What is the best credit card for 18 year old?

Question

Also, will any credit card company automatically give a credit card to an 18 year old with no credit when they apply for one?

Answer 1

No company is required by law to grant you a card, but plenty of comapnies WILL give you a card to use if you meet their terms, and that usually means paying more fees than someone who has good credit history.

A good plan: You can start with applying for and getting a secured credit card, and demonstrating good payment history for 6 to 12 months. Compare terms on secured credit cards at bankrate.com which is a firm I have no legal or financial interest in. Call up the secured cc company and ask whether they routinely report to all 3 Credit Reporting Agencies (CRAs) so that you'll build up credit history with all 3 CRAs. If the secured cc company doesn't report to all 3, find another card. When you choose a card, be clear, BEFORE you apply, on every up front, monthly, and annual fee they will charge you. Call up and ask questions if necessary. You'll be way ahead of the game if you read the Terms and Conditions (i.e., the fine print), too. In order not to hurt your FICO credit score, your balance should not exceed 30% of your credit limit. In that first month, you'll see those fees on your bill, so don't run out in the first month and charge more than a few dollars (i.e., more than $5) on the card until you read that first bill. Make small purchases and pay them off in full, every month. Myth-buster: you do NOT have to carry a balance and pay interest to develop a good payment history. Open an online account with the cc company so you can watch your bill and make payments online.

After 6 to 12 months of paying on time, every time, try for an unsecured card, one that has no upfront or annual fee. In some cases, your secured lender might allow you to convert to an unsecured card. Again, watch for fees. Pick a card that is a "major", i.e., MasterCard, Visa, AmEx or Discover. Make sure it has rewards based on things you need, rather than things you just want. A gasoline-and-auto-repair rewards or groceries rewards card is often a good choice.

Please vote: Did this help?

Answer 2

A number of companies will not extend credit out to people that are just "starting out" because they do not have enough information about their credit history to see whether or not they would be a risk.

If you have a checking or a savings account, I would try where you do you banking first. Sometimes they offer secured cards or even unsecured cards with a small limit. Orchard Bank(HSBC) offers a secured card as well as New Millenium bank. Once you're able to get one of those cards, I'd spend no more than $30 and pay that off every month. Credit cards should be used only in emergrencies. You might also think about socking away some extra cash in a prepaid Visa or Mastercard as well.

Answer 3

Ryan, honestly here is what I would do to be safe. I would go with either a pre-paid or a secure credit card. This will help you learn how to budget a credit card and build your credit without you risking overspending and runnin gup a big bill you can't pay. I remember what its like to be 18. It can be easy to forget that its not free money when all you have to do is swipe your card. You dont want to ruin your credit at such a young age, then you will find it very hard to get a car or house. Im speaking from experience.

Answer 4

Some credit unions will offer their members a credit card. All you have to do is open an account and apply for one.

Answer 5

For Credit and finance solutions I always recommend this website where you can find all the solutions. http://personalcreditsolutions.info/index.html?src=5YAPZPovy3gpS1

RE :What is the best credit card for 18 year old?
Also, will any credit card company automatically give a credit card to an 18 year old with no credit when they apply for one?
Follow 7 answers

Answer 6

hi, I got credit card student assistnace via NHBS, inc, they have cc programs that are really student-friendly, this is their resource, all the best!

Answer 7

Any you choose. Just make sure you have a limit that you dont want to go over

Answer 8

capital one visa