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Best Credit Cards for Young Adults of December 2024

Updated: Dec 5, 2024
Sara Rathner
Written by
Senior Writer/Spokesperson
Caitlin Mims
Reviewed by
Content Management Specialist
Kenley Young
Edited by
Fact Checked
Assigning Editor
Fact Checked
Sara Rathner
Written by
Senior Writer/Spokesperson
Caitlin Mims
Reviewed by
Content Management Specialist
Kenley Young
Edited by
Fact Checked
Assigning Editor
Fact Checked
+ 2 more
+ 2 more
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.

Welcome to young adulthood! With that entry-level salary and growing collection of expenses, your life is getting more complicated. The way you pay for things is going to need to keep up. Here are some of the best credit cards for young adults, whether you’re totally new to using them, or you’re looking for something a little more rewarding than your starter card.

  • 400+ credit cards reviewed by our team of experts (See our top picks)

  • 80+ years of combined experience covering credit cards and personal finance

  • 27,000+ hours spent researching and reviewing financial products in the last 12 months

  • Objective comprehensive ratings rubrics (Methodology)

NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.

  • 400+ credit cards reviewed by our team of experts (See our top picks)

  • 80+ years of combined experience covering credit cards and personal finance

  • 27,000+ hours spent researching and reviewing financial products in the last 12 months

  • Objective comprehensive ratings rubrics (Methodology)

NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.

NerdWallet's Best Credit Cards for Young Adults of December 2024

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Find the right credit card for you.

Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.

Find the right credit card for you.

Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.

Our pick for

Simple cash back

Annual fee
$0
Rewards rate
2%
Cashback
Intro offer
$200
Recommended Credit Score

The Wells Fargo Active Cash® Card is about as straightforward as it gets: 2% cash back on all purchases, with no categories to track or limits to worry about.

Product Details

  • Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
  • Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
  • Earn unlimited 2% cash rewards on purchases.
  • 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
  • $0 annual fee.
  • No categories to track or remember and cash rewards don’t expire as long as your account remains open.
  • Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
  • Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
  • View Rates & Fees

Pros
  • In addition to 2% cash back — the best no-strings-attached rate available on a $0-annual-fee card — the Wells Fargo Active Cash® Card comes with a great sign-up bonus and even an intro APR promotion.

Cons
  • You can find higher cash-back rates in specific, popular spending categories, if you're OK with keeping track of reward structures.

Why We Like It

The Wells Fargo Active Cash® Card is about as straightforward as it gets: 2% cash back on all purchases, with no categories to track or limits to worry about.

Our pick for

Simple travel rewards + perks

Annual fee
$95
Rewards rate
2x-5x
Miles
Intro offer
75,000
Miles
Recommended Credit Score

With its easy-to-understand rewards and $95 annual fee, the Capital One Venture Rewards Credit Card is the gateway to fancier travel cards you may gravitate toward later on.

  • Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
  • Earn unlimited 2X miles on every purchase, every day
  • Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
  • Miles won't expire for the life of the account and there's no limit to how many you can earn
  • Receive up to a $120 credit for Global Entry or TSA PreCheck®
  • Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
  • Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
  • Transfer your miles to your choice of 15+ travel loyalty programs
  • View Rates & Fees

Pros
  • This card earns 2 miles per dollar on purchases, rising to 5 miles per dollar on hotels and rental cars booked through Capital One Travel. A statement credit for the application fee for TSA PreCheck or Global Entry can save you time at the airport and more than offset the annual fee in the first year. Redeem miles for any travel expense, use them to book travel through Capital One, or transfer them to partner airline and hotel programs.

Cons
  • You won't get the perks of a dedicated airline or hotel card, like free checked bags or upgrades. You can transfer miles to several airline loyalty programs, but domestic options are scant.

Why We Like It

With its easy-to-understand rewards and $95 annual fee, the Capital One Venture Rewards Credit Card is the gateway to fancier travel cards you may gravitate toward later on.

Our pick for

Building credit + easy card management

Chime Secured Credit Builder Visa® Credit Card card image
Apply Now
on Chime's website
on Chime's website
Annual fee
$0
Rewards rate
N/A
Intro offer
N/A
Recommended Credit Score

The Chime Secured Credit Builder Visa® Credit Card is a $0-annual-fee secured card with a twist, as it allows you to avoid two big credit card traps: getting into debt and missing a payment.

