Best Credit Cards for Kids
At a Glance
Children? Credit cards? Sounds like a recipe for disaster—or a mediocre comedy from the early 90s—but teaching your kids about fiscal responsibility from an early age is essential. Credit cards for kids in 2023 offer a unique opportunity to teach monetary responsibility and prepare them for their future. By becoming a designated user on a parent’s credit card, kids can learn how to manage money, track expenses, and build credit history. These cards come with spending controls and parental oversight, ensuring responsible usage. They provide a practical way for kids to understand the value of money, make purchases, and develop budgeting skills. With the right guidance, credit cards for kids can be a valuable tool in shaping their financial literacy and setting them up for a successful financial journey.
In this article, you’ll learn:
of parents who make more than $80,000 have a child with a credit card, compared to 9% in the $40,000-$80,000 range and 5% in the under-$40,000 category. 13%
Comparing the best credit cards for kids
| Credit Card | Rewards Rate | Welcome Offer |
|---|---|---|
| Chase Freedom Unlimited® | 3% cash back on dining and drugstore purchases, 5% on travel purchased through Chase Ultimate Rewards, and 1.5% back on all other purchases | $200 cash back after spending $500 in the first three months, 5% cash back at gas stations and grocery stores in the first year, up to $12,000 spent |
| Capital One SavorOne Rewards for Students | 3% cash back on dining, entertainment, popular streaming services and at grocery stores, plus 1% on all other purchases | $50 cash bonus once you spend $100 on purchases within 3 months from account opening |
| U.S. Bank Cash+ Secured Visa | 5% cash back on two chosen spending categories (up to $2,000 spent per quarter) and on prepaid air, hotel, and car reservations booked directly in the Rewards Travel Center, 2% cash back in your choice of one everyday category, 1% cash back on all other purchases. | None |
| Bank Of America Cash Rewards Credit Card for Students | Earn 3% cash back in the category of your choice, 2% back at grocery stores and wholesale clubs, and 1% back on all other purchases. | $200 cash rewards after spending $1,000 within 90 days of account opening |
| Capital One Platinum Credit Card | None – designed for credit building | None |
Close look at credit card for kids
Chase Freedom Unlimited®
Rewards rate: 3% cash back on dining and drugstore purchases, 5% on travel purchased through Chase Ultimate Rewards, and 1.5% back on all other purchases.
Yearly fee: $0
Intro APR: 0% Intro APR on Purchases and Balance Transfers for 15 months.
Regular APR: 20.49% to 29.24% variable
Signup bonus: $200 cash back after spending $500 on purchases within the first three months. Also, earn 5% cash back on grocery and gas station purchases in the first year, up to $12,000 spent.
Our verdict: The Chase Freedom Unlimited® card is an excellent choice with its innovative sign-up bonus, generous cash back rates, and no yearly fee. With a 0% introductory APR on purchases and balance transfers for 15 months, it provides added value. The rewards program offers high earning potential, with no limits on how much you can earn. Converting Chase Ultimate Rewards® points to valuable travel rewards is a notable feature. However, the variable APR range and foreign transaction fee should be considered.
Pros:
- Innovative sign-up bonus, travel rewards, robust rewards program, great intro APR, no yearly fee.
Cons:
- Foreign transaction fee.
- The Chase Freedom Unlimited® currently offers a sign-up bonus of 5% cash back at gas stations and grocery stores (up to $12,000 spent in the first year). It provides high cash back rates on travel, dining, and drugstore purchases.
- The card has no yearly fee, making it a cost-effective option. It also offers a 0% intro APR on purchases and balance transfers for 15 months. However, it is important to note the variable APR and the potential foreign transaction fee.
Apply now: Chase Freedom Unlimited®
Learn more: Chase Freedom Unlimited® Credit Card Review
Capital One SavorOne Rewards for Students
Rewards rate: 3% cash back on dining, entertainment, popular streaming services and at grocery stores, plus 1% on all other purchases.
