What is the best credit card for your age? How many credit cards you should have? And specifically, what credit card should you have based on the current situation with the high rising cost of living due to inflation? Everyone’s credit card situation is going to be different. Some of you are going to be further along, while others are going to be further behind. However, regardless of where you are on your journey, the most important thing to do with credit cards is to pay on time and in full.
And as a quick reminder for everybody, your credit score, which is the number that could save you tenth (10), maybe hundreds of thousands of dollars in unnecessary interest payments, is affected by five key components. The two most important are on-time payments, which account for 35% of your score, and credit utilization, which accounts for 30%. Credit utilization is the ratio of your credit card balances to your credit limits. Those two when added together are 65% of your scores. Therefore, make sure you are paying on time and in full.
1.0 Best Credit Cards by Age
This article will break down the best credit cards by age. First, we will discuss about the age bracket. Then, will discuss about the types of cards you should acquire. Then, the annual fee, followed by the number of cards I expect you to have depending on your age bracket where you fall.
2.0 Below the Age of 18 years
The first age bracket is under 18. Technically, if you are under 18, you cannot get a credit card. However, this applies to someone over 18 who might have children, friends, or relatives under 18. And they are thinking of them and looking for their financial success. Because, as an under 18, the only way for you to get a credit card and the type of credit card you can get is to get added as an authorized user to someone over 18.
This is a powerful strategy that some rich parents use to set their kids up for financial success. For instance, Little Johnny turns 18 and already has a 700-credit score. How is that possible? That’s because Johnny’s parents added him as an authorized user when he was 15 or 13, and he was able to inherit some of his parents’ good credit. Therefore, when he was going to apply for his individual cards, he already had a really strong credit profile, giving him a head start in his financial journey.
Caution:
- If you add someone as an authorized user, remember that they are 100 percent not responsible for the debt. That means you give them the card, and if they charge $10,000, they never have to pay it back because it flows to you, and you are going to be responsible.
- Various banks have different age requirements for adding an authorized user. For example, Amex will allow you to add someone as an authorized user at age 13, whereas Discover will not let you add them until they are 15.
- Next, we now have an annual fee for authorized user cards. That is not applicable because, as the card recipient, you do not necessarily have an annual fee, but there is a fee to add and authorize users, which varies from free to $75 per card or more.
What exactly should you do if you are the recipient of the card and are under 18?
You are supposed to start figuring out how these credit cards work. I was fortunate enough that my parents added me as an authorized user, and they drilled it into my head that we pay our credit cards 100 percent and at a very early age, maybe 17,18 or so. I knew if I used the money on the credit card, I was supposed to pay it back.
Therefore, if you are someone giving a child or person under 18 a credit card to be an authorized user in your account, start teaching them how to manage your credit profile efficiently. This early financial education is crucial and can set the foundation for responsible financial management. Likewise, if you are under 18, take it as a learning experience and a chance to start your financial journey on the right foot.
3.0 Between the Age of 18 to 21-Year-Old
The second bracket is 18 to 21 years old. The best credit card for people aged 18 to 21 depends on their income and what they do as a source of income. Remember that you must pay your credit bills on time and in full. In this age group, it is the most critical time not to rack up any unnecessary debt, with credit card debt being one of them. Unnecessary debt includes high-interest loans, luxury purchases, and overspending on non-essential items.
The two types of cards you will be looking at are either students credit cards or secured credit cards, assuming that you were not fortunate enough to be added as an authorized user when you were under 18 to someone with a strong credit profile. Student and secured credit cards benefit those with limited or no credit profile because anyone can get approved.
3.1 Secured Credit Card
This is the type of credit card in which you put down some of the deposit amount in the credit, and then you are given equal credit to the deposit. For example, if you put down a $200 deposit, it is equivalent to having a credit limit of $200, and you can use it, spend it, pay it all, and pay it off anytime. Anytime you cancel the card, you will get your deposit back. In addition, if at any time you graduate from a secured card to an unsecured card, you will get your deposit back, but you will still have an available credit limit.
The best credit card in this segment is the Discover secured credit card. With Discover unsecured credit card, you get 2% cash back for spending at gas stations or restaurants up to $1000 of spending per quarter, and you will get 1% cash back on all your other purchases in your first year.
They will give you double your money back, you are going to get 4% and 2% respectively. After seven months, they will start automatically examining your profile to see if you can graduate from this secured card, return your deposit, and give you an unsecured card. This process is designed to help you build your credit and transition to an unsecured card, giving you more financial freedom and opportunities.
3.2 Student Credit Cards
Student cards are the best Credit Card for the ages of 18 to 21. These cards help to improve your credit profile. A good example is the Chase Freedom student card; this card comes with a $50 sign-on bonus just for making a first purchase within the first three months. This card has a 1% cash back on everything, no limit. For every year, the card is in good standing, meaning you’re making your payments on time in full; you will get 20 dollars. After five months of on-time payments within a 10-month window, they will automatically consider you for a credit limit increase.
