Best Credit Builder Cards For 20 Year Olds
Credit Education Credit Cards First credit card

Best Credit Builder Cards For 20 Year Olds

Moumita Basu

Table of Contents

Regardless of how you choose to spend your money, credit cards are a excellent tool for assisting them in getting the most value for their money. Millennials are renowned for having unique purchasing preferences. They enjoy dining out, travelling, and internet shopping over trips to the mall. Three out of four people, according to a Harris poll, would rather spend their money on experiences than accumulate a lot of possessions. Given all of that, it only makes sense for individuals to carry a credit card with benefits that suit their lifestyle in their wallets.

20 is the best age to start taking financial responsibility along with having additional perks of credit. So, if you are prepared for the responsibility, we have covered the list of best credit cards for age 20, along with the importance and different ways of building credit.

What is the Importance of Having Good Credit Cards for 20-Year-Olds?

Young adults shouldn't discount the necessity of a credit card. Even if you don't anticipate using one, carrying a card is still beneficial. It's never too early to begin establishing your credit or making emergency plans. Here are the major advantages of getting a credit card for age 20.

  • Learn Lifetime Money Management Skills

Many folks are unsure of how to manage their finances in their early 20s because they weren't taught this skill in school and their family never discussed it. A crucial step for your future may be obtaining a card in your early 20s and learning how to use it appropriately. Making sensible use of your credit card may show you how to manage your finances, pay your payments on time, stay out of debt, and live comfortably.

  • Create a Credit History

You can benefit from greater financial alternatives, such as low-interest loans and premium credit cards with extra features, if you have a solid credit history and credit score. You probably have little to no credit history if you're a young adult and don't yet have a loan or credit card in your name. Getting a card in your early 20s will assist you start building your credit history so you can start increasing your credit limit and credit score.

  • Protect Yourself From Fraud Protection

Fraud unfortunately does occur. Scammers and thieves can take advantage of people and access their money in a variety of ways. If you use a debit card, it could be more difficult to demonstrate fraud, and you might have to wait before getting your money returned. Fraud protection is offered with credit cards. When fraud occurs, all you need to do is report it; the credit card provider will then look into it. You won't have to be concerned about fraud costing you money in your bank account that way.

  • Have a Credit Card on Hand In Case of Emergencies

The unfortunate reality is that emergencies frequently arise, and in many circumstances, they can put a strain on finances. In the event of an emergency, having a credit card can give you access to more dollars. So that you won't have to stress about how to pay for it, you may deal with the matter.

List of the Best Credit Cards for 20-Year-olds

The ideal card, as you can see, greatly relies on your financial status and spending patterns. For instance, the Student credit card is the ideal option for students under the age of 18. This credit card has a high rewards rate and a $0 annual fee. Credit card companies are prepared to make incentives not typically available to non-students due to the age and earning potential of students. Additionally, secured credit cards, which provide the quickest approval, are among the other top credit cards for 18-year-olds. Here is the list of best credit cards for 20s:

  • Zolve Credit Builder Card
  • Petal® 2 "Cash Back, No Fees" Visa® Credit Card
  • Discover it® Student Cash Back
  • Capital One Platinum Secured Credit Card
  • Chase Freedom® Student credit card

Let’s know about the best credit cards for 20-year-olds in detail:

Zolve Credit Builder Card

Zolve Azpire Credit Builder Card ranks among the best credit cards for 20-year-olds, as it comes with no annual and hidden charges, and no minimum deposit. With Zolve, you can register in 5 minutes with no SSN, just your basic details like passport, etc. Zolve Azpire Credit Builder Card is the first preference because of its ease of use and it reports to three credit bureaus and which will help you in building a good credit history. It's the most affordable and easy-to-use credit card for age 20.

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

The "Cash Back, No Fees" Petal® 2 asks for no fees of any type, including an annual fee of $0, foreign transaction fees, or late fees for missed payments, which are advertised for the Visa® Credit Card 1. For qualified candidates, it offers a credit limit between $300 and $10,000. Additionally, you can receive an unlimited 1% cash back on purchases, 1.25% cash back after six on-time payments, and 1.5% cash back after twelve on-time payments.

Due to Petal 2's unsecured status and lack of requirement for lengthy credit history, it might be an excellent option for 20-year-olds. Petal will examine data from a linked bank account in addition to checking your credit score if you have one. For those who are just starting out with credit and have no credit history, this may be useful. If you don't meet the requirements for the Petal 2, you might be eligible for the fee-based Petal® 1 "No Annual Fee" Visa® Credit Card.

