get a refund within 90 days of purchase.
Cons
- After the first year, the card costs $95 per year, which may not be suitable for those who want to avoid high prices.
- American Express is not as widely accepted as Visa or Mastercard, which means you may have trouble using the card at some businesses.
- While the American Express Blue Cash Preferred rewards group is generous, it is limited to certain purchases that may not be available to all customers.
- This card has a high APR, which means you have to pay more interest if you have a high monthly balance.
Read also – Best Credit Cards for Wedding Expenses
Choosing the Best Credit Card for Young adult
When choosing the best credit cards for young adults, it is crucial to consider several essential factors.
Here are some points to keep in mind:
1. Rewards and benefits
Consider which rewards and benefits are most important to you. Want to save money on daily purchases or earn points or miles on travel? Find a card with a rewards category that fits your spending habits and goals.
2. Fees
Find out the fees associated with the card, such as annual fees, late fees, or currency exchange fees. You can choose a reasonably priced card that fits your budget.
3. APR
The Annual Percentage Rate (APR) is the interest you pay on the monthly balance. You can find a card with a lower APR, or if you need to make a large purchase or transfer a balance from another card, consider a card with a 0% APR.
4. Credit limit
Evaluate your credit card’s limit to ensure it fits your needs. You want your credit limit to be reasonable as it can affect your credit utilization (the amount of credit you use compared to what you have).
5. Credit History
As a young person, you may have a short credit history.
Find a credit card designed for people with a low credit history, or consider a secured credit card if you’re not eligible for an unsecured one.
In addition to these factors, choosing a card from a reputable company or credit card issuer is essential. Here are some of the best banks for young adults:
1. Chase: Chase has many credit cards with rewards and benefits for teens. The bank also has a robust online and mobile banking platform that efficiently manages your money from anywhere.
2. Explore: Discover is best known for its student credit card designed for college students. These cards offer cashback rewards and have no annual fees, making them an excellent choice for young adults.
3. Capital One: Offering a variety of credit cards that offer rewards, low fees, and easy online account management, Capital One is another great option for teens.
4. Bank of America: Bank of America offers many credit cards with rewards and benefits, including the popular credit card. The bank also has a robust mobile app and online banking platform.
5. Citi: Citi offers a robust mobile app, online banking platform, various credit cards with cashback, and other programs.
Read also – Best Credit Cards for Travel, Rewards, and Low interest
Final Thoughts
Choosing the best first credit card for young adults according to your needs may seem overwhelming as a senior. However, considering factors such as awards, fees, and credit history, you can narrow your options and find the right one. Remember to use your credit card responsibly and pay your bills in full and on time each month to avoid interest and late fees. A good credit card for young adults can aid in building a credit history and earning rewards on daily purchases.
FAQs
Q. What are the main features of credit cards suitable for youth?
Teens should look for credit cards with low or no annual fees, cash back, low interest rates, and easy-to-understand terms. Choosing credit cards advertised to credit bureaus is also essential to help build your credit history.
Q. How can young people build a credit score with their credit cards?
Teens can build a good credit score by using their credit cards responsibly, paying on time, keeping their credit limit low, and avoiding excessive credit limits. They may also consider applying for a secure credit card or becoming an authorized user of a parent or guardian’s credit card to build a credit history.
Q. What are the best credit cards for teens with little or no credit history?
Secure credit cards, such as Discover it Secured and Capital One Secured Mastercard, are good options for teens with limited or no credit history. These cards require a security deposit but can help teens build a credit history.
Q. How can teens escape credit card debt and manage their spending?
Teens can avoid going into credit card debt by keeping their credit usage low and avoiding unnecessary purchases, but only by paying their monthly payments as much as they can. They can also use a financial tool or app to track their spending and set up automatic payments to ensure they get all costs.
Q. What should young people do to make the right decision before applying for a credit card?
Before applying for a credit card, young adults should research different credit cards and compare their features and fees. They should also review their credit scores and reports to ensure no errors or inconsistencies.