Looking at these cards, the annual fee in this age bracket is $0. This age bracket aims to get comfortable with how a credit card works inside and out. Do you understand the closing date of your statement? Do you know your due date?
4.0 Between the Age of 22 to 26 years old
The best Credit Card for the age of 22 to 26 has two types of credit cards because this category falls under beginner credit cards and mid-tier travel cards.
4.1The beginner tier of credit cards
In the beginner category, your credit cards are slightly higher elevated in terms of sign-up bonuses and have better tax-back options. The best beginner card in this category is the Citi Custom Cash. This is a phenomenal gas or grocery card. This card will earn you a $200 sign bonus after you spend $1500 in the first six months. You will get 5% cash back on up to $500 paid every month.
4.2 Mid-Tier Credit Card
The early category of cards here are the mid-tier travel cards, sometimes called travel cards. The industry just calls them travel cards because you will get more benefits when using them when traveling, such as booking air flight tickets. Two (2) cards stand out as the best in this category, whereby we have the Build MasterCard and American Express credit cards.
The Build MasterCard is the only card on the list that lets you earn points for rent. With this credit card, you earn points by paying rent, and you can take the points and transfer them to a flight partner or travel partner to have all the funds. This card will earn three excellent dining, two excellent travel, 1x for rent, and 1x for all other purchases.
Another card is the American Express credit card, the American Express goal. This card has a standard bonus of anywhere from 60 to 70 thousand points, depending on when you find it during the year after you spend about $4000 in six months. You can earn four points for every dollar you spend at grocery stores and four points for every value you spend dining out—3x or booking airfare directly with an airline or 3 AMX travel and 1x everywhere else.
The annual fees that you should expect to pay here will range from $0 to 100 and not more than that. The American Express goal is a $250 annual fee. It also comes with credits, specifically a $120 dining credit in a $120 Uber credit. Therefore, it comes with $240 worth of total credit against a 250 annual fee; hence, you effectively pay $10. At this age, category is when you start thinking about optimizing your credit card strategy. T
he number of cards you should possess will be 2 to 3, not counting the ones you’ve had before. The goals for this segment in this age category are when you want to travel and how you want to travel because to get the most value out of a credit card, 1000 points will be in the travel redemption category.
5.0 Age Range of 27 and Above
The best credit card for you by the age of 27 and over depends on where you are in your career development. At this level, the income is increasing, and you have other things going on. You are likely traveling more, and you have more discretionary income. The type of cards in this category is the premium travel in 2 in travel, specifically airline or hotel code rent cards.
The premium travel card in the marketplace is the Capital One Venture X. This card has 75,000 points as a bonus after you spend $4000 in the first three months. In addition, it comes with a TSA pre-check. Instead of taking off a belt and taking on my laptop, I can also walk quickly through security when I get to the airport.
Another best credit card in the premium travel category is the American Express Platinum. Now, this card is not for everyone. However, it is suitable for the first-year sign bonus, ranging from 80 to 125,000 points. The Amex Platinum gives you a lot of benefits, such as a Santa bonus in year one or year two. Another credit card in this age category is the Citi American Airlines card, whereby you can earn points for American Airlines, the most valuable redemption card for partners in the entire credit card game.
Another card is the Chase card, co-branded with Hyatt, enabling you to convert your earned points when you want to access services from the Hyatt hotel. Instead of paying directly to the hotel, you can now pay through the accumulated points on your Chase credit card. The Venture X is a premium travel card; it competes with the American Express Platinum. It competes with the
The difference is that venture X has a $395 annual fee, giving an aggregate total of $400 worth of travel credit. $300 credit to redeem through their travel portal and a $ 100-anniversary credit. That is a high value. On the other hand, the American Express Platinum is a $ 695-a-year card for most people who are taking the credits. You should still pay one to $200.
The number of cards in this category is that you get as many as you need. Take the time to learn how the credit card world works. Take the time to get the optimal sign of bonuses. Get the best redemption, as the goal is to enjoy the points before these points become worth less and less.
6.0 Conclusion
Age brackets can offer helpful insights into credit card journeys but aren’t set in stone. Your unique financial goals and circumstances ultimately dictate where you fall within these stages. Whether you have more cards, fewer cards, or none in a particular age bracket, it’s essential to tailor your strategy to what works best for you. Remember, this is a journey, not a one-size-fits-all approach. Please be careful of your financial habits and life style.
Also read:
6 Best Credit Card for Improving Your Financial Position
8 Best Credit Card for employees in 2025 by Salary Amount
5 Best Credit Card lessons for Beginners Must Learn
10 Capital One Credit Card Benefits to Save You Money
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