Teens aren’t eligible for a credit card until they turn 18, but when they do, you can get the best credit card for teens and we will be discussing some of them in this article.
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Developing financial responsibility should begin early during the teenage years that’s why it’s important you know some of the best credit cards for teens.
One of the most important ways to get your financial life started on the right track is to begin building credit when you’re young.
This includes getting a credit card and using it responsibly to start establishing a positive credit history and good credit score.
Although it is easy to disparage the idea of teens walking around with plastic in their wallets, there’s another side to the argument loaded with good reasons as to why they should have a credit card.
Assuming teens are able and willing to exercise a mature level of responsibility, there are several benefits that stem from having a credit card at a young age.
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Benefits of Having a Credit Card as a Teenager
Here are some of the benefits of having a credit card as a teenager, this will definitely make you want to get the best credit card for teens.
- Getting an early start on building credit: It takes several years to build credit because your credit score is determined by factors such as payment history and the age of your accounts.
If you get a credit card early, you can start early and hopefully have a high credit score by the time you graduate from college so you can easily get an apartment, car loan, or even a mortgage.
- Learning financial responsibility: When you get a credit card, it’s important to learn how the card works, how your use of credit affects your credit score, and why it’s essential to pay your bills on time.
Having a credit card can help teens develop these essential skills at a young age.
- Developing good spending habits: Teens who have access to a credit card can learn to manage their budget and spending to make sure they don’t charge more than they can afford to pay in full when their statement arrives.
- Peace of mind: When teens have access to a credit card, it can be used to cover emergency expenses.
Many cards also provide travel insurance, car rental insurance, extended warranties, coverage for damaged or stolen cell phones, and even free credit score access.
Although there are clear advantages to getting a credit card as a teen, you can’t get a card of your own until you’re at least 18.
You need to make sure you select the card that’s right for your situation. In this case, you want a card that reports to all three major credit bureaus.
The Best Credit Cards for Teens
Here are some of the best credit cards for teens you should consider if you’re over 18 and can qualify on your own, or if you can find a cosigner.
Capital One Journey Student Rewards
Capital One offers some of the best student credit cards for teens, and here we will be discussing Capital One journey student rewards
Here’s what you need to know about the Journey Student Rewards from Capital One:
- 99% variable APR (no 0% promotional APR for purchases or balance transfers)
- No annual fee or foreign transaction fees
- Earn 1% cashback on all purchases
- Pay your bill on time to boost your cashback to 1.25% for that month
Young adults can qualify for this student credit card even without established credit but may need someone to co-sign if they’re under the age of 21 without sufficient proof of income.
Discover it Student Chrome
Discover it offers some of the best credit cards out there and is a good option if you’re on a credit-building mission.
Here’s what you need to know about the Discover it Student Chrome card that makes it one of the best credit cards for teens:
- 0% intro APR on purchases for 6 months; after that, standard variable purchase APR of 15.24% to 24.24%
- No annual fee or foreign transaction fees
- 2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases; unlimited 1% cashback on all other purchases
- Cashback match at the end of your first year
- $20 statement credit each school year your GPA is 3.0 or higher (for up to the next five years)
Like the Capital One Journey, you don’t need a strong credit history to qualify for this student card but you may need a cosigner if you’re under 21 without proof of sufficient income.
The Petal Visa Credit Card
The petal Visa Credit card is another very good option that made it to our list of the best credit card for teens.
Here’s what you need to know about the Petal Visa card:
- Variable APR between 15.24% and 26.24% (no 0% promotional APR for purchases or balance transfers)
- No annual fee, foreign transaction fees, late fees, or over-the-limit fees
- 1% – 1.5% cashback on purchases depending on how many on-time payments you have
- No credit history or security deposit required
Petal Visa looks beyond your credit score to consider an applicant’s entire financial picture, so teens who haven’t had time to build credit may be able to qualify although a guarantor may be needed depending on income.
The Discover it Secured Card
Discover it Secured card is yet another credit card from Discover it to make it into our list of the best credit card for teens.
