Building Credit as a Youth: Strategies and Recommendations

Young people can start building credit early by using secured credit cards, which require a cash deposit as collateral. Two top options are the Capital One Quicksilver Secured Cash Rewards Credit Card and the Capital One Platinum Secured Credit Card. Student credit cards are also available for college students, such as the Capital One Savor Student Cash Rewards Credit Card and Discover it Student Cash Back, which offer cash-back rewards and protections on eligible purchases.

Secured credit cards have emerged as a valuable tool for young individuals to establish credit history early. These cards require a cash deposit as collateral, which is refundable upon meeting certain conditions. Two notable options for young people include the Capital One Quicksilver Secured Cash Rewards Credit Card and the Capital One Platinum Secured Credit Card.

The Capital One Quicksilver Secured Cash Rewards Credit Card is particularly appealing to young adults with limited or no credit history. It accepts applicants who are at least 18 years old, including those with poor credit scores. The card offers 1.5% to 5% cash back on purchases and reports to the credit bureaus monthly. There is no annual fee, but a refundable security deposit of at least $200 is required. Applicants must also demonstrate sufficient personal income to cover minimum monthly payments [1].

Another option is the Capital One Platinum Secured Credit Card, which also requires a refundable security deposit starting at $49 for a $200 credit line. This card offers 2% cash back at gas stations and restaurants, and 1% on other purchases. It also provides automatic reviews every 7 months to assess the possibility of transitioning to an unsecured line of credit and returning the deposit [2].

For college students, student credit cards can be more advantageous. These cards typically do not require a security deposit and offer generous rewards. Examples include the Capital One Savor Student Cash Rewards Credit Card and the Discover it Student Cash Back. These cards provide cash-back rewards on eligible purchases and often come with additional protections and benefits [1].

Secured credit cards are particularly beneficial for individuals under 18 who cannot open a credit card account in their own name. They can build credit as an authorized user on a friend or family member's account. When they turn 18, they can apply for their own credit card with a security deposit. This strategy allows them to begin building credit early and establish a positive credit history [1].

In summary, secured credit cards offer young people a practical way to start building credit. By choosing cards like the Capital One Quicksilver Secured Cash Rewards Credit Card or the Capital One Platinum Secured Credit Card, they can establish a solid foundation for financial responsibility. For college students, student credit cards provide additional benefits and flexibility.

References:
[1] https://wallethub.com/answers/cc/secured-credit-card-for-teenager-2140779800/
[2] https://www.lendingtree.com/credit-cards/review/capital-one-quicksilver-secured/