Why Would You Want To Give Your Teen A Credit Card
Youll also help her build her credit profile. If your teen waits until after college to dip her toes into credit, she might have difficulty securing a car loan or lease.
That said, credit cards for teenagers do come with risks. Before giving your teen the keys to the financial kingdom, make sure you take the following steps:
Now lets dive into the different options you have for credit cards for teenagers.
What Are The 6 Best Credit Cards For Teenagers
When youre looking for a credit card for your teen, its important to consider the fees. Ideally, youll find a card without an annual fee, so your teenager can easily keep the card for a long time.
Here are two secured and four unsecured teenage credit cards all of which are free of annual fees.
A balance transfer is a way to move debt from one card to another with the goal of saving money on interest.
- Intro Balance Transfer APRSee Terms for See Terms
- Regular Balance Transfer APRSee Terms
- Balance Transfer FeeSee Terms
Capital One Venture X
- Rewards: Earn 10X miles per dollar on hotels and car rentals booked through Capital One Travel, 5X miles on flights booked through Capital One Travel, and 2X miles per dollar spent on everything else
- Sign-up Bonus: Earn 100,000 bonus miles after spending $10,000 on purchases in the first 6 months
- Annual Fee: $395
The Capital One Venture X offers a generous early spend bonus after qualifying for the card. The miles earned from this bonus can be used in the Capital One travel portal for flights, hotel stays, and more. Or you can transfer them to over a dozen travel partners.
To help fulfill the requirements of the welcome offer, it might make sense to start using your Venture X for all eligible purchases once you receive it. This card has no bonus categories, which means you’ll earn the same 2X rate on all your spending.
For rewards credit cards, this is one of the highest rates out there. This equates to being able to earn a large number of rewards at all times without any specific categories to worry about. Not many premium travel cards offer this same type of convenience.
Premium Travel Rewards & Perks
- Has annual fee
- Earn 100,000 bonus miles after spending $10,000 on purchases in the first 6 months
- 10X miles per dollar on hotels and car rentals booked through Capital One Travel, 5X miles on flights booked through Capital One Travel, and 2X miles per dollar spent on everything else
Also Check: Platinum First Premier Credit Card
You Must Be A Costco Member To Apply
Before you can apply for the Costco Anywhere Visa® Card, you must be a current member of Costco warehouse. When you apply for the store card, the first piece of information you must enter is your Costco membership number.
The annual cost is $60 for a Gold Star membership or $120 for a Gold Star Executive membership, plus sales tax, where applicable. Gold Star members get more discounts and perks on Costco services and a 2% annual reward up to $1,000 on eligible purchases at Costco and Costco Travel. These perks are in addition to any cashback rewards you earn by making purchases using the Costco Anywhere Visa® Card.
With no annual fee outside the cost of Costco membership, the Costco Anywhere Visa® Card could be a great option. But if you are already a warehouse member at BJ’s or Sam’s Club, you have to decide if the additional membership cost is worth it.
Is Costco Citi Credit Card Worth It
With an earning rate of nearly 2 cents for every dollar you spend, the Costco Anywhere Visa stands out as one of the most lucrative no annual fee cash back cards on the market. But unlike many of its competitors, the Costco Anywhere card doesnt offer a promotional APR. It also doesnt offer as much flexibility.
Recommended Reading: Td Bank Visa Gift Card Balance Checker
Costco Anywhere Visa Business Card
|$0 with a paid Costco Membership|
|Rewards Earning Rate||4% on eligible gas on the first $7,000 per year in purchases, 3% on restaurant and eligible travel, 2% at COSTCO, and 1% on all other purchases.|
|Cash Advance APR|
|Either $10 or 5% of the amount of each cash advance, whichever is greater.|
The Costco Anywhere Visa Business Card is not one of our top-rated business credit cards. You can review our list of the best business credit cards for what we think are better options.
How Can A Teenager Get A Credit Card
There are three main ways a teen can get a credit card, and theyre all fairly straightforward:
Recommended Reading: Valero Gas Card Pre Approval
Does The Costco Anywhere Visa Business Card By Citi Offer Cash Back Rewards
Yes. The Costco Anywhere Visa® Business Card by Citi allows cardmembers to earn cash back rewards on everyday spending, such as office supplies, airline tickets, business lunches at restaurants, and more. You dont have to enroll in special categories like online shopping, home improvement or furnishings, or dining for example. There is also no annual fee1 with your paid Costco membership.
Citi Costco Anywhere Visa Approved
I just wanted to put this out there. It was a little bit of a hassle for me to get it, so I figured I would share with you guys.
