Best first credit card for teens

Teens 13–17 · Comparison · Updated October 1, 2026 · LearnLife Editorial

What is a secured credit card for teens?

A secured credit card is a credit card backed by a cash deposit made by the cardholder, which usually equals the credit limit. For example, if a teen deposits $300, the credit limit will typically be $300. This deposit protects the card issuer in case of missed payments. Secured cards report payment history to credit bureaus, helping teens build a credit score when they use the card responsibly.

Teens who are at least 18 years old, or sometimes younger with a cosigner, can apply for these cards. Many issuers require proof of income or a joint account with a parent. Using a secured card teaches financial responsibility because the teen must make monthly payments to avoid interest and late fees. Over time, if payments are consistent and balances stay low, the teen’s credit score improves, opening doors to better credit cards and loans later.

For example, if a teen charges $100 to a secured card with a $300 limit and pays the full balance on time, this positive behavior will be recorded with credit bureaus. This builds credit history that lenders consider when the teen applies for credit in the future.

What is a teen credit card linked to a parent’s account?

A teen credit card linked to a parent’s account is an authorized user card issued to a teen under 18 years old. The parent is the primary cardholder and holds legal responsibility for payments. The teen receives their own card but cannot apply independently. These cards usually do not report to credit bureaus under the teen’s name but focus on teaching spending habits and budgeting.

Parents can set spending limits on the teen’s card, monitor transactions, and receive alerts for purchases. For instance, a parent might allow a monthly spending limit of $100 and receive notifications when the teen spends over $20 at a time. This helps teens practice managing money with supervision and learn how to track expenses.

Some programs also allow parents to make payments and set rules like merchant restrictions. This setup is ideal for younger teens or those new to credit who are not ready to handle bill payment themselves.

How do secured cards and teen-linked cards compare?

This table helps clarify the main differences. Secured cards give teens a credit-building tool but require maturity to pay bills. Teen-linked cards emphasize supervised learning without credit risk.

Who is each option best suited for?

• Secured Credit Card: Suited for teens 16 or older who have or will soon have regular income, such as from a part-time job or allowance. These teens should be ready to manage monthly payments and want to build credit history early. For example, a 17-year-old with a summer job might use a secured card to start building credit while learning responsible money habits.

• Teen Credit Card Linked to Parent: Best for teens 13 to 15 or those new to credit who need close parental oversight. This option helps teens learn how to budget and spend wisely without the risk of damaging credit. Parents can control spending limits and monitor activity, making it ideal when teaching money management fundamentals.

Choosing the right card depends on the teen's maturity and goals. If the goal is credit building, a secured card is typically better. If the goal is skill-building under supervision, a teen-linked card works well.

What questions should teens and parents ask before choosing a first credit card?

Before picking a card, consider these key questions:

1. What is the main goal? Is the priority building credit or learning to manage spending?
2. What is the age requirement? Can the teen apply alone or does a parent need to cosign or serve as the primary account holder?
3. What fees and interest rates apply? Are there annual fees, late fees, or high interest rates that could increase costs?
4. What parental controls exist? Can spending limits be set, and will parents receive alerts to monitor activity?
5. Does the card report to credit bureaus? Will using this card help build the teen’s credit score?
6. What happens if payments are late or missed? Understand the impact on credit and potential fees.
7. How easy is it to switch to a different card later? Will positive history transfer, or will a new account start fresh?

Discussing these questions together encourages an informed decision and clear expectations.

Can teens switch credit cards later?

Yes, switching credit cards as teens grow older and more experienced is common and advisable. For example, after building a solid payment history with a secured card, a teen might apply for an unsecured credit card with better rewards and no deposit requirements.

When switching cards, consider these steps:

1. Compare fees and benefits: Review annual fees, interest rates, rewards, and credit-building features.
2. Check the impact on credit: Keep older accounts open if possible to maintain a longer credit history, which benefits credit scores.
3. Transfer balances carefully: Avoid carrying a balance to prevent interest or fees.
4. Update payment methods: Ensure automatic payments and billing info are transferred to the new card.

Parents and teens should communicate during this transition to choose a card that fits evolving financial goals and responsibility levels.

How can teens apply for these cards?

• Secured Credit Cards: Teens aged 18 or older can apply directly with proof of income and a refundable deposit. Teens under 18 may need a parent to cosign or open a joint account. Application steps often include:

1. Research cards that accept applicants under 18 with cosigners.
2. Gather documents like proof of income or bank statements.
3. Submit an application online or in person.
4. Provide the security deposit, usually via bank transfer or check.
5. Wait for approval and receive the card.

• Teen Credit Cards Linked to Parent: The parent applies for a credit card and adds the teen as an authorized user. Steps include:

1. Parent selects a credit card with authorized user features.
2. Parent contacts the card issuer to add the teen, providing personal info.
3. The teen receives their card and uses it under parent-set limits.
4. Parent monitors spending and payments through online account tools.

Before applying, review all terms and ask the issuer about age requirements, fees, and parental controls to avoid surprises.

What else should teens know about using credit cards responsibly?

Responsible credit card use involves developing habits that protect credit and avoid debt. Teens should:

• Pay the full balance each month: For example, if $50 was charged, pay $50 by the due date to avoid interest.
• Keep credit utilization low: Use no more than 30% of the credit limit at a time. So if the limit is $300, try not to carry a balance over $90.
• Review statements regularly: Check monthly statements for errors or unauthorized charges and report issues promptly.
• Understand penalties: Late payments can cause fees and hurt credit scores, making future borrowing harder or more expensive.
• Use credit as a tool, not extra cash: Only charge what can be paid off to avoid debt.

Learning these skills early lays a foundation for healthy financial habits that last a lifetime.

For more about credit basics and managing cards, check out What Is the Best First Credit Card and Credit cards for teens: a parent’s guide.

Frequently asked questions

Can teens under 18 get a credit card on their own?

Teens under 18 generally cannot apply for a credit card independently due to legal restrictions. They usually must be added as an authorized user on a parent’s account or have a cosigner. Some secured cards allow younger teens with a cosigning adult.

Does using a teen-linked credit card help build credit?

Usually, teen-linked cards do not build a credit history because the account is in the parent’s name. However, some issuers report authorized user activity, which can help build credit if payments are made on time.

How can a teen build credit without earning income?

Teens without income can become authorized users on a parent’s card or have a parent cosign a secured card. Parents can also provide a steady allowance to help teens make payments, teaching money management.

What if I can't pay my credit card bill on time?

Contact the card issuer immediately for options like payment plans or temporary relief. Missing payments can damage credit scores and cause fees. Seek help from a trusted adult or financial counselor if needed.

Are there safer alternatives to credit cards for teens?

Yes, debit cards or prepaid cards designed for teens can limit spending to available funds and avoid debt. These are good options to practice budgeting before moving to credit cards.

How can parents support their teen’s credit education?

Parents can set clear spending limits, review statements together, explain credit concepts, and encourage responsible use. Using a joint or teen-linked card allows monitoring and teaching without full financial risk.