It is not uncommon today for people to ask the question “what are the best credit cards for young adults?”
Parents often wonder about the best credit cards for young adults when their children go off to college, for they may have heard that this is the best time for their children to start building their credit history.
Credit cards for young adults are often sought by the 20-somethings who are just graduating with their undergraduate or graduate degrees, as they see theses credit cards as a means of helping them get started out in their adult working lives and, yes, they want to build up their credit so that they can qualify for higher credit card limits, more cards, and other types of loans at good rates in the future.
Credit Cards For Young Adults
Credit cards for young adults are not what the “urban legends” often make them out to be. Even the best credit cards for young adults should not be acquired until the person in question has a full time income.
Credit cards for young adults often get the 20-somethings in deep trouble, owing thousands upon thousands of dollars without the means to pay down the debt, leading to yet more debt as late fees and interest on the outstanding balances accrue.
This harms one’s credit, rather than helping it. Furthermore, it could lead to being sued for the balance due, and even having wages garnished.
Credit cards for young adults are only for responsible young adults who have acquired full time incomes even if they are making low hourly wages. These people can make payments against the balance, at the very least.
Best Credit Cards For Young Adults
Having said all this, I need a credit card as they actually provide security and financial flexibility to responsible adults.
The best credit cards for young adults to acquire are dependent upon each young adult’s current credit situation. Basically speaking, they may have good credit, they may have fair to poor credit, or they may have no credit.
There are top selections of credit cards for young adults that target each one of these basic credit-carrying categories.
Among the very best credit cards for young adults who already have some established and good credit is the Discover More card. This credit card is a rarity: it offers both low APR and great rewards. Usually, you have to take a trade-off on credit cards when it comes to these qualities-great rewards for a high APR, or low APR with few rewards.
Let’s look at the features of the Discover More credit card:
- 0% intro APR on balance transfers for a full 18 months, then the regular APR kicks in
- No Annual Fee
- 0% intro APR on purchases for a full six months, then the regular APR kicks in
- Typically, special (and great) holiday season shopping rewards and cash back programs
- 5% Cashback Bonus on purchases in some ever-shifting categories including travel, gasoline, groceries, restaurants, home improvement
- Up to 1% unlimited Cashback Bonus on regular purchases
Now the two most popular types of credit card in the world are of course Visa and Master Card. Again, for young adults with some established and good credit, one of the very best credit cards for young adults is the Chase Freedom Master Card. However, this card is not good for young adults who think that they’ll likely be carrying a balance from month to month – as Master Card demands payment in full (principal plus interest) within 30 days.
CBS MoneyWatch named the Chase Freedom Master Card the “Best Overall Card” of 2011
- No Annual Fee
- Earn $100 Bonus Cash Back if you make $500 in purchases in your first three months of owning the card
- Cash back rewards never expire.
- 0% Intro APR for 12 months on balance transfers
- 0% Intro APR for first six months on purchases
- 5% Cash Back on up to $1500 spent in bonus categories each quarter. The 5% categories change every three months and include things like like gasoline, groceries, dining out, and even home improvement.
- Unlimited 1% Cash Back on all other purchases without limits on what you can earn, with an additional 10% Cash Back when you shop on the Internet at select merchants through with the card
Finally, we have to look at the best credit cards for young adults who either have not established any credit history or who already have “dings” against them on their credit. These are the Orchard Bank cards. If you need a credit card to establish your credit history or improve your credit rating, the Orchard Bank card is for you. You cannot have “deplorable” credit to get one of these cards-if that’s your case, you’ll just have to get a pre-paid credit card (otherwise known as a “debit card”), then you should check out our review on best prepaid credit card, get yourself one and start paying down your outstanding bills to get your credit score improved.
But if your credit is so-so or not yet established, check out Orchard Bank cards.
- Accepted at just about every location and merchant that would accept a Visa or Master Card.
- Manage your account online with ease.
- E-mail and text messages to remind you of your upcoming payment due date.
- Excellent customer service via telephone.
So, these are very good selections as “best credit cards for young adults”. Depending on your credit situation and what you’re looking for in a credit card, check these out.
