Turning 18 can be an exciting time, full of new adventures. Many will leave home for the first time, vote for the first time, and buy their first Powerball ticket in the fruitless hope of becoming a millionaire.
At one time, another rite of passage for newly-minted 18-year-olds was to signup for their first credit card, choosing from among the bounty of applications inevitably hitting their mailbox — until the CARD Act of 2009.
These days, the CARD Act (Credit Card Accountability, Responsibility And Disclosure Act) requires consumers under the age of 21 to have a cosigner or a steady income to obtain a credit card. In one fell swoop, the CARD Act limited the options for 18-year-olds to obtain credit from the entire consumer marketplace down to a handful of issuers and cards.
Though somewhat limited, the best credit cards for 18 year olds are still out there to help you start building credit.
Students | No/Limited Credit | Prepaid | Secured Cards
Best Student Cards For 18-Year-Olds
Those under the age of 21 who wish to obtain a credit card under their own name will need to have a regular income substantial enough to repay any credit card debt. At the same time, that income doesn’t necessarily need to be from a job, which can open up some doors — particularly for students.
Why? Because you can typically report extra money from scholarships, grants, and fellowships as income on a credit card application. What’s more, you can also find a range of credit cards designed specifically for students, with flexible credit requirements and room for those who have yet to start establishing a credit history.
You can start exploring some of the best student credit card options available below:
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% - 27.24% applies.
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
0% Intro APR for 6 months
|
10.99% Intro APR for 6 months
|
18.24% - 27.24% Variable APR
|
$0
|
Fair/New to Credit
|
- Earn unlimited 1.5% cash back on every purchase, every day
- Early Spend Bonus: Earn $50 when you spend $100 in the first three months
- Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Lock your card in the Capital One Mobile app if it's misplaced, lost or stolen
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
19.99% - 29.99% (Variable)
|
$0
|
Average, Fair, Limited
|
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% - 27.24% applies.
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
0% Intro APR for 6 months
|
10.99% Intro APR for 6 months
|
18.24% - 27.24% Variable APR
|
$0
|
Fair/New to Credit
|
- Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), with 1% on all other purchases
- Early Spend Bonus: Earn $50 when you spend $100 in the first three months
- Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Lock your card in the Capital One Mobile app if it's misplaced, lost or stolen
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
19.99% - 29.99% (Variable)
|
$0
|
Average, Fair, Limited
|
+See More Student Credit Cards
One important thing of which you should be aware of is that certain types of school-related monies should not be reported as income on a credit card application, the most prominent of which is student loan funds.
Basically, since your student loan is really a type of debt rather than actual income, it’s a bad idea to claim it as such. In other words, you’ll need to pay back your loans, meaning they’re not a very reliable option for repaying other types of debt.
Moreover, if you need to falsely report student loan funds as income to qualify for a student card, you probably don’t need to take on any other potential sources of debt in the first place — particularly not ones with the high interest rates that come with revolving credit lines.
Best Cards For 18-Year-Olds With No Credit
The main issue with not having an established credit history is that issuers can’t get an idea of how much financial risk you present. Think of it like this: if you were to lend someone money, wouldn’t you want to know they can — and, more importantly, will — pay you back? That’s where your credit history comes into play. Enter: the starter credit card.
Offered by many major issuers (and not-so-major ones, too), starter cards are like the base model subcompact car of bank credit card products. In other words, they’ll get you where you need to be, but they’re not likely to have a lot of creature comforts, like purchase rewards on eligible purchases or lucrative signup bonuses. Our favorite cards for those with no/limited credit include a number of annual-fee-free options.
- No annual or hidden fees. See if you're approved in seconds
- Be automatically considered for a higher credit line in as little as 6 months
- Help build your credit through responsible use of a card like this
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One's mobile app
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
30.49% (Variable)
|
$0
|
Average, Fair, Limited
|
- Earn unlimited 1.5% cash back on every purchase, every day
- Early Spend Bonus: Earn $50 when you spend $100 in the first three months
- Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Lock your card in the Capital One Mobile app if it's misplaced, lost or stolen
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
19.99% - 29.99% (Variable)
|
$0
|
Average, Fair, Limited
|
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% - 27.24% applies.
