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For many young adults, being an authorized user of another person’s card, whether parents or relative, isn’t as exciting as people make it seem. Nothing’ll be done with the card without the other party finding out. Young adults revel in their independence as much as they do in their privacy.
Their lifestyle, need for privacy, and self-sufficiency is some of the factors all credit card issuers see before making young adults a big market target. While there’s no harm in that, there are so many credit cards, and picking the best one can be quite a task. If you’re here, for this reason, you’re at the right place.
This article will show you three of the best credit cards for young adults in the USA. You can choose the one that fits your needs the most from these three. But, before doing that, let’s give you a walk-through of our method.
Things Young Adults Should Be Aware of Before Getting Credit Cards
If we ask most young adults how credit cards work, they’ll claim to understand how to handle it. However, knowing the nitty-gritty of credit cards is the way to banish the devil within the details they might overlook. The following are some of the things young adults should consider about credit cards:
1. Beginners Don’t get the Best Credit Cards
Getting the best credit cards requires a high credit score from 690 above. While most young adults don’t have this yet, it’s not bad news. You can start small with other card options and build your credit score gradually.
2. Making a Security Deposit Improves Your Chances
If you want fast approval on your application but it’s looking impossible, the secured credit card is your best option. It’s specifically for people with no credit or damaged credit. All you need to do is make a deposit that’ll equate to your credit limit.
This way, you can quickly get approval, improve your credit line, and build good credit in a few months. The key is to ensure you don’t exceed your credit limit, and when you do, you make payment on time.
3. Your Credit Card Can Make or Mar you
The point here is that your credit card can help build your credit, and it can also help you ruin it if you’re not careful enough. If you use your credit card irresponsibly, it’ll show on your account, and that could be detrimental. So the best thing is to ensure activities are moderate on the card and payments are made in due time.
4. Check the Rates Before Submitting an Application
All card issuers are legally required to display credit card rates in Schumer Box. These rates include an annual fee, APR, late payment fees, fees for foreign transactions. So you must check all these before you apply.
5. Credit Card Fraudulent Activities
Many people hesitate to get credit cards because of fraud. As valid as it is, credit cards offer more security protection against fraudulent activities. Apart from that, you can’t be responsible for this, provided you do not perpetrate it. And you can get a new card in no time. So you see, it’s not as bad as it seems.
Once you consider everything mentioned above, your application for a credit card may be seamless. But, as a young adult, what should you look for in a credit card?
A Checklist of Things Young Adults Should Look Out for When Choosing a Credit Card
The following is a checklist of a few things to look for in a credit card:
1. The Annual Percentage Rate
The APR for credit card issuers varies. So before Choosing yours, you should do a comparative analysis to see the issuer with the cheapest APR. The APR is essentially the cost incurred in using the credit card. And as its name suggests, it is charged annually.
2. Beginners Interest Rates
The beginners’ interest rate is also known as the introductory rate. For some issuers, you pay nothing for some time, while you pay low interest for others. Either way, it changes after a short period of about six months. So you must check the rate and what it changes to after a while before you choose any issuer’s card.
3. Loyalty Rewards
Loyalty rewards are the most exciting part of getting a credit card. For every purchase made with the card, points which can be used for more purchases accumulate. You only have to figure out where and how to use these rewards.
Although there are eligibility requirements for cash-back, you have to determine if you qualify for it. It also depends on the amount spent. It’s a refund of some percentage of the money spent on some purchase.
Top 3 Best Credit Cards for Young Adults in the USA
The top three best cards for young adults include:
Discover it® Student CashBack
At this age, many young adults are engaged with so many things like school, work, etc. Whatever the case is with you, you can build your credit during this period. With a 5% cash-back, zero annual fees, zero introductory interest for six months, and 12.99% APR, Discover it® Student CashBack credit card is suitable for this purpose, especially if you don’t have a credit history.
Capital One Platinum Secured Credit Card
As mentioned earlier, getting a secured credit card and sending a deposit is one of the fastest ways to get approval. Capital One Platinum Secured Card is a good option. With it, you can significantly improve your credit line in just six months.
Capital One QuicksilverOne Cash Rewards Credit Card
Capital One QuicksilverOne Cash Rewards credit card is a good option for young adults with fair credit scores. Although it has a high APR of 26.99%, it also offers users flat cash-backs with a low annual rate. The point is to consider the cons and pros of this card before choosing it.
Credit card options for young adults in the US are vast. But this isn’t enough reason to make a random choice. You have to pick one that suits you and offers more benefits than others. This guide has done justice in suggesting three of the best credit cards in the US. The choice is yours.