The Ultimate Guide to Credit Cards
Monday, July 6, 2020

12 Best Credit Cards for Young Adults (2020)

12 Best Credit Cards for Young Adults (2020)

credit card advice

Brittney Mayer
By: Brittney Mayer
Updated: June 10, 2020
Advertiser Disclosure

Acting as a universal key to credit locks, a good credit score can make your financial life a whole lot easier. As a young adult, however, the options for establishing your credit may be limited by your age and inexperience. Keep reading for information on the best credit cards for young adults.

No one under the age of 18 can be considered for credit on their own. Furthermore, the CARD Act of 2009 prevents young people under the age of 21 from obtaining a personal credit card without proof of income or an adult co-signer with good credit. Even when you do meet the qualifications, your lack of experience may be enough to keep you from obtaining the credit card of your dreams.

But that doesn’t mean you’ll always fall short of the requirements for that killer cash back card; a wide range of issuers have credit card options specifically designed for young people to start building credit. Let’s take a look at some of these credit cards, including cards specifically created with students in mind, cards for fair credit, cards for limited or no credit, and prepaid cards.

Students | Fair Credit | No/Limited Credit | Prepaid

Best “Student” Cards for Young Adults

Whether you’re heading to the local community college or the Ivy League, being a student is all about learning. And one of the most important things you can — and should — learn before heading into the real world is how to manage your finances, including your credit. And one of the easiest ways to get started in the world of credit is to dive right in.

Credit cards designed specifically for students are a great way to get your credit feet wet, as they tend to be easier to obtain without an established credit history. Our favorite student cards welcome first-time cardholders, charge no annual fees, and even include solid cash back rewards on every purchase made with the card.

+See More Student Cards

Another key reason for young adults to obtain a credit card in college is the significant jump-start on building a credit history. The length of your credit history is 15% of your FICO score, and the calculation takes into account both the age of your oldest account as well as the average age of all of your credit accounts.

Just remember to use your student credit card responsibly. There are more than a few stories of college students who viewed their credit cards as free money, and by the time they graduated, they entered the workforce with a significant amount of credit card debt on their record.

Best “Fair Credit” Cards for Young Adults

When calculating your credit score, FICO takes a number of factors into account — but none of those factors is your actual age. So, for some young adults, simply being young doesn’t mean their credit is unestablished, especially for those who enter the working world at 18. Instead of lacking credit, these young people are building it, and will typically have fair credit as they get started.

With fair credit, consumers won’t qualify for the most exclusive cards, but they be stuck with bad credit or subprime cards either. Our top-rated fair-credit credit cards will include options for cash back or no annual fee, and all will report to the three credit bureaus to ensure your credit report keeps growing.

Surge Mastercard® Review

at Celtic Bank'ssecure website

FAIR CREDIT RATING

★★★★★
4.7

OVERALL RATING

4.1/5.0
  • All credit types welcome to apply!
  • Free access to your Vantage 3.0 score From TransUnion* (When you sign up for e-statements)
  • Monthly reporting to the three major credit bureaus
  • See if you’re Pre-Qualified without impacting your credit score
  • Fast and easy application process; results in seconds
  • Free online account access 24/7
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
See website for Details
N/A
25.90% - 29.99%
See website for Details
Bad, Poor Credit
Credit One Bank® Platinum Visa® Review

at Credit One'ssecure website

FAIR CREDIT RATING

★★★★★
4.7

OVERALL RATING

3.8/5.0
  • Enjoy peace of mind with $0 Fraud Liability
  • Qualified applicants will receive a card with a competitive APR and no annual fee along with 1% cash back rewards on all purchases, terms apply
  • View updates to your Experian credit score with free online access, terms apply
  • Make paying your bill easier with the ability to choose your payment due date, terms apply
  • Access your account on-the-go with the Credit One Bank mobile app
  • Never miss an account update with customizable text and email alerts
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
17.99% to 23.99% Variable
$0 - $99
Fair
Credit One Bank® Visa® Credit Card with Cash Back Rewards Review

at Credit One'ssecure website

FAIR CREDIT RATING

★★★★★
4.5

OVERALL RATING

3.8/5.0
  • Qualified applicants will receive exclusive benefits such as 1% cash back rewards on all purchases, no annual fee, and a competitive APR. Terms apply.
  • Manage your account quickly and easily from your mobile device by using the Credit One Bank mobile app.
  • Use your Apple device to make purchases securely through Apple Pay®. Apple Pay is a registered trademark of Apple, Inc.
  • Your account is safeguarded against unauthorized charges with Zero Fraud Liability at no additional charge.
  • Take advantage of free online access to your Experian credit score and credit report summary so you can track the key factors impacting your credit health. Terms apply.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
17.99% to 23.99% Variable
$0 - $99
Fair

+See More Fair Credit Cards

The most important thing to remember when building your credit is that making late payments — or, worse, missing payments entirely — can really sink your score. If you use your credit card responsibly by maintaining low balances and paying your bill before the due date each statement cycle, however, you should see your credit jump from “fair” to “good” in next to no time.

Best “No/Limited Credit” Cards for Young Adults

Although some industries may hold to the adage that “no news is good news,” the credit industry isn’t quite so laissez-faire when it comes to applicants without established credit. Without a proper credit history to establish your credit risk, many issuers will simply assume a certain level of risk.

