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One of the most famous quotes you’ll find out about age is “age is nothing but just a number.” While this fits some context, it barely applies to 18years because it is a monumental age that signals the transition into adulthood. One of the many markers for this transition is signing up for a credit card for the first time.
Signing up for a credit card at this age doesn’t imply the freedom to spend lavishly. On the contrary, it means the freedom to manage limited resources while building excellent credit scores early. As much as parents are considering whether or not it’s the next step for their kids, the decision to get kids credit cards could be formative for their future provided you educate them on how it works.
So, if you’re contemplating this, and you don’t even know the best credit card you can get for your 18-year-olds, this article will highlight three of the best credit cards in the USA you can choose from. But before that, we’ll discuss why an 18-year old should get a credit card and explore the things to consider before choosing a credit card for your 18-year-olds.
Why Should my 18-year-old Have a Credit Card?
While some people may disagree to this, getting your 18-year-old a credit card isn’t bad. The following are reasons you should consider:
Many people like to think the reason for getting kids credit cards is solely to improve credit scores. As accurate as that is, that’s not all there is to it. Getting your kid a credit card can teach them to budget and manage credits responsibly. Getting it for them when they are still under your supervision is an excellent way to teach these financial management skills.
As you already know, getting your 18-year-old credit card is also an excellent way to build their credit. This way, when they are old enough and need to get a car loan or mortgage, they’ll be able to get it quickly without using a co-signer.
Low Credit Requirement
Credit cards for 18-year-old teens have a very moderate credit requirement, unlike standard credit cards. So, getting your kid this type of card equates to reducing the cost to the barest minimum.
Things to Consider in a Credit Card for 18-year-olds in the US
The following are some of the things to look out for before choosing a credit card for your 18 years old:
Before choosing a credit card for your 18-year-old, you should be sure the credit card doesn’t incur annual fees. If, after a while, your kid discovers there’s a yearly charge on just holding the card, they may cancel it, and that’ll counteract the purpose of building a good credit history from an early age.
Cash-back options are a unique way of helping your kids save money while shopping for some goods. With cash-back, they are refunded a certain percentage of all their purchases. So, if you have to choose a credit card for your kid, you have to be sure they qualify for this option.
As you’re aware, APR rates vary from one credit card issuer to another; checking yours is vital. Don’t be blindfolded into choosing a credit card with 0% introductory APR because once this introductory period is concluded, you’ll begin to receive standard interests on every purchase.
You also have to consider how much your kid will be required to pay back once credit limits are exceeded. Additionally, it would help if you also considered the charges for credit card ATM withdrawal.
Top 3 Best Credit Cards for 18-Year-Olds
The following is our detailed submission on the best credit cards for 18-year-olds in the US:
Discover it® Student CashBack
You’ll recall that we mention the cash-back option as one of the things to look out for in a credit card; Discover it®Student CashBack offers 18year olds the potential to earn 5% cash-back on specific items 1% on all purchases when they spend. With zero annual fees, 10.99% APR, Discover it® Student CashBack is one of the best credit cards for 18-year-olds in the US.
Citi® Double Cash Card
Citi® Double Cash Card credit card offers so much to its users. Rated one of the best, this issuer can afford its cardholders solid fraud, identity theft, security protection, and card replacement within 24hours. It’s a budget-friendly credit card fitting for 18-year-olds. What’s more, they offer 2% cash-back with a 13.99% APR.
Capital One Quicksilver Cash Rewards
Capital One Quicksilver Cash Rewards credit card is perfect for teens and students. It offers 1.5% cash-back on every purchase made with no transaction or annual fee within or outside the US. To get it, your kids don’t need outstanding credit. In addition, it offers between 15.49% to 25.49% APR.
Although there are many other credit cards for 18-year-olds, the three mentioned above are the best. You only need to follow up on our suggestions with personal research on whichever you decide to pick.
How Can You Successfully Manage Your Credit Card?
Doing this is pretty easy, provided you don’t spend beyond the credit limit. This doesn’t mean you shouldn’t use the card. Activity on the card is the way to build your credit scores, but it has to be moderate. You can achieve moderation and prudence if you use the card for small purchases like essentials.
However, if you intend to use your credit card regularly, be careful your charges don’t exceed $150. This way, you can keep track of the debt-to-credit ratio.
Building a good credit history over the years is proof lenders require to lend to you. While that can’t be gotten overnight, getting a credit card as early as 18 years would put you in a good position anytime you decide to borrow. It’s the first step to setting yourself or your kid up for success in the future.