The 3 Best Credit Cards for Teens in 2024

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.

• 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.

• 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.

• 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.