The 3 Best Credit Cards for Teens in 2024
KEY POINTS
- The Discover it® Secured Credit Card has a refundable security deposit to teach responsibility.
- Your teen can earn points with the Bank of America® Travel Rewards credit card for Students to use for that post-college trip.
As teens begin to navigate the world of personal finance, one of the best educational tools at their disposal is a credit card designed with their needs in mind. But why give a teenager a credit card?
It's about more than just spending; it's a first step toward financial independence, learning how to budget, understanding credit, and building a personal finance history.
Here are the three best credit cards for teens in 2024, each offering unique benefits that align with the lifestyle and fiscal responsibilities of young adults.
1. Discover it® Secured
The Discover it® Secured Credit Card is a fantastic starter card for teens needing to build or rebuild their credit. By requiring a refundable security deposit, it allows teens to establish credit safely, with the added benefit of earning cash back on purchases. It's an excellent first step into the world of credit.
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New/Rebuilding Under(579)
Intro APR
Purchases: n/a
Balance Transfers: 10.99%, 6 months
Regular APR
28.24% Variable APR
Rewards 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
1% - 2% Cashback
Annual Fee
$0
Welcome Offer
Discover will match all the cash back you’ve earned at the end of your first year.
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We think this card has among the highest cash back potential for a secured card with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches the cash back new cardholders earn at the end of the first year. This card could be perfect for you if you're new to credit, or rebuilding after past troubles. Read Full Review
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- Cash back rewards
- Great sign-up bonus offer
- No annual fee
- Can graduate to an unsecured card
- Minimum deposit amount
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- No credit score required to apply.
- No Annual Fee, earn cash back, and build your credit history.
- 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.
- 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.
- Annual Fee: $0 (see rates and fees)
- Cash Back: 2% cash back at gas stations and restaurants up to $1,000 in combined purchases each quarter; 1% cash back elsewhere
- Key Benefits:
- Monthly reviews after seven months to transition to an unsecured card
- Free FICO® Score updates
- Additional Features: Efforts to protect personal information online, dark web monitoring
2. Bank of America Travel Rewards for Students
For teens with wanderlust, the Bank of America® Travel Rewards credit card for Students provides valuable points that can be redeemed for travel expenses. This card is a boon for students studying abroad or those who travel frequently, thanks to no foreign transaction fees and flexible redemption options.
On Bank of America's Secure Website.
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On Bank of America's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 19.24% - 29.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR
19.24% - 29.24% (Variable)
Rewards Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don't expire as long as your account remains open.
1.5 points per dollar
Annual Fee
$0
Welcome Offer 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases
25,000 points
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With a generous sign-up bonus and a rewards program, it'll be harder to find a better card for students. Read Full Review
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- Big sign-up bonus
- No annual fee
- Competitive rewards rate
- 0% intro APR offer
- No bonus categories
- Limited ways to use points
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- Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don't expire as long as your account remains open.
- 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.
- Use your card to book your trip how and where you want - you're not limited to specific websites with blackout dates or restrictions.
- Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 19.24% - 29.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
- When handled responsibly, a credit card can help you build your credit history, which could be helpful when looking for an apartment, a car loan, and even a job. Access your FICO® Score for free within Online Banking or your Mobile Banking app.
- Contactless Cards - The security of a chip card, with the convenience of a tap.
- This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
- Annual Fee: $0
- Rewards: 1.5 points per $1 spent on all purchases
- Key Benefits:
- Welcome bonus of 25,000 points after spending $1,000 in the first 90 days
- 0% Intro APR for 15 billing cycles for purchases
- Additional Features: No foreign transaction fees, points don't expire, free FICO® Score access
3. Chase Freedom Rise
The Chase Freedom Rise℠ is perfect for teens looking to start their financial journey with a reliable banking partner. With its cash back rewards program and potential for a credit limit increase, it's designed to help young users responsibly build credit and reap rewards for their purchases.
Chase Freedom Rise℠
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Good (670-850)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
26.99% Variable
Rewards With Chase Freedom Rise℠, you can start building credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
1.5% cash back offer.
Annual Fee
$0
Welcome Offer Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
$25 statement credit
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This starter credit card is an excellent choice for building credit. It has all the tools you need to learn how to manage your credit and get a high credit score.
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- No credit history required
- Cash back rewards
- No annual fee
- Credit score monitoring
- Purchase and travel protections
- Not for rebuilding credit
- Small welcome offer
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- Increase your approval chances - Having a Chase checking or savings account with a balance of at least $250 will increase your chances of getting approved for Chase Freedom Rise℠
- Earn Cash Back - With Chase Freedom Rise℠, you can start building credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
- Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
- Credit Limit Increase - As a Chase cardmember, you'll be evaluated for a credit line increase in as soon as 6 months. Your credit line is the maximum amount of money you can spend on your Freedom Rise℠ Card
- Free Credit Score - Track your credit score and learn how to build it with Chase Credit Journey.
- No Annual Fee - You won't have to pay an annual fee for all the great features that come with your Freedom Rise℠ card.
- Member FDIC
- Annual Fee: $0
- Cash Back: 1.5% cash back on all purchases
- Key Benefits:
- $25 statement credit for setting up automatic payments
- Credit line review for increase in as little as six months
- Additional Features: Credit score tracking with Chase Credit Journey, $0 annual fee, automatic payment setup for ease
Why get a teen a credit card?
Introducing a credit card to a teen's financial toolkit isn't just about them having the ability to spend; rather, it's an early education in financial responsibility. Here's why:
- Credit building: A good credit history can be crucial down the line, making everything from renting an apartment to buying a car easier.
- Budgeting skills: Managing a credit limit teaches budgeting and prioritization.
- Financial safety: Credit cards offer security features that cash doesn't, such as fraud protection.
What to avoid when getting your teen a credit card
While there are numerous benefits, there are also pitfalls to avoid.
- High APRs: Teach your teen that carrying a balance is costly due to high interest rates.
- Overspending: It's essential to monitor spending habits to prevent debt.
- Negative credit score impact: Mistakes like late payments can negatively affect a credit score, so using the card responsibly is important.
Equipping your teen with a credit card can lead them to financial literacy and independence, provided they're guided with a responsible and educated approach. Choose a card that aligns with their lifestyle and use it as a teaching tool to pave the way for a financially stable future.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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