  • The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
  • No credit check to apply, no annual fees or interest⁴, and no minimum security deposit required.³ No stress! Additional terms apply.
  • Use your secured Credit Builder card everywhere Visa credit cards are accepted, including on everyday purchases, such as gas and groceries.
  • Help build your credit history with your own money. The money you move into the Credit Builder secured account is the amount you can spend on your card (no minimum deposit required!).³ Turn on Safer Credit Building² and have your monthly balance automatically paid on time. Chime will report your activities to Transunion®, Experian®, and Equifax®.
  • Increase your credit scores by an average of 30 points, with regular, on-time payments.¹
  • Turn on transaction notifications to receive real-time transaction alerts. Then, use Chime’s instant in-app disable card feature to help prevent unauthorized activities.
  • Live support 24/7 to assist you around the clock.
  • Now you can use your Credit Builder card fee-free at over 60K+ in-network ATMs at retailers like Walgreens®, CVS®, and more! Out-of-network ATM withdrawal fees may apply except at Moneypass ATMs in 7-Eleven® locations, or any Allpoint® or Visa Plus Alliance ATMs.
  • Apply for a secured Chime Credit Builder Visa® Credit Card once you have an active Chime Checking Account. See www.chime.com to learn more.

Pros
  • Instead of requiring a traditional deposit, this card is linked to a Chime checking account. The money in that account serves as your deposit, and the card doesn't allow you to spend more than you have. You can add more money to the account to increase your limit. The bill is due in full each month, so interest never accrues; you can also set it up so your bill is paid out of the account automatically.

Cons
  • You must have a Chime checking account to use the card. Once your credit improves, there's no option to upgrade to a traditional, unsecured card; you'll have to go somewhere else for your next card. And while this card's guardrails can keep you out of trouble, they could also leave you unprepared to manage other kinds of credit later on.

Why We Like It

The Chime Secured Credit Builder Visa® Credit Card is a $0-annual-fee secured card with a twist, as it allows you to avoid two big credit card traps: getting into debt and missing a payment.

Our pick for

Building credit, rewards & upgrading

Annual fee
$0
Rewards rate
1%-2%
Cashback
Intro offer
Cashback Match™
Recommended Credit Score

The $0-annual-fee Discover it® Secured Credit Card stands out for its cash-back rewards and the opportunity to move up to a regular unsecured card after a few months of responsible card use.

  • No credit score required to apply. No Annual Fee.
  • Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
  • Raise your credit score by 30+ points.
  • Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
  • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
  • Terms and conditions apply.
  • View Rates & Fees

Pros
  • You’ll earn 2% cash back at gas stations and restaurants on up to $1,000 per quarter in combined spending. All other purchases earn 1% back. There’s a bonus offer for new cardholders, too. Payment activity is reported to all three credit bureaus, and after seven months, Discover begins automatically reviewing your account to determine whether you’d be eligible to graduate to an unsecured card and get your security deposit back.

Cons
  • As with any secured card, you have to tie up money in a security deposit. The minimum deposit on the card is $200.

Why We Like It

The $0-annual-fee Discover it® Secured Credit Card stands out for its cash-back rewards and the opportunity to move up to a regular unsecured card after a few months of responsible card use.

Our pick for

Rewards on rent payments

Annual fee
None
Rewards rate
1X-3X
Points
Intro offer
N/A
Recommended Credit Score

The no-annual-fee Bilt World Elite Mastercard® Credit Card stands out by offering credit card rewards on rent payments without incurring an additional transaction fee. The ability to earn rewards on what for many people is their single biggest monthly expense makes this card worth a look for any renter.