Yearly fee: $0
Intro APR: N/A
Regular APR: 19.99% – 29.99% variable
Signup bonus: $50 cash bonus once you spend $100 on purchases within 3 months from account opening
Our verdict: The Capital One SavorOne Rewards for Students offers a solid cash back rewards program with a competitive 3% cash back on popular categories, along with 1% back on all purchases. The limited-time welcome offer and the absence of a yearly fee or foreign transaction fees make this card an attractive option for students. However, it is worth noting that the card does not provide an introductory APR offer.
In summary, if you are a student looking for a credit card to earn cash back rewards while building your credit, this card is a compelling choice. Just ensure that you understand and manage the variable APR associated with the card.
Pros:
- Cash back rewards, limited-time welcome offer, no yearly fee, no foreign transaction fee.
Cons:
- No intro APR offer.
- This card offers one of the highest unlimited cash-back rates in the student credit card category. With no yearly fee and no foreign transaction fee, it presents a strong offer for students. Although it does not have an introductory APR offer, it provides a $50 welcome bonus.
- The card offers an early spending bonus of $50 when you spend $100 in the first three months. Additionally, it provides special benefits such as 10% cash back on purchases made through Uber & Uber Eats, complimentary Uber One membership statement credits.
- With no hidden fees and the ability to lock the card in the Capital One Mobile app if lost or stolen, it offers convenience and security.
- Cardholders can also earn up to $500 a year by referring friends and family who get approved for a Capital One credit card.
- This card is exclusively for students, so it might not be ideal for families with younger children.
Apply now: Capital One SavorOne Rewards for Students
U.S. Bank Cash+ Secured Visa
Rewards rate: 5% cash back on two chosen spending categories (up to $2,000 spent per quarter) and on prepaid air, hotel, and car reservations booked directly in the Rewards Travel Center, 2% cash back in your choice of one everyday category, 1% cash back on all other purchases.
Yearly fee: $0
Intro APR: N/A
Regular APR: 29.24% variable
Signup bonus: N/A
Our verdict: The U.S. Bank Cash+ Secured Visa card stands out as an excellent option for individuals who are starting their credit journey and want to earn rewards. Unlike most secured credit cards, it offers attractive cash back rates on selected spending categories, providing an opportunity to maximize rewards. With no yearly fee and the potential to ‘graduate’ to an unsecured credit card, it offers long-term value. It’s also highly customizable – you get to choose where you earn bonus cash back. Nevertheless, it is important to consider the minimum deposit requirement and credit line cap when deciding to open this card. Overall, the U.S. Bank Cash+ Secured Visa is a compelling choice for those looking to build credit and earn rewards simultaneously.
Pros:
- High cash back rates, opportunity to earn rewards with a secured credit card, no yearly fee, potential to ‘graduate’ to an unsecured credit card.
Cons:
- Requires a minimum deposit of $300, credit line capped at $5,000
- The U.S. Bank Cash+ Secured Visa is an ideal choice for individuals starting their credit journey with limited or poor credit history. Unlike most secured credit cards, it offers generous cash back rewards.
- Cardholders can earn 5% cash back on the two chosen spending categories and 2% cash back on select categories, with 1% cash back on all other purchases.
- With no yearly fee and the possibility of graduating to an unsecured credit card, this secured card provides excellent long-term value.
- However, it requires a minimum deposit of $300 and has a credit line cap of $5,000.
Apply now: U.S. Bank Cash+ Secured Visa
Bank of America Cash Rewards Credit Card for Students
Rewards rate: Earn 3% cash back in the category of your choice, 2% back at grocery stores and wholesale clubs, and 1% back on all other purchases.
Yearly fee: $0
Intro APR: 0% Intro APR for 15 billing cycles on purchases and balance transfers made within the first 60 days of account opening.
Regular APR: 18.24% to 28.24% variable.
