Your early twenties are the perfect time to start building credit. The credit habits you establish now will follow you for decades, affecting your ability to get loans, cars, apartments, and even jobs. Starting early gives you a huge advantage, time to build a long payment history and recover from any mistakes you make along the way.
Why Starting Credit Early Matters
Credit score is like a financial reputation built over time. The longer your positive payment history, the higher your score. By starting at 18 instead of 25, you're giving yourself 7 extra years of potential positive history.
Early building also means you can afford mistakes. If you miss a payment at 20, you have 45+ years for it to fade and become less important to your score. Miss one at 50, and it's more problematic. Additionally, lenders view young people building credit early as mature and financially responsible, which improves your approval odds for better credit products later.
Our Top 3 Picks
Young adults 18-25 need cards that accept no credit history, charge minimal fees, and report to all three credit bureaus. These three are our top recommendations for getting started.
Self Visa® Credit Card | Annual fee: $25 (first year: $0) | Standout benefit: High approval rates for first-time applicants with no credit history required. Best for: young adults who want their first independent card without needing an existing credit score.
OpenSky Secured Visa | Annual fee: $35 (as of April 2026) | Standout benefit: No bank account or credit check required to apply. Best for: young adults who want a clear, no-surprise path to building credit with a small deposit.
Kikoff Secured Credit Card | Monthly cost: starting at $5/month (as of April 2026) | Standout benefit: Quick approval and automatic credit bureau reporting with low upfront costs. Best for: young adults who want to minimize fees while building a strong payment history.
Terms and conditions apply.
Kikoff Secured Credit Card
Kikoff Secured Credit Card
Kikoff Secured Credit Card works like a debit card & checking account and performs like a credit builder. Build credit with your everyday purchases.
APR
0%
Minimum Deposit Amount
$0
Credit Check
No
Cashback
Yes
Benefit
0% interest. No credit check.
Best Card Types for 18-25 Year Olds
Secured credit cards are the go-to option if you don't have any credit history. You deposit money as collateral, and the card issuer gives you a credit limit equal to your deposit. After 6-12 months of responsible use, you can upgrade to an unsecured card or have your deposit returned.
Student credit cards are another solid choice if you're in college. These cards are designed for students and have lower credit requirements. They often offer rewards or no annual fees, making them practical for building credit while earning small benefits.
Unsecured cards designed for fair credit are worth trying if you don't qualify for student cards. These typically have annual fees and higher interest rates, but they help you build credit if you can't get a secured card approved.
Student Cards vs. Secured Cards
Student cards require you to be a college student, but they often come with better features than secured cards. You typically don't need a deposit, and many have rewards or cash back. The downside is that once you graduate, you might need to switch cards or lose student benefits.
Secured cards work for anyone, whether you're in school or not. They require a deposit but have no ongoing fees besides standard interest if you carry a balance. Secured cards are excellent stepping stones because after building credit, you can graduate to unsecured products. For getting started, read our guide on how to get a credit card at 18.
Building Healthy Credit Habits Young
The habits you develop now determine your financial future. Start with these fundamentals: Make every payment on time, every month, without exception. Payment history is 35% of your credit score, it's the most important factor.
Keep your balance low relative to your credit limit. Try to use only 10-30% of your available credit. If you have a $1,000 limit, keep your balance under $100-300. This shows you can handle credit responsibly.
Pay your full balance each month if possible. Carrying a balance means paying interest, which is expensive and unnecessary when you're building credit. You don't need to carry a balance to build credit, on-time full payments work just as well.
For college students specifically, check out our articles on building credit as a college student and how to build credit fast.
Starting Your Credit Journey
If you're just starting out, open a secured card or apply for a student card. Make small purchases you'd make anyway, groceries, coffee, gas. Pay the full balance immediately after the statement closes. This easy routine builds credit without any risk of overspending.
After 6-12 months of perfect payment history, you'll be eligible for better credit products. You might get approval for an unsecured card, a secured card issuer might graduate you automatically, or you might qualify for cards with better rewards.
Resist the temptation to apply for multiple cards at once. Each application creates a hard inquiry that temporarily hurts your score. Space card applications out by 3-6 months, which gives you time to establish payment history between applications.
Long-Term Benefits
People who start building credit in their early twenties often have excellent credit by their thirties. A strong credit score opens doors: better interest rates on loans, higher credit limits, approval for premium cards, and sometimes even better job offers since some employers check credit.
The effort you put in now, making on-time payments and keeping balances low, builds momentum. By your thirties, maintaining good credit becomes automatic, and you'll have decades of payment history supporting an excellent score.
Conclusion
Your early twenties are the ideal time to start building credit. Whether you choose a secured card, student card, or fair-credit card, the key is starting now. Make on-time payments, keep utilization low, and avoid carrying balances. The habits you build today will give you financial advantages for life. Starting early isn't just about credit, it's about establishing financial responsibility that will serve you for decades.
Frequently Asked Questions
What's the best first credit card for an 18-year-old with no credit?
A secured card is typically the best choice. It requires a deposit but works reliably for anyone, and you can graduate to unsecured cards after 6-12 months of on-time payments.
Do I really need a credit card to build credit?
A credit card is the easiest way, but not the only way. You could also become an authorized user on someone else's card or use a credit builder loan. However, a card is usually the simplest option for young adults.
How much should a young adult spend on their first credit card?
Spend only what you'd spend anyway and can pay off immediately. $100-300 per month is plenty to establish payment history. You don't need to spend a lot, consistency matters more than volume.
Will student loans help build my credit?
Yes, student loans build credit just like other debt. However, they're much more expensive than credit cards if you're trying to build credit on purpose. Use credit cards instead if you can.
How long before I can get a 'normal' credit card after a secured card?
Most people graduate after 6-12 months of perfect payment history. Some card issuers convert secured cards to unsecured automatically. Others require you to apply for an unsecured card separately. Either way, you'll be ready for better options within a year.