  • $0 Annual Fee
  • Earn 1x points on rent payments without the transaction fee, up to 100,000 points each calendar year
  • Earns 3x points on dining
  • Earn 2x points on travel
  • Earn 1x points on other purchases
  • Earn double points on the first of each month (excluding rent, up to 1,000 bonus points)
  • Use the card 5 times each statement period to earn points
  • Earn up to 5x Bilt points on Lyft rides when you link your Bilt account and pay with your Bilt card
  • Point redemptions include airlines, hotels, future rent payments, credit card statement credits, toward a down payment on a home, etc
  • Select “Apply Now” to learn more about the product features, terms, and conditions
  • View Rates & Fees

Pros
  • This card earns 1 Bilt Point per dollar spent on rent (up to 100,000 points annually). That might not seem like a jaw-dropping rate, but consider that in most cases, you either can't use a credit card for rent at all, or you can't do so without paying an extra fee that more than wipes out the value of your rewards. The card also earns 3X points at restaurants, 2X on travel, 5X on Lyft (when you link your accounts) and 1X elsewhere, when you use the card at least five times per statement period. Those rewards rates, except for rent, are doubled for purchases on the first day of every month ("rent day"). Among redemption options: credit toward rent or a home down payment, and travel, including options to transfer them to airline and hotel partners.

Cons
  • You must use the card at least five times during a statement period to earn most rewards, though you will still earn 250 points on rent. There's no sign-up bonus. If the manager of your property requires that you pay rent by check rather than through an online portal, you can still earn rewards, but Bilt needs to send a check on your behalf.

Why We Like It

The no-annual-fee Bilt World Elite Mastercard® Credit Card stands out by offering credit card rewards on rent payments without incurring an additional transaction fee. The ability to earn rewards on what for many people is their single biggest monthly expense makes this card worth a look for any renter.

Our pick for

Cash back for household spending

Annual fee
$0 intro annual fee for the first year, then $95.
Rewards rate
1%-6%
Cashback
Intro offer
$250
Recommended Credit Score

The Blue Cash Preferred® Card from American Express is the ideal card for those settling into a household, with high rewards in categories where a lot of people spend a lot of money.

  • Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
  • $0 intro annual fee for the first year, then $95.
  • Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
  • Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 18.49% - 29.49%.
  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
  • 6% Cash Back on select U.S. streaming subscriptions.
  • 3% Cash Back at U.S. gas stations.
  • 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
  • 1% Cash Back on other purchases.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
  • $84 Disney Bundle Credit: With your enrolled Blue Cash Preferred Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.
  • Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
  • Terms Apply.
  • View Rates & Fees

Pros
  • This card's stellar rewards at U.S. supermarkets — 6% cash back on up to $6,000 a year in spending, then 1% — and its 3% rate at U.S. gas stations have long made it a favorite. You also get 6% cash back on select U.S. streaming subscriptions and 3% on transit, including such things as taxis, rideshares, parking, tolls, trains and buses. All other purchases earn 1% back. A handsome welcome offer make the card even more attractive.

Cons
  • The high rewards come at a cost, as the card has an annual fee — currently $0 intro annual fee for the first year, then $95. You can make back that cost fairly easily, though.

Why We Like It

The Blue Cash Preferred® Card from American Express is the ideal card for those settling into a household, with high rewards in categories where a lot of people spend a lot of money.

Our pick for

Cash back for going out & staying in

Annual fee
$0
Rewards rate
1%-8%
Cashback
Intro offer
$250
Recommended Credit Score

Some cards offer good rewards for those who cook and entertain at home; others give you more of an incentive to go out. The Capital One Savor Cash Rewards Credit Card is the rare card that does both.

  • For a limited time, earn a $250 cash bonus once you spend $500 on purchases within the first 3 months from account opening
  • Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
  • Earn 8% cash back on Capital One Entertainment purchases
  • Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
  • No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
  • 0% intro APR on purchases and balance transfers for 15 months; 19.74% - 29.74% variable APR after that; balance transfer fee applies
  • No foreign transaction fee
  • No annual fee
  • View Rates & Fees

Pros
  • For going out: You earn 3% cash back on dining and entertainment, and 8% on Capital One Entertainment purchases. For staying in: 3% cash back at grocery stores and on select streaming services. All other purchases earn 1%. There's also a good sign-up bonus, not to mention an intro APR offer. That's a lot of value packed into a card with no annual fee.

Cons
  • If your spending is more concentrated in one food category over the other — dining out or cooking at home — you might do better with a card that specializes in one of those areas.

Why We Like It

Some cards offer good rewards for those who cook and entertain at home; others give you more of an incentive to go out. The Capital One Savor Cash Rewards Credit Card is the rare card that does both.