I recently applied for the Citi Costco card online, maybe a week ago? and was instantly denied. Little bit of history: I have been working on my credit since 12/2016 and trying to build it up, back then my scores were around 580 across the board. At the time of application my scores were around 650 all around.
When I got the denial I was in the middle of an application spree . I hadn’t read anything here so my knowledge of credit applications and the entire process and recons was pretty slim. Back then I also applied for AMEX BCE , and Discover IT . At the moment, I didnt even read any reasons and did not think to call to recon with Citi or anything like that.
I got an e-mail this morning saying I was APPROVED for the Costco Anywhere Visa Card from Citi. With a SL of $4,000, say whaaa!?!? Awesomeness in the house. I was super excited and just wanted to share with all of you since all the information I have read here has been super informative and amazing to read about.
Thank you all for sharing your knowledge, whether little or vast, it is very much appreciated.
PS: Pardon any mistakes or missing info, I am new here so most likely the post is not perfect, thank you!
Recommended Reading: Pay My Best Buy Card Online
How It Stacks Up
How does the Costco Anywhere Visa Card by Citi compare to other cards? The short answer is, favorably. These days, 2% is a solid cash back rate. Thats what youll get with the Citi Double Cash Card, though because that card is on the Mastercard network its not quite as useful as the Costco Anywhere Visa Card by Citi. The Costco Anywhere Visa Card by Citi offers 3% on dining and eligible travel and 4% on eligible gas purchases , which means its rates are higher than those of the Citi Double Cash card.
Pros & Cons Explained
It is important to understand the pros and cons of the Citi Costco Anywhere Visa Card and how they will affect the value of the card in addition to your user experience. Before you sign up for this card, here are some of the pros and cons you need to consider.
- High rewards ratesThe 4% rewards rate for gas purchases worldwide is one of the best in the market, making the Citi Costco Anywhere Visa Card ideal for people who spend a lot on gas. This card also has generous rewards rates of 3% for travel and dining, which rivals some of the most popular travel cards in the market.
- No foreign transaction feesYou can use this card to pay for international purchases or when traveling outside the U.S. at no extra charge. This card is also widely accepted, making it a great option if you travel and want a cost-effective card.
- No annual feeIf you are a Costco member, you do not need to pay any fee for the Citi Costco Anywhere Visa card. This means you get great value because there are no annual costs eating into your rewards.
Consider comparing the Citi Costco Anywhere Visa Card with the best rewards credit cards. This can help you find out which cards offer the most value for different spending categories.
Read Also: Carecredit Mastercard Upgrade
All Costco Members Should Consider The Costco Card
If you benefited from the previous Costco credit card, you will likely be pleasantly surprised with the new cards rewards program. If you arent already a cardholder, theres really no reason not to get 2% cash back on your Costco purchases.
And if you arent already a Costco shopper, the new card provides a solid argument for paying for the membership simply because you cant earn as much as 4% back on gas and 3% back for dining and travel purchases with any other credit card, even with the Costco membership fee. If you just use your card for dining out, traveling, and the occasional Costco trip , it wont take much to rack up more rewards than your current go-to rewards card.
Earn With A Lucrative Rewards Rate
The Costco Anywhere Visa® Card by Citi comes with a remarkable rewards rate: 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases.
In the categories where it earns more than 1%, the Costco Anywhere Visa® Card by Citi produces far better returns than many other credit cards. The 4% rewards rate on gas alone makes this card one of the best credit cards for gas purchases. The 3% rewards rate on travel outperforms some of the top travel credit cards although you’re not earning miles, giving you fewer opportunities to maximize your rewards.
We’ve compared the estimated annual savings based on an average household budget between the Costco Anywhere Visa® Card by Citi and the Citi® Double Cash Card 18 month BT offer, which lets you Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
*For the Costco Anywhere Visa® Card by Citi, we assumed all gas and groceries were purchased at Costco.
Recommended Reading: Credit Card Committee
How Much Is A Costco Credit Card
Costco card holders pay a fee of zero dollars. Cardholders must be members of Costco to make purchases. You can purchase a Gold Star membership for $60 per year or a more lucrative Executive membership for $120 per year at base price. You receive 4% back on gas purchases from Costco and other gas stations on up to $7,000 a year. After that, you receive 1%.
Have A Low Credit Score Compare Credit Cards For Bad Credit
If you have no credit or bad credit and cant meet the minimum credit score for credit card approval of typical cards, you still have options. There are things you can do to help build up your credit rating and some forms of credit that youll still be eligible for in the meantime.
