7 Best Credit Cards For 18 Year Olds (With No Credit) in 2024

Turning 18 is an exciting milestone toward personal and financial independence, but it also comes with its share of hurdles. With no credit history, 18-year-olds often can't qualify for the many credit cards available on the market. One factor behind this is the CARD Act (Credit Card Accountability, Responsibility And Disclosure Act), which requires consumers under 21 to have an income or cosigner to get a credit card.

The good news is that if you are an 18 year old with no credit history, there are credit cards designed specifically for you to build a strong foundation. This article will highlight the top 7 cards, including Chime, Current, and more, that give you the ability to start building credit on your own.

Chime® Credit Builder Visa Card

The Chime® Credit Builder Visa Card is perfect for 18 year olds aiming to build credit since all of your everyday purchases can be turned into positive credit reports. The card has zero annual fees, no minimum security deposit requirements, and no interest charges. Plus, no credit check is needed to apply.

When you download the Chime app, you'll access the Safer Credit Building feature, which you first need to turn on. Then, your on-time payment history can positively impact your credit score. Chime reports your activities to Transunion®, Experian®, and Equifax®, the three major credit bureaus in the US.

Chime Advantages:

• No annual fees, minimum deposits, or interest charges;
• No credit check to apply;
• Can help increase your FICO Score® by an average of 30 points.

Chime Drawbacks:

• Lack of rewards, like cash back;
• Qualifying direct deposit of $200 or more.

Best Overall Credit Card For 18 Year Olds With No Credit

Chime is one of the most well known secure credit cards in the United States, offering you a straightforward way to build a positive credit history without annual fees or interest charges. The card also comes with an option high-yield savings account, a $200 overdraft facility, a marketplace to pick up gig work, and a network of over 60,000 ATMs. Chime also charges no international transaction fees, making it ideal for travel abroad.

FDIC-insured parter: The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC
More info: read our in-depth Chime review or visit the Chime website

Current Visa Build Card

The Current Visa Build Card is another secured card that sets money aside in a reserve balance. Current has a good spending insights platform and has a high-yield savings account too. Current also offers joint accounts for kids under 18 with supervision from their parent's or guardian's Current accounts.

Current Advantages:

• Can remove holds that gas stations place on your cards;
• Can process paper checks;
• Over 40,000 ATM network.

Current Drawbacks:

• Two direct deposits required to qualify;
• Point rates over 1x only available at participating merchants;
• 3% international transaction fee.

Great Secure Card With a Cash Back Program

Current charges no monthly fees, no annual fee for the card, and has no minimum balance requirement. You can also earn up to 7x the points on card swipes at over 14,000 participating merchants, which you can then redeem for cash back at 100 points per dollar.

More info: read our in-depth Current review or visit the Current website
FDIC-insured parter: Choice Financial Group, Member FDIC

Capital One SavorOne Student Cash Rewards Credit Card

The Capital One SavorOne Student Cash Rewards Credit Card is an unsecured credit card that offers no annual fee and has solid cash-back rates. When you apply, Capital One will run a credit check so you may need some form of income to qualify. The card is also available only for students at a 4-year university, community college, or other higher education institution.

Capital One Advantages:

• No annual fee;
• Earn unlimited 3% cash back on dining, entertainment & groceries;
• Can earn a $50 cash bonus;
• No foreign transaction fees.

Capital One Drawbacks:

• Requires a hard credit check;
• High-interest rates charges;
• Credit history can go down when the balance isn't paid monthly.

Best First Unsecured Credit for College Students

Capital One offers some of the best credit cards in the country, making their student-exclusive card a good place to start, especially if you would like to enrol in their higher-tier cards in the future. With this card, you can earn a one-time $50 cash bonus once you spend $100 on purchases within 3 months from account opening. Bear in mind that you need to pay you balance in full (not the minimum payment) every month on time to build a good credit score and to avoid paying interest payments on your debt.

More info: visit the Capital One website
Member FDIC: Yes

Discover it® Student Cash Back Card

The Discover it® Student Cash Back Card is usually open for those with little or no credit history and does not charge an annual membership fee. You must be at least 18 years old, enrolled in a two- or four-year college, and a U.S. citizen to qualify.

Discover Advantages:

• Earn 5% cash back on everyday purchases at Amazon.com, grocery stores, restaurants, and gas stations;
• Earn unlimited 1% cash back on all other purchases;
• No foreign transaction fees.

Discover Drawbacks:

• 5% bonus cash back rate is limited to $1,500 per quarter in spending;
• Bonus categories must be activated quarterly;
• Discover is not as widely accepted as other card types.

Best for Cash Back in the First Year

Discover's Student Cash Back card is a good option for those wanting to build a credit history for the first time and get some cash back rewards at the same time. Their first year bonus program is an unlimited dollar-for-dollar match. For example, you could turn $50 cash back into $100, or $100 into $200, depending on how much you spend. There's no minimum spending or maximum rewards for this first-year bonus. Since this is an unsecured line of credit, make sure to pay you balance in full every month on time avoid paying interest payments on your debt.

