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Verdict: It can be difficult for young adults to qualify for traditional credit cards: They rarely have the credit history that most card issuers require. The Key Bank Young Adult MasterCard, though, is designed specifically for young adults with little to no credit history. Those young adults who can gain the signature of a cosigner who is at least 21 years of age, can qualify for this card from Key Bank. They can then go about building that much-needed credit history.
Overview: The Young Adult MasterCard operates like any traditional credit card. The cosigner is key: If the young adult holding the card fails to pay his or her bills, the cosigner will be responsible for paying up. This offers the protection that credit card companies need when working with consumers with limited credit histories.
How This Card Works: Those applying for this card need to be at least 16. They must apply with a qualified cosigner who is at least 21 years old.
Travel and Shopping Benefits: The main benefit of this card is that it will help young adults who use it wisely build a positive credit history. Card holders who pay their bill on time and refrain from running up a large amount of debt with their card will steadily cause their credit score to rise. Once their credit reaches a high enough level, they can apply for other credit cards, without the assistance of a cosigner, that come with rewards programs and other perks.
Fees: The Young Adult MasterCard comes with a purchase interest rate of 9.99 percent to 20.99 percent, depending on the applicant’s creditworthiness. There is no annual fee associated with the card. Cash advances cost either $10 or 4 percent of the advance amount, whichever figure is higher. Returned-payment, late-payment and over-the-limit fees can all reach $35.
- No annual fee.
- Can use to boost limited credit histories.
- The potential for a reasonable purchase interest rate.
- No perks or rewards programs.
- Interest rate can be high for cardholders with bad credit.