Turning 18 opens a door to new possibilities and responsibilities. You can vote for the first time, move away for college, and even buy a lottery ticket. Among the various rites of passage is signing up for your first credit card — a step towards financial independence and a chance to build your credit history.
Unfortunately, for many young adults, getting a credit card is not as easy as it once was. Under the Card Act of 2009 (Credit Card Accountability, Responsibility, and Disclosure Act), consumers under the age of 21 must have a cosigner or steady income to get a credit card. This requirement limits the options for 18-year-olds, but you still have options.
Key Takeaways
- If you just turned 18, you may have limited credit card options compared to others with more established credit histories and income.
- We’ll go over 11 credit cards you can apply for as an 18-year-old, including student and secured credit cards.
Best Starter Cards For 18-Year-Olds
1. Discover It Student Cash Back Credit Card
Designed for students, the Discover It Student Cash Back credit card comes with a $0 annual fee and a 0% intro APR for 6 months on purchases. After the promotion period, the standard purchase APR is 17.99% – 26.99%, depending on your creditworthiness. It doesn’t require a credit score to qualify, which is ideal for those applying for a credit card for the first time.
You can earn 5% cash back on everyday purchases in different rotating categories, such as Amazon.com, grocery stores, restaurants, and more, up to the quarterly maximum. For example, the rewards for July to September 2023 include gas stations and digital wallets (Apple Pay, Samsung Pay, Garmin Pay, Google Pay), up to $1,500 in purchases when you activate.
For all other purchases, you can earn unlimited 1% cash back. Plus, Discover will automatically give you a dollar-for-dollar match on all the cash back you earn for your first year, with no minimum spending or maximum rewards. You can redeem your rewards for cash at any time and use them at Amazon.com or other online stores.
While there is no annual fee, there is a cash advance fee of either $10 or 5% of each cash advance, whichever is greater. There is also a 3% intro fee on balances transferred by October 10, 2023, and up to a 5% fee for future balance transfers.
2. Capital One Quicksilver Rewards for Students Credit Card
The Capital One Quicksilver Rewards for Students credit card is exclusively for students, including those at a 4-year university, community college, or other higher education institution. It comes with unlimited 1.5% cash back on every purchase and a $0 annual fee. You can also earn a $50 cash sign-up bonus after spending $100 on purchases within 3 months of account opening.
The rewards do not expire, and you can redeem them anytime. You can redeem them for cash, gift cards, or statement credit to cover recent purchases. Other notable perks include:
- Complimentary 10% cash back on purchases on Uber and Uber Eats, plus free Uber One monthly membership through November 14, 2024
- Exclusive access to pre-sale, tickets, and more via Capital One Entertainment
- Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
- No foreign transaction fees
- Extended warranty and zero fraud liability
- Travel accident insurance
- Complimentary 24/7 concierge service
- 24-hour travel assistance services
Compared to other starter credit cards, Capital One Quicksilver Rewards for Students offers a robust lineup of secondary benefits. However, it does not come with a 0% intro APR or balance transfers and has a variable APR of 19.99% to 29.99%.
3. Discover It Student Chrome Credit Card
Similar to the Discover It Student Cash Back, the Discover It Student Chrome is a student cash back card with no annual fee and no credit score required to apply. The card offers 2% cash back at gas stations and restaurants on up to $1,000 each quarter and 1% cash back on all other purchases. You can also earn unlimited dollar-for-dollar cashback matches for the first year from account opening. Additionally, you can use the Discover mobile app to set alerts, view your Credit Scorecard, protect your online privacy, track and redeem cashback rewards, and more.
There is a 0% intro APR for 6 months on purchases. Afterward, a 17.99% – 26.99% variable APR will apply based on your creditworthiness. There is a 10.99% intro balance transfer APR for 6 months, a 29.99% APR for cash advances, an intro fee of 3% for balance transfers, and either $10 or 5% of the amount for cash advances (whichever is greater).
4. American Express Blue Cash Preferred Credit Card
The American Express Blue Cash Preferred card has a $0 intro annual fee for the first year and then $95 afterward. You can earn a $300 welcome bonus after spending $3,000 in purchases within the first 6 months of opening the card, which averages to $500 per month. The card also comes with a 0% intro APR on purchases and balance transfers for 12 months, followed by a variable APR ranging from 19.24% – 29.99%.
In terms of rewards, you can earn:
- 6% cash back on groceries, up to $6,000 per year
- 6% cash back on select U.S. streaming services
- 3% cash back on transit, including taxis, rideshare, parking, tolls, trains, buses, and more
- 3% cash back on gas at U.S. gas stations
- 1% cash back on all other eligible purchases
Other featured benefits include:
- $84 Disney Bundle credit – $7 bank monthly after spending $12.99+ each month on an eligible Disney Bundle subscription
- $120 Equinox+ credit – $10 in monthly statements
- Car rental loss and damage insurance
- 24/7 Global Assist Hotline
- Return protection
Note that the Amex Blue Cash Preferred may be tougher to qualify for if you are 18. However, the card does not charge additional fees for adding an authorized user. As an authorized user, you can get similar benefits as the primary cardholder.