And while this “assumed” risk is typically less than the risk represented by bad-credit applicants, it isn’t going to net you the pick of the pack, either. That said, our top selections for no or limited credit still include options for cash back, no annual fee, and credit score tracking to help you stay on the right credit path.

Surge Mastercard® Review

at Celtic Bank'ssecure website

NO/LIMITED CREDIT RATING

★★★★★
4.7

OVERALL RATING

4.1/5.0
  • All credit types welcome to apply!
  • Free access to your Vantage 3.0 score From TransUnion* (When you sign up for e-statements)
  • Monthly reporting to the three major credit bureaus
  • See if you’re Pre-Qualified without impacting your credit score
  • Fast and easy application process; results in seconds
  • Free online account access 24/7
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
See website for Details
N/A
25.90% - 29.99%
See website for Details
Bad, Poor Credit
Indigo® Unsecured Mastercard® - Prior Bankruptcy is Okay Review

at the issuer'ssecure website

NO/LIMITED CREDIT RATING

★★★★★
4.7

OVERALL RATING

4.0/5.0
  • Pre-qualifying today will not affect your credit score
  • Less than perfect credit histories can qualify, even with prior bankruptcy!
  • Mobile friendly online access from anywhere
  • Fraud protection for stolen or lost cards
  • Account history is reported to the three major credit bureaus in the U.S.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
24.9%
$0 - $99
Fair/Good
Milestone® Mastercard® - Less Than Perfect Credit Considered Review

at the issuer'ssecure website

NO/LIMITED CREDIT RATING

★★★★★
4.5

OVERALL RATING

3.9/5.0
  • Prequalify for a card today and it will not impact your credit score
  • Less than perfect credit is okay
  • Mobile account access at any time
  • Protection from fraud if your card is stolen
  • Account history is reported to the three major credit bureaus in the U.S.
  • *Dependent on credit worthiness
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
24.9%
$35 - $99
Bad, Poor Credit

+See More No/Limited Credit Cards

Without other items on your credit report to buffer your score, your first credit card will likely set the tone for your early credit score. This means you should be careful to maintain a low balance and to make your payments as agreed. Setting up automatic payments can be a great way to ensure you never miss a credit card payment.

Best “Prepaid” Cards for Young Adults

Of all the reasons to obtain a credit card as a young adult, perhaps the most important is to start learning the right way to handle credit — and finances in general. For those under the age of 21, one of the best methods for learning how to handle credit won’t actually impact their credit at all: a prepaid card.

While still usable to make many of the in-store and online purchases for which you’d want to use a credit card, prepaid cards need to be pre-loaded with funds instead of being paid after the fact. This means young adults can learn important budgeting skills, including how to prevent impulse swiping, without negative credit repercussions. Our top-rated picks are backed by Visa and can be used anywhere Visa is accepted.

NetSpend® Visa® Prepaid Card Review

at Netspend'ssecure website

PREPAID RATING

★★★★★
4.8

OVERALL RATING

3.5/5.0
  • With Netspend Direct Deposit, you can get paid faster than a paper check.
  • No late fees or interest charges because this is not a credit card.
  • No Overdraft Fees on purchases using your card.
  • Use the NetSpend Mobile App to manage your account on the go and get text message or email alerts (Message & data rates may apply).
  • Card issued by MetaBank®, Member FDIC. Card may be used everywhere Visa Debit cards are accepted. Click "Get My Card" for full details.
  • See additional NetSpend® Prepaid Visa® details.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
N/A
Variable Monthly Fee
Not applicable
NetSpend® Visa® Prepaid Card Review

at Netspend'ssecure website

PREPAID RATING

★★★★★
4.7

OVERALL RATING

3.6/5.0
  • With Netspend Direct Deposit, you can get paid faster than a paper check.
  • No late fees or interest charges because this is not a credit card.
  • No Overdraft Fees on purchases using your card.
  • Use the NetSpend Mobile App to manage your account on the go and get text message or email alerts (Message & data rates may apply).
  • Card issued by MetaBank®, Member FDIC. Card may be used everywhere Visa Debit cards are accepted. Click "Get My Card " for full details.
  • See additional NetSpend® Prepaid Visa® details.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
N/A
Up-to $9.95 monthly
Not applicable
PayPal Prepaid Mastercard® Review

at Netspend'ssecure website

PREPAID RATING

★★★★
4.4

OVERALL RATING

2.5/5.0
  • Move money from your PayPal account to fund your prepaid card account.
  • Earn cash back and personalized offers, just for using your card.
  • With Direct Deposit, you can get paid faster than a paper check.
  • Card issued by The Bancorp Bank, Member FDIC. Card may be used everywhere Debit Mastercard is accepted.
  • Click PayPal Prepaid Mastercard® for additional features & program details, and to request a Card.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
N/A
Variable Monthly Fee
Not applicable

+See More Prepaid Cards

The things to look for when comparing prepaid cards include any applicable usage fees, such as monthly account fees or reloading fees, as well as the available methods for reloading your card. Some options may also provide cash back or other purchase rewards programs, so be sure to shop around.

Your First Card Can Help Build Your Credit Future

The key to everything from a car loan to a home mortgage, your credit is an important part of your personal finances. And cultivating your credit early is a good way to help ensure a solid credit foundation for the future.

Of course, whether picking up your first card as you head off to college or looking for your first card as you head off to the real world, obtaining a credit card as a young adult can be a challenge. In the end, it simply comes down to doing the right research and knowing your options to get started on your credit journey.

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