Despite the fact that you can apply for a credit card at the age of 18, you might not be ready if you have a habit of forgetting deadlines, frequently run out of money before your next paycheck, or frequently overdraw your bank account. However, if you manage your money responsibly, have good money management skills, and are able to fulfil your obligations, you're on the correct route. That’s why 21 is considered as good age to start get your credit card.
Credit cards are frequently a crucial component of establishing credit and mastering money management. But what if you or your child don't meet the requirements for the accessible credit card goods because they have little to no credit history? Young adults who have not yet had the chance to establish their credit history frequently experience this issue. Thankfully, there are choices to assist in resolving this problem. Find out which 21-year-old credit cards are best for you or your child.
What is the Importance of Credit Cards for Under 21-Year-olds
The majority of students actually require a credit card, despite all the drawbacks of credit card debt. A credit history should be established at the very least. Getting a credit card early on is a simple way to do this because you need credit to increase your credit score. The length of your credit history is another crucial component of your FICO score. Your credit history will be longer the earlier you open a line of credit.
- Although they are practical, credit cards' primary goal should be building a solid credit history. In this manner, your adolescent will be more likely to:
- Be eligible for mortgages and auto loans
- Have access to apartment rentals
- Be eligible for low interest rates on all loans of any kind.
- Obtain cheaper rates for your house and auto insurance
- Become eligible for a position (employers are increasingly using credit scores when evaluating job candidates)
List of Top Credit Cards For People Under 21
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 credit cards for under 21 years olds:
- 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 under 21-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 those aged 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. 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 cards for people under 21 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 21-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.
How to Get a Credit Card at 21
Here is the list of ways of getting credit cards for people under 21:
Take a Job
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.
Securing a Co-signer
One option if you can't get approved for a credit card on your own is to find a co-signer who is at least 21 years old. The co-signer must fulfil the requirements in order for the two of you to be accepted. Even if only one of you uses the card after approval, you and the co-signer are jointly liable for the balance. Your cosigner's credit history will be impacted by how you manage the shared credit card, and vice versa.
Both of your credit histories will be impacted if either cardholder uses the credit card irresponsibly. People are advised not to cosign because of this.
Request to be Added as an Authorized User on Someone Else's Credit Card
An authorized user is comparable to a co-signer on a shared credit card. The distinction is that since you are an authorized user, you are not held accountable for the remaining balance. If the credit card issuer utilizes a credit-scoring model that takes authorized users into account, the payment history will appear on your credit report and may later assist you in getting your own credit card. Authorized user accounts are ignored by VantageScore.
Consider a Secured Credit Card
Consider applying for a secured credit card if you qualify for a credit card but your lack of credit history prevents you from being approved. You must make a cash deposit as collateral against the credit limit while using this sort of card. Even if you've made a deposit, you're still in charge of paying down the balance that builds up. The deposit is only applied if you never pay off the delinquent on your own and fail on the credit card amount. Your card may be upgraded to a conventional credit card if you take good care of it, depending on the card provider.
Take Prepaid Card
A prepaid card isn't a credit card in the sense that you're given a credit limit, therefore it won't aid in the development of your credit score. Additionally, you can't make transactions with a prepaid card unless there is a cash balance on it. However, a prepaid card is a fantastic choice if you simply need a piece of plastic that functions like a credit card (for instance, to make hotel reservations, car rentals, or petrol station transactions). There aren't any income or credit criteria. To activate the card, you must deposit money, and once your available cash amount has been used up, you must reload it.
Now that you are aware of how to get a credit card at 21, you can apply for a credit card at any age. The optimal age to apply for a credit card for yourself is when you feel ready and confident enough to do it. Before selecting a credit card for the first time, you must consider a number of factors such as annual fees, offers, discounts, and credit limits. The banks offer a variety of credit cards with unique offers in various areas.
Frequently Asked Questions (FAQs)
Ques. Should I get a credit card at 21?
Ans. Absolutely, you should get a credit card at 21, as it will help you build good credit history.
Can you get a credit card under 21?
yes, you can get a credit card. At least 18 years of age is required. However, 21 years old is the minimum age requirement in several banks. The maximum age requirement varies as well and is typically 60 years or more. Your ability to use a specific card is based on your yearly income.
What is the best credit card to get at 21?
Zolve Azpire Credit Builder Card is best for beginners as it gives cashback of up to 15%, required no minimum deposit, no annual fee, and no SSN.
At age 21, how much credit should I have?
It is safe to assume that a decent credit score in your 20s is in the high 600s or low 700s given that the average credit score for persons in their 20s is 630 and a "good" credit score is normally around 700.
How can a 21-year-old build credit?
Here are four crucial actions you may take to establish a strong credit history:
- Pay your debts completely and on time. Just over a third of your credit score is determined by your payment history.
- Consider using credit-building tools.
- Use only some of your credit.
- Once a year, check your credit.
