The 4 Best Credit Cards for Young Adults Who Are Just Starting Out

Getting a credit card is a rite of passage for people who are just beginning their independent lives. It can be difficult to find the right credit card when you've never had this one before. In this article, we guide you towards finding the best credit cards for young adults. We will also help you understand how to get your first credit card, and the best ways to use it.

The best credit card for you depends largely on your situation. For instance. a student living in a dorm will qualify for different credit cards from a young adult with an apartment and a full-time job. Someone who has already built up some credit will qualify for different cards from a person with bad credit or no credit. Here are a few of the best credit cards for young adults in different walks of life.

For Students

Discover

If you are enrolled in a college or university at least part time, and have a university-issued email address that ends with ".edu," you may qualify for the Discover It Student Chrome card. With this card, you'll get 2% cash back on the first $1,000 you spend at restaurants and gas stations each quarter, plus 1% cash back for all other purchases. You won't have to deal with any annual fees, and you'll have a 0% introductory APR on new purchases for the first six months. 

This can help if you need to purchase text books and other school supplies, or decorations and housewares for your dorm. Something extra that makes this one of the best credit cards for young adults who are in school is that, if you end the school year with a 3.0 GPA or higher, they'll give you a $20 credit on your statement.

Bank of America

If you're a student who is going to college away from home, you might opt for the Bank of America^® Travel Rewards Credit Card for Students instead. For every dollar you spend using this credit card, you'll earn 1.5 points. You can then cash in the points for flights, hotels, vacation packages, cruises, rental cars, or baggage fees. That makes this one of the best credit cards for young adults who want to go home for holidays and vacations, or perhaps do some traveling over spring break.

For Young Adults with Bad Credit

Let's say you made some poor choices with your credit when you were younger and your credit has already been crushed. Now you're a little older, more capable of making good choices, and you're ready to start building up your credit. One way to do this is with a secured credit card. You start off by paying a security deposit. This is different from a debit card, in which you use a card to pay with money that you already have in your bank account. 

You will have a credit card bill each month, and the security deposit will not count towards the bill. It just protects the credit card company in case you don't pay your bill. Your credit limit will be the same as the amount you paid for your security deposit. One of the best credit cards for young adults with poor credit is the Discover It Secured Card. 

Like other secured credit cards, you pay a security deposit. You will then get a bill each month which you'll need to pay, just like any other credit card. Unlike most other secured cards, Discover will give you 2% cash back at restaurants and gas stations and 1% cash back on all other purchases. If you pay your minimum balance for eight months, you may qualify for an unsecured credit card with Discover.

For Young Adults with Some Credit

If you have built up some credit already, even if your credit score is not quite stellar, you may qualify for the Capital One® Platinum Credit Card. While it doesn't have a lot of perks, such as cash back, it can be considered a first step up the ladder from a secured credit card. It has no annual fee, but it does have a higher than usual APR. 

That means that if you can't pay your full balance, you'll be paying the company a lot of interest each month. On the plus side, if you do pay your bill regularly, you will increase your credit limit and possibly qualify for a card with a better APR. You'll also get some regular Capital One benefits, such as an extended warranty on your regular purchases, roadside assistance, rental car insurance coverage, and travel assistance.

For Young Adults with Good or Great Credit

Discover

Some young adults have already managed to build up a great credit score. If that describes you, then you'll probably have a multitude of credit card choices available to you. One of the best credit cards for young adults with great credit is the Discover it® - Cash Back card. You will get 5% cash back in two categories that will change every quarter. The categories might be restaurants, gas stations, grocery stores, etc. On all other purchases, you'll get 1% cash back. 

For your first year, Discover will match the cash back you earned so that you'll end up with double the cash. This card also has no annual fees, over limit fees, or foreign transaction fees. As an added bonus, if you make a mistake and miss a payment or pay late, Discover will waive the late payment fee the first time.

Capital One

Another option for those with good or great credit is the Capital One® Venture® Rewards card. This may be the best credit card for young adults who would prefer travel rewards over cash rewards. Instead of accumulating cash, you get travel miles. Spend $3,000 on your card within the first three months of opening the account and you'll get 50,000 bonus miles. For every dollar you spend, you'll get two miles.

Use your card on Hotels.com and you'll get ten miles per dollar. Then, when you're ready to travel, simply put the travel expenses on your credit card and use the miles when it's time to pay your bill. The miles are good for air fare, hotel reservations, cruise reservations, train tickets, taxi, bus or limo fare, travel agent fees, and time shares.

Keep in mind that you don't even have to literally be traveling out of town in order to use your miles. You can use them for a taxi fare to take you on a night out in your own city or enjoy a luxurious hotel stay only a few miles away from your home. You'll also get some perks such as rental car insurance, travel insurance, and purchase protection. You'll have no annual fee the first year, and no foreign transaction fees.

If you are a young adult who has never had a credit card before, you may find yourself with no credit at all. Having no credit can be no better than having bad credit, because credit card companies have no way of knowing what kind of credit user you'd be. To approve you for a credit card, they want to see that you have a history of making payments on time and using credit responsibly. There are a few ways you can work on building up your credit so that you can qualify for a credit card in the future. It may take a while, so you'll need to be patient.

Whether you have managed to qualify on your own for one of the best credit cards for young adults or your family members are vouching for you as a co-signer or authorized user, it is now important to use your credit card responsibly. Here are some tips to help you be a successful credit card user.

Getting your first credit card is an exciting moment for a young adult. Remember to do your research to find the best credit card for young adults in your situation. When you do get a credit card, use it responsibly. This way, you'll be able to enjoy all of the benefits and conveniences that having a credit card can give you.