Our pick for

Bonus cash back

Chase Freedom Flex® card image
Apply Now
on Chase's website
on Chase's website
Annual fee
$0
Rewards rate
1%-5%
Cashback
Intro offer
$200
Recommended Credit Score

The Chase Freedom Flex® is a little complicated, but it pays up to 5% cash back in an array of categories. If you're interested in getting into the rewards maximizing game, it's a great card to start with.

  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
  • 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more
  • 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases.
  • No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.74%-28.49%.
  • No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Flex® card
  • Keep tabs on your credit health - Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more.
  • Member FDIC

Pros
  • The Chase Freedom Flex® is unusual in that it has both bonus rewards categories that change and categories that stay the same. You earn 5% cash back on up to $1,500 in spending per quarter in rotating categories that you activate. You also earn 5% on travel booked through Chase. You earn 3% on dining and at drugstores. Other spending earns 1%. There's a solid bonus offer, too.

Cons
  • You have to opt in to the bonus categories every quarter, which can be a hassle. The rotating 5% categories might not be a good fit for everyone.

Why We Like It

The Chase Freedom Flex® is a little complicated, but it pays up to 5% cash back in an array of categories. If you're interested in getting into the rewards maximizing game, it's a great card to start with.

Our pick for

No-annual-fee travel card

Annual fee
$0
Rewards rate
1x-3x
Points
Intro offer
20,000
Points
Recommended Credit Score

Getting started with the rewards points? The Wells Fargo Autograph℠ Card is a terrific place to start, earning 3X rewards in a variety of categories with a $0 annual fee.

  • Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
  • Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months - that's a $200 cash redemption value.
  • Earn unlimited 3X points on the things that really add up - like restaurants, travel, gas stations, transit, popular streaming services, and phone plans. Plus, earn 1X points on other purchases.
  • $0 annual fee.
  • 0% intro APR for 12 months from account opening on purchases. 19.49%, 24.49%, or 29.49% variable APR thereafter.
  • Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
  • Redeem your rewards points for travel, gift cards, or statement credits. Or shop at millions of online stores and redeem your rewards when you check out with PayPal.
  • Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
  • View Rates & Fees

Pros
  • You earns 3 points per dollar spent on dining, travel, gas, EV charging, popular streaming services and cell phone plans. Everything else earns 1 point per dollar. Not only can you use points for travel, but you can also redeem them for cash back, gift cards or purchases where you check out with PayPal. The card also has a decent bonus offer.

Cons
  • The card doesn't have the perks of a dedicated airline or hotel card. You can transfer points to airline and hotel programs, but the options are limited.

Why We Like It

Getting started with the rewards points? The Wells Fargo Autograph℠ Card is a terrific place to start, earning 3X rewards in a variety of categories with a $0 annual fee.

Our pick for

Customized rewards & cool features

Annual fee
$0
Rewards rate
1%-3%
Cashback
Intro offer
N/A
Recommended Credit Score

There's no need to remember rewards categories with the Venmo Credit Card. It tracks where you spend the most money and then awards 3% and 2% cash back in your top categories.

  • Earn up to 3% cash back on your top spend category, 2% on the next, and 1% on the rest.
  • No annual fee.
  • Your card comes with your own unique QR code on the front, so it’s a snap to Venmo friends. When they scan your code, up pops your Venmo profile to pay or get paid.
  • Keep tabs on card activity in the app, right with all your Venmo spending.
  • Use the Venmo app to disable a lost or stolen physical card.

Pros
  • You earn 3% cash back in your top spending category for the month (from a list of eight possible categories; see review for the full list). Your second-highest category earns 2%; other purchases earn 1%. You can manage your card through the Venmo app, where your cash back automatically gets added to your balance. The physical card has a QR code on it that takes people to your Venmo profile, making it easier to split bills. The annual fee is $0.

Cons
  • Unlike many competing cards, this card has no 0% intro APR period, and sign-up bonuses are available only sporadically. You have to manage the card through the Venmo app.

Why We Like It

There's no need to remember rewards categories with the Venmo Credit Card. It tracks where you spend the most money and then awards 3% and 2% cash back in your top categories.

FULL LIST OF EDITORIAL PICKS: BEST CREDIT CARDS FOR YOUNG ADULTS

Confirm details on issuer's website when applying.