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
0% Intro APR for 6 months
|
10.99% Intro APR for 6 months
|
18.24% - 27.24% Variable APR
|
$0
|
Fair/New to Credit
|
+See More Cards for No/Limited Credit
After you open your first credit account, your creditor — the credit card issuer, in this case — will start reporting your payment behavior to the three major credit bureaus (Equifax, Experian, and TransUnion). This will establish your consumer credit profile, which credit scoring agencies will use to calculate your credit scores.
FICO is the most commonly used credit scoring agency, and the FICO Score 8 the most frequently used credit scoring model. VantageScore 3.0 comes in a close second.
Since most major credit card issuers now offer free FICO tracking as a benefit to cardholders, you can likely keep track of your changing credit score through your online banking/bill paying portal. Don’t be alarmed or dismayed if it takes some time for you to get a credit score, however, as it takes up to six months of credit history for FICO to have the means to calculate your credit score.
Best Prepaid Cards For 18-Year-Olds
While the CARD Act seeks to protect young people from taking on credit card debt they cannot repay, it can be an inconvenience for those who are unable to obtain a credit card as a result, particularly in the modern world of digital payments. If you are between the ages of 18 and 20 and cannot meet the requirements to obtain a credit card under the CARD Act, your best solution may be to get a prepaid credit card.
When adorned with a credit card network logo — e.g., Visa, Mastercard, Discover, or Amex — prepaid cards can be used just like credit cards to conveniently make purchases anywhere the network is accepted. The main difference is that prepaid cards need to be loaded with funds to be used, sort of like a gift card or debit card.
Unlike gift cards, prepaid cards, including our expert-rated options below, can receive direct deposits.
- Your Chime Account comes with a Visa debit card, no monthly fees or maintenance fees.
- Avoid out-of-network ATM fees and access to 60,000+ fee-free ATMs¹ — more than the top 3 national banks combined!
- Direct deposits arrive up to 2 days early.²
- Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC.
- ¹Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
- ²Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
|
Annual Fee
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Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
N/A
|
$0
|
Not applicable
|
- Brink’s knows Security! 24/7 access to a suite of security benefits to help keep your account armored.
- Get access to over 100,000 Brink’s Money ATMs.
- Get paid faster than a paper check with direct deposit.
- Add funds to your Brink’s Armored Account and use Brinks Armored debit card anywhere Debit Mastercard is accepted.
- Account opening is subject to registration and ID verification. Terms & fees Apply. Deposit Account is established by Pathward®, N.A., Member FDIC.
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
N/A
|
Variable Monthly Fees
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Not applicable
|
11. GO2bank
- Overdraft protection up to $200 with opt-in and eligible direct deposit*
- No monthly fees with eligible direct deposit, otherwise $5 per month
- Earn up to 7% cash back when you buy eGift Cards in the app
- Get your pay up to 2 days early - Get your government benefits up to 4 days early.*
- High-yield savings account, 4.50% APY paid quarterly on savings up to $5,000.*
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
N/A
|
N/A
|
All Credit Types Considered
|
Although prepaid cards can be used the same way as credit cards for purchases, prepaid cards have one key difference: They cannot help you build credit like a credit card can.
Credit card purchases borrow money from the issuing bank to pay for purchases, then you pay off that debt when the issuer bills you. In contrast, prepaid cards use the money you load onto the card to pay for purchases directly and must be reloaded once that money is spent.
And because prepaid cards are not technically credit cards, they are exempt from the CARD Act and do not require a credit check to obtain. Prepaid cards are not tied to your credit in any way and they won’t report your payment behavior to the credit bureaus, meaning you can’t use prepaid cards to establish or build credit.
Best Secured Cards For 18-Year-Olds
Far and away the easiest credit card to obtain — and, arguably, one of the safest — is a secured credit card. Made for credit builders (or rebuilders for those with bad credit scores), secured credit cards require an initial deposit to open the account. That deposit acts as security for the account, and the size of your deposit will determine the size of your credit line.
Since a secured card is less risky for the issuer, they tend to have lower interest rates and fees than unsecured cards for building credit. Plus, your secured card deposit is fully refundable when you close your account in good standing — those pesky unsecured card fees are gone for good.