Don’t Miss: Cabelas Vis
How To Earn Rewards
The earning structure is where this card really stands out. Youll earn 4% cash back on eligible gas purchases , 3% back at restaurants and on eligible travel purchases, 2% back on in-store and online Costco purchases and 1% on everything else.
If youre maximizing gas purchases alone, thats $280 in rewards each year just for that bonus category alone.
Costco offers two levels of consumer membership Gold Star and Gold Star Executive . If you shop at Costco frequently throughout the year, combining this card with an Executive membership will earn even more in rewards. Executive members earn 2% back on the first $50,000 spent each year at Costco , Costco.com, and Costco Travel. Those rewards are stackable with the Costco Anywhere Visa. That means you can earn up to 5% on Costco Travel and 4% on other Costco in-store and online purchases .
If you arent shopping at Costco enough throughout the year to justify an Executive membership, the additional 2% back likely wont make it worth it to buy the higher level. But if you are someone who already shops at Costco enough to have the Executive membership, this no-annual-fee card is an excellent addition to your wallet.
Who Cannot Request A Higher Credit Limit
There are some exceptions to being able to request a higher credit limit. These include:
- Recently opened a card.
- Having a secured credit card
- Having a credit limit decrease in the last several months
If you do ask, the card will consider payment history, credit history, credit score, income, utilization rate, and the number of hard inquiries.
You’ll want to be sure all of these are in good standing to even potentially receive a credit limit increase. Otherwise, it’s more likely that you’ll be denied your credit increase. Just try again later when your situation has improved.
Recommended Reading: First Premier Gold Credit Card Reviews
What Credit Score Do You Need To Get A Costco Card
4.6/5CostcoshouldCostco Credit Cardthoroughly answered
You need a good for a Citi credit card in most cases. So you’ll have a shot with a of 660+, and your odds will be good with 700+. But it really depends on which card you’re after. Some Citi credit cards require higher scores, and one has no minimum score at all.
Also, what is the easiest credit card to get approved?
- Discover it® Secured. The Discover it® Secured card comes with no annual fee and a competitive APR while still offering bonus rewards for gas and restaurant purchases.
- Capital One Secured Mastercard.
- U.S. Bank Secured Visa® Card.
Also know, can you get a Costco credit card without a membership?
The Citi Costco Anywhere Visa card has no annual fee, but to apply, you must be a Costco member. A basic membership is $60 a year . The cash back on the card comes in the form of an annual certificate included in February billing statements. It can be redeemed for cash or merchandise at Costco stores.
Is the Costco credit card a good deal?
Capitalizing on Costco’s reputation for offering cheaper gas than the average fuel provider, the Costco Anywhere Visa card offers one of the best bonuses you can get on year-round gas purchases. It also offers a strong cash-back bonus on restaurant and travel spending and a decent bonus on other Costco purchases.
What Else Do I Need To Get Approved For The Costco Anywhere Visa Card
Theres no guarantee that you will be approved for a credit card regardless of how high your credit score is. Your credit score is probably the most important factor when considering your credit application. However, Citi also considers other factors such as your income, debt, and any negative items on your credit report.
You May Like: Interest Rate On Best Buy Credit Card
How Much Cash Back Rewards Can You Earn With The Costco Anywhere Visa Business Card By Citi
Costco Anywhere Visa® Business cardmembers earn Costco cash back rewards anywhere Visa® is accepted. Cardmembers earn:
- Earn 4% cash back rewards on eligible gas, for the first $7,000 per year, and then 1% thereafter
- Earn 3% on restaurants and eligible travel
- Earn 2% on all other purchases from Costco and Costco.com
- Earn 1% on all other purchases
Is It Worth Signing Up For A Costco Membership Just For The Costco Anywhere Visa Card By Citi
First Year Savings
If the Costco Anywhere Visa® Card by Citi appeals to you, but you aren’t a member of the wholesale store, it may be worthwhile to sign up to get the card. The most basic Costco membership costs $60 per year, providing you with unlimited shopping privileges at Costco locations and Costco.com. If we treat that as the credit card’s annual fee, the issue boils down to whether this card will get you enough cashback rewards to still come out ahead. If you spend $2,000 on restaurants and dining alone, the Costco Anywhere Visa® Card by Citi will earn you rewards that will compensate for the basic membership fee.
But you’ll need to be certain that you won’t charge more to the card than you can afford each month. The card’s standard APR is 15.24% and applies to balance transfers. If you don’t pay your statement in full, the savings you enjoy from this card could end up being meaningless.
Compare to other cards:
Don’t Miss: Credit Cards That Use Experian Only 2016