Discover it® Student Cash Back

The Discover it® Student Cash Back is a cashback credit card with a $0 annual fee that offers 5% cash back on purchases up to $1,500 in rotating categories each quarter and 1% cash back on all other transactions. Restaurants, supermarkets, gas stations, Amazon.com, and other businesses have been among the rotating categories.

At the end of the first year, you can also automatically receive an unlimited dollar-for-dollar match of whatever cash back you've earned.

Due to the fact that the Discover it Student Cash Back is a student card and does not require a credit score to be eligible, it is good credit card for 20-year-olds. For college students filling out their first credit card application, this might be the best option. Additionally, there are plenty of possibilities to earn cash back with a student credit card. Additionally, for six months, this card's introductory APR on purchases is 0%; after that, it ranges from 15.24% to 24.24%. (variable).

Capital One Platinum Secured Credit Card

Consider the Capital One Platinum Secured credit card for age 20 if having a secured credit card looks like the best choice for you as a first credit card. Although there aren't many features or opportunities to earn rewards with this card, there is no annual fee.

Due to Capital One Platinum Secured's lack of requirements for a significant credit history or good credit, it may be suitable for 20-year-olds. Additionally, you might begin with a security deposit as low as $49. Within six months of the account's inception, automatic credit line reviews could start. Your security deposit will be repaid to you as a statement credit if you are approved for an unsecured card.

Chase Freedom® Student Credit Card

With no yearly fee, the Chase Freedom® Student credit card gives 1% cash back on every dollar spent. Even though it's not the finest rewards rate in comparison to other reward cards, any earnings are normally positive for beginner credit cards.

Because it is a student card with a rewards program and lax credit restrictions, the Chase Freedom Student may be suitable for 20-year-olds. Additionally, after five consecutive on-time monthly payments within the first 10 months of account establishment, you are eligible for an automatic credit line increase. If you have any missed payments, you won't be eligible for this raise, but making the minimum payment for each billing cycle is acceptable.

Best Ways to Get a Credit Card at 20

Remember that credit card restrictions to be at least 18-year-olds are imposed under the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009. According to the law, anyone under the age of 21 who wants to be the primary account holder on a credit card must either have a co-signer or provide evidence of a reliable source of income. You will be able to choose from a variety of cards that will aid in building credit if you can fulfill one of these two conditions.

Adding yourself as an authorized user on someone else's credit card is an additional choice. Any form of a credit card can have an authorized user-added, and you can benefit from all of the card's features while building your credit. The principal cardholder is in charge of the account's finances, and his or her card activity will appear on your credit record as well. However, any unfavorable information, like missed or late payments, will lower both of your credit ratings.

In reality, credit card income requirements go beyond young individuals. Even if they have perfect credit, everyone applying for a credit card must have enough money to qualify. There is no specified income requirement in the rules, but each credit card issuer has its own (non-disclosed) requirements that change from credit card to credit card. You'll receive a letter in the mail outlining the decision if you're refused and it's because your income is insufficient to qualify.

After knowing all the details of how to get a credit card at 20, it's the right time for you to take action. Slowly start building your credit journey with the best Zolve Azpire Credit Builder Card, use it responsibly and enjoy exciting cashback and rewards timely, and build your excellent credit history.

Frequently Asked Questions(FAQs)

How to get a credit card at 20?

At 20, you can get a credit card. Although it's hard to get an unsecured credit card, you can easily opt for a credit builder card, Zolve Azpire Credit Builder Credit Card is the best among all. You can easily start your credit journey with it.

With how much credit does an 18-year-old begin?

An 18-year-old does not come with any credit at all. Utilizing various credit goods, such as credit cards and loans, is the conventional way to establish credit. An 18-year-old is likely to have little or no credit history if they have never used credit products or been added as an authorized user on a credit card.

Can a person who is 20 receive a credit card?

An 18-year-old is the minimum age to be eligible for a credit card if a cosigner is 21 or older or if they can demonstrate sufficient income.

The CARD Act of 2009 outlines these regulations in order to shield young consumers from potentially damaging credit decisions. Even if an 18-year-old wants a credit card, they can also apply to become authorized users of specific credit cards.

What advantages come with getting a credit card at age 18?

The advantages of getting a credit card at the age of 18 could be:

  • establishing a credit history
  • obtaining worthwhile rewards
  • Having beneficial card features
  • acquiring knowledge of credit products
  • studying financial management
  • having access to emergency cash in case it's required

What credit should I have in my 20s?

Given that an "excellent" credit score is normally around 700 and that persons in their 20s have an average credit score of 630, it is safe to assume that a good credit score for someone in their 20s is in the mid 600s or low 700s.