More info: visit the Discover website
Member FDIC: Yes

Dave ExtraCash™ Debit Mastercard

The Dave ExtraCash™ Debit Mastercard is not a credit card, but a debit Mastercard that allows you to access up to $500 of fee-free overdraft protection. You won't be subject to interest charges or late fees on that debt, which is ideal for young people who many need some financial breathing room.

Dave Advantages:

• $500 overdraft facility without fees;
• No interest charges or late fees;
• No credit check required.

Dave Drawbacks:

• $1 monthly membership fee;
• Does not build credit history;
• Dave determines your cash advance limit.

Best for Large Cash Advances

Dave is a great option to access interest-free cash advances, which are also not subject to late fees. This beats using a traditional bank's overdraft facility, which charges late fees and levies interest on the overdraft amount. Dave will transfer your advance to your Dave Spending account instantly. They'll also give you the option of sending the money to a different debit card within an hour for a small fee or separate bank account in 1–3 days for free.

More info: read our Dave comparison guide visit the Dave website
FDIC-insured parter: Evolve Bank & Trust, Member FDIC

Brigit Credit Builder Loan

The Brigit Credit Builder Loan, unlike the typical credit card, allows 18 year olds to build credit by financing small, affordable loans. It does so by helping you apply for a 24-month loan, which is kept untouched in an online deposit account. Since your credit score can improve if you have diversified lines of credit, using a loan through Brigit may help in this regard.

Brigit Advantages:

• Requires you to save as little as $1 per month to build credit;
• No credit approval required;
• No interest or upfront deposit.

Brigit Drawbacks:

• Only Plus members ($9.99/mo) can access the credit builder;
• Loan cannot be accessed via a physical or virtual credit card.

Best Loan Program for Students

Brigit is a good introduction to loans for beginners who have never taken on debt from a lender before. However, you need to be a Plus member for $9.99 per month to get the cash advances and access the credit builder. Free subscribers can find side gigs and access their financial planner platform.

More info: read our Brigit comparison guide or visit the Brigit website
FDIC-insured parter: Coastal Community Bank, Member FDIC

Revolut Multi-Currency Travel Debit Card

Revolut is our top recommendation for any young person travelling overseas or studying abroad. The app gives you access to a multi-currency account to hold and instantly exchange between 30+ foreign currencies, which you can access all from the Revolut virtual or physical debit card. The app offers travel insurance, airport lounge access, and rewards at retailers too.

Revolut Advantages:

• No annual membership fee;
• Earn cashback and discounts from top brands;
• Offers among best exchange rates in the industry;
• Buy cheap airport lounge passes on the app;
• Offers joint accounts to those under 18.

Revolut Drawbacks:

• Not a credit card;
• Does not build credit;
• Paid members access better allowances and features.

Best Card for Study Abroad and International Travel

Revolut allows 18 year olds to spend abroad like locals and avoid hidden fees, making it ideal for study abroad or international travel. With free currency exchange in over 150 currencies and fee-free withdrawals up to $1,000 per month, Revolut's app-based card and account give you financial flexibility wherever you go.

More info: read our Revolut review or visit the Revolut website
FDIC-insured parter: Metropolitan Commercial Bank, Member FDIC

Compare the 7 Best Credit Cards For 18 Year Olds in 2024

To help you compare credit cards for 18 year olds available in 2024, we have compiled a comparison chart highlighting the key features of the top 7 options.

From credit limits to APRs, rewards programs to annual fees, this chart provides a succinct overview of each credit card's offerings:

How to Build Credit When You Have No Credit History

Credit builder cards are the most straightforward tools to build credit when you have no credit history. Have a look at the following key behaviors that credit card companies and credit bureaus tend to take into consideration when calculating your credit score:

1. Always Pay the Full Amount on Time: Repay your debt before the set monthly deadlines to avoid accruing late fees and adversely affecting your credit score. You should aim to repay the monthly balance in full. If you don't have the funds to do so, pay the minimum requirement on time at the very least.
2. Keep a Low Credit Utilization Ratio: Maintaining a low credit utilization ratio — the percentage of your total credit limit in use — reflects well on your credit management skills. A lower ratio indicates to potential creditors that you have effective spending control.
3. Use Your Card Regularly and Responsibly: Regular but responsible credit card use demonstrates your ability to manage debt. However, if the full balance isn't paid within the card's set deadline each month, the APR interest rate comes into effect. This interest is added to the remaining balance, thereby increasing your debt, which can negatively affect your credit score.
4. Set Up AutoPay: Automated payments ensure you never miss a payment due date. Most credit card apps, including all those featured in this article, provide an AutoPay feature, allowing you to set up automatic full balance payments either on or before the due date.
5. Keep Your Account Open if Possible: Longer good credit histories usually result in higher credit scores. If your credit card doesn’t have an annual fee, consider keeping it open to lengthen your credit history. Conversely, constantly opening and closing too many credit lines can hurt your credit score.

