In today’s financial landscape, helping children establish a solid credit foundation early can set them up for future success. While minors under 18 can’t open their own credit card accounts, parents can add them as authorized users to begin building credit. Here are the top five credit cards to consider for building your child’s credit in 2024.
1. Step Visa® Card
Best for Minors Under 18
- Annual Fee: $0
- Rewards: 1% cash back on purchases with linked direct deposit
- Minimum Age: No minimum age requirement
The Step Visa® Card is specifically designed for minors under 18, making it an excellent choice for parents looking to help their children build credit. With no fees and a straightforward rewards structure, this card allows young users to earn cash back while learning about responsible credit use.
2. Discover it® Secured Credit Card
Best for Building Credit
- Annual Fee: $0
- Rewards: 1% cash back on all purchases; 2% at restaurants and gas stations (up to $1,000 in combined purchases each quarter)
- Minimum Age: 15 years old
The Discover it® Secured Credit Card is ideal for teens starting their credit journey. It offers valuable rewards and cashback opportunities. Plus, Discover matches all cash back earned in the first year, providing an excellent incentive for responsible spending.
3. American Express® Green Card
Best for Travel Rewards
- Annual Fee: $150
- Rewards: 3x points on travel, restaurants, and online streaming; 1x points on other purchases
- Minimum Age: 13 years old
For teens interested in travel rewards, the American Express® Green Card is a fantastic option. Although it has an annual fee, the generous rewards structure can lead to significant savings on travel expenses. Parents can add their children as authorized users to help them start earning points early.
4. Bank of America® Cash Rewards Credit Card
Best for Flexible Cash Back
- Annual Fee: $0
- Rewards: 3% cash back in the category of your choice; 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases); 1% on all other purchases
- Minimum Age: No minimum age specified
Bank of America allows parents to add minors as authorized users with no specified minimum age. This card offers flexible cash back rewards, making it an excellent option for families to earn rewards on everyday purchases while helping their children build credit.
5. Citi® Double Cash Card
Best for Flat-Rate Cash Back
- Annual Fee: $0
- Rewards: 2% cash back on all purchases (1% when you buy, 1% when you pay)
- Minimum Age: No minimum age specified
Citi doesn’t specify a minimum age for authorized users, allowing parents to add their children at their discretion. The Citi Double Cash Card offers a straightforward 2% cash back on all purchases, making it easy for teens to understand and maximize rewards.
Conclusion
Adding minors as authorized users on credit cards can be an effective way to help them build credit early. When selecting a card, consider your family’s spending habits, potential rewards, and the educational opportunities each card provides. Remember to set clear guidelines and monitor your child’s spending to ensure responsible credit use.
By choosing one of these top credit cards for kids under 18, you can give your child a head start on their financial journey while teaching them valuable lessons about credit management and financial responsibility.