The Best Credit Card Offers for Young People (Update)

In late 2007 I first published this post entitled the “best credit cards for young people.” I decided to update it periodically, as things continue to change dramatically in the credit card lending market. Many of the cards that were the best deals a year ago have jacked their rates—or stopped accepting new cardmembers altogether.

With good credit, it’s still possible to get a card that offers valuable rewards and/or a low interest rate. As card issuers adjust to both the new credit market and the 2009 CARD Act, which restricts certain “dirty tricks” credit card companies loved to play on consumers, expect to see more cards with annual fees and higher interest rates.

Due to these changes, it is harder to get a credit card today than it was a year ago. You’ll need good credit to be approved for most of these cards. Now more than ever, I recommend you check your credit history and/or invest in credit monitoring to help you recognize the behaviors that will help you build your credit in the long run.

Here are my latest credit card picks:

Best overall credit card (Good APRs and rewards)
Best credit card for those new-to-credit and students
Best credit card for poor/average credit

Best overall credit card: Discover More Card

If you’ve never had a Discover Card, you might not understand why you would pick one over a Visa or MasterCard, for example. The reason is simple: the best combination of regular interest rates, unlimited cash back rewards, and 0% interest rates. Put simply, no other credit card offers all three at once. Most cards make you sacrifice one to get the other. (For example, many cards give you great cash rewards but a high regular APR and no 0% intro APR).

The Discover More Card features a regular 10.99% APR, a 0% intro APR for six months on purchase and one year on balance transfers, and unlimited 1% cash back on every purchase. Apply for the Discover More Card now »

Best credit card for average or poor credit: Citi Forward Visa Card

The Citi Forward Visa Card features no annual fee, a 0% APR for six months on purchases and balance transfers, and a point reward system. The cool thing about this card, however, is that it actually rewards you for paying on time and staying within your credit limit with 0.25% APR reductions for every three months of responsible account use. Apply for the Citi Forward Card now »

Best credit card for average or poor credit: AmericanDreamCard MasterCard

“The American DreamCard™ MasterCard® offers a generous credit line and has an award winning reward program. With every net $1.00 spent on your card, you receive an entry to win the large monthly American DreamCard™ cash jackpot. There is a new winner every month!*” Apply for the AmericanDreamCard MasterCard now »

Building good credit can be a catch-22. You can’t get a decent credit card without good credit, and you can’t get good credit without a credit card! If you have no credit at all, or damaged credit (from a charge-off or bankruptcy), you may need to apply for a secured credit card to establish healthy credit. With a secured card, you must deposit cash into a bank account that becomes collateral for charges you make on the card. Learn more about secured credit cards.

Not decided yet? Review, compare, and apply for over 100 leading credit cards at CreditCards.com »

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