Discover it® Secured Credit Card

Our pick for: Building credit, rewards & upgrading

Like other secured credit cards for people building or rebuilding credit, the Discover it® Secured Credit Card requires a cash security deposit. Unlike most others, it offers rewards. But what really makes it stand out from the competition is its upgrade possibilities. The issuer has a process in place for automatically reviewing accounts for possible transition to an unsecured card. Read our review.

Chime Secured Credit Builder Visa® Credit Card

Our pick for: Building credit + easy card management

This card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late. But to get it, you must be a Chime® banking customer, which is an extra hoop to jump through — and which comes with its own considerations when it comes to customer service. Read our review.

Chime says the following:

  • The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.

  • To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

  1. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2022 and October 2022 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

  2. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

  3. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

  4. Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.

🤓Nerdy Tip

If you have credit card debt, hold off on a cash-back or travel rewards card until you pay off that debt. The amount of interest you’re paying will eliminate the value of any cash-back or travel rewards you’d earn.

Wells Fargo Active Cash® Card

Our pick for: Simple cash back

Among flat-rate cash-back cards, you'll be hard-pressed to beat the Wells Fargo Active Cash® Card. It earns an unlimited 2% back on all purchases, which is excellent. But in addition, the card offers a rich sign-up bonus and a decent intro APR period on both purchases and balance transfers. That's an impressive, hard-to-find combination of features on a card with a $0 annual fee. Read our review.

Venmo Credit Card

Our pick for: Customized rewards & cool features

The Venmo Credit Card offers the benefit of bonus rewards categories without requiring you to keep track of them. You automatically earn 3% cash back in the category where you spend the most money (from a list of eight), 2% on the next-highest category, and 1% elsewhere. The eligible categories include all the biggies, like groceries, gas, restaurants and travel. Read our review.

Blue Cash Preferred® Card from American Express

Our pick for: Cash back for household spending

If your household spends a lot on groceries, gas, transit and streaming, the Blue Cash Preferred® Card from American Express is for you. The rewards it pays in those categories — particularly at U.S. supermarkets and on select U.S. streaming subscriptions — are among the richest of any card. There's a nice welcome offer for new cardholders and an introductory APR period, too. The generous benefits come at a cost, though: Unlike most cash-back cards, this one charges an annual fee. Terms apply. Read our review.

Capital One Savor Cash Rewards Credit Card

Our pick for: Cash back for going out & staying in

Some credit cards reward you well for going out, others for staying in. The Capital One Savor Cash Rewards Credit Card is the rare card that does both. It offers a terrific cash-back rate not only on dining and entertainment but also at grocery stores and on popular streaming services. Toss in a good bonus offer and intro APR period, and this card is a winner. (see rates and fees). Read our review.

Chase Freedom Flex®

Our pick for: Bonus cash back

The Chase Freedom Flex® offers bonus cash back in quarterly categories that you activate, as well as on travel booked through Chase, at restaurants and at drugstores. Category activation can be a hassle, but if your spending matches the categories — and for a lot of people, it will — you can rack up hundreds of dollars a year. There's a fantastic bonus offer for new cardholders and an intro APR offer, too. Read our review.

Capital One Venture Rewards Credit Card

Our pick for: Simple travel rewards + perks

The Capital One Venture Rewards Credit Card is probably the best-known general-purpose travel credit card, thanks to its ubiquitous advertising. You earn 5 miles per dollar on hotels and car rentals booked through Capital One Travel and 2 miles per dollar on all other purchases. Miles can be redeemed at a value of 1 cent apiece for any travel purchase, without the blackout dates and other restrictions of branded hotel and airline cards. The card offers a great sign-up bonus and other worthwhile perks (see rates and fees). Read our review.

Wells Fargo Autograph℠ Card

Our pick for: No-annual-fee travel rewards

The Wells Fargo Autograph℠ Card offers so much value, it's hard to believe there's no annual fee. Start with a great bonus offer, then earn extra rewards in a host of common spending categories — restaurants, gas stations, transit, travel, streaming and more. Read our review.

Bilt World Elite Mastercard® Credit Card

Our pick for: Rewards on rent payments

The Bilt World Elite Mastercard® Credit Card stands out by offering credit card rewards on rent payments without incurring an additional transaction fee. The ability to earn rewards on what for many people is their single biggest monthly expense makes this card worth a look for any renter. You also get bonus points on dining and travel when you make at least five transactions on the card each statement period, and redemption options include point transfers to partner hotel and loyalty programs. Read our review.