5. Chase Freedom Flex Credit Card
With the Chase Freedom Flex credit card, you can earn a generous $200 welcome after spending $500 on purchases in the first 3 months from account opening. Plus, you can earn 5% cash back on grocery store purchases (excluding Target and Walmart) of up to $12,000 in the first year. The rewards structure includes:
- 5% cash back in quarterly bonus categories, ranging from gas stations, grocery stores, and select online merchants, on up to $1,500 per quarter after activation
- 5% on travel purchased through Chase Ultimate Rewards
- 3% on dining at restaurants, including takeout and eligible delivery services
- 3% on drugstore purchases
- 1% on all other eligible purchases
The Chase Freedom Flex also has no annual fee and comes with a 0% intro APR for 15 months on purchases and balance transfers. The cash back rewards do not expire, and there is no minimum redemption amount required. Other benefits include a complimentary 3 months of DashPass, 5% cash back on Lyft rides through March 31, 2025, and 3 months of Instacart+ membership. You’ll also have various built-in secondary benefits, including zero liability protection, purchase protection, auto rental collision damage waiver, travel and emergency assistance services, and more.
Note that the card has a 3% foreign transaction fee. That means you will get charged a fee if you travel abroad or purchase items from a foreign merchant. If you plan on traveling a lot, you may want to opt for a different credit card.
6. Bank of America Customized Cash Rewards Credit Card
The Bank of America Customized Cash Rewards credit card comes with no annual fee and offers a $200 sign-up bonus after you spend at least $1,000 within 90 days from account opening. You can earn:
- 3% cash back in the category of your choice, including gas, online shopping, dining, travel, drug stores, or home improvement/furnishings
- 2% cash back at grocery stores and wholesale clubs
- 1% cash back on all other eligible purchases
You can change your 3% choice category once a month or simply leave it the same. There is also a generous 0% intro APR for 18 months on purchases and balance transfers made within the first 60 days of account opening. Afterward, a variable APR of 17.99% – 27.99% will apply for purchases and a 3% fee for balance transfers. Additionally, you have access to Bank of America’s mobile app, where you can check your balances, credit statements, and FICO score, pay your credit card bill, transfer funds, and more.
7. Chase Freedom Unlimited Credit Card
Similar to the Chase Freedom Flex, the Chase Freedom Unlimited Credit Card is a $0 annual fee cash rewards credit card that offers a $200 welcome bonus after meeting the $500 minimum required to spend within 3 months of account opening. Plus, you can earn 5% cash back on grocery store purchases (excluding Target and Walmart) of up to $12,000 in purchases in the first year. The rewards structure includes:
- 5% on travel purchased through Chase Ultimate Rewards
- 3% on dining, including restaurants, takeout, and eligible delivery services
- 3% on drugstore purchases
- 1.5% on all other eligible purchases
You can redeem your rewards for cash back via statement credit, direct deposit, gift cards, travel, or on Amazon. The card also has a 0% intro APR for 15 months from account opening on purchases and balance transfers. Afterward, there is a variable APR of 20.24% – 28.99%. Other secondary benefits include trip cancellation/trip interruption insurance, zero liability protection, purchase protection, auto rental collision damage waiver, and more.
8. Capital One SavorOne Rewards For Students Credit Card
The Capital One SavorOne Rewards credit card is a cash back card designed exclusively for students. There is no annual fee, plus you can earn a one-time $50 welcome bonus after spending $100 on purchases within 3 months from account opening. Additionally, you can earn an unlimited 3% cash back on dining, entertainment, select streaming services, and at grocery stores. For all other eligible purchases, you can earn 1% cash back. Other perks include:
- 10% cash back on purchases on Uber and Uber Eats, plus free Uber One monthly membership through November 14, 2024
- 8% cash back on Capital One Entertainment purchases
- 5% cash back on hotels and rental cars booked through Capital One Travel
- No foreign transaction fees
- 24/7 complimentary concierge service
- 24-hour travel assistance services
- Travel accident insurance
Your rewards never expire, and you can redeem them for cash via check or statement credit or spend them on gift cards. Other protections include security alerts, $0 fraud liability, alerts from CreditWise, and more. Note that there is no intro APR period for purchases and balance transfers.
Best Secured Credit Cards For 18 Year-Olds
If you don’t qualify for a traditional credit card, consider getting a secured credit card. These cards are great for people who want to build credit (or rebuild credit for those with bad credit scores). With this card, you must make an initial deposit to open the account. The deposit secures the account and determines your credit limit. Because they are less risky for lenders, secured credit cards tend to have lower interest rates and fees. Plus, you may have the option to upgrade to an unsecured credit card in the future.
