Best Credit Cards for Kids for 2024

Credit is a subject kids often don't learn enough about until later in life. You can give your kids a big head start by helping them get a first credit card while they're young.

Not only can the best credit cards for kids build credit, but they're also a great tool for learning how to use credit.

Our featured picks

• Best credit card for adding your child as an authorized user: Chase Freedom Unlimited®
• Best card for young adults building credit: Discover it® Student Cash Back (see rates and fees)

How to pick the best credit card for kids

If you're picking a credit card for a child who's younger than 18, the card will be more of a joint venture. Since only adults can open credit cards, you'll need to apply for it yourself. Then, you can add an authorized user to your credit card so your child gets a card of their own. Depending on the card, you may also be able to set spending limits.

Here's how to choose a credit card in this situation:

Step 1: Check your credit score

Your credit score is one of the biggest factors in determining which credit cards you qualify for. If you have a score in the good credit or excellent credit ranges, you should be eligible for most card offers, including the best credit cards. With a lower score, you'll need to find cards that fit your credit profile.

LEARN MORE: How to Find Out Your Credit Score

Step 2: Decide on the features you want

Since any credit card can help your child build credit, it makes sense to select one with features you like. Here are a few popular perks you may want to look for:

• No annual fee (highly recommended if you don't want to pay extra for your kid's credit card)
• Rewards such as cash back or travel points
• 0% intro APR on purchases, balance transfers, or both
• Sign-up bonus for new cardholders
• Acceptance rates (Visa and Mastercard are more widely accepted internationally than Discover and American Express)

Step 3: Compare credit cards and apply

Once you've homed in on a few cards you like, pull up all of their features to see how they measure up to each other. Figure out which you like the most, then fill out an application.

REVIEW FEATURES SIDE BY SIDE: Compare Credit Cards

Can a child open a credit card?

No -- the primary cardholder on an account must be at least 18 years old. However, it is possible for a younger child to be an authorized user on an adult's credit card. Some parents add their children as authorized users to their credit cards so the kids can start building credit at a young age.

Can my kids build credit with a credit card for kids?

Yes, kids can build credit with any credit card. They're all equal in this regard. Although certain credit cards are well-suited for kids because of their features, there aren't any cards that build credit better or faster than others.

What's important is how the cardholder uses the credit card. If the cardholder pays the bill on time and doesn't run up large balances, then their credit score increases. This is an advantage of giving your kid a credit card over a debit card from a checking account or a prepaid card.

Should I add my child as an authorized user on my credit card?

If you plan to add your child as an authorized user on your own credit card account, there is one caveat to mention. In general, credit card companies report card activity on the authorized user's credit history. Your credit card activity is normally reported on your kid's credit history if you add them as an authorized user.

While that's the general rule, some card issuers only report activity to the credit bureaus if the authorized user reaches a minimum age requirement, such as 15, 16, or 18 years old. Others don't have an age minimum. If you're trying to help your kid build credit, check with the credit card issuer first to see if the card activity would be reported on their credit file.

LEARN MORE: Does Being an Authorized User Build Credit?

How to build your kids' credit with a credit card for kids

Building credit is mainly about building a few consistent personal finance habits. If you have a high credit score already, then these habits won't be new to you. Here's how you can help your kids attain high scores of their own:

Pay the credit card on time

Whether you or your child pays the bill, make sure it gets paid on time. Payment history is the biggest credit-scoring factor. Each on-time payment is recorded on your child's credit file and helps raise their score. Consider showing your child how to connect their bank account and make payments, so they learn how to pay back what they borrow.

It's also worthwhile to pay the full credit card balance every time. By paying in full, you avoid interest charges and credit card debt -- a valuable lesson for kids to learn at a young age. Explain to them that they should never spend more on credit than they have in their checking account or savings account.

Avoid large balances

Your credit card balances compared to your credit limit is called the "credit utilization ratio." This factor also has a considerable impact on their credit score.

Your child's credit score benefits if they keep their credit utilization below at least 30% -- and below 20% is ideal. So, if the card has a limit of $500, they should keep the balance below $100, or at most $150, at all times.

Keep their first credit card open

One of the reasons it helps to get started with credit early in life is that it allows you to build a lengthy credit history. A kid who gets a first credit card as an authorized user at 15 could have 10 years of credit history by the time they're 25. An adult who got their first card at 23 would only have 2 years of credit history at the same age.

A credit card only builds credit history as long as it remains open. It's important to keep older cards open, and especially your kid's first credit card, whether it's one they got on their own or as an authorized user on your account. This is also why a no annual fee credit card is a great first credit card.

Teach them about credit

You can get your kids started with credit, but eventually, they'll need to manage it on their own. As they get older, explain to them how credit cards work and the factors that determine their credit score, and offer money management tips they can use with their credit card and bank account. These lessons on financial literacy can pay dividends as they become more independent.

LEARN MORE: The Complete Guide to Understanding Your Credit Score

Compare the best credit cards for kids