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OTHER RESOURCES

What should a young adult look for in a credit card?

The answer to this question depends largely on where you are in your credit building journey:

If you don’t have a credit history yet, or you don’t have much of one, it’s best to start with, well, a “starter” card. These are cards specifically designed for people who are new to credit. They don’t offer the richest rewards or the swankiest perks, and their credit limits tend to be low. Some of them require a cash deposit. 

If you’ve already built a good credit history, you’ll have a better chance at getting approved for more popular, and more rewarding, mainstream credit cards. In that case, you’ll be looking for a card with rewards or other features that fit into your lifestyle. There is no single “best” credit card for young adults. There is a best credit card for you, however.

Starter credit cards for young adults

Young adults just getting started with credit can look into these options:

Secured credit cards

With a secured credit card, you provide a cash security deposit — typically a minimum of $200 to $300 — and your credit limit will be determined by how much you deposit. You use the card like any other credit card, making purchases and paying them off when the bill comes. Eventually, when your credit improves, you can move up to a regular “unsecured” card and get your deposit back.

Advantages of secured cards for young adults:

  • The deposit protects the card issuer in case the cardholder doesn’t pay their bill. That makes these cards easier to qualify for. 

  • You’ll get your deposit back when you upgrade to a regular card (assuming the issuer has upgrade options) or close the account in good standing. 

  • Some secured cards offer cash back rewards of 1% to 1.5% 

Disadvantages of secured cards for young adults:

  • You have to tie up money in a deposit. 

  • Unless you have a lot of money to deposit, your credit limit will be quite low, which limits the usefulness of the card. 

Student credit cards

These cards are specifically marketed to college students who are new to credit. They work just like regular credit cards, with no deposit required. The approval process for these cards is generally more accommodating; there might not be a credit score requirement, for example. However, it’s not enough to simply be a college student. You must have income to qualify.

Advantages of student credit cards for young adults:

  • No deposit required. 

  • The approval process will generally take into account that the applicant is new to credit. 

  • Many student cards offer rewards that are identical to those offered on the issuer’s regular cards. (Example: the student versions of Capital One’s Quicksilver and Savor cards have the same cash back structures as their regular cards; the same is true of student cards from Discover and Bank of America®.)   

Disadvantages of student credit cards for young adults:

  • If you’re not a student, you usually can’t qualify.

Alternative credit cards

So-called alternative credit cards are a fairly recent innovation in the credit cards market. The term “alternative” refers to the underwriting models that these cards use to evaluate applications. While traditional credit card underwriting leans heavily on an applicant’s credit history, alternative underwriting looks at other factors, including your income, your assets — even your occupation and education.

Advantages of alternative credit cards for young adults:

  • No deposit required. 

  • Easier approval (though not guaranteed) for those new to credit. 

  • A few offer rewards. 

Disadvantages of alternative credit cards for young adults:

  • These cards often come from startups and innovative financial technology companies, so the issuer doesn’t usually have good options to upgrade to when your credit improves. 

  • Issuers of alternative cards have been known to shift their business model abruptly, imposing new fees or even shutting down.

No-deposit subprime cards

On the surface, these look like “regular” credit cards and are relatively easy to get approved for — sometimes without even a credit check. But they can charge fees that border on the outrageous. For example, one issuer commonly charges a $95 “program fee” just to apply, followed by a $75 annual fee in the first year; in the second year and beyond, the annual fee is only $48, but there are also $8.25 monthly fees. That’s $317 in fees just in the first two years — enough for a good deposit on a secured card. And unlike with a secured card deposit, you never get that money back.

Advantages of no-deposit subprime credit cards for young adults:

  • Easy to get approved for. 

  • Some offer cash back rewards. 

Disadvantages of no-deposit subprime credit cards for young adults:

  • Fees are often extremely high. 

  • Usually there’s no option to upgrade when your credit improves. 

🤓Nerdy Tip

If you’re new to credit, you can expect that any credit card you get approved for will charge a high interest rate. But your interest rate doesn’t have to matter. If you pay your bill in full and on time each month, you won’t be charged interest on purchases.