9. Capital One Quicksilver Secured Credit Card
The Quicksilver Secured from Capital One comes with a $0 annual fee and unlimited 1.5% cash back on all eligible purchases. There is a $200 minimum deposit, which gives you an initial credit line of $200. You can increase your initial credit line by depositing up to the maximum limit. Afterward, you will be automatically considered for a higher credit line in as little as 6 months without needing to make an additional deposit.
You can redeem your points for cash, statement credit, or gift cards. Other benefits include no foreign transaction fees, emergency card replacement, $0 fraud liability, account alerts, and more. If you use your credit card responsibly, including making on-time payments, you could earn your security deposit back and graduate to an unsecured credit card.
10. Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card comes with no annual fee and a $49, $99, or $200 minimum refundable security deposit, depending on your credit history and financial situation. However, you can raise your initial credit line by depositing up to a maximum of $1,000. Automatic credit line reviews could begin in as little as 6 months after opening the account.
The card has no foreign transaction fees or hidden fees like replacement card fees or authorized user fees. Other perks include $0 fraud liability, security alerts, emergency card replacement, account alerts, and more. Like the Capital One Quicksilver Secured, once you’ve demonstrated you can handle credit responsibly, you can upgrade to an unsecured card and get your deposit back.
11. Discover It Secured Credit Card
The Discover It Secured Credit card offers generous rewards and has a $0 annual fee. You can earn 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter and unlimited 1% cash back on all other purchases. For your first year, you will also get an unlimited dollar-for-dollar match of all the cash back you earn.
The minimum deposit required is $200, but after 7 months, Discover will begin automatic monthly reviews to see if you qualify for an upgrade to an unsecured line of credit. Once you get upgraded, you’ll get your security deposit back. Because you are upgrading your card, the account history you have built with your secured credit card will remain intact and still get included in your credit report. That should help your credit score, as the average age of your accounts plays a key role in determining your credit score.
What to Look For In Credit Cards For 18 Year-Olds
As you shop around for your first credit card, here are a few things to consider:
- Credit Score: Lenders use your credit score to gauge your creditworthiness and risk as a borrower. Even if you have a part-time or full-time job, you may not qualify for higher-tier credit cards if you do not have enough credit history. In those cases, opt for a student or secured credit card, which typically has less strict qualifications.
- Annual Cards: Certain credit cards, such as the Chase Sapphire Preferred or Amex Gold, come with annual fees. In exchange, they may offer generous welcome bonuses, reward structures, and secondary perks. If you are considering a card with an annual fee, do the math to see if the benefits outweigh the costs of the fee.
- Benefits and Rewards: Most credit cards offer a host of benefits, from travel insurance to purchase protection to rewards on everyday purchases, as well as points, rewards, or miles. Explore a card’s benefits to see if they align with your spending habits. For example, I spend a lot on restaurants and takeout, so I applied for the Amex Gold because it offers 4x points on dining.
- Interest Rate: Compared to other lines of credit, such as personal loans and auto loans, credit cards have relatively high-interest rates. If you think you may have trouble paying off your credit card balances, look for a card with a lower variable APR to save yourself money on interest charges.
Secured vs. Unsecured Credit Cards
When we talk about credit cards, we are typically talking about unsecured credit cards. These cards can be used almost anywhere globally up to the credit limit and come with additional benefits. However, they are usually reserved for people with an established credit history and reliable income sources.
That’s where secured credit cards come in. They function similarly to unsecured credit cards but require a security deposit which will act as your credit limit. For example, if you deposit $200, your credit limit may be $200. Lenders use this as collateral to protect themselves in case you do not make your payments.
However, this is one of the main disadvantages of secured cards for young adults. You may likely be cash-strapped, so having to tie up your money in a deposit is not ideal. Additionally, if you do not have a lot of money, your credit limit will be fairly low, limiting the card’s usefulness.
But, most secured credit cards will report your information to the credit bureaus, helping you build up credit. Eventually, when you’ve demonstrated that you are a responsible borrower and have established a history of good borrowing habits, you can move on to an unsecured card and get your initial deposit back.
Become an Authorized User on Someone Else’s Account
If you do not qualify for your own credit card but want to start building credit, you can become an authorized user on someone else’s account. You will not be the primary borrower, but you will still get your own card, and the payment information gets reported to the major credit bureaus.
Ideally, the primary cardholder’s account is in good standing and has a history of responsible credit usage. While you will not be legally responsible for repaying the debt, you should establish ground rules with the primary cardholder so they are not blindsided if you overspend or fail to repay them.
What Happens Next?
After you open a credit card account, most major credit card issuers will start reporting your information to each of the three major credit bureaus — namely, Equifax, Experian, and Transunion. This will establish your consumer credit profile, which gets used to calculate your credit scores. The better your credit scores, the better financial products and terms you’ll get offered.
The Bottom Line
Now that you’ve turned 18, you may be looking for your very first credit card to start building toward your financial future. While you may not qualify for most credit cards, you have other options, including student credit cards, secured credit cards, and becoming an authorized user. The key is to focus on building positive credit history and financial habits, including paying all your bills on time and spending within reason.