Here’s what you need to know about the Discover it Secured card:
- 99% variable purchase APR (no 0% promotional APR for purchases or balance transfers)
- No annual fee or foreign transaction fees
- 2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases; unlimited 1% cashback on all other purchases
- Cashback match at the end of your first year
Automatic monthly reviews start at eight months to see if your account qualifies to “graduate” after demonstrating responsible credit use
Because the Discover it Secured card requires a security deposit equal to your credit line, teens who are 18 and over may have an easier time qualifying for this card without a cosigner.
The Secured Mastercard from Capital One
Another credit card from Capital One offers some of the best student credit cards for teens. The Secured Mastercard from Capital One, is one of the best credit cards for teens, good for credit building.
Here’s what you need to know about the Secured Mastercard from Capital One:
- 99% variable APR (no 0% promotional APR for purchases or balance transfers)
- No annual fee or foreign transaction fees
- No rewards or signup bonus
As with the Discover, it Secured card, you have to put down a deposit with the Capital One Secured.
However, your deposit may be as low as $49. The required deposit is determined based on your credit. Since it is a secured card, it can be easier for teens to qualify with no cosigner.
Plus, after you’ve had the card for five months, Capital One will automatically increase your credit limit if you’ve made all your payments on time.
The OpenSky Secured Visa Credit Card
OpenSky is another company that gives great credit card services and we will be discussing the OpenSky secured Visa Credit Card,.another one of the best credit cards for teens.
Here’s what you need to know about the OpenSky Secured Visa credit card:
- 64% variable APR (no 0% promotional APR for purchases or balance transfers)
- $35 annual fee
- 3% foreign transaction fee
- No rewards or signup bonus
Although this card has an annual fee, there is no credit check required, which teens may have an easier time getting this card without a cosigner.
The card also has a lower interest rate than many other secured cards.
Things to Think About When Applying for a Teen Credit Card
Although there are some great credit cards out there for teens and benefits associated with using credit, there are also risks and downsides that need to be considered.
Some of the key things to think about before applying for a credit card account when you’re young or before listing a teen as an authorized user on your card include the following:
- The cost of using credit: There may be annual fees, foreign transaction fees, late fees, and over-the-limit fees associated with the card.
You’ll want to know the costs going in and look for the cheapest credit card for teens as possible.
- Getting irresponsible with credit: Spending too much or accidentally missing a payment could do long-term damage to your credit score.
Unfortunately, many young people who get credit cards make mistakes that can affect them for a long time.
- Overspending on the card is a big risk: Without careful budgeting, it’s easy for teens to get in too deep and charge more than they can afford to pay off in a given month.
That’s especially the case for younger teens who may not understand how credit card interest makes paying off debt difficult.
Sometimes, teens also face pressure from friends to overspend or even to lend them their card.
- Cardholders are responsible for spending by authorized users: If you make your teen an authorized signer on a credit card and your teen overspends, you’ll be responsible for paying the bill.
It’s important to make sure you or your teenager is ready for the responsibility of a credit card before getting one.
It’s also a good idea to look for a card with no annual fee, as paying one is rarely worth it when you’re one, even if the card offers a generous rewards program.
How to Get Approved for a Credit Card as a Teenager
If you are under 18, you generally cannot get any type of credit card in your own name because you’re not a legal adult.
Once you are at least 18, you have more options but the Credit CARD Act of 2009 limits the ability of card issuers to give credit to someone under 21.
Because of the federal CARD Act, credit card issuers cannot give a card to someone under the age of 21 without a cosigner unless the teen can show sufficient earned income of their own.
Even when they can, many card issuers simply won’t give a young person a card without a cosigner because they haven’t had time to develop a sufficient credit history of their own.
Here are some ways young adults can gain the necessary experience to eventually get approved for their own credit card:
- Open a checking and/or savings account with a local bank
- Obtain a prepaid debit card
- Opt for a secured card with a cosigner
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CONCLUSION
Credit cards can help teens learn the financial responsibility needed for living on a budget and improving their credit scores.
That is why we have written this article on the best credit card for teens, to enable your adults to make the right choice of credit card to enable them to build their credit.