Many of our top-rated secured cards have no annual fee at all:
- No credit check to apply
- Adjustable credit limit based on what you transfer from your Chime Checking account to the secured account
- No interest* or annual fees
- Chime Checking Account and qualifying direct deposit required to apply
- The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
- *Out-of-network ATM withdrawal fees may apply. See here for details.
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
N/A
|
$0
|
None
|
- No credit check to apply and find out instantly if you are approved
- OpenSky gives everyone an opportunity to improve their credit with an 85% average approval rate for the past 5 years
- Get considered for a credit line increase after 6 months, with no additional deposit required
- You could be eligible for the OpenSky Gold Unsecured Card after as few as 6 months
- Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card
- View your FICO® Score through your OpenSky account, an easy way to stay on top of your credit
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
22.64% (variable)
|
$35
|
Poor
|
- No credit score required to apply.
- No Annual Fee, earn cash back, and build your credit history
- Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
|
Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
10.99% Intro APR for 6 months
|
28.24% Variable APR
|
$0
|
New/Rebuilding
|
+See More Secured Credit Cards
Another reason to go with a low- or no-fee secured credit card over a pricey unsecured credit card is that some secured cards can be upgraded down the line. For example, if you have a Discover it® Secured Credit Card, Discover will periodically check up on your credit progress to see if you can qualify for an unsecured card.
If your credit report passes muster, you’ll be automatically upgraded to an unsecured card, and your deposit will be refunded in full. As an added bonus, the switch is often seen as an upgrade, not a new credit product, which means you’ll hang onto the account history you’ve built with your secured card. (Your average account age is factored into your credit score, so maintaining old accounts can be important.)
Become an Authorized User on Someone Else’s Account
If you can’t qualify for your own credit card but you want to begin building credit, one way to do that is to become an authorized user on someone else’s account. You’ll receive your own card with your name on it, but you won’t be the primary borrower. That means you aren’t legally responsible for repaying the debt.
Becoming an authorized user means the account will be reported to each major credit bureau for inclusion on your credit reports. This will only help, though, if the account is in good standing and managed responsibly.
Ideally, the account will have been opened for a few years, has a spotless record of on-time payments, and has a balance below 30% of its available credit limit.
You should see the account appear on your credit reports after it is reported to the bureaus, which will generate a credit score.
Start Off On the Right Credit Foot
As the young cub in the den, it can be challenging to measure your progress against that of the more experienced people around you. But the thing to realize here is that you have time working on your side, and, when used wisely, time can be a powerful weapon.
To make the most of that time — and your finances — you should start planning for the future as early as you can. This not only means starting to build your retirement savings with your first paycheck, but also responsibly establishing your consumer credit profile as soon as (reasonably) possible.
Ideally, having a parent or other responsible cardholder add you to their accounts as an authorized user can jumpstart your credit journey. Even without this boost, however, you can reasonably build credit in a few short months.
So, once you’ve opened your first credit account, you should focus on building a positive credit history. The most important thing to do is to be sure to pay your bills on time and as agreed each month. Late payments can have a devastating effect on your credit, particularly newly established credit.
You should also be careful to build credit slowly; opening four credit cards all at once won’t build your credit faster, and it could have the opposite effect if you can’t stay on top of the payments. Plus, every credit card application will result in a hard credit inquiry, and excessive inquiries can do some serious damage to a fledgling credit profile (and not a little damage to an established one, for that matter).
Final Notes on “5 Best Credit Cards For 18-Year-Olds (Sep. 2023)“
We hope this guide “5 Best Credit Cards For 18-Year-Olds (Sep. 2023)” has been a helpful resource for you in learning more about your financial options. In this guide, we’ve covered:
- Best Student Cards For 18-Year-Olds
- Best Cards For 18-Year-Olds With No Credit
- Best Prepaid Cards For 18-Year-Olds
- Best Secured Cards For 18-Year-Olds
- Become an Authorized User on Someone Else’s Account
- Start Off On the Right Credit Foot
To learn more about options not mentioned here, be sure to check out other popular reviews from our team of experts:
- Air miles credit cards
- Balance transfer credit cards
- Cash back credit cards
- Prepaid debit cards
- Secured credit cards
We also encourage you to check back at this URL regularly, as we update the offers listed in “5 Best Credit Cards For 18-Year-Olds (Sep. 2023)” and other guides on a daily basis.
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Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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