Did you know you can add your children as authorized users to credit cards you already have to help them establish and build their own credit?
This is a great way to start the discussion of financial responsibility and help prepare your children to open their own independent card accounts.
Of course, every family is different, but if you’re talking to your kids about finances as they approach adulthood and they ask you which credit cards are best for beginners, to start with So this is a great place.
Related: How to Build Credit
Best credit cards for 18 year olds
Information for the Discover It Cash Back Card has been independently collected by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Comparing the best cards for 18 year olds
| card | Best for | Annual fee | Rewards rate |
|---|---|---|---|
| Capital One Saver Student Cash Rewards Credit Card | General bonus categories | $0 | Earn:
|
| Capital One Saver Cash Rewards Credit Card | Emerging Foods | $0 | Earn Unlimited:
|
| Chase Freedom Unlimited | Flat-rate cash back | $0 | Earn:
|
| OpenSky Secure Visa Credit Card | Credit building | $35 | Earn:
|
| Find that cash back | Revolving cash-back categories | $0 | Earn:
|
Note that you won’t see any of TPG’s top picks like the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®.
In fact, most of the cards on this list don’t have the big welcome offers or stellar benefits that more premium cards offer. That’s because it’s a marathon, not a sprint, so it will take time to build your child’s credit to the point where they qualify for a card with better rewards that usually require excellent credit scores and a long credit history.
Because the average age of accounts is so important to your overall credit score, you’ll want to help your child choose at least one or two options that are no-annual-fee cards that they can keep for the long term. Having an old card or two will help their credit score down the road.
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Related: Best First Credit Cards
A closer look at the best cards for 18-year-olds
Capital One Saver Student Cash Rewards Credit Card
Welcome Bonus: Get a one-time cash bonus of $50 after spending $100 on purchases within three months of account opening.
Rates of Rewards: 8% cash back on Capital One Entertainment purchases, 5% cash back on hotels and car rentals booked through Capital One Travel (conditions apply), 3% cash back on grocery stores (excluding superstores like Walmart® and Target®), dining . , entertainment and select streaming services and 1% cash back on all other purchases.
Unique Advantage: This card is only for students at a four-year university, community college, or other higher education institution. After graduation, you upgrade to Capital One Saver Cash Rewards but still gets to keep the same rewards and benefits.
Capital One Saver Cash Rewards Credit Card
Welcome Bonus: Get $250 cash back after spending $500 in the first three months of account opening.
Rates of Rewards: This card earns the same rates as the Capital One Saver Student Cash Rewards Card — 8% cash back on Capital One entertainment purchases, 5% cash back on hotels and rental cars booked through Capital One Travel (conditions apply), 3% back on groceries On top of earning 1% cash back on all other purchases in stores (excluding superstores like Walmart® and Target®), dining, entertainment and select streaming services.
Unique Advantage: The Capital One Saver Cash Rewards Card earns a healthier welcome bonus than its student-friendly counterpart while still offering solid cash back rates across all the same categories. That way, students who have graduated and grown to love their Saver Student Cash Rewards card can continue to earn rewards the same way after accepting their diploma.
Chase Freedom Unlimited
Welcome Bonus: Get an additional 1.5% back on all purchases up to $20,000 in the first year.
Rates of Rewards: Earn 5% cash back on travel purchased through Chase Travel, 3% cash back on restaurant dining (including takeout and eligible delivery services) and a solid 1.5% cash back on drugstore purchases and all other purchases.
Unique Advantage: The Chase Freedom Unlimited is a strong option for beginners, as you can potentially turn your cash-back rewards into valuable Chase Ultimate Rewards points if you apply for a points-earning card from Chase in the future, such as the Chase Sapphire Preferred.
Find that cash back
Welcome Bonus: None, but Discover will match all cashback earned in your first year.
Rates of Rewards: Earn 5% cash back on purchases in select rotating categories and 1% cash back on everything else (when you activate) up to $1,500 in purchases.
Unique Advantage: In addition to a cash back match at the end of your first year, the rewards you earn with the Discover it Card never expire. Cardholders also have the option to redeem their cash back starting at $1.
OpenSky Secure Visa Credit Card
Welcome bonus: None.
Rates of Rewards: Earn up to 10% cash-back rewards on everyday purchases at over 40,000 retailers.
This is a secured credit card, which means you have to deposit money (as low as $100) into your account, which will define your credit limit. This is somewhat counterintuitive, but it allows you to make payments on cards reported to the credit bureaus to help build your credit score. Once you build your credit score, the security deposit is fully refundable, and you can graduate to other credit cards that earn points, miles or cash back rewards.
Note that there is a $35 annual fee with the OpenSky card.
Unique Advantage: No credit check required. To apply, all you need is an official form of identification and to submit your refundable security deposit (which will define your monthly credit limit).
Related: How Old Do You Have to Be to Get a Credit Card?
Apply for a credit card when you are 18 years old
The Credit Card Accountability Responsibility and Disclosure Act of 2009 changed some things about how and when people can get a credit card. Most of the changes introduced were positive for consumers, including giving individuals enough time to pay their bills and making it easier. Pay off debt.
Another change from the Credit Card Act? Legal adults – people over the age of 18 – can no longer sign up for credit cards without proof of independent income.
This effectively eliminated the whole university campus “sign up for this card using your parents’ income and get a free t-shirt” situation that existed.
However, if your 18-year-old is in college, they can sign up for a student credit card instead. If your 18-year-old child is not attending a two- or four-year college, they may choose to open a secured credit card with a refundable security deposit instead.
Related: Best Credit Cards for College Students
Add your kids as authorized users — before they turn 18
There is another solid option Add your children as authorized users until they qualify for another rewards card on their own, which gives them your credit card with their name attached to it.
You are responsible for paying all their charges, so most parents only allow their children to use their cards for emergencies. But it’s a great way to start teaching your kids the importance of finances, plus you’ll be collecting all of their points in your account as the primary cardholder.
Some issuers have age requirements for authorized users (American Express requires your child to be 13 years old), while others have no restrictions (Capital One and Chase, for example).
In theory, this means you can add your child as an authorized user, even as an infant. You just have to consider the right time to add your child as an authorized user, but this can be done well before he turns 18.
Related: Best Credit Cards for Authorized Users
Length of credit is important
Another important reason to start signing up for credit cards when your kids turn 18 (or add them as authorized users on your credit card) is that the average age of the accounts is one of the biggest factors. Determine your credit score.
So getting — and keeping — a card when you’re young can really boost your credit score as you get older.
RELATED: How Closing a Card Affects Your FICO Score
Watch out for targeted offers
One final note — watch out for targeted mailers. My 18-year-old daughter has been targeted by American Express mailers Delta SkyMiles® Gold American Express Card. But, unfortunately, I’ve learned in the past that for most credit card issuers, the marketing departments don’t always talk to the issuing and underwriting departments.
Even with these targeted mailers, my daughter, with limited credit, job history and income, is unlikely to be approved for a card like Delta SkyMiles Gold, which typically requires good or excellent credit.
That’s why it makes the most sense to start small — before your child starts applying for other credit cards — consider the cards listed above.
Related: How can I get a high, targeted credit card introductory bonus?
The bottom line
These are some of the important things to consider when choosing your first credit card as an 18-year-old. Whether you’re a parent with a healthy credit score and a long credit history or a teenager on the brink of adulthood, start having conversations about how to build good credit to qualify for premium cards, personal loans and more. the line
Related: How to use your credit card responsibly as a college student