Credit card tips for young adults

Charge only what you can afford to pay in full

Buying things isn’t what gets credit card holders into trouble. Buying things they can’t afford is what gets them into trouble.

Credit cards can make overspending easy, unfortunately. Don’t have $300 for something? Why not put it on the card and pay it off over the next few months? It’s hardly rare for a young adult to make such a decision when they’re still learning how to use credit. And in isolation, a single purchase like this might not be a huge misstep. But then they make another such purchase the next month, and the next, and soon they’re caught in a debt trap.

When using a credit card to build credit or earn rewards, it’s best to treat it like a debit card. Don’t buy anything you wouldn’t buy otherwise, and don’t buy anything you don’t currently have the cash to cover. When your bill comes, pay everything off. Even better: Don’t wait for the bill. Pay it off online.

Keep your balance low

A major factor in your credit score is credit utilization — your balance expressed as a percentage of your credit limit. If you have a $5,000 credit limit and your balance is $1,000, for example, your utilization is 20%. Young adults looking to boost their credit score should strive to keep their utilization below 30%. Staying under 10% is even better.

An important point to understand about utilization is that it has no “memory” in terms of its effect on your credit score. Your credit score reflects what your utilization is right now and is not influenced by your past utilization. So if your credit score is suffering because you’re using, say, 80% of your available credit, you can reverse that damage pretty quickly if you can pay your balance down to 30% or less.

Even if you’re not currently focused on your credit score, there are other reasons to keep your balance in check:

  • If your balance has gotten to the point that you’re carrying debt from one month to the next, rather than paying in full, you’ll be bearing the brunt of credit card interest. 

  • Charging more than you can afford to pay off each month is a strong sign of living beyond your means.

Sometimes you have no choice but to finance a big expense — such as a necessary car repair or medical bill you can’t cover with an emergency fund. But if you’re carrying debt for “stuff,” it’s time to focus on your budget. 

The credit habits you develop in young adulthood can stick with you for the rest of your life. Resist the temptation to overspend just because you have the ability to overspend.

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NerdWallet's Paul Soucy contributed to this article.

To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.

Last updated on December 5, 2024

Methodology

NerdWallet's credit cards team selects the best credit cards in each category based on overall consumer value. Factors in our evaluation include fees, promotional and ongoing APRs, and sign-up bonuses; for rewards cards, we consider earning and redemption rates, redemption options and redemption difficulty. A single card is eligible to be chosen as among the "best" in multiple categories. Learn how NerdWallet rates credit cards.

Frequently asked questions

Some credit cards are extremely easy to get approved for — but they charge outrageous fees and don't have good options to upgrade to when your credit improves. Young adults looking to build credit with a credit card should look at secured cards, student cards and cards with alternative underwriting methods. See also our best cards for bad credit, for fair/average credit and for no credit.

That depends entirely on how you spend money. If a significant portion of your discretionary spending falls in a specific category, look for a card that pays high rewards in that category — examples include groceries, restaurants, gas, streaming services or online shopping. If you enjoy traveling, look for a card that can get you closer to your next destination. That could be a general purpose travel card with flexible points or a card tied to a specific airline or hotel chain.

A lot of young adults don't really have a dominant spending category. Others don't want to worry about categories and just want a card that offers good rewards on everything. If either of those apply to you, look for a cash-back or travel card with simple flat-rate rewards.

Keep in mind, though, that the best rewards cards are available mostly to those with good credit or better. That's generally defined as credit scores of 690 and up. Young adults who are still building credit may want to wait until they're on firmer ground before applying.

The best time for a young adult to get a credit card is when he or she:

Legally, you can get a credit card of your own when you're 18 years old, but special federal regulations apply until you're 21. If you're under 21, you'll need to either have a co-signer or be able to show that you have independent income. Once you're over 21, the income requirement adjusts a bit; when you're filling out a credit card application, you can include any income that you have access to, including a spouse's income or shared household income.

An alternative to getting your own credit card is to become an authorized user on someone else's account. When you go this route, you get a card with your name on it but that the other person is ultimately responsible for paying. Being an authorized user can help you build credit.

About the author

Portrait of author

Sara Rathner

Sara is a NerdWallet travel and credit cards expert. She has appeared on the “Today” show, Nasdaq and CNBC’s “Nightly Business Report.” Read full profile
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