How Credit Scores Get Calculated

Creditors and lenders assess your ability to use a line of credit responsibly by analyzing your credit score. Also known as your "FICO score", this score is a numerical representation of your creditworthiness between 300 to 850, and it is evaluated based on five major factors:

1. Payment history (35% of your score): Record of your past payments, including whether you've paid on time or had late payments. The more you pay your balances in full (not just the monthly minimum), the better.
2. Amounts owed (30% of your score): The total debt you owe, including credit card balances, loans, and other credit accounts.
3. Length of credit history (15% of your score): The duration for which you've had credit accounts open and used them responsibly.
4. Credit mix (10% of your score): The diversity of credit types you have, such as credit cards, auto loans, and mortgages. A diverse credit mix can improve your score, as long as they are managed responsibly.
5. New credit (10% of your score): Recent applications for credit or opening of new credit accounts. If you apply for too many lines of credit at once, your score can be negatively impacted.

Three main credit bureaus, Equifax, Experian, and TransUnion, collect and maintain your credit information, influencing your FICO score.

5 Factors to Consider When Choosing a Starter Credit Card at 18 Years Old

When choosing your first credit card with no prior credit history as an 18 year old, there are several key factors to consider:

1. Annual fee: Cards with better benefits often charge higher annual membership fees. Consider cards that waive annual fees to avoid constraining your budgets as a new borrower.
2. Interest rate: For new borrowers, seek cards with low rates. This is especially important in 2023 and 2024, where interest rates are at very high levels.
3. Credit building: We highly recommend secured credit builder cards that issue reports to bureaus to help build your score.
4. Foreign transaction fees: If traveling abroad, choose a card with no foreign transaction fees. The standard 3% foreign transaction fee will add up significantly. For more in-depth info, consider reading our guide on the best debit cards with no foreign transaction fees.
5. Benefits & rewards: Credit cards offer cash back, travel miles, and other rewards when you spend. However, to avoid interest fees or late fees, we think reward programs are worth looking into if you can pay back your monthly balances in full.

5 Reasons to Build Credit as a Young Adult

When you build up your reputation as a creditworthy borrower, it opens the door to larger lines of credit. Having the ability to get issued large debts and pay them off is important because it can help you cheaply finance some of life's most important purchases.

Let's unpack some of these scenarios where your credit history might significantly impact your journey:

1. Borrowing Money: Having a solid credit history is crucial for when you want to make big purchases later in life, like buying a car or getting a mortgage for a house. Lenders check your credit score to decide how reliable you are with borrowing money. If your credit history is not great, they'll charge you higher interest rates. By building a strong credit score (with the help of a credit builder card), you can get lower interest rates on future loans. Down the line, this can save you hundreds or even thousands of dollars every month.
2. Renting: Landlords will sometimes run credit checks on their tenants. When the rental market is competitive, landlords are more likely to favor tenants with a good credit history as it assures them of less risk in terms of late rent payments.
3. Setting Up Utilities: Utility companies may require a credit check before establishing service. If your credit history is poor, you may have to pay a deposit or provide a letter of guarantee, adding extra efforts and costs. A good credit score can steer you clear of such hurdles.
4. Getting Hired: Certain occupations, especially those that involve managing finances, could require a credit check as part of their hiring process.
5. Starting a Business: When you're looking to finance a startup or small business, lenders often look at personal credit scores, especially if your new business doesn't have a credit history of its own. A strong personal credit score can tip the scale in your favor, qualifying your business for loans or credit with affordable rates.

Recap of the Best First Credit Cards For 18 Year Olds in 2024

Here is our top 7 for credit cards for 18 year olds with no credit history in 2024:

1. Chime® Credit Builder — Best Overall For 18 Year Olds With No Credit
2. Current Build — Great Secure Card With a Cash Back Program
3. Capital One SavorOne Student Cash — Best for Unsecured Credit
4. Discover it® Student Cash Back — Best for Cash Back in the First Year
5. Dave — Best for Large Cash Advances
6. Brigit — Best Loan Program for 18 Year Olds
7. Revolut — Best Multi-Currency Card for Travel and Study Abroad

Disclaimers

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

¹ Out-of-network ATM withdrawal and over-the-counter advance fees may apply. See here for details.

² 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 loads or 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.

³ The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change anytime. The disclosed APY is effective as of September 20, 2023. No minimum balance is required. Must have $0.01 in savings to earn interest.

⁴ On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.

⁵ SpotMe® on Credit is an optional, no-interest/no-fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Credit Builder Account. SpotMe on Debit is an optional, no-fee overdraft service attached to the Chime Checking Account available to qualifying members after Visa debit card activation. Both SpotMe on Credit and SpotMe on Debit are sometimes collectively referred to as "SpotMe" or, if you have signed up to use SpotMe with only one account, "SpotMe" means the elected service. To qualify for SpotMe, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account monthly. Qualifying members will be allowed to overdraw their Chime Checking Account and/or Secured Deposit Account (associated with your Chime Credit Builder credit card) up to $20 but may be later eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe Debit Terms and Conditions and SpotMe on Credit Terms and Conditions.