What Are the Best Credit Cards for Young Adults? (2024)

FAQs

What is the best credit card in your 20s? ›

The minimum payment mindset

Here's how most people get trapped in credit card debt: You use your card for a purchase you can't afford or want to defer payment, and then you make only the minimum payment that month.

We chose the Discover it^® Secured Credit Card as the best teen card because it's easy to obtain if you're new to building credit. It has a $0 annual fee and earns cash back rewards on every purchase, which means you'll save money as you build credit as a teen.

Credit cards can offer several advantages to improve a young person's financial health. They can provide a convenient way to make purchases as well as a way to build credit. Many credit cards are designed for new borrowers with little to no credit history, like young people.

What's a good credit score for a 20-year-old? Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 26 is 680, a score between 680 and 690 (the average for people aged 27 to 42) could be considered “good.”

There isn't a set credit score that each person starts out with. Instead, if you don't have any credit history, you likely don't have a score at all.

If you're between ages 18 and 21, you could apply for a secured credit card or student credit card — or become an authorized user on someone else's account. Using your first credit card responsibly can help build your credit history and establish a good credit score.

All told, the Chase Freedom Unlimited® is still a superb choice for anyone seeking a robust all-purpose card for everyday spending. Our ratings take into account the card's rewards, fees, rates along with the card's category.

Rewards credit cards are best for everyday purchases, earning you cash back or points on your spending. Travel credit cards are a solid fit for frequent travelers and include co-branded airline and hotel cards. For those new to credit, a secured or student credit card can be a useful tool to build your credit score.

Is Capital One card good? ›

Its cards typically have low or no annual fees, no foreign transaction fees and rewards that can be redeemed with no minimum. With cards for business travelers, cash back rewards, students and limited credit, Capital One has an easy-to-use credit card for practically every type of consumer.

You can be an authorized user as young as 13, but you have to be 18 to sign up for your first credit card on your own. When you're ready for this step, you'll need to be prepared to show some documentation.

You should get a credit card account as soon as you turn 18 years old – the minimum age to legally open an account. However, you don't need to wait until you're 18 to start building credit. Ideally, you should get a credit card as an authorized user well before you can qualify for your own account.

At 20 years old, you will likely have a lower score due to the shorter length of credit history and income. The average FICO credit score for this age range is around 679, which is considered "good" or "very good" but is relatively lower than someone older with more credit history.

If you're a young adult and don't yet have a loan or credit card in your name, you likely have little-to-no credit history. Getting a card in your early 20s can help you establish a credit history to begin to build your credit and work to raise your credit score.