Signup bonus: $200 cash back after spending $1,000 within the first 90 days of account opening.
Our verdict: The Bank of America Cash Rewards Credit Card for Students is an excellent choice for students. With its competitive sign-up bonus, bonus cash back options, no yearly fee, and 0% intro APR offer, it provides excellent value. While the foreign transaction fee and limit on bonus cash back ($2,500 in combined purchases each quarter) are slight drawbacks, the overall benefits outweigh them. This card offers an opportunity for students to earn rewards, build credit, and enjoy financial flexibility.
Pros:
- Competitive sign-up bonus, bonus cash back in a category of your choice, no yearly fee, 0% intro APR offer.
Cons:
- Foreign transaction fee, limit on bonus cash back.
- The Bank of America Cash Rewards Credit Card for Students is an exceptional option for students. It offers a generous cash back program and an attractive sign-up bonus.
- With no yearly fee and a 0% intro APR offer, it provides financial flexibility. However, it is important to know about foreign transaction fee and the limit on bonus cash back.
Apply now: Bank of America Cash Rewards Credit Card for Students
Capital One Platinum Credit Card
Rewards rate: N/A
Yearly fee: $0
Intro APR: N/A
Regular APR: 30.74% variable
Signup bonus: N/A
Our verdict: The Capital One Platinum Credit Card stands out among its competitors for its focus on eliminating nuisance fees such as yearly fees and foreign transaction fees. While it does not offer rewards or an introductory APR, it is a solid choice for individuals looking to build or improve their credit score. With features like automatic credit limit increases and $0 fraud liability, it provides peace of mind and convenience. The card also offers access to online banking and contactless payment options.
Pros:
- No yearly fee, low credit score requirement, automatic credit limit increase, no foreign transaction fee.
Cons:
- No rewards, no 0% intro APR offer.
- With no yearly fee and a low credit score requirement, it offers accessibility to a wide range of individuals. It’s perfect for building credit.
- The card also provides features such as automatic credit limit increase and $0 fraud liability, ensuring convenience and peace of mind. While it does not offer rewards or an introductory APR, it serves as a valuable tool for building credit responsibly.
- With online banking, mobile app access, and contactless payment options, it caters to modern banking needs.
Apply now: Capital One Platinum Credit Card
How can credit cards benefit kids?
Credit cards can offer several benefits for kids when used responsibly. They can teach fiscal responsibility, budgeting, and money management skills. By having their own credit card, kids can learn how to track expenses, make payments, and understand the importance of paying bills on time. Additionally, credit cards can provide a level of convenience and security for kids when making purchases or traveling. Being an authorized user on a parent’s credit card can also help kids start building their credit history at an early age, setting them up for a stronger financial future.
How to build your kids’ credit using credit cards?
Building your kids’ credit using credit cards can be done by adding them as authorized users on your account. This allows them to benefit from your credit history and responsible card usage. As they become authorized users, make sure to monitor their spending, set spending limits, and discuss responsible credit card use with them. It is important to emphasize the importance of paying bills on time and maintaining a low credit utilization ratio. Over time, this positive credit activity can help establish a solid credit history for your kids, which will be valuable when they apply for loans, mortgages, or credit cards on their own.
Methodology
To determine the best credit cards for kids, a thorough analysis was conducted, considering numerous factors such as rewards programs, yearly fees, APRs (Annual Percentage Rate), credit requirements, and additional benefits. The evaluation also considered expert opinions, customer reviews, and the reputation of the issuing banks. The chosen credit cards were those that offered suitable features for kids, including rewards programs, low fees, and options for building credit. However, it is important to note that everyone’s financial situation and needs may vary, so it is recommended to carefully review the terms and conditions of any credit card before applying.
The product information provided here is based on research conducted up to a specific date and may have changed. For the latest and most accurate information, we recommend you to visit the respective card’s website before proceeding.
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