The most effective bank cards for 18-year-olds

Did you know you can add your kids as authorized users to credit cards that you already have to help them establish and build their own credit?

It’s a great way to begin discussing financial responsibility and helps prepare your kids for opening their own independent card accounts.

Granted, every family is different, but if you’ve been talking about finances with your kids as they edge closer to adulthood and they’re asking you which credit cards are best for starters, this is a great place to begin.

Related: How to build credit

Notice that you won’t see any of TPG’s top picks like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve® here.

In fact, most of the cards on this list aren’t going to have huge welcome offers or stellar perks that the more premium cards offer. That’s because this is a marathon, not a sprint, so it’s going to take time to build up your kid’s credit to the point where they will qualify for cards with better rewards that typically require excellent credit scores and lengthier credit histories.

Because the average age of accounts is so important to your overall credit score, you’ll want to help your child pick at least one or two options that are no-annual-fee cards that they can keep long-term. Having one or two older cards will help their credit score down the road.

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Related: Best first credit cards

Unique perk: This card is exclusively for students at a four-year university, community college or other higher education institution. Upon graduation, you upgrade to the Capital One Savor Cash Rewards but still get to keep the same rewards and benefits.

Capital One Savor Cash Rewards Credit Card

Welcome bonus: Earn $250 cash back after spending $500 within the first three months from account opening.

Rewards rates: This card earns the same rates as the Capital One Savor Student Cash Rewards card — 8% cash back on Capital One Entertainment purchases, 5% cash back on hotels and rental cars booked via Capital One Travel (terms apply), 3% back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and select streaming services on top of earning 1% cash back on all other purchases.

Unique perk: The Capital One Savor Cash Rewards card earns a healthier welcome bonus than its student-friendly counterpart while still offering solid cash back rates in all the same categories. This way, students who have graduated and grown to love their Savor Student Cash Rewards card can continue to earn rewards the same way well after they’ve accepted their diplomas.

Chase Freedom Unlimited

Welcome bonus: Earn an additional 1.5% back on all purchases in the first year, up to $20,000.

Rewards rates: Earn 5% cash back on travel purchased through Chase Travel, 3% cash back on dining at restaurants (including takeout and eligible delivery services) and on drugstore purchases and a solid 1.5% cash back on all other purchases.

Unique perk: The Chase Freedom Unlimited is a strong option for beginners, as you can potentially turn your cash-back rewards into valuable Chase Ultimate Rewards points if you apply for a points-earning card from Chase, such as the Chase Sapphire Preferred, in the future.

Discover it Cash Back

Welcome bonus: None, but Discover will match all cash back earned in your first year.

Rewards rates: Earn 5% cash back on purchases in select rotating categories on up to $1,500 in purchases (when you activate) and 1% cash back on everything else.

Unique perk: Besides a cash back match at the end of your first year, the rewards you earn with the Discover it card never expire. Cardholders also have the option to redeem their cash back starting at $1.

OpenSky Secured Visa Credit Card

Welcome bonus: None.

Rewards rates: Earn up to 10% cash-back rewards on everyday purchases at over 40,000 retailers.

This is a secured credit card, which means you’ll have to deposit money (as little as $100) to your account, which will define your credit limit. This is somewhat counterintuitive, but it allows you to make payments on the card that are reported to the credit bureaus to help build your credit score. Once you build up your credit score, the security deposit is fully refundable, and you can graduate to other credit cards that earn points, miles or cash back rewards.

Note that there’s a $35 annual fee with the OpenSky card.

Unique perk: There’s no credit check needed. To apply, all you need is an official form of identification and to submit your refundable security deposit (which will define your monthly credit limit).

Related: How old do you have to be to get a credit card?

The Credit Card Accountability Responsibility and Disclosure Act of 2009 changed a few things about how and when people could get credit cards. Most of the changes introduced were positive for consumers, including giving individuals enough time to pay their bills and making it easier to pay off debt.

Another change from the Credit CARD Act? Legal adults — think 18-year-olds — can no longer sign up for a credit card without proof of independent income.

This effectively eliminated the whole university campus “sign up for this card using your parents’ income and get a free T-shirt” situation that used to exist.

However, if your 18-year-old is in college, they can sign up for a student credit card instead. If your 18-year-old isn’t attending a two- or four-year college, they can opt to open a secured credit card with a refundable security deposit instead.

Related: Best credit cards for college students

Another solid option is to add your children as authorized users until they can qualify for other rewards cards on their own, which gives them your credit card with their name attached to it.

You’re responsible for paying off all their charges, so most parents only allow their children to use their cards for emergencies. But it’s a great way to start teaching your children the importance of finances early on, plus you’ll pool all their points into your account as the primary cardholder.

Some issuers have age requirements for authorized users (American Express requires your child to be 13 years old), while others don’t have any restrictions whatsoever (Capital One and Chase, for example).

Theoretically, this means you can add your child as an authorized user, even as an infant. You’ll just have to consider the right time for your child to be added as an authorized user, but this can happen well before they turn 18 years old.

Related: Best credit cards for authorized users

Another important reason to start signing up your kids for credit cards when they turn 18 (or add them to your credit cards as authorized users) is that the average age of accounts is one of the biggest factors in determining your credit score.

So acquiring — and keeping — a card when you’re young can really give a boost to your credit score as you get older.

Related: How closing a card impacts your FICO score

One final note — watch out for targeted mailers. My 18-year-old daughter has been targeted with mailers from American Express for the Delta SkyMiles® Gold American Express Card. But, sadly, I have learned in the past that for most credit card issuers, the marketing departments don’t always talk to the issuing and underwriting departments.

Even with these targeted mailers, it’s unlikely that my daughter, with limited credit, job history and income, would be approved for a card like the Delta SkyMiles Gold, which typically requires good or excellent credit.

This is why it makes the most sense to start small — consider the cards listed above — before your child starts applying for other credit cards.

Related: How can I get a higher, targeted credit card introductory bonus?

Related: How to use your credit card responsibly as a college student