Having a credit card, regardless of your age, is a tremendous responsibility. You might even wonder if credit cards are essential for teenagers, who are likely to have very little money. Having the best credit card for teens, on the other hand, might be a wise financial investment for their future if appropriately handled. You may help your teenager build credit at a young age by emphasizing responsible spending and on-time payments.
You’ll have a variety of options to examine depending on your teen’s age. While the minimum age to obtain a credit card is 18, minors under the age of 21 will have a more difficult time getting their first credit card without a consistent source of income.
Younger teens and those who do not have a source of income, on the other hand, can be added as authorized users to their parent’s or guardian’s credit card accounts. We’ll go through the most accepted credit card options for teens, as well as some essential tips and offers to keep in mind in this guide.
Bank of America® Travel Rewards for Students
Because of the high earning rate on its rewards program, which you can then redeem for flights, hotels, vacation packages, cruises, rental cars, or baggage fees, the Bank of America Travel Rewards for Students is our recommendation for the best overall student card and best credit card for teenagers to travel.
It also features a low annual fee and an extended introductory APR on purchases, contributing to the card’s high rating. Furthermore, the absence of foreign transaction fees makes this card excellent for student travel outside of the United States.
The sign-up bonus on this card is slightly higher than the Bank of America® Cash Rewards Credit Card for Students. However, if you’re a frequent traveler, this is only useful.
The earnings rate for the Bank of America® Travel Rewards Credit Card for Students is more straightforward: For every $1 spent on all purchases, you can get 1.5 points. This Credit Card for Students offers the convenience of a consistent rewards rate to teens who don’t want to keep track of different bonus categories.
- Cashback match
There is 3% cashback in your preferred category, such as gas, online shopping, dining, travel, drug stores, or home improvement/furniture; 2% cashback at grocery stores and wholesale clubs; and 1% cashback on all other shopping.
Discover it® Secured Credit Card
Because it offers a high cash back rewards program, the Discover it® Secured Credit Card is one of the most acceptable options for applicants looking to improve their credit ratings.
The Discover it® Secured Credit Card is a secured credit card choice for those looking to restore their credit while avoiding expensive fees. The card allows you to earn cashback incentives on every transaction you make, as well as develop or restore your credit history.
The Discover it® Secured Credit Card is one of the finest credit cards for teens with bad credit because of these qualities. A rewards program is available with the Discover it® Secured Credit Card.
Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined transactions per quarter and 1% cashback on all other purchases – automatically.
- Cashback match
If you’re a new cardholder, this credit card will match all cash back you earn at the end of your first year.
Although your mileage may vary, this is one of the best credit card offers we’ve seen – the bonus is proportional to how much you spend on the card. Bonuses on secured credit cards, on the other hand, are few and far between. As a result, even a little cashback benefit might be beneficial to people with poor credit.
Discover it® Student Cash Back Credit Card
Because it matches all cash back earned during the first year of use, the Discover it Student Cash Back is our pick for the most significant bonus offer. Unfortunately, there aren’t many credit card choices for students that will treat you like an adult. While the most accepted credit cards tend to focus on rewards, most student credit cards offer few, if any, benefits.
The card also has no annual fee and offers 5% cash back on rotating spending categories), so it’s not just for the first year. Students with a 3.0 GPA or higher receive a $20 statement credit each year for up to 5 years, which is a special incentive for keeping proper grades.
Thankfully, the Discover it® Student Cash Back card is one of the few that provides students with the same perks as regular Discover it® Cash Back cardholders. Discover it® Student Cash Back is a competitive cash back rewards program that offers tremendous benefits to any student looking to stretch their dollar further.
That offer could be very beneficial if you were strategic with the purchases you decided to make during that time. The Discover it® Student Cash Back card comes with the same excellent cashback rewards program as the Discover it® Cash Back card for non-students, including a cashback match in the first year.
- On rotating categories, earn 5% cashback.
The Discover it® Student Cash Back card offers some of the best cashback rewards. The Cash Back program gives a significant incentive on a variety of categories that change regularly:
Earn 5% cashback on everyday expenses at various locations each quarter, including Amazon.com, grocery stores, restaurants, petrol stations, and when you pay with PayPal, up to the quarterly maximum when you activate, and 1% cashback on all other purchases – automatically.
- In the first year, match your cashback.
Only Discover offers an Unlimited Cashback Match to new cardholders. Discover will automatically match all of your cash back at the end of your first year! As a result, you may turn $50 into $100.
Alternatively, you may turn $100 into $200. There are no restrictions on how much you can spend or how much you may earn. There was only a dollar-for-dollar match. This feature, which is available on all Discover cashback cards, distinguishes Discover from the competition.
As a teen, how do you create credit?
It’s never too early to begin thinking about improving your credit score. Whether it’s your own or as an authorized user, getting your first credit card necessitates a significant amount of commitment. With solid credit habits, your credit score will progressively rise over time. Here are a few pointers to help you establish credit with your first credit card:
- Make your payments on time and in full every time.
You’ll want to ensure sure you pay your credit card bill at the end of each billing cycle. However, interest will be charged on your balance, lowering your credit score.
- Never spend more than you can afford to repay.
Credit cards aren’t fictitious money, and every transaction you make is your responsibility. The average household owes over $8,000 in credit card debt, which grows exponentially if missed payments.
- Keep credit utilization low.
The percentage of credit you use out of your total available credit is referred to as credit usage. It is suggested that you use no more than 30% of your credit limit. For example, if your credit limit is $500, you should not charge more than $150 